P03 - OFOC 36C259-22-AP-4047 _Redacted.pdf

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C259-22-AP-4047

RPOW JOFOC Tracker: 2023-04-07T12:32:53

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office

(NCO)19, 6162 S. Willow Drive, Suite 300, Greenwood Village, Colorado 80111, in support of the Rocky Mountain VA Medical Center, located at 1700 N. Wheeling Street, Aurora, CO 80045. This action is funded by a 1358. Therefore, there is no associated 2237.

2. Nature and/or Description of the Action Being Processed: This procurement is for Community Nursing Home (CNH) Services for the Rocky Mountain VA Medical Center (VAMC) with Colorado. It will utilize procedures in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

The action will result in a new sole source firm-fixed-price Indefinite Delivery Indefinite Quantity (IDIQ) Contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The CNH will provide all facilities and services to support short and long-term care for eligible Veterans.

These services include but are not limited to rehabilitation, nursing, and clinical care in accordance with the Performance Work Statement (PWS).

CO has met all requirements under VHA Notice 2020-32 and VHA Notice 2022-04, Community Nursing Care Program (CNHP) and the Office of Integrated Veteran Care (IVC) Community Care Field Guidebook, Specialty program section, 1.2, Geriatric Extended Care (GEC). Additionally, they are certified under the Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Colorado. This will be a 5-year IDIQ (60 Months) contract. The total estimated price of this procurement is , and this is also the IDIQ maximum ceiling amount. The contract will include FAR 52.217-8 – Option to Extend Services. If exercised for up to 6 months 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. The estimated period of performance will be from 1 July 2023 through 30 June 2028.

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement.

Competition is restricted on this procurement for the reason below:

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency

Effective Date: 02/01/2022 Page 3 of 4 research on the current Medicaid and RUGS IV rates, the CO will evaluate the Offeror’s rate to determine if the price per diem rate is fair and reasonable. If not, the Government will negotiate a change in the rate based on the allowable add-on percentage established by the Office of Geriatrics and Extended Care. The add-on percentages do not change throughout the life of the contract. This CNH does not provide ventilator care and therefore, the rates for those servcies are not included in this contract.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by a synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. There were no results to the Sources Sought Notice 36C25922Q0755. A search of SBA VetCert using NAICS 623110 yielded no results. The VA Rule of Two cannot be met. A search of the SBA Small Business Dynamic Search was also conducted using the NAICS code 623110 and zip code produced one (1) result;

A search of the Medicare Compare website https://www.medicare.gov/care-compare/ resulted in one Community Nursing Home within 5 miles of the zip code of CO; The CNH Coordinator reviewed the Medicare compare score and determined a waiver was not required. Typically, requirements for CNH services are not competed. Based on the CNH program requirements, the Veteran’s preference is taken into consideration when selecting a CNH based on the Veteran’s needs, proximity to home/residence, and family. The CNH Program Coordinator at the Medical Center reviews the Medicare compare score of various CNHs in a given area to determine the feasibility to meet the Veteran’s needs. The CNH coordinator determines the number of CNHs that may be required in an area based on future needs.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: There is no other supporting information not previously stated to support the use of other than full and open competition.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other nursing homes have expressed interest in this acquisition. has expressed interest.

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: Actions that are being taken to foster competition for future acquisitions of these services being acquired are being done by the CNH Coordinators. In accordance with the VHA Office of Community Care Field Guidebook, the CNH Program Office will review the Medicare Nursing Home Compare scores for a sample of CNHs. The selection of the CNH is determined by whether the CNH has the resources and program requirements available to meet the Veterans' needs. The CNH Coordinator will review the Medicare Nursing Home Compare scores to determine if they are eligible for a contract. The Contracting Office and CNH Program Office will continue to canvas the market for new CNH entrants capable of meeting program requirements. Based on the CNH program requirements, the Veteran’s preference is taken into consideration when selecting a CNH based on the Veteran’s needs, proximity to home/residence, and family.

Effective Date: 02/01/2022 Page 4 of 4

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.

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.

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

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 approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

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