P03 OFOC 36C24219D0082 P00004 OFOC 52.217-8 Rev 1.pdf

Request for SDVOSB/VOSB Sole Source Justification Format >SAT & Use of FAR 52.217-8 Contract 36C24219D0082, VISN 2 Downstate Prescription Eyeglasses & Optician Services

VHAPM Part 819.7007/7008 Page 1 of 6 Original Date: 08/30/2017 Revision 03 Eff Date: 04/03/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C242-19-AP-0566 Contract Action ID: 36C24219D0082

1. Contracting Activity:

Department of Veterans Affairs, New York/New Jersey Healthcare System, Veterans Integrated Services Network (VISN) Region 2 Downstate, James J. Peters Veterans Affairs Medical Center 130 West Kingsbridge Road, Bronx, NY 10468

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

Network Contracting Office (NCO) 2 Downstate seeks approval to exercise FAR Clause 52.217-8, Option to Extend Services, under Contract 36C24219D0082, which was a sole source Firm Fixed Price (FFP) Indefinite Delivery/Indefinite Quantity (IDIQ) contract awarded in accordance with 38 USC § 8127(c) to PDS Consultants Inc. (PDSC), a Service Disabled Veteran Owned Small Business (SDVOSB), registered in the Vendor Information Pages (VIP) for Prescription Eyeglasses and Optician Services on August 9, 2019. This requirement is for the manufacturing and delivery of both dress and safety prescription eyeglasses to include fitting services provided by a licensed optician.

The Contractor shall offer both dress and safety frames, as well as single vision, bifocal, trifocal, and progressive lenses. The anticipated performance period for the four-month extension of services under FAR 52.217-8 is April 1, 2021 through July 31, 2021, and the extension will be accomplished via unilateral modification following the notification requirements outlined in the contract.

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

The Department of Veterans Affairs (VA) has an ongoing program to provide prescription eyeglasses (both dress and safety) to eligible veterans. The provision of corrective eyeglasses is required for eligible veterans to meet their optic and low vision medical needs. The VA eye clinic prescribes corrective lenses based upon a medical exam. The clinical judgement and assessment are used to determine medical necessity in conjunction with VHA Directive 2008-070 (Prescribing Hearing Aids and Eyeglasses) and 39 CFR 17.149 (Sensory-Neural Aids). Eyeglasses are not an emergent service and follow the administrative standard for assessment and procurement practices. The Contractor shall provide all labor and materials necessary to provide prescription eyeglasses and in house (onsite at VA facilities) optician fitting services.

At this time, all ordering is done by the Prosthetic and Sensory Aids Service (PSAS) Central Processing Section. However, each VISN 2 Downstate site reserves the authority to develop individual ordering and payment processes during the contract term.

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Revision 03 Eff Date: 04/03/2020

The Contractor is to provide prescription eyeglasses including fitting services by a licensed optician according to contract specification for beneficiaries of the following sites of care and their entire catchment areas, including their respective Community Based Outpatient Clinics (CBOCs), within the Veterans Integrated Service Network (VISN) 2 Downstate New York/New Jersey VA Health Care Network:

VA NYHHCS MANHATTAN

423 E 23rd Street New York, NY 10462

VA NYHHCS BROOKLYN

800 Poly Place Brooklyn, NY 11209

VA NYHHCS ST ALBANS

179th Street & Linden Blvd St. Albans, NY 11425

VA HVHCS CASTLE POINT

Castle Point Campus Castle Point, NY 12511

VA HVHCS MONTROSE

Route 9A/ P.O. Box 100 Montrose, NY 10548-0100

JJP VAMC BRONX

130 West Kingsbridge Rd.

Bronx, NY 10468

NORTHPORT VAMC

79 Middleville Rd Northport, NY 11768

VA NJHCS EAST ORANGE

385 Tremont Ave East Orange, NJ 07018-1095

VA NJHCS LYONS

151 Knollcroft Rd Lyons, NJ 07939

The number of patients covered by this contract is expected to increase/decrease among VISN 2 Downstate patients and dependent upon beneficiaries added or removed throughout the contract term.

