P03 - JNA - 36C259-26-AP-1197- 442 Home Oxygen Interim_v_Redacted.pdf

RFO Part 12.201-1 Restricting Competition Page 1 of 4 Acquisition ID#: 36C259-26-AP-1197

DEPARTMENT OF VETERANS AFFAIRS (VA)

Justification and Approval (J&A) For

Restricting Competition IAW RFO 12.201-1

Acquisition Plan Action ID: 36C259-26-AP-1197 RPOW JOFOC Tracker Number: FY26-NCO 19-743

1. Contracting Activity: Department of Veterans Affairs (VA), Network Contracting Office (NCO) 19, 6162 S. Willow Drive, Suite 300, Greenwood Village, CO 80111, in support of the Cheyenne VA Medical Center located at 2360 E. Pershing Blvd. Cheyenne, WY 82001. This requirement is funded by 1358 instead of 2237.

2. Nature and/or Description of the Action Being Approved: This requirement will be an interim bridge sole source, Firm-Fixed-Price, Indefinite-Delivery/Indefinite-Quantity (ID/IQ) contract for Home Oxygen Services in the Cheyenne VAMC catchment area to Rocky Mountain Medical Equipment, LLC. This interim bridge requirement is to provide Veterans Integrated Service Network (VISN) 19 Veteran beneficiaries with home oxygen services while allowing time to award a new long-term contract, resolve any protest received, and allow time for a transition period if necessary.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This acquisition will provide home oxygen services to include the provision, delivery, setup, maintenance, and servicing of home oxygen therapy equipment and supplies for eligible Veterans residing within the VA Cheyenne Health Care System’s catchment area. This includes, but is not limited to, Oxygen concentrators (stationary and portable), liquid oxygen systems, Compressed gas cylinders, related accessories (e.g., tubing, cannulas, humidifiers), 24/7 emergency support and maintenance, and patient education and safety checks. This interim bridge contract will be for one year with an estimated period of performance from April 1, 2026, to March 31, 2027. The total estimated value is The resulting contract will include the RFO clause 52.217-8, Option to Extend Services. If exercised for up to 6 months, the RFO 52.217-8 option will be exercised at the same rates as those in effect under the contract at the time the contract is extended.

4. Statutory Authority Permitting Other than Full and Open Competition: RFO 12.201, Simplified

Procedures. The statutory authority for applying the Simplified Procedures for Commercial Items of RFO 12.201 is 41 U.S.C. § 1901 and is implemented by RFO 12.102(b) for restricting competition on this procurement. Competition is restricted on this procurement for the reason selected below:

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements ( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

RFO Part 12.201-1 Restricting Competition Page 2 of 4

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The nature of home oxygen therapy is such that any delay or disruption in service could pose a serious risk to patient health and safety. The incumbent contractor, Rocky Mountain Medical Equipment, LLC, is currently set up and capable of continuing essential services without disrupting the care of Veterans or a substantial duplication of costs to the Government. Transitioning to a new provider at this time would result in unacceptable delays in service delivery due to the time required for patient reassessment, equipment retrieval and replacement, and re-education. It would also incur substantial duplication of costs to onboard a new contractor, including logistics, patient transitions, and potential equipment write-offs.

With an estimated phase-in period of 90-180 days, it could cost three to six months of contract cost to transition a new short-term contractor. On average, the monthly cost for this requirement is per month. With the estimated phase-in period, the total duplication of cost just for the transition period would be between and . Many Veterans rely on oxygen therapy for daily survival, and even a short lapse in service could result in emergency room visits, hospitalizations, or worse. Such an outcome directly contradicts the VA's mission of providing comprehensive, timely, and high-quality care to our nation's Veterans. Historical transitions of these services on previous requirements have taken up to six months for new contractors to be fully operational without relying on the prior contractor's support. Invoicing for current services takes up to two weeks for review for possible errors and submission and is often delayed due to the number of invoices received. Onboarding a new vendor would unduly delay and create an administrative effort for the program office to review incumbent invoices and train a new short-term provider. The administrative effort required to learn this process is extensive, and it would not be efficient or streamlined to consider a new vendor during the current procurement process for long-term services. Ensuring uninterrupted and efficient delivery of home oxygen services is critical to maintaining the health and well-being of Veterans who depend on these life-sustaining services.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as possible: A Notice of Intent to Sole Source 36C25926Q0136 was posted on December 10, 2025, with a response date of December 24, 2025. Firms were invited to submit supporting evidence in sufficient detail to demonstrate their ability to fulfil the requirement for the estimated period of performance. Two

