P03 - JOFOC Lincoln County CBOC Bridge CO DC signed.pdf

Part 806.3 Other Than Full and Open Competition (OFOC) Attachment 7: Request for Sole Source Justification Format >SAT

Rev: 13 Effective Date: 02/01/22 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C260-24-AP-4153

1. Contracting Activity: Department of Veterans Network Contracting Office 20 (NCO 20) Department of Veterans Affairs, VISN 20, VA Portland Health Care System (VAPORHCS) is requesting to implement a short-term sole source contract for the Lincoln County Community Based Outpatient Clinic (CBOC). This will allow time for the VAPORHCS to develop a long-term acquisition plan.

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

VAPORHCS needs a new short-term, sole-source, contract with Lincoln County, Oregon, to continue CBOC operations. This Indefinite Delivery/ Indefinite Quantity (IDIQ) contract will cover a total of twelve (12) months: an initial nine (9) months (September 1, 2024, through May 31, 2025), with three (3) additional one (1) month options available if needed. Lincoln County Health and Human Service is the Contractor. 2237: 648-24-4-031-0032

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

The purpose of this procurement is to continue a contract with the incumbent contractor to provide primary care medical services (i.e., telehealth, mental health, clinical pharmacy, nutrition, and social work services) IAW VA and joint commission regulatory requirements to eligible Veterans in the Lincoln County area. The contract covers physical space, staff and supplies necessary to provide services in accordance with the performance work statement. Services will be provided to approximately 1,297 eligible Veterans at an estimated capitated rate of $44.39 for an estimated total of $ 690,885.96. This amount included three one-month options if necessary for a total of 12 months if all options are exercised.

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

41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

( ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

(X) (8) FAR subpart 13.5 are used in accordance with 41 U.S.C 1901 or the authority of 41U.S.C 1903

Rev: 13 Effective Date: 02/01/22 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 incumbent Contractor currently provides qualified and trained staff, clinic space, and supplies for the 1,297 enrolled Veterans at the Lincoln County CBOC. The staff are credentialed by VAPORHCS, have active PIV cards, and have completed background investigations through OPM.

Competing a new contract effective September 1, 2024, is not a reasonable option, as it takes up to two months to certify and on-board unlicensed staff, and up to four months to on-board licensed staff (i.e., nurses and providers). Conducting background investigations, fingerprinting, credentialing, and privileging multiple staff prior to September 1, is unrealistic for both a contractor and the VA.

Acquiring new clinic space and required supplies to meet all VA, state, and federal regulatory requirements is not feasible by September 1, 2024.

The requirements outlined above, justify the continuation of CBOC operations in Lincoln County by the incumbent provider as a sole source under a short-term bridge contract IAW 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5.

This bridge contract is for 12 months, A nine (9) month base period 09/01/2024 to 05/31/2025 and three (3) one (1) month option 06/01/2025 to 08/31/2025. This will ensure that a timely competitive award can be made and provide onboarding and stand-up time for a new contractor if needed.

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

VAPORHCS has identified a requirement to utilize a bridge contract with the incumbent while a long-term contract is competed for primary care services within Lincoln County, Oregon, and the surrounding catchment areas.

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

Reasonable:

The established reimbursement methodology is a capitated rate which reimburses the contractor on a flat rate of per patient, per month regardless of the type of care provided. A capitated rate of $44.39 has been determined to be fair and reasonable under the expiring contract and will continue to be used for the bridge contract. Additionally, this rate is comparable to the rate used at the Bonner

County VA Contract Clinic in Idaho. Bonner County CBOC is similar in size and scope to Lincoln

County.

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

Market Research Was Not Conducted:

Updated market research (attached) was conducted and there is not enough capacity in the local community to provide timely access to care for the existing Veterans enrolled at the Lincoln

County VA Contract Clinic.

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

The potential for Veterans in Lincoln County to experience a lapse in care due to untimely treatment is high. This circumstance creates concern for patient safety.

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Under the expiring contract, FAR 52.217-8, “Option to Extend Services”, is being used to extend services through August 31, 2024. As outlined in Paragraph 5 above, any organization but the incumbent provider will not have sufficient time to meet requirements for space, supplies or staffing for the Lincoln County CBOC.

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

Lincoln County Health and Human Services Lincoln County Oregon 36 SW Nye St.

Newport, Oregon 97365

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:

A new long-term contract solicitation package will be submitted when new Mission partner completes package 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.

David L. Holt, MBA, FACHE Medical Center Director VA Portland Health Care System

Date

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.

Bethany Ireton Branch Chief, Health Care Resources Network Contracting Office 20 (NCO 20)

JOFOC:FY24-NCO20-2145

Date https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

Rev: 13 Effective Date: 02/01/22 Page 4 of 4

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Peggy L. Corcoran

Chief, Division II

Network Contracting Office 20 (NCO 20)

Date