P03 JOFOC - 36C25921AP3463 - Redacted.pdf

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 4 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN

COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C259-21-AP-3463, CNH – Buckeye C, LLC dba Riverdale Rehab and Care Community of Brighton, Brighton, CO

RPOW JOFOC Tracker: 2021-12-13T13:18:48

1. Contracting Activity: Department of Veterans Affairs, 6162 S. Willow Drive Suite 300, Greenwood

Village, CO 80111 in support of the Rocky Mountain VA Medical Center, located on 1700 N.

Wheeling Street, Aurora, CO 80045. This action is funded by a 1358. Therefore, there is no associated 2237.

2. Nature and/or Description of the Action Being Processed: This procurement is for the establishment of a sole source Firm Fixed Price Indefinite Delivery Contract (IDC) for Community Nursing Home (CNH) Services for the Rocky Mountain VA Medical Center (VAMC) in Brighton, CO with Buckeye C, LLC dba Riverdale Rehab and Care Community of Brighton. It will utilize procedures in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2. This will be an Indefinite Delivery Contract (IDC).

The period of performance would be 01 May 2022 through 30 April 2027, 5 years (60 months) with a 6-month option (52.217-8 Option to Extend Services).

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The CNH will provide all facilities and services to support short- and long-term care for Veterans. These services include rehabilitation, nursing, and clinical care in accordance with the performance work statement. Buckeye C, LLC dba Riverdale Rehab and Care Community of Brighton will be a new contract with no prior history, and has met all requirements under VHA Notice 2019-22, Community Nursing Home Program (CNHP) and VHA Office of Community Care (OCC) Field Guidebook, Specialty Programs Section 1.2, Geriatric Extended Care (GEC). Additionally, they are certified under Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Colorado. This will be a 5-year IDC (60 Months), with a 6-month option (52.217-8). The period of performance will be 01 May 2022 through 30 April 2027. The total estimated value of this contract is . The estimated value of the 52.217-8 option (6 months), if exercised, would be approximately .

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason 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

PM Part 813.5 SAP for Certain Commercial Items Page 2 of 4

Revision 03 Date: 02/11/2021

( ) Public Interest

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 Buckeye C, LLC dba Riverdale Rehab and Care Community Center of Brighton meets VA standards for quality of care to provide care and treatment to Veterans. The CNH program requirements allow for Veterans to chose the CNH based on location or family and preference. In accordance with FAR 13.5, this requirement for community nursing home services will be a sole source IDC to the Buckeye C, LLC dba Riverdale Rehab and Care Community Center of Brighton. In addition, as stated in paragraph 6 below, no responses were received from any potential offerors regarding the sources sought notice issued for this procurement.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A Sources Sought Notice, 36C25921Q0731, was issued on 25 August 2021 and closed on 3 September 2021. No responses were received to the sources sought.

The notice requested basic contractor information from interested parties to gain knowledge of potential interested parties and their size classification (HUBZone, 8(a), small, small disadvantage, service-disabled Veteran owned small business, veteran owned small business or large business) relative to NAICS 623110 Nursing Care Facilities (Skilled Nursing Facilities) ($30 Million size standard). A search of the Medicare Compare website https://www.medicare.gov/care-compare/ resulted in two nursing homes within five miles of Brighton, CO. The VA Vendor Information Page (VetBiz) was used to determine if potential offerors exist who would be able to provide the services required. However, the site failed to produce any results for Brighton, CO. The CNH Guidebook requires the CNH Coordinator to review the Medicare Compare Score to determine if the CNH is above or below the required score to determine if a waiver is required or not before a new CNH may be considered for a contract. As a part of the acquisition process, a CNH must provide a current state license, insurance, and a copy of the state inspection. These documents are provided to the CNH Program Coordinator for review and evaluation. The CNH Coordinator will either provide a recommendation to contract or state that the CNH did not receive a recommendation to contract.

A redacted J&A will be posted on Contract Opportunities.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Medicaid rates are used as the basis for pricing CNH contracts. The Medicaid rates are established by each state based on national average. The VA Geriatrics and Extended Care Office through the VHA Procurement Manual (VHA PM) and VA PULSE publishes an annual maximum allowable percentage that are applied to each RUGS IV category. The Medicaid rate and the VA add-on percentage make up the per diem rate paid for each Veteran. The line-item structure will illustrate the different RUGS IV category and the add-on percentage and the total per diem rate for each level of care. After conducting research on the current Medicaid and RUGS IV rates, the CO will evaluate the Offeror’s rate to determine if the price per diem rates are fair and reasonable. If not, the Government will negotiate a change in the rate based on the allowable add-on percentage established by the Office of Geriatrics and Extended Care. The add-on percentages do not change through the life of the contract.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: As described in Section 6 above, a search of the Medicare Nursing Home Compare website https://www.medicare.gov/care-compare resulted in 2 Community Nursing Homes within the zip code of 80601 Brighton, CO. The CNH Coordinator reviewed the Medicare compare score and determined a waiver was not required. A search of VetBiz using zip code 80601 and the NAICS code 623110, yielded no results. A search of the SBA Small Business Dynamic Search was conducted using the NAICS code 623110 and zip code 80601 and there were no results. A Sources Sought announcement (36C25921Q0731) was posted on 27 September 2021 and

PM Part 813.5 SAP for Certain Commercial Items Page 3 of 4

Revision 03 Date: 02/11/2021 closed 8 October 2021. No responses were received to the sources sought. Typically, CNH's are not competed. Based on the CNH program requirements, the Veteran’s preference is taken into consideration when selecting a CNH based on the Veteran needs, proximity to home/residence and family. The CNH Program Coordinator at the Medical Center reviews the Medicare compare score of various CNHs in a given area to determine the feasibility to meet the Veteran’s needs. The CNH coordinator determines the number of CNH's that may be required in an area based on future needs.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: This CNH is located near the family of the Veteran.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other nursing homes have expressed interest in this acquisition. Buckeye C, LLC dba Riverdale Rehab and Care Community of Brighton has expressed interest to providing CNH services to the VA and in providing care and services to the Veterans placed there.

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:

There is currently only one (1) facility capable of providing the specialty care and medical needs of the existing Veterans. Based on the CNH program requirements, the Veteran’s preference is taken into consideration when selecting a CNH based on the Veteran’s needs, proximity to home/residence and family. The CNH Program usually attempts to inspect a sample of CNHs in each area to provide the Veterans with several choices but there has been a hold on doing these in person inspections due to COVID and access restrictions. However, the selection of the CNH is determined on whether the CNH has the resources available to meet each Veteran's needs. The CNH Program Coordinator is responsible for conducting market research and required inspections to increase the number of available and qualified CNH's. The contracting office and CNH Program office will continue to canvas the market for new CNH entrants capable of meeting program requirement.