P03 - Justification and Approval - Danville - Comissioning Service Signed.pdf

Department of MEMORANDUM Veterans Affairs

Date: 14 October 2025

From: Contracting Officers Representative

Subj: Contract: 36C77621C0072 “Danville EHRM Infrastructure Upgrades Design” at the VA Illiana Healthcare

System Medical Center Justification and Approval – Out-of-Scope Modification – Other Than Full and Open Competition (FAR 6.302)

Thru: Contracting Officer

To: Contract File

1. Contracting Activity:

U.S. Department of Veterans Affairs, Veterans Health Administration (VHA), Program Contracting Activity Central (PCAC), 6100 Oak Tree Boulevard, Suite 490, Independence, OH 44131.

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

The contracting activity plans to award an out-of-scope bi-lateral modification to existing firm-fixed price contract number 36C77621C0072 for the subject contract in accordance with VAAR 819.7004, 819.7005 and 819.7008 as interpreted by GAO Decision RCG of North Carolina, B- 419691 which states:

“There is nothing in section 8127 of the Veterans Benefits Act that requires a contracting officer to make award to an SDVOSB on a competitive basis, rather than on a sole-source basis, where the same objective (i.e., award to an SDVOSB) will be met in either instance…”

The original contract award was competed among VHA Program Contracting Activity Central (PCAC) SDVOSBs and awarded in the original amount of $1,755,836.00 to Vali Cooper International, LLC.

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

The change is to add commissioning services for several systems, related to, during, and after the EHRM Infrastructure Upgrades project 550-21-700. The commissioning agent (CxA) shall be of a 3rd party (not the A/E, not the prime contractor, and not a subcontractor of either with a separate obligation to provide goods or services for the subject requirement 550-21-700). The commissioning agent shall provide all personnel, services, documentation, and provisions necessary for the organization and leading of the commissioning team and to execute the requirements of the CxA as detailed in the attached specifications section 01 91 00 (specifications derived from project 550-21-700 construction documents).

Commissioning activities for this project will include the construction phase, acceptance phase, and warranty phase activities (design is already complete with construction soon to commence).

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

41 USC § 3304(a)(5), 38 U.S. Code § 8127 and VAAR 806.302-570 provides the express authority to use other than competitive procedures for sole source awards to verified veteran-owned small businesses. COs may use the non-competitive (sole source) procedures authorized by VAAR 819.7008 or 819.7009 for actions not to exceed $5,000,000. As prescribed in VAAR 806.302-570(a), full and open competition need not be provided for when awarding a sole source contract to a verified SDVOSB in accordance with 819.7008, as authorized. Further, a determination that only one SDVOSB can meet the requirement is not required.

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 designer of record (DOR) for this project, Vali Cooper International, LLC (VCI), is a SDVOSB which possesses the technical knowledge and resources to execute the commissioning requirements for this project. VCI familiarity with this project and their ability to hire a third-party commissioning agent that has a working relationship with their firm on similar projects will mitigate increased cost and negative schedule impacts if the commissioning services are obtained through the open market. It is in the best interest of the Government to award these services to the SDVOSB firm VCI.

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

VCI is positioned to mitigate significant risks to the VHA EHRM budget. The overall project would face increased costs in terms of a duplicate baseline acquisition for another contract, and ultimately the rework required to solicit the requirement in a full and open environment would result in unnecessary expenses, time, and effort for VHA staff.

Additionally, and in accordance with VAAR 819.7008(b), sole source awards to a verified SDVOSB, the CO’s determination to make a sole source award is a business decision wholly within the discretion of the CO. For the reasons stated herein, and specifically in reference to Paragraph 9, the undersigned CO has determined that Vali Cooper International, LLC, is a qualified SDVOSB. This signed Justifications and Approval (J&A) document will be posted to the public within 14 days after award in accordance with FAR Subpart 6.305 and the award synopsis will be posted to Sam.gov in accordance with FAR Subpart 5.301(a)(2).

7. Determination by the Contracting Officer (CO) that the Anticipated Cost to the

Government will be Fair and Reasonable:

The government will issue an RFP to the existing design contractor for the change after developing the SOW and the IGE. The contractor will be required to submit cost or pricing data with their proposal.

When received the proposal will be evaluated by the COR and the proposal and its data will be the subject of rigorous cost analysis. The government’s pre-negotiation position will be based on independent government estimate, technical analysis of the proposal itself and other historical data. The contractor will be required to certify its cost or pricing data prior to modification award.

The overall contract will also, of course, comply with the 6% A&E Fee limitation.

Also, in accordance with FAR 15.406, FAR 15.403-5, and FAR 52.243-1;(Alt III) a price reasonableness determination will be made before modification award based on historical data, cost and/or price analysis, and negotiation.

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

Reasons Market Research Was Not Conducted:

An SBA dynamic search was conducted for SDVOSB firms for commissioning services. The search yielded 495 companies that provided commissioning services which indicate an adequate number of SDVOSB concerns that can comply with the rule of two. (See attachment 1)

Several firms were identified that were potentially able to perform the required services.

However, given that Vali Cooper International, LLC. is the DOR for this project, and is also a verified SDVOSB, they are found to be fully capable of performing the commissioning requirements as established in the SOW.

Vali Cooper International, LLC is a registered Service-Disabled Veteran Owned Small Business (SDVOSB) as confirmed through VetCert. (See attachment 2)

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

GAO Decision RCG of North Carolina, B-419691 states:

“There is nothing in section 8127 of the Veterans Benefits Act that requires a contracting officer to make award to an SDVOSB on a competitive basis, rather than on a sole-source basis, where the same objective (i.e., award to an SDVOSB) will be met in either instance…” The decision references VAAR 819.7004, 819.7005 and 819.7007 which provide the VA with independent authority to award contracts using other than full and open competition (including set-aside procurements and sole-source awards) in certain circumstances.

Specifically:

(a) A contracting officer may award contracts to SDVOSB concerns on a sole source basis provided:

(1) The anticipated award price of the contract (including options) will not exceed $5 million;

(2) The requirement is synopsized in accordance with FAR part 5;

(3) The SDVOSB concern has been determined to be a responsible contractor with respect to performance; and

(4) Award can be made at a fair and reasonable price.

Assuming that the Contracting Officer can make a determination that the price ultimately negotiated with the contractor is fair and reasonable, there is no barrier to awarding this work to the incumbent on a sole source basis since the incumbent is a responsible SDVOSB, and the change will be synopsized in accordance with FAR part 5, and the requirement is less than $5M.

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

N/A

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:

This J&A represents an effort by the VA to mitigate project timing, coordination issues and increased schedule risk to the government. The base award was competitively awarded to a SDVOSB, and the work that is the subject of this modification will also be awarded to an

SDVOSB.

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.

Marcus Lehman Engineer Danville VAMC

13. Approvals in accordance with FAR 6.304

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

NAME AND TITLE (Type or print)

Richard Webb Contracting Officer

SIGNATURE DATE SIGNED

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.

NAME AND TITLE (Type or print)

Nicholas Sparks Supervisory Contract Specialist

SIGNATURE DATE SIGNED