The volumes or amounts of prescription eyeglass orders shown below are estimates only. These estimates are based on historical data (quantities of eyeglasses ordered for Veteran patients in the VISN 2 Downstate Medical Center Optical Clinics during the last five fiscal years) and do not include optician services.

VISN 2 Downstate Medical Center FY 15 FY 16 FY 17 FY 18 FY 19

(526) VAMC Bronx 9,951 9,949 8,775 9,589 9,137

(561) VA New Jersey HCS 13,889 20,308 22,986 23,447 24,225

(620) VA Hudson Valley HCS 11,123 9,041 10,949 11,687 11,577

(630) VA New York Harbor

HCS

18,255 17,417 17,562 17,179 17,668

(632) VAMC Northport 7,322 7,059 7,016 6,359 7,359

Downstate Order Total 60,540 63,774 67,288 68,261 69,966

Downstate Obligations Total $3,056,499 $3,220,865 $3,391,608 $3,472,707 $3,685,110.00

The base year of performance under the subject contract was effective August 1, 2019 through July 31, 2020 and there were 45,908 orders placed with a total expenditure of $2,821,643.49. These figures were lower than anticipated at time of award due to Coronavirus 2019 (COVID-19) pandemic operational changes where VISN 2 Downstate’s VA eye clinics were closed except for emergency care. As advised by OGC the (1) three-month option period (covering August 1, 2020 – October 31, 2020) was changed via bilateral Modification P00001 to (1) eight-month option period (covering August 1, 2020 – March 31, 2021) exercised under FAR 52.217-9 via Modification P00002. To date during the option period of performance there has been 17,834 orders placed with a total expenditure of $1,123,894.00.

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In order to estimate the value of a four-month extension under FAR 52.217-8, the September 1, 2020

– December 31, 2020 workload and expenditure information was reviewed, as it would not have included the previously described COVID-19 impacts on ordering. Using that information, it is estimated that the four-month extension would be valued at approximately $971,128.00. Use of the extension will not cause VISN 2 Downstate to exceed the $5 million limit on sole source contract awards under VAAR 819.7007 and 38 USC § 8127(c).

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

(x) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or ( ) 819.7008 Sole source awards to a verified veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

VAAR 819.7007 permits sole source awards to SDVOSB entities based on 38 USC 8127(c) and PDSC has been determined to be a responsible source with respect to performance under the base year of Contract 36C24219D0082, as well as current performance during Option 1. Additionally, in accordance with VAAR 819.7003(b)(1)-(3), PDSC is an eligible SDVOSB, has certified they are small under NAICS code 339115, and they are a verified SDVOSB within the VIP database, as confirmed by the Contracting Officer on February 09, 2021. PDSC made assurances in December 2018 in writing that they were in compliance with the requirements of the Buy American Statute and the Nonmanufacturer Rule. PDSC explained they use Korrect Optical (a small business) as the eyeglass manufacturer and in doing so, PDSC would be in compliance with the Nonmanufacturer Rule. PDSC provides supplies or products that will be manufactured in the United States by a qualified small business, Korrect Optical. Korrect Optical is a small business concern for the applicable NAICS code size standard (1000 employees). PDSC is a small business concern for a 500-employee size standard as required by the Nonmanufacturer Rule. Furthermore, PDSC will deliver only domestic end products in compliance with the Buy American Statue.

Pursuant to VAAR 819.7007 and 38 U.S.C. § 8127(c) a sole source award to a SDVOSB concern is authorized where the SDVOSB concern is determined to be a responsible source with respect to performance of the contract; the anticipated award will exceed the simplified acquisition threshold but will not exceed $5,000,000; and the contract award can be made at a fair and reasonable price that offers best value to the United States. PDSC is a verified SDVOSB by the Center for Veteran Enterprise (CVE) on the Vendor Information Pages (VIP), as confirmed by the Contracting Officer on February 09, 2021. PDS Consultants, Inc. (DUNS No. 071196179) has performed satisfactorily on Contract 36C24219D0082, as well as on contracts for similar supplies and services to other Veteran Integrated Service Networks.

