P03 JOFOC STX Medical Courier Bridge March 2026.docx

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C257-26-AP-2464 JOFOC Tracker Number: FY26 – NCO 17 - 778

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 17, South Texas Veterans Health Care System (STVHCS), 2237 number 671-26-2-121-1065

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

The South Texas Veterans Health Care System (STVHCS) has an emergent need for a continued medical courier services contract for the STVHCS Pathology and Laboratory Medical Service (P&LMS) Laboratory. The Government shall not exercise any supervision or control over the service providers providing the services described herein. The contractor will provide all necessary labor, transportation, equipment, material, and supplies for twenty-four (24) hours a day, seven (7) days a week pickup and delivery of routine and emergency reagents, blood and/or blood products, lab products and specimens to locations outlined in the Schedule of Delivery for the STVHCS.

The expired contract was awarded to DalyWorks, who is an SDVOSB as a sole source bridge contract. The contract number is 36C25725C0027, the period of performance began on 3/1/2025, and ended on 2/28/2026. The total award amount was $929,224.32.

The follow-on requirement has since been procured as an SDVOSB set-aside and was awarded to Caduceus Medical Logistics LLC (Caduceus). Shortly after the new contract was awarded, three of the unsuccessful vendors filed GAO protests and a stay on the new award was invoked. Corrective action was taken, and the contract awarded to Caduceus was terminated and all proposals were re-evaluated.

An award was made to Acute Response Inc (Acute Response); however, this award was protested again by two of the unsuccessful vendors. Corrective action was again taken by terminating the award to Acute Response and re-evaluating proposals.

A new award was made to DalyWorks effective March 1, 2026. A size protest has been filed by an interested party on March 2, 2026, and a Stop Work Order was issued to DalyWorks on March 5, 2026.

As medical courier services are vital to the STVHCS, a sole source bridge contract must be awarded without delay to DalyWorks, the incumbent contractor, while awaiting a decision from SBA on the size protest.

The estimated cost of the base period of three months is REDACTED

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

A sole source bridge contract to DalyWorks is required for the continuation of courier services for the STVHCS. They are the only vendor that is familiar with the current routes and have all approvals and training needed to perform courier services while the size protest is being resolved on the long-term action. No other vendor would be able to provide services which are needed immediately.

The period of performance will be from March 6, 2026, through June 5, 2026.

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

( ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by RFO 6.103-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by RFO 6.103-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by RFO 6.103-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by RFO 6.103-4

(X) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by RFO 6.103-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by RFO 6.103-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by RFO 6.103-7;

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

As stated in Section 3 above, DalyWorks is the only vendor that is familiar with the current routes and has all approvals and training needed to perform courier services while the size protest is being resolved on the long-term action. No other vendor would be able to provide services immediately. A delay in award will have negative consequences for Veteran patient care.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as possible (including whether a notice was or will be publicized as required by RFO Part 5 and, if not, which exception under RFO Part 5 applies):

As stated in Section 2, a solicitation for the follow-on requirement was issued as an SDVOSB set-aside and award was made to Caduceus. Shortly after the new contract was awarded, three of the unsuccessful vendors filed GAO protests and a stay on the new award was invoked. Corrective action was taken, and the contract awarded to Caduceus was terminated and all proposals were re-evaluated.

An award was made to Acute Response Inc (Acute Response); however, this award was protested again by two of the unsuccessful vendors. Corrective action was again taken by terminating the award to Acute Response and re-evaluating proposals.

A new award was made to DalyWorks effective March 1, 2026. A size protest has been filed by an interested party on March 2, 2026, and a Stop Work Order was issued to DalyWorks on March 5, 2026.

As medical courier services are vital to the STVHCS, a sole source bridge contract must be awarded without delay to DalyWorks, the incumbent contractor, while awaiting a decision from SBA on the size protest.

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

Market price will be determined fair and reasonable by comparison to the IGCE and prior contract pricing.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

A search of SBA’s Small Business Certification database found 1,139 SDVOSBs and 1,233 VOSBs using NAICS code 492110. Several of these businesses have been performing similar requirements for the VA. Additionally, there are several known SDVOSBs who have been successfully performing these services for the VA for a number of years.

Market research was conducted on the long-term contract, and a solicitation was issued on Contract Opportunities as an SDVOSB set-aside.

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

None.

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

A solicitation for the follow-on action was issued on Contract Opportunities as an SDVOSB set-aside from May 6, 2024, to May 20, 2024. A total of 14 proposals were received. Of those, the 12 following vendors were found to be in the competitive range after initial review of proposal materials and confirming SDVOSB status:

· 88 Logistics LLC

· A6 Scientific Corp.

· Acute Response Inc.

· All American Express Solutions LLC

· Caduceus Medical Logistics LLC

· Crosstown Courier Service, Inc.

· Crown Based Services LLC

· DalyWorks, LLC

· FG Management Group Limited Liability Company

· Quiet Craft Solutions Inc

· Rollin’O’Stop LLC

· The Underdogs Unlimited, LLC

The following two (2) vendors submitted proposals, but were excluded from the competitive range as they are either not SDVOSBs, or they did not provide all required documentation with their proposals:

· Infinity Management Group LLC – This vendor is an SDVOSB, but they did not provide all proposal materials by the submission due date. They were provided with a suspense until 9:00 AM of May 24, 2024, to provide the remaining proposal materials, but they did not respond.

· Carandash Trucking LLC – This vendor provided proposal materials, but a search of their SAM UEI number found they are not an SDVOSB.

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 are no barriers to competition for medical courier services. As stated in Section 8, there are several known SDVOSBs, a priority source, who have been successfully performing these services for the VA for a number of years.

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.

_//SIGNED//_____________________

Laboratory Manager South Texas VA Health Care System

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

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

_//SIGNED//__________________

Robyn J. Nussbaum Contracting Officer, NCO 17

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

_//SIGNED//__________________

Michael J. Tusinger Branch Chief, NCO 17

VHAPG Part 806.3 OFOC Page 1 of 4 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C257-26-AP-2464