P03 - OFOC VISN 2 Upstae Home Oxygen Services Bridge 2.pdf

Attachment 1: Request for Sole Source Justification Format >SAT

VHAPG Part 806.3 OFOC Page 1 of 5 Revision: 03 Effective Date: 04/15/24 Acquisition ID#: 36C242-26-AP-0852

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C242-26-AP-0852

1. Contracting Activity:

Department of Veterans Affairs, VISN 02, Stratton VA Medical Center 113 Holland Avenue, Albany, NY 12208

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

Network Contracting Office (NCO) 2 Upstate intends to award a sole source contract for Home Oxygen services to Apnea Care Inc. a Service Disabled Veteran Owned Small Business, for the procurement of Home Oxygen Supplies for Veteran patients located in the Albany, Bath, Canandaigua, Syracuse, WNY and their entire catchment area (including outpatient clinics). The proposed new sole source bridge contract is for a six (6) month Firm Fixed Price (FFP) Indefinite Delivery/Indefinite Quantity (IDIQ) contract with two

(2) two-month option periods. The performance period is November 1, 2025 through April 30, 2026. The total estimated value of this procurement is $6,213,003.33. This award will serve as an interim contract action until a new, long term contract can be awarded. The services and supplies are currently being provided by Apnea Care Inc. via contract 36C24224D0038. The current Firm Fixed Price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) contract will expire on October 31, 2025.

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

Apnea Care Inc. will provide Home Oxygen and associated services to Veteran beneficiaries on the Home Oxygen Program. The requirement is for all materials, equipment, transportation of equipment, set up, labor, supervision, patient education, safety management, and infection control as necessary for patients receiving home respiratory care therapy as outlined in the performance Work Statement (PWS). These supplies and services are required twenty-four (24) hours per day and seven (7) days per week including holidays.

The NAICS code for this procurement is 325120, PSC code 6835.

4. Statutory Authority Permitting Other than Full and Open Competition:

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by

FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

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Acquisition ID#: 36C242-26-AP-0852

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by

FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the

Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Apnea Care Inc. has a proven track record of providing these services to the Albany, Bath, Canandaigua, Syracuse, WNY VA Medical Centers and their entire catchment area (including outpatient clinics) throughout the lifecycle of the current contract in place which expires October 31, 2025. It will take approximately six (6) to nine (9) more months to continue to process and ultimately award the new VISN-2 Upstate Home Oxygen East contract. Home Oxygen and related oxygen therapy interventions are lifesaving medical treatments that provide increased physical function and quality of life to the veterans that rely on it.

Due to the high startup costs and lengthy transition period required for another vendor to assume the supply and services, it is unrealistic to acquire these supplies and services from another vendor for this short period of time.

A second bridge contract is needed because the requesting service failed to provide the required documentation in time to properly compete the requirement. Contracting did not receive the complete SOW and corresponding documentation until January of 2025. The process can than take between six (6) to twelve (12) months to award because of the dollar amount of the contract and the necessary reviews required for a contract of this nature.

Additionally, there were two protests during the solicitation phase that delayed the procurement. At the time the second protest was received, a new bridge package was requested from the program office. This additional delay meant we would not have the needed six (6) months to transition the services.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

Market Research conducted on 10/24/2024 – This research was conducted for the new long-term contract that is in the process of being competed.

A sources sought was posted to SAM.gov and was open from 10/23/2024 – 11/4/2024 and four SDVOSB’s responded and were verified using SBA Dynamic Search, filtered for SDVOSB’s was searched and there were four SDVOSB’s which were BHPE, Eagle, Warrior, Apnea Care and Panakeia.

A search on SBA Dynamic Search, filtered for SDVOSB’s, was conducted for NAICS code 325120 and yielded 87 results. A search was also conducted using the keyword “Home Oxygen” and yielded 5 results. The five companies listed were Eagle Home Medical Corp, Respiratory Solutions of Kingswood LLC, LDS Therapists LLC, Ozark Veterans Group and Sonoran Medical Supplies LLC.

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Acquisition ID#: 36C242-26-AP-0852

GSA Library was searched using NAICS code 325120 and there were no results. The CO’s experience with these types of contracts also corroborates that this product is not offered on any GSA/FSS contracts.

FPDS was searched using “Home Oxygen” and yielded multiple results with varying companies and size of contracts.

Although Market Research suggests that multiple SDVOSB’s can provide this requirement, only one is capable of providing for this Bridge Contract requirement because it can take up to six months to transition from one vendor to another because of all of the equipment and personnel needed to accomplish the requirements of the contract.

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

The Contracting Officer will determine fair and reasonableness of the proposed prices 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). Existing prices under the current contract with Apnea Care Inc. were determined fair and reasonable prior to award and it is expected that pricing would remain the same or similar, however, the Contracting Officer will not award a contract without a determination of fair and reasonable pricing being completed.

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

Market Research conducted on 10/24/2024 – This research was conducted for the new long-term contract that is in the process of being competed.

A sources sought was posted to SAM.gov and was open from 10/23/2024 – 11/4/2024 and four SDVOSB’s responded and were verified using SBA Dynamic Search, filtered for SDVOSB’s was searched and there were four SDVOSB’s which were BHPE, Eagle, Warrior, Apnea Care and Panakeia.

A search on SBA Dynamic Search, filtered for SDVOSB’s, was searched for NAICS code 325120 and yielded 87 results. A search was also conducted using a keyword search of “Home Oxygen” and yielded 5 results. The five companies listed were Eagle Home Medical Corp, Respiratory Solutions of Kingswood LLC, LDS Therapists LLC, Ozark Veterans Group and Sonoran Medical Supplies LLC.

GSA Library was searched using NAICS code 325120 and there were no results. The CO’s experience with these types of contracts also corroborates that this product is not offered on any GSA/FSS contracts.

FPDS was searched using “Home Oxygen” and yielded multiple results with varying companies and size of contracts.

Although Market Research suggests that multiple SDVOSB’s can provide this requirement, only one is capable of providing for this Bridge Contract requirement because it can take up

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Acquisition ID#: 36C242-26-AP-0852 to six months to transition from one vendor to another because of all of the equipment and personnel needed to accomplish the requirements of the contract.

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

The current contract with Apnea Care Inc. will expire on October 31, 2025. This short-term procurement is required to provide uninterrupted home oxygen services until a long-term contract is awarded. It would be impossible to compete a short-term requirement and would not be practical for a new contractor to begin providing these services in such a short amount of time given the transition activities that would need to occur.

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

None

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:

The requesting service must be more diligent in providing the required documentation in a timely manner to allow the contracting process to go through the necessary evaluations and reviews.

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.

Name: Christopher Constantini Date Title: VISN 2 PSAS Manager

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

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

Anthony Murray, Contracting Officer Date Division Chief Stratton VA Medical Center https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

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Acquisition ID#: 36C242-26-AP-0852

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.

Julie McCann Date VISN 2 Director of Contracting

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 $75 million) or approve ($750K to $75 million) for other than full and open competition.

Name: Gerald F. Jacobs Date Executive Director, Regional Procurement Office East

VHA Head of Contracting Activity (HCA)