P03-JOFOC 36C25920AP2611 HomeOxygenInterim_REDACTED_FBO.pdf

OFOC SOP Revision 08 Page 1 of 4 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID:_VA259-20-AP-2611, Rotech Healthcare INC

Tracking ID:__ _________________________________

1. Contracting Activity: Department of Veterans Affairs, 6162 S. Willow Drive, Suite 300, Greenwood Village, Colorado 80111, in support of the Veterans Integrated Service Network (VISN) 19. This action is funded by a 1358. Therefore there is no associated 2237.

2. Nature and/or Description of the Action Being Processed:

This action will be for an interim home oxygen services contract. This acquisition will be a firm-fixed price requirements contract that encompasses all of VISN 19 stations. Since home oxygen services is a critical service, and the new contract will not be awarded in time for a contractor to start performance on July 1, 2020, an interim contract is necessary. A lapse in service is not acceptable. The incumbent, a large business, is the only company able to provide the services necessary during this period since it would require a new contractor to mobilize and exchange new equipment and allow for a transition period.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

This interim contract will provide for the rental and services of home oxygen equipment to be delivered to the Veteran’s home. It will include the following but not limited to, compressors, portable oxygen machines, tanks, racks, and liquid oxygen systems, delivery, set-up, and resupply of oxygen as necessary to meet the medical needs and prescriptions for our Veterans, and repair, and pick-up of equipment, resupply of expendable supplies (nasal cannulas, hoses, etc.) and medical grade oxygen, and quarterly checks from a Certified Respiratory Therapist or a Registered Respiratory Therapist in accordance with the statement of work. The value of this contract will be approximately if all options are exercised including FAR 52.217-8, Option to Extended Services. NCO-19 is proposing a base period of 3-months with one (3) three-month option period with the incumbent contractor, Rotech Healthcare. As stated before this will also include a (6) six-month option FAR 52.217-8, Option to Extend Services.

4. Statutory Authority Permitting Other than Full and Open Competition:

41 USC §3304(a)(1), as implemented by FAR 6.302-1

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

OFOC SOP Revision 08 Page 2 of 4 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

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 incumbent contractor, Rotech Healthcare, is the only company that can reasonably perform in sufficient time and with reasonable cost to continue this service. Any other company, other than the incumbent, would be exposed to transitioning all patients immediately. This disruption to servicing Veterans would not be in the best interest of the Government. The incumbent contractor already has equipment and personnel in place to provide this service for the additional time. Therefore, no additional mobilization resources are necessary for the incumbent contractor to continue performance. This puts the incumbent contractor in a unique position to be able to provide this service in a manner that no other competitor could. Accordingly, Rotech Healthcare Inc. is the only firm capable of providing the supplies and services described in Section III above without VISN 19 experiencing unacceptable delays in fulfilling its service requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

Due to time constraints, an offer will only be sought from the incumbent contractor.

However, the new contract for Home Oxygen services across VISN 19 (i.e. Solicitation No.

VA259-17-R-0100) is being competed as a SB set-aside after appropriate market research was conducted.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable:

The current pricing being paid to the contractor has already been verified to be fair and reasonable by a warranted Contracting Officer. The Contracting Officer for this action will review the pricing offered and will use the pricing from the current contract to verify those prices offered to be fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

For this action, no market research was conducted. For the reasons stated above, it is not likely that any other offeror would be able to reasonably act immediately in order to transition patients without interrupted service. The incumbent contractor is the only source that would be able to continue services due to its unique position of already having the equipment and staffing in place.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

The Department of Veterans Affairs (VA) has a requirement for home oxygen services for VA beneficiaries throughout VISN 19. NCO 19 issued Solicitation No. VA259-17-R-0100 for a VISN-wide contract. This source selection was the competitive follow-on contract to the current contracts in place. We currently have one contract that support VISN 19, 36C25918D0179. A Government Accountability Office protest (B-414506.5) was received for the award decisions of VA259-17-R-0100. The corrective action process resulting from the GAO protest will take a while to implement and will go beyond the period of performance of 30 June 2020 for the current contract that covers the VISN 19 stations.