P03_JOFOC for CNH Heritage Care Center AP-0072 Redacted.pdf

OFOC SOP Revision 08 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: 36C259-20-AP-0072, Heritage Care Center, Community Nursing

Home, Salt Lake City VAMC

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19 (NCO19):

6162 South Willow Drive Greenwood Village, CO. 80111

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 Heritage Care Center located in the city of American Fork, Utah.

The current contract VA259-14-A-0146 expires December 31, 2019. The IDC will be written for five years.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for a Community Nursing Home in American Fork, UT 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.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This procurement is for a sole source contract for a Community Nursing Home in American Fork, UT. The CNH must meet the program requirements stated in VA Handbook 1143.2. All potential CNH’s must pass an initial inspection conducted by the VA Medical Center and comply with the requirements of the VA

Handbook 1143.2. Additionally, the CNH must be certified under Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Utah. We anticipate awarding the IDC prior to 31

December 2019. The IDC will be written for five years. The estimated performance period will be from 1 January 2020 to 31 December 2025. The estimated value for this IDC is

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).

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): Currently there are 5 Veterans being housed/treated at the Heritage Care Center under an existing five-year BOA. The community nursing home facility meets VA Exclusionary Review quality of care standards to provide treatment to Veterans. The community nursing home has had a contract with the VA since 2014.

They have consistently provided care to our Veterans. The VA patients at this facility cannot be moved without causing undue medical hardship. An attempt to move the patients would cause a disruption in treatment plans and stress on the patient and family members. In accordance with FAR 6.302-1, this requirement for Community Nursing Home Services will be sole sourced to Heritage

Care Center They are currently meeting the needs of the VA Medical Center and Veterans in the area.

Accordingly, Heritage Care Center is the only firm capable of providing the services described in

Section III above without the Veteran’s Health Administration experiencing unacceptable delays in fulfilling its requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The CNH program coordinator has not identified any new CNHs to be considered for the American Fork, UT area. A search of the Medicare Nursing Home Compare website https://www.medicare.gov/nursinghomecompare/search.html resulted in 2 community nursing homes within the zip code of American Fork, where the current CNH is located. However, 1 out of the 2 CNH’s in American Fork, UT have not had inspections required by the VA to be determined as a possible home to place Veterans in. The Small Business Administration and the VA’s Vendor Information Page (VetBiz) websites were used to determine if potential future offerors existed to determine additional competition. VetBiz failed to produce any results for the American

Fork, UT area. The SBA website found two potential sources that if VA- required inspections were conducted, could be potential sources for future procurements. The J&A will be posted on FBO.

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 for CNH contracts. The Medicaid rates are established by each state. The VA Geriatrics and Extended Care Office publish the maximum add-on percentages that can be proposed for each Medicaid category or Resource

Utilization Group (RUG). The IDC Contract Line Item Number (CLIN) structure will reflect the RUGS IV levels of care. The add-on percentages do not change through the life of the contract. These maximum add-on percentages can be found in the Veterans Health Administration Procurement

Manual Community Nursing Home SOP (Attachment 17). Since pricing will be based entirely on State-established Medicaid rates, the published VA Geriatrics & Extended Care Office maximum add-on percentages, and the RUG Classification per-diems for levels of care, the Contracting Officer determines that the anticipated cost to the Government will 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: As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. The Small

Business Administration website and the VA’s Vendor Information Pages (VetBiz) were used to determine if competition exists. However, only SBA provided two potential sources for future consideration pending required VA inspections and need. A search of the Medicare Nursing Home

Compare website (https://www.medicare.gov/nursinghomecompare/search.html) resulted in 2 CNH within the city of American Fork, UT. A sources sought (36C25920Q0055) was posted on

FedBizOpps on 5 November 2019 and closed on 18 November 2019. There were no responses to the sources sought.

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

Revision 08 Date: 04/18/2018

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: There are currently 5 Veterans placed in Heritage Care Center that cannot be relocated due to continuity of care and medical complexity. Also, the CNH facilitates a location near the families of these Veterans.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No new

Community Nursing Homes have expressed interest in the acquisition besides Heritage Care Center who is the incumbent and currently providing care to 5 Veterans.

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 facility capable of providing the specialty care and medical needs of the existing patients and that is the incumbent Heritage Care Center. The contracting office will continue to canvas the market for new CNH entrants capable of meeting future program requirements.

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.

Name: Heather Bittinger Date Title: Community Nursing Home Program Social Worker Facility: Salt Lake City VA Medical Center

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 Network Contracting Office 19 http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

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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.

_ 18 Dec 2019

Albert Williams Date Division 1 Chief

Danny O. Freeman Date

NCO-19 Director of Contracting

c. VHA SAO 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 $68 million) or approve ($700K to $68 million) for other than full and open competition.

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