P03 - Justification and Approval-Redacted.pdf

Acquisition ID# 36C259-25-AP-2285

DEPARTMENT OF VETERANS AFFAIRS

Justification for Single Source Awards IAW RFO Part 12.102(a) For

Over Micro-Purchase Threshold but Not Exceeding the SAT ($350K)

Acquisition Plan Action ID: 36C259-25-AP-2285 JOFOC Tracker#: FY26 – NCO 19 - 779

1. Contracting Activity: Organizational Activity:

Department of Veterans Affairs Department of Veterans Affairs Network Contracting Office 19 Western Colorado HCS 6162 S. Willow Drive Ste# 300 2121 North Avenue Greenwood Village, CO 80111 Grand Junction, CO 81501

Purchase Request 2237#: 575-26-2-035-0196

2. Brief Description of Supplies/ Services required and the intended use/Estimated Amount: The VA Western Colorado HCS (WCHCS) has a critical need for a Base +4 Option Years (OYs) contract for daily VA Community Based Outpatient Clinics (CBOCs) Craig CO, Glenwood Springs CO, Montrose CO, and Moab UT that involve medical laboratory courier services. The medical courier services are picking up from VA CBOCs and delivery to the VA WCHCS for laboratory specimens and potentially bio-hazardous medical materials in VA provided laboratory containers. The vendor, Kangaroo Pick-Up and Delivery Service, Inc. provided a Base +4 OYs quote grand total of $280,851.24.

The Period of Performance is:

Base Year: 3/7/2026 - 3/6/2027 Option Year 1: 3/7/2027 - 3/6/2028 Option Year 2: 3/7/2028 - 3/6/2029 Option Year 3: 3/7/2029 - 3/6/2030 Option Year 4: 3/7/2030 - 3/6/2031

The resulting contract will include FAR 52.217-8 – Option to Extend Services, and if exercised, the 52.217-8 option will be exercised at the same rates as those in effect under the contract at the time the contract is extended.

3. Unique characteristics that limit availability to only one source, with the reason no other supplies or services can be used:

The daily medical courier route locations are in remote areas. The VA CBOC locations Craig CO is 149 miles, Glenwood Springs CO is 88 miles, Montrose CO 61 miles, and Moab UT is 114 miles away from the delivery location: VA WCHCS all spanning east, west, and south. Therefore, due to the distances in the Colorado Western Slope and Moab UT area for daily courier services, any courier firm that does not have existing business operations in those areas, especially out of state courier firms would likel not be able to rovide rice reasonable uotes.

s quo e o , . , y e CO to be price reasonable. Kangaroo's quote is 308.14% less than the lowest SDVOSB quote and 270.36% lower than the lowest non-incumbent SB quote. The reasons why Kangaroo's prices are much lower is because they currently operate and have

4. Description of market research conducted and results or statement why it was not conducted:

A search was conducted of the SBA Small Business Search (SBS) database per the using NAICS 492210 and keywords "courier services" resulted in: eight-seven (87) - SDVOSBs and nine (9) - VOSBs that were not duplication of SDVOSBs. In addition, the SBA SBS results found: three (3) - 8(a) Small Businesses (SBs), four (4) - HUBZone SBs, fifty-five (55) - Women-Owned Small Businesses (WOSBs), and twenty-six (26) Economically-Disadvantaged Women-Owned Small Businesses (EDWOSBs).

Prior to soliciting, the Contracting Officer (CO): John Cheng reviewed the results from the sources sought notice: 36C25924Q0727 that was published on SAM.gov by the previous Contract Specialist: James Lewis. The previous sources sought resulted in responses from five (5) SDVOSBs, one (1) VOSS, one (1) WOSB, and one (1) SB.

The CO posted a SDVOSB total set-aside Solicitation No. 36C25925Q0760 on SAM.gov on 8/25/2025 that was amended and closed on 9/5/2026 resulting in four

(4) quotes below:

The 1st quote: Crosstown Courier Service, Inc (SDVOSB) provided a Base plus 4 Option Years (+4OYs) quote of $1,146,256.20. When the Crosstown quote is compared to the current IGCE Base +4OYs total of $280,851.24, the CO determined the quote is not price reasonable because it exceeds the IGCE total by 308.14%.

The 2nd quote: CADUCEUS Medical Logistics LLC (SDVOSB) provided a Base +4OYs quote of $1,496,250.00. When the CADUCEUS quote is compared to the current IGCE Base +4OYs total of $280,851.24, the CO determined the quote is not price reasonable because it exceeds the IGCE total by 432.76%.

The 3rd quote: Izy Global Services LLC (SDVOSB) provided a Base +4OYs quote of $1,940,040.00. When the Izy Global quote is compared to the current IGCE Base +4OYs total of $280,851.24, the CO determined the quote is not price reasonable because it exceeds the IGCE total by 590.77%.

The 4th quote: M. Rose Logistics LLC (SDVOSB) provided a Base +4OYs quote of $6,228,811.68. When the M. Rose quote is compared to the current IGCE Base +4OYs total of $280,851.24, the CO determined the quote is not price reasonable because it exceeds the IGCE total by 2,117.83%.

Based on the results from the SDVOSB total set-aside Solicitation No.

