P03_JOFOC for CNH Canyon Hills Health Care Center AP0872 REDACTED.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C259-20-AP-0872, Canyon Hills Health Care Center, INC, Heritage Hills Rehabilitation and Care Center, Salt Lake City VAMC

1. Contracting Activity: Department of Veteran’s Affairs, Network Contracting Office 19 (NCO19), 6162 South Willow Drive, Greenwood Village, CO 80111. 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 VA Salt Lake City Health Care system to Canyon Hills Health Care Center, INC, Heritage Hills Rehabilitation and Care Center located in Nephi, UT. This will be a 5-year IDC (60 Months). The period of performance will be 29 February 2020 through 30 September 2024.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for the establishment of an IDC utilizing 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 acquisition does not fall within FAR Part 8 Required Sources of Supplies and Services, therefore the procedures associated with limited sources justification will not be utilized.

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 Veteran’s. These services include rehabilitation, nursing, and clinical care in accordance with the performance work statement. The current contract VA259-14-A- 0147 expires on 29 February 2020. Canyon Hills Health Care Center, INC, Heritage Hills Rehabilitation and Care Center has met all requirements under VA policy/directive established by the Office of Geriatrics and Extended Care.

Additionally, they are certified under Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Utah. This will be a 5-year IDC (60 Months).

The period of performance will be 29 February 2020 through 30 September 2024.

The total estimated value of this contract is $1,500,000.00

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(1), as implemented by FAR 6.302-1 (a)(2).

(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;

FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C.

1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2).

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the

Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Currently, there are no Veteran’s being treated and housed at the Canyon Hills Health Care Center facility under an existing BOA. However, the Montana Medical Center has patients waiting to be placed in the near future. The facility resides in a rural area and no other homes are available or capable of providing care in the zip code. Canyon Hills Health Care Center nursing home facility meets VA standards for quality of care to provide care and treatment to Veteran’s. They have consistently provided quality care to our Veteran’s. In accordance with FAR 6.302-1, this requirement for community nursing homes services will be sole sourced to the Canyon Hills Health Care Center facility. 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: No new CNH has expressed interest in doing business with the Government. A search of the Medicare Nursing Home Compare website https://www.medicare.gov/nursinghomecompare/search.html resulted in 1 community nursing home in Nephi, UT where the current CNH is located. The VA Vendor Information Page (Vet Biz) 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 Nephi, UT. The CNH program requires that any new CNH's that want to do business with the Government must pass a series of inspections. The CNH must pass a clinical inspection and a life safety inspection. The CNH Program Coordinators meet with the CNH to understand the services that are offered. Once the CNH passes these inspections, they can be considered for a contract. As part of the acquisition process, a CNH must provide a https://www.medicare.gov/nursinghomecompare/search.html 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 Contracting Officer (CO) that the Anticipated Cost to the

Government will be Fair and Reasonable: The Medicaid rates are used as the basis for pricing the CNH contracts. The Medicaid rates are established by each state based on national average. The VA Geriatrics and Extended Care Office through the VHA PM and VA pulse publishes an annual maximum allowable percentage that are applied to each RUGS IV category. The RUGS IV category identify the different levels of treatment. The add-on percentages are added to the basic Medicaid rate then 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 has determined that the results are determined to be fair and reasonable when the add-on percentage agreed upon by both parties is at or under the maximum allowable percentage established by VA. 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/nursinghomecompare/search.html resulted in 1 community nursing home in Nephi, UT where the current CNH is located. The VA’s Vendor Information Page (Vet Biz) was used to determine if potential offerors exist to provide additional competition. However, the site failed to produce any results for Nephi, UT. Results of the market research show there is no other CNH that expressed interest. 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 attempts to inspect a sample of CNH's in a given area to provide the Veteran with several choices. However, the selection of the CNH is determined on whether the CNH has the resources available to meet the 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 that can pass the Government's inspections.

https://www.medicare.gov/nursinghomecompare/search.html

HEATHER B.

BITTINGER

988671

Digitally signed by

HEATHER B. BITTINGER

988671 Date: 2020.02.06 13:51:55 -07'00'

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

The medical center is anticipating placing Veteran’s at this CNH in the near future.

The facility resides in a rural area and no other homes are available or capable of providing care in the zip code.

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

No other CNH expressed interest in this acquisition. The current contractor, Canyon Hills Health Care Center, INC, Heritage Hills Rehabilitation and Care Center, has expressed an interest to continue providing CNH services to the VA and continue in providing care and services to the Veteran’s.

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 Veteran’s.

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 attempts to inspect a sample of CNH's in a given area to provide the Veteran’s with several choices. 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 that can pass the Government's inspections. The contracting office and CNH Program office will continue to canvas the market for new CNH entrants capable of meeting program requirements.

12. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veteran’s 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.

Heather Bittinger Date CNH Program Coordinator Facility: VA Salt Lake City Healthcare System

Joshua R. Digitally signed by Joshua R.

Gallegos 1380028

Gallegos 1380028 Date: 2020.02.06 13:58:14 -07'00'

David J. Medina 748952

Digitally signed by David J.

Medina 748952 Date: 2020.02.11 10:10:06 -07'00'

CURTIS M Digitally signed by CURTIS

M JORDAN 597130

JORDAN 597130 Date: 2020.02.21 06:37:54 -07'00'

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

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

Joshua Gallegos Date Contracting Officer Specialized 1 Branch Network Contracting Office 19

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

David J. Medina Date Specialized 1 Branch Chief

c. NCO-19 Director of Contracting REVIEW AND APPROVAL (over $700,000 to $13.5 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for other than full and open competition.

DANNY O.

Digitally signed by DANNY O.

FREEMAN 170000

FREEMAN 170000 Date: 2020.02.18 13:20:45 -07'00'

Danny O. Freeman Date Director of Contracting

d. VHA RPO HCA REVIEW AND APPROVAL (over $700,000 to $13.5 million):

I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for other than full and open competition.

Curtis M. Jordan Date Executive Director, RPO West Head of Contracting Activity (HCA)

02/18/202 http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx