P03 LSJ P PT B6 Final HCA Signed.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 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

Federal Acquisition Regulation (FAR) PART 8.405-6

Acquisition Plan Action ID: 36C770-20-AP-0774

(1) Contracting Activity: Department of Veterans Affairs (VA), Network Contracting Office (NCO) 15, Consolidated Mail Outpatient Pharmacies (CMOP) Acquisition

(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). The Department of Veterans Affairs is seeking to issue a Blanket Purchase Agreement (BPA) to DLH Solutions, INC., under their existing Federal Supply Schedule (FSS) Contract Number V797P-2219D, for a base of six months with two, three-month option periods from November 1, 2020 to October 31, 2021 for the seven Consolidated Mail Outpatient Pharmacies (CMOP) and two Medications by Mail (MbM) facilities. This performance period will sustain vital pharmacist and pharmacy technician services and allow a transition period until the new, succeeding procurement is fully competed and awarded. The long-term contract has been solicited and received two protests with Government Accountability Office (GAO). The protests have been resolved.

GAO’s decision was received in October of 2018. Evaluations could then take place. Due to travel and schedule conflicts, the evaluation team did not convene until January of 2019 and the evaluations concluded in February 2020. After evaluations, the process of compiling documentation commenced.

During an informal review of consensus documents, legal recommended that the evaluation team reconvene and reevaluate the proposals. During the re-evaluations it was brought to Contracting Officer’s (CO) attention that the scope of work has changed and therefore the re-evaluation and Request for Proposal (RFP) were canceled. The action was split into two requirements due to the differences between what the CMOP required and what the Meds by Mail required. Two new procurements are in the process of being prepared for each separate requirement.

Order against: FSS Contract Number: V797P-2219D

Name of Proposed Contractor: DLH Solutions, INC.

Street Address: 3565 Piedmont Road NE, Bldg. 3, Ste 700

City, State, Zip: Atlanta, GA 30305

Phone: 678-449-6285

(3) Description of Supplies or Services:

The estimated value of the proposed action is $ 52,998,955.00

The National CMOP has a requirement for the services of pharmacists and pharmacy technicians to process Veteran prescriptions. It is in the Government’s best interest to award a BPA against the VA NAC

VHAPM Part 808.405-6 Limiting Sources Page 2 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

FSS 621 I, Professional and Allied Healthcare Staffing, to temporarily continue services to the CMOP and MbM facilities until the long-term contract is awarded.

(4) Identify the Authority and Supporting Rationale (see FAR 8.405-6(a)(1)(i)(A), (B), and (C) or 8.405-6(b)) 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:

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;

The CMOP facilities must continue without disruption to ensure Veteran patients receive critical medications. Failure to award this BPA will endanger Veteran patient health. The current bridge contract provides approximately 140 pharmacists and 430 pharmacy technicians at the seven CMOP and two MbM locations to ensure operations are fulfilled. Without the support of contracted personnel, operations would be critically impacted. Therefore, the most logical action is to award a bridge BPA as the incumbent Contractor would be able to successfully perform these services without interruption. DLH already has the skilled personnel with security clearances in place to provide these services without any transitioning. The awarding of a short-term bridge BPA will ensure this continuity and facilitate the Department’s efforts to move to a successor, long-term contract vehicle.

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. The proprietary data is:

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) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the Contracting Officer in making this best value determination:

VHAPM Part 808.405-6 Limiting Sources Page 3 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

The CO has determined that the price for this bridge task order will be fair and reasonable based on current contract pricing and based on DLH’s anticipated FSS pricing which, in accordance with FAR 8.404(d), has been determined to be fair and reasonable. The VA National Acquisition Center (NAC), delegated management of FSS 621-I (Professional and Allied Healthcare Staffing Services) for the entire Federal Government by General Services Administration (GSA), has already negotiated the prices of these services. Ordering activities are not required to make a separate determination of fair and reasonable; however, pricing quoted will be evaluated by the CO to ensure fair and reasonable pricing is received.

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

Market Research was not conducted for this sole source requirement as the previous BPA awarded in 2011 and awarded for a 5-year period was competed among schedule holders.

Three sole-source six-month task orders and two, year-long task orders were issued with a period of performance beginning May 1, 2017 as the work to put a long-term contract in place is still on-going. The solicitation for the long-term contract was posted to FBO and two GAO protests were received prior to the solicitation closing. The protests were resolved, and evaluations could then take place. Due to travel and schedule conflicts, the evaluation team did not convene until January of 2019 and the evaluations concluded in February. After evaluations, the process of compiling documentation commenced. During an informal review of consensus documents, legal recommended that the evaluation team reconvene and reevaluate the proposals. During the re-evaluations it was brought to CO’s attention that the scope of work has changed and therefore the re-evaluation and RFP were canceled. The action was split into two requirements due to the differences between what the CMOP required and what the Meds by Mail required. A service of this magnitude requires a lengthy transition period and, therefore, it is in the Government’s best interest to award a bridge BPA to the incumbent to provide uninterrupted services until the long-term contract is awarded and services transitioned to the awardee.

(7) Any Other Facts Supporting the Justification:

DLH staff has been performing pharmacist and pharmacy technician services for the past eight years and is completely familiar with the automation equipment and duties to support the CMOP mission. Furthermore, there would be no transition time or expense associated with this bridge contract that would impact services and, therefore, negatively impact Veteran care.

Additionally, failure to award the sole source bridge BPA will result in the CMOPs’ operation being severely impacted due to lack of staff. As a result, Veteran beneficiaries will not receive life-giving or life-enhancing medication, with catastrophic consequences. It is imperative that services continue uninterrupted.

VHAPM Part 808.405-6 Limiting Sources Page 4 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

(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:

There are no actions the VA can take to increase competition at this time for this bridge BPA due to the rationale cited above. The long-term contract procurement request has been submitted and the contracting team is actively working to perform market research in anticipation of posting the new requirements.

(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.

JAMES HINSPETER DATE

CONTRACTING OFFICER’S REPRESENTATIVE

NATIONAL CMOP OFFICE

(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.

PENNY J. CAPPS DATE

CONTRACTING OFFICER

CMOP ACQUISITION

NCO 15

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.

James J Hinspeter 418978

Digitally signed by James J Hinspeter 418978 Date: 2020.08.31 11:03:40 -05'00'

PENNY J CAPPS 492179 Digitally signed by PENNY J CAPPS 492179 Date: 2020.09.04 07:35:44 -05'00'

VHAPM Part 808.405-6 Limiting Sources Page 5 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

JAMES D. JUSTUS DATE

DIVISION CHIEF

CMOP ACQUISITION

NCO 15

c. Director of Contracting/DESIGNEE: I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

SCOTT R. FISCUS DATE

DIRECTOR OF CONTRACTING

NCO 15

HIGHER LEVEL APPROVAL (Required for orders over $700,000):

d. VHA RPO HCA Review and Approval (over $700,000 to $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

TERRY L. SPITZMILLER DATE

EXECUTIVE DIRECTOR

REGIONAL PROCUREMENT OFFICE CENTRAL (VHA)

James D. Justus 1030208 Digitally signed by James D. Justus 1030208 Date: 2020.09.04 13:52:01 -05'00'

SCOTT R FISCUS 381888 Digitally signed by SCOTT R FISCUS 381888 Date: 2020.09.15 14:02:21 -05'00'

09/20/2020

TERRY L.

SPITZMILLER

394683

Digitally signed by TERRY

L. SPITZMILLER 394683

Date: 2020.09.20 16:35:23 -05'00'