36C25925Q0760, the CO determined that all quotes did not meet price reasonableness. As a result, the requirement had to be resolicited. Based on the previous sources sought, the CO determined that the VA Rule of Two was not met for a VOSB set-aside nor a specific SB socio-economic concern set-aside, so the CO resolicited the requirement as a SB total set-aside. The SB total set-aside Solicitation No. 36C25925Q0790 was published on SAM.gov on 9-05-2025 with a response date of 09-12-2025. The SB total set-aside solicitation resulted in 6 quotes submitted on time and 1 late quote below:

The 1st quote: Kangaroo Pick-Up and Delivery Service, Inc (SB) provided a Base +4OYs quote of $258,779.04. When the Kangaroo quote is compared to the current IGCE Base +4OYs total of $280,851.24, the CO determined the quote is price reasonable because it is below the current IGCE total by -7.86%.

Note: The CO spoke to Kangaroo Pick-Up and Delivery Service, Inc’s representative: Tyler Thatcher, and asked why their recent Feb 2026 quote is 7.86% higher than the quote provided back in Sept 2025. Tyler stated the reason for the increase was due to courier operation costs and losing a major customer account since Sept that required them to increase prices fairly across their customers. Although Kangaroo’s quote increased by 7.86%, the slight increase is still very reasonable especially when compared to the other SB solicitation quotes below.

The 2nd quote: Allstate Courier Systems LLC (SB) provided a Base +4OYs quote of $1,040,160.00. When the Allstate quote is compared to the current IGCE Base +4OYs total of $280,851.24, the CO determined the quote is not price reasonable because it exceeds the IGCE total by 270.36%.

The 3rd quote: Crosstown Courier Service, Inc (SDVOSB) provided a Base +4OYs quote of $1 ,146,256.20. When the Crosstown quote is compared to the current IGCE Base +4OYs total of $280,851.24, the CO determined the quote is not price reasonable because it exceeds the IGCE total by 308.14%.

The 4th quote: Savannah Services, LLC (SB) provided a Base +4OYs quote of $1 ,905,484.80. When the Savannah quote is compared to the current IGCE Base +4OYs total of $280,851.24, the CO determined the quote is not price reasonable because it exceeds the IGCE total by 578.47%.

The 5th quote: MTB - Change Creators Corp (SB) provided a Base +4OYs quote of $2,197,982.23. When the Change Creators quote is compared to the current IGCE Base +4OYs total of $280,851.24, the CO determined the quote is not price reasonable because it exceeds the IGCE total by 682.61 %.

The 6th quote: M. Rose Logistics LLC (SDVOSB) provided a Base +4OYs quote of $4,814,506.92. When the M. Rose quote is compared to the current IGCE Base +4OYs total of $280,851 .24, the CO determined the quote is not price reasonable because it exceeds the IGCE total by 1,614.26%.

The late quote: MN Logistics Service LLC (SB) provided a Base +4OYs quote of $2,367,816.00. When the MN Logistics quote is compared to the current IGCE Base +4OYs total of $280,851 .24, the CO determined the quote is not price reasonable because it exceeds the IGCE total by 743.09%. Also, the firm submitted their quote after the solicitation was closed .

The reason why all the SB quotes, except the incumbent: Kangaroo Pick-Up and Del ivery Service, Inc, exceeded the IGCE is because their quotes would involve the startup costs with only the VA their dedicated customer since all of them were out of state and did not have any courier operations in the Western Colorado Slope area. The reason why Kangaroo Pick-Up and Delivery Service, Inc's quote is much lower and price reasonable is because they have existing courier customers throughout the Colorado Western Slope and Moab UT area. By having courier business operations and customers in the area, they don't have startup infrastructure costs and the prices for courier services are spread across their courier customers along the remote routes.

e pos e a o ice o n en to o e ource o ice o. on M.gov. The Notice of Intent required any interested vendors to provide information that will allow the CO to determine if they have the both the capability of meeting the requirement and the possibility of meeting price reasonableness. The CO received responses from 3 interested vendors:

Crosstown Courier Service, Inc, EOG Entities, and LabExpress. All 3 responses did not provide sufficient information on how they'd be able to meet price reasonableness.

Therefore, the CO emailed all 3 vendors asking clarification questions on whether they had existing courier customers or if they have a subcontractor courier firm in the Colorado Western Slope and Moab UT area. The reason for those specific clarification questions is because they are key in allowing the CO to determine if those firms would or would not have the potential of providing a price reasonable quote. Out of the 3 vendors, only Crosstown Courier’s representative: Rebecca Jordanides responded confirming that their firm does not have courier operations in the area and their approach if awarded would be to hire the previous incumbent’s courier drivers to be dedicated to only the VA routes. After careful review and consideration, the CO determined that Crosstown Courier would not have the potential of providing a price reasonable quote, especially after their 2 previous quotes exceeded the IGCE by over 300%. Moreover, the SOW does not require the courier driver to be dedicated only to the VA routes because there is a good window of hours from pick up at the CBOCs to delivery at the VA WCHCS. Thus, the CO determined that it is most advantageous for the VA to award a sole source Base +4OYs contract to Kangaroo Pick-up and Delivery Service, Inc. because they are the only firm capable of performing the services while meeting price reasonableness.

5. Contracting Officer's Certification: Purchase is approved in accordance with RFO

12.102(a). I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

John Cheng Date

Contracting Officer

NCO 19

JOHN

CHENG

Digitally signed by

JOHN CHENG

Date: 2026.03.06 14:03:27 -07'00' y