(2) responses were received. This Justification and Approval (J&A) will be posted to Contract Opportunities as required by RFO 6.301(a). No other actions will be taken or planned to facilitate competition for this acquisition.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer will determine the offered pricing for the interim bridge contract as fair and reasonable based on a comparison to historical pricing data for these same services in VISN

19. The unit prices in the interim bridge contract will remain the same as the unit prices included in the current contract. The existing prices under the current contract were determined to be fair and reasonable before award after competitive solicitation. Additionally, the pricing was established before recent increases in inflation and cost of living, resulting in a discount to the VA compared to current contract pricing on similarly awarded contracts.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted: A Notice of Intent to Sole Source 36C25926Q0136 was posted on December 10, 2025, with a response date of December 24, 2025. Two (2) responses were received. One (1) response was received from a Service-Disabled Veteran Owned Small Business (SDVOSB), VESEQU, who stated they can fulfill the requirement; however, did not provide supporting evidence of their ability to fulfill the requirement or how they would be able to perform during the estimated period of performance, as stated in the Notice of Intent to Sole Source. One (1)

RFO Part 12.201-1 Restricting Competition Page 3 of 4 response was received from a Small Business (SB), Northwest Respiratory Services (Northwest), who stated they can fulfill the requirement, and currently perform home oxygen services for the VA in Fort Harrison, MT and Sheridan, WY indicating that their Rock Springs, WY office would service the Cheyenne, WY catchment area. While Northwest does appear to have experience, they did not provide supporting evidence in sufficient detail of their ability to fulfill the requirement or how they would be able to perform during the estimated period of performance, as stated in the Notice of Intent to Sole Source.

In summary, neither of the responses received from the Sources Sought appeared capable of fulfilling the VA requirement and the VA simply does not have enough time to transition to a new vendor without interrupting services to Veterans and incurring a substantial duplication of cost associated with a transfer period. Transition to a new vendor requires collaboration and coordination across VA fiscal, medical centers, and program support staff, scheduling and issuing of all equipment, and training to all Veterans in the catchment area. Additionally, the time needed for vetting of vendor staff to include background checks, identification and completion of VA required training is substantial and would not be completed to meet the current timeline of April 1, 2026.

A search on Small Business Search (SBS) utilizing NAICS 621610 was conducted on February 10, 2026. The search resulted in one (1) Woman-Owned Small Business (WOSB), two (2) Service-Disabled Veteran-Owned Small Businesses (SDVOSBs), and six (6) Small Businesses (SBs). These vendors will not be considered as none of these results indicated vendors with experience or capability with in-home health care/home oxygen services. Two (2) results identify vendors capable of providing in-home care services (care practitioners) however, these vendors do not provide home oxygen services. The Rule of Two cannot be met, as these vendors cannot meet capability, timeline or prevent a substantial duplication of costs.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The continuity of care for Veterans receiving home oxygen therapy is a critical healthcare priority directly aligned with the VA's mission to provide exceptional service and care to Veterans. A disruption in service could result in serious health consequences, including hospitalization or even death. The logistical complexity of transitioning hundreds of patients to a new provider, each with individualized equipment and care plans, requires months of meticulous planning and coordination. This interim bridge contract ensures that no lapse in care occurs, safeguarding the health and well-being of Veterans while also allowing time for a new competitive long-term contract with a transition phase.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

VESEQU, LLC

Northwest Respiratory Services Rocky Mountain Medical Equipment, LLC

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to

Competition before Making subsequent acquisitions for the supplies or services required: The Government will continue to conduct market research over the life of the contract to ascertain if there are changes in the marketplace that would enable future competitive actions to be completed. All future requirements for this service will be competed to the greatest extent practicable.

RFO Part 12.201-1 Restricting Competition Page 4 of 4

12. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Cheyenne VA Medical Center

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Network Contracting Officer (NCO) 19

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Network Contracting Office (NCO) 19

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $90 million) or approve ($900K to $90 million) for other than full and open competition.