P03 - Limited Sources Justification - Over SAT - STX Ref Lab Testing SVS - Quest - Redacted.pdf

VHAPM Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPM Part 808.405-6 Limiting Sources Page 1 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C257-20-AP-2363

RPO-West Tracking ID: 2020-04-20T13:18:43

(1) Agency: Department of Veterans Affairs (VA)

Contracting Activity: Network Contracting Office 17 (NCO-17) 7201 Interstate 40, West, Ste. 100 Amarillo, TX 79106-2612

(2) Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501).

NCO-17 intends to place a sole source bridge/task order against Quest Diagnostics Incorporated’s VA National Acquisition Center’s (NAC) FSS for reference laboratory testing services. The action will be awarded as a new contract action. The proposed period of performance for the order is six (6) months; 5/1/2020 through 10/31/2020 – and will also include an extension option for an additional six (6) months.

Order against: FSS Contract Number: V797D-70090

Name of Proposed Contractor: Quest Diagnostics Incorporated

Street Address: 500 Plaza Dr.

City, State, Zip: Secaucus, NJ 07094-3619

Phone: 615-498-7347

(3) Description of Supplies or Services:

The South Texas Veterans Health Care System (STVHCS), Pathology & Laboratory Medicine Service, requires a diagnostic laboratory to perform a wide variety of patient specimen diagnostic tests, for which they do not have the capacity or capability of performing on-site.

The services also require the contractor pick up the specimens from the STVHCS laboratory and report the test results back to the STVHCS via a secure electronic transfer of data.

The estimated value of the proposed action, to include the extension option, is $ REDACTED http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 https://www.gpo.gov/fdsys/pkg/USCODE-2011-title40/pdf/USCODE-2011-title40-subtitleI-chap5-subchapI-sec501.pdf

VHAPM Part 808.405-6 Limiting Sources Page 2 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

Due to a protest under solicitation 36C25719Q1134, there is insufficient time to re-solicit the requirement to the public before the expiration of the current order on 4/30/2020. Legal counsel requests additional market research to be performed prior to re-solicitation. Quest Diagnostics is the incumbent contractor currently performing the services and is maintaining an electronic interface with the STVHCS Vista system to report the analysis results of patient specimens. A switch to another vendor at this time would cause a disruption in patient services while a new vendor establishes an electronic interface with the VA. The proposed bridge order is needed to maintain a continuity of services for patient care and avoid a lapse in services while pending a conclusion of the additional market research efforts.

FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized;

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition.

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Determination by the ordering activity Contracting Officer that the order represents the Best Value consistent with FAR 8.404(d).

The Contracting Officer has determined that placing an order with Quest Diagnostics is a best value for the government consistent with FAR 8.404(d).

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(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

A search of GSA Advantage under SIN 621 II, Medical Laboratory Testing and Analysis Services, revealed that there are 18 vendors that provide laboratory testing services. A look at each of the categories within SIN 621 II identified that most businesses appear to only provide specialized testing services (i.e., toxicology); however, only five (5) large business vendors appear to provide a full range of testing services.

A search of the mandatory sources for procurement for services, Ability One, identified that they do not offer the requested services.

A search of the WSNC BPA holders revealed that there are three (3) vendors that provide laboratory testing services; Cedar Diagnostics, LabCorp and Quest Diagnostics.

(7) Any Other Facts Supporting the Justification: N/A

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

Multiple NCO-17 competitive solicitations have been issued and protested. As described in section 3 above, NCO-17 is engaged in conducting additional market research. It is the intent of NCO-17 to re-solicit the requirement after additional market research has been completed.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Signature:

//SIGNED// 24 April 2020 REDACTED Date:

Laboratory Manager Pathology & Laboratory Medicine Service South Texas Veterans Health Care System

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(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Contracting Officer

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K):

I certify the justification meets requirements for other than full and open competition.

Branch Chief, Services III Network Contracting Office 17 https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx