P03_Justification and Approvals_under 250K_760-23-2-050-0722_Redacted.pdf

VHAPM Part 813.106 Simplified Acquisition Procedures: Soliciting from a Single Source Attachment 1: Brand Name Justification for SAP under the SAT

Last Updated: 02/01/22

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

Because the Government is not allowed to do business using Wholesale Trade or Retail Trade NAICS codes, searches must be conducted using manufacturer NAICS codes.

Market research was conducted through Vet Biz under NAICS 325412(Pharmaceutical Preparation Manufacturing).

This search resulted in 2 or more SDVOSB companies doing business using this NAICS code. Despite these results, there are no known SDVOSB, VOSB, HUBZone, 8(a), or small business organizations that manufacture the items required for this procurement.

A SD/VOSB set-aside is not feasible as the Non-Manufacturer Rule (NMR) and the Limitations on Subcontracting (LOS) require the contractor to supply the product of a small business or an offeror must either manufacture the item in accordance with the Limitations on Subcontracting or supply the product of a small business made in the United States.

An SDVOSB concern would need to prove they are a manufacturer or are providing the products of a small business manufacturer to be eligible for award of a contract or the CO would have to obtain an approved individual waiver to the NMR through the Small Business Administration (SBA).

As stated above, no small business manufactures these items and SBA has not granted a non-manufacturer class waiver for pharmaceuticals. These requirements apply to all SD/VOSB set asides regardless of dollar value. Due to the urgency and risk to patient safety we do not have time to request and receive approval for an NMR waiver to set-aside for SDVOSB’s.

Based on this research and policy, the VA Rule of Two cannot be met to set the procurement aside for SD/VOSB contractors. Although we cannot set-aside to SDVOSB due to the NMR and LOS, this does not preclude a SD/VOSB from quoting and/or receiving an award as a small business

Based on the exception to the NMR for acquisitions under $250K, a small business set-aside is feasible.

Contracting Officer requesting a(n) SMALL BUSINESS/Small Business procurement, to a(n) Open Market Vendor.

5. Contracting Officer's Certification: Purchase is approved in accordance with FAR13.106-1(b). I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Prepared by:

McAlhaney, Michael W.

Contracting Officer

MICHAEL MCALHANEY Digitally signed by MICHAEL MCALHANEY Date: 2023.03.16 14:55:39 -05'00'