The extension of services under FAR 52.217-8 would allow for continued services during the long-term contract procurement process, as significant time was lost in the long-term procurement planning due to coordination issues, workload constraints, and complexities introduced with a VISN 2 consolidated acquisition planning approach.

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Revision 03 Eff Date: 04/03/2020

Without this contract extension, Veteran beneficiaries of VISN 2 Downstate would not have access to prescription eyeglasses. Moreover, due to the complexities involved in a transition to another contractor who could provide the same or similar services, care would undoubtedly be disrupted. Any gap in the continuity of services would have a detrimental impact on the Veterans. It is therefore necessary to provide continuous services from the incumbent contractor until a long-term contract can be competitively awarded.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under 5.202 applies:

Prior to award of Contract 36C24219D0082 due diligence was conducted by synopsis of the proposed acquisition and advising industry of the pending acquisition. A notice was posted on FBO notifying potential vendors that a Sole Source is intended to procure eyeglasses and associated services.

Although not required, all vendors were provided the opportunity of advance notice of the VA’s intent to sole source this short-term requirement.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable:

Prior to award of Contract 36C24219D0082 the Contracting Officer determined that the prices proposed by PDSC were fair and reasonable through a comparison of those prices to the Independent Government Estimate (IGE), market research, and other available price analysis techniques in accordance with FAR 13.106-3(a)(2). These prices will remain in effect during the extension of services under FAR 52.217-8.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Prior to award of Contract 36C24219D0082 due diligence was conducted by synopsis of the proposed acquisition and advising industry of the pending acquisition. A notice was posted on FBO notifying potential vendors that a Sole Source is intended to procure eyeglasses and associated services.

Although not required, all vendors were provided the opportunity of advance notice of the VA’s intent to sole source this short-term requirement. Due to the complexities involved in a transition to another contractor who could provide the same or similar services, care would undoubtedly be disrupted, therefore, follow-on market research regarding availability of sources was not conducted at this time as PDSC continues to meet the eligibility criteria outlined in VAAR 819.7003.

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

None. Pursuant to 38 U.S.C. § 8127(c) a sole source award to a SDVOSB concern is authorized where the SDVOSB concern is determined to be a responsible source with respect to performance of the contract; the anticipated award will exceed the simplified acquisition threshold but will not exceed $5,000,000; and the contract award can be made at a fair and reasonable price that offers best value to the United States. PDS Consultants, Inc. is a verified SDVOSB by the Center for Veteran Enterprise (CVE) on the Vendor Information Pages (VIP). PDS Consultants, Inc. (DUNS No. 071196179) has performed satisfactorily under the subject contract, as well as on contracts for similar supplies and services to other Veteran Integrated Service Networks.

https://www.acquisition.gov/content/part-5-publicizing-contract-actions https://www.acquisition.gov/content/part-5-publicizing-contract-actions

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

During market research prior to award of Contract 36C24219D0082 PDS Consultants Inc. and Superior Optical Labs, Inc. expressed interested in the VISN 2 Downstate requirement.

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:

NCO 2 will continue working with VISN 2 Downstate on a competitive long-term procurement for the stated requirement in order to minimize the need for future sole source requirements.

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.

Christopher J. Costantini

__2/25/2021_____________ Date VISN 2 Network Prosthetics Manager

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13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Donna C. Richardson Date Contracting Officer Network Contracting Office (NCO) 2

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.

Allan M. Preston Date Branch Chief, Medical Sharing

Network Contracting Office (NCO) 2

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $68 million) or approve ($700K to $68 million) for other than full and open competition.

Joseph P. Maletta Date Executive Director, RPO East Head of Contracting Activity (HCA) https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx