P03 JOFOC Linen Dispenser 022124_Redacted.pdf

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 1 of 5 Revision: 02 Effective Date: 04/15/2023

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C261-24-AP-1463 JOFOC Tracker: FY24 - NCO 21 - 965

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO 21) on behalf of VISN 21, VA San Francisco Medical Center at 4150 Clement Street, San Francisco, CA 94121

PR 2237: 662-24-3-6604-0039

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

This procurement is for the continuity of the current lease of ScrubEx and alEx Automated Scrub and Linen Dispensers and Collectors 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.

The referenced equipment is currently being utilized at the San Francisco VA Medical Center under a base plus 1, annual lease. This will be a continuation of the current lease and will work towards the continuity of care that is required. This lease requirement has been previously procured through L1 Enterprises, Inc, a Service Disabled Veteran Owned Small Business (SDVOSB). This action is intended to be a Firm Fixed Price.

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

The Period of Performance for the requirement is intended to be:

Base:

OY1:

04/20/2024-

- 0

The contract is intended for use by the VA San Francisco Health Care System and VA facilities located within the VISN 21 catchment area. The ScrubEx Automated scrub and alEx Automated linen dispensing and receiving machines are needed by the VA San Francisco VAMC . These machines work in concert with existing VA systems and machines on site as well as each other and limit users to one scrub set and linen at a time. The required machines work with the current tracking software which allows use of the current user database. The dispensers and receivers are strategically placed

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Effective Date: 04/15/2023 throughout the hospital to ensure just-in-time (JIT) delivery to authorized users. AlEx SD and AlEx LC will allow the Service to reduce costs while at the same time monitor the distribution of linen by Environmental Management Service (EMS) management staff. This system stores data on who received linen, it’s weight and cost amount.

Contractor is to provide the following:

SE-7003 alEx LC Dispensers 7 each SE-7003-MV - alEx MC Dispensers 4 each SE-7003-SV - alEx SC Dispensers 6 each SE-1150-SC - scrub Ex System Master Kit 1 AlEx ASC Dispenser (SE-7003) 3 each

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 819.7008 (DEVIATION) or VAAR

819.7009 (DEVIATION) up to $5,000,000. Check the specific VAAR clause used below:

( X ) 819.7008 Sole source awards to a certified service-disabled veteran-owned small business;

or ( ) 819.7009 Sole source awards to a certified veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Per the authority 38 U.S.C. 8127(c). The Contracting Officer may award a sole source contract if he/she has identified a Service Disabled Veteran-Owned Small Business (SDVOSB) capable of providing the products and/or services at fair and reasonable prices, and is in the best interest of the government.

38 U.S.C. 8127(c) - Sole Source Contracts for Contracts Above Simplified Acquisition Threshold. – For purposes of meeting the goals under subsection (a), and in accordance with this section, a Contracting Officer of the department may award a contract to a small business concern owned and controlled by veterans using procedures other than competitive procedures if - (1) such concern is determined to be a responsible source with respect to performance of such contract opportunity;

(2) the anticipated award price of the contract (including options) will exceed the simplified acquisition threshold (as defined in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)) but will not exceed $5,000,000; and (3) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price that offers best value to the United States.

Note: 38 U.S.C 8128. “Small business concerns owned and controlled by veterans: contracting priority” (a) Contracting Priority. - In procuring goods and services pursuant to a contracting preference under this title or any other provision of law, the Secretary shall give priority to a small business concern owned and controlled by veterans, if such business concern also meets the requirements of that contracting preference.

The authority for this J&A is cited in 41 U.S.C. 3304(a)(5), as authorized by 38 U.S.C. 8127(c).

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Effective Date: 04/15/2023

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies:

Per the authority 38 U.S.C. 8127(c). The Contracting Officer may award a sole source contract if he/she has identified a Service Disabled Veteran-Owned Small Business (SDVOSB) capable of providing the products and/or services at fair and reasonable prices, and is in the best interest of the government.

This request is proprietary and only has one (1) small business that’s socio-economic status is service-disabled veteran-owned and are exclusively authorized to distribute for IPA scrubEx® and alEx® leases at the VA San Francisco Healthcare System. An exclusive authorized distributor letter was obtained by the Contract Specialist demonstrating that a sole source to L1 Enterprises was prudent.

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

The Contracting Officer will review and determine if the anticipated price is considered fair and reasonable. The Government will document how pricing was determined as fair and reasonable in the FAR Part 13 Open Market Award Decision Documentation Form. The basis of price reasonableness will be determined based on comparison with historical pricing of similar items as well as the Independent Government Cost Estimate.

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

Market Research Was Not Conducted:

The following sites and databases were utilized: The Federal Procurement Data System (FPDS), General Services Administration (GSA) Advantage and eLibrary, Solutions for Enterprise Wide Procurement (SEWP), System for Award Management (SAM.Gov), the Supply Chain Master Catalogue (SCMC), and VetCert. Additionally, recent procurements were reviewed, including documents from 36C26122P0525 and 36C26121P0564.

VetCert was reviewed, utilizing the North American Industry Classification System (NAICS) code 339112 (Surgical and Medical Instrument Manufacturing), where 659 SDVOSB and VOSBs were found.

FPDS was reviewed, where 36C26122P0525 was found awarded to L1 Enterprises Inc (SDVOSB) in the amount of as a sole source on 04/14/2022. 36C25523P0756 was found, awarded on 09/07/2023 in the amount of to L1 Enterprises Inc as a sole source.

GSA Advantage was reviewed using keywords “linen dispenser” and “AlEx Automated Linen Distribution System” where a contract (36F79719D0097) with L1 Enterprises was found. This contract was investigated on GSA eLibrary, where it was determined that though L1 Enterprises sells the needed equipment on their GSA contract, the required Lease arrangement is not offered.

SEWP was reviewed, but the manufacturer IPA was not found in the system.

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Effective Date: 04/15/2023

SAM.Gov was reviewed, where ID 36C24624Q0103 was found, an intent to sole source to L1 Enterprises for an automated linen dispensing system. This demonstrates that other VISN’s have also found that there is only 1 singular SDVOSB distributor.

The SCMC was reviewed, with no significant results being found.

The NAC was reviewed, where 36F79719D0097 was found. This contract allows for the purchasing of the Linen Dispenser system rather than a lease.

The Market Research Report from 36C26122P0525 was reviewed. The signing Contracting Officer determined that a SDVOSB sole source was warranted to L1 Enterprises.

A letter from the manufacturer in 36C26122P0525’s eCMS file confirms that L1 Enterprises is the exclusive distributor of Innovative Product Achievement’s (Manufacturer) products.

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

Per the authorities cited in number five (5) above, the Contracting Officer may award a sole source contract per 38 U.S.C. 8127(c) if he/she has identified a Service Disabled Veteran-Owned Small Business (SDVOSB) capable of providing the products and/or services at fair and reasonable prices and is in the best interest of the government. L1 Enterprises has provided satisfactory performance thus far, and there is no obvious reasoning the Government can find to discontinue working with this firm.

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

L1 ENTERPRISES INCORPORATED

618 W Patrick ST Frederick, Maryland 21701-4028, United States

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 :

The Department of Veterans Affairs will continue to monitor the commercial marketplace to determine if other sources are responsible and capable of providing these types of products and/or services that meet the VA San Francisco Healthcare Systems requirement.

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.

Mark W. Dorn Date Textile Hospital Supervisor VA San Francisco Healthcare System

03/12/2025

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Effective Date: 04/15/2023

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.

David J. Alvarez Date Contracting Officer

NCO 21

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

Maxwell W. Derck Date Branch Chief, Supply II

Network Contracting Office (NCO 21)