P03 PG_Part806.3_Atch1_FAR6_JA_OVER_SAT BulkOxygen complete signed.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#: 36C245-24-AP-3017

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C245-25-AP-3940

1. Contracting Activity:

Department of Veterans Affairs

VISN 05, NCO 5

P.O. Box 1000, Bldg. 101C, Room 8 Perry Point MD 21902

Organizational Activity:

Department of Veterans Affairs VA Maryland Health Care System (VAMHCS) 10 N Greene St Baltimore, MD 21201

Identification Number (purchase request): 512-25-4-094-0377

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

Contract 36C24523C0151 was awarded to Warwick Supply & Equipment Co. on September 1, 2023. The contract supports the Baltimore VAMC’s need for a temporary bulk oxygen system while the existing system is brought up to code. Contract 36C24524P0882 was awarded 8-29- 2024 to Warwick for the continued usage of the portable system while construction is being done for the new location of the bulk oxygen system and new tank. The period of performance of the current contract is September 1, 2024 to August 31, 2025. Due to construction taking place at the facility required for the new bulk oxygen system, the need for temporary bulk oxygen still exists.

Construction should be completed by the end of calendar year 2025 with the new tank being installed in Jan/Feb of 2026.

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

A temporary bulk oxygen system is necessary since the old system was not up to code and needed to be decommisioned. Construction activies are taking place in preparation of the new site location for the bulk oxygen system at the Baltimore VAMC. The new site location will be complete and and new tank will be installed during early 2026 (Jan/Feb time frame). This will be a firm-fixed supply contract with an estimated total of $555,084.36. The requirement involves the rental of one (1) bulk oxygen trailer to include filling of the tanks on a routine basis. A breakdown of estimated costs associated with the requirements listed above are as follows:

VHAPG Part 806.3 OFOC Page 2 of 5

Line Item Number

Description Quantity Unit of Measure

Unit Price Total

0001 Portable Bulk Oxygen Trailer Rental

12 MO $32,120.00 $385,440.00

0002 Liquid Bulk Oxygen Refill

12 MO $14,137.03 $169,644.36

GRAND

TOTAL:

$555,084.36

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

( ) (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):

On September 1, 2023, a sole-source contract was awarded to Warwick Supply & Equipment Co. for the rental of one (1) bulk oxygen trailer to include filling of the tanks on a routine basis, as well as site modifications necessary for the temporary supply of oxygen to include the following: • enhance fire barrier enhancements on walls and overhang • loading dock

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Acquisition ID#: 36C245-24-AP-3017 ventilation for operational safety • lighting enhancements for off-hour deliveries • provide sufficient fencing with two egress gates in the VAMC loading dock to separate the oxygen system equipment and the public • provide a new connection point and interconnection piping to tie into the existing system • provide two new temporary master alarm panel and related electrical and control connections from the temporary system to the first floor control room and the announcement room • provide one primary and secondary oxygen supply systems as well as the associated vaporizers, interconnection piping, manifolds, monitoring switches, valving and regulators, provide required signage

This requirement will be a follow-on contract to Warwick Supply & Equipment Co. for the rental of one portable bulk oxygen trailer and the filling of the tanks until construction of the final bulk oxygen site is complete and new tank installed, not to exceed 12 months. A temporary system is necessary while the old system is removed and a new site is constructed at the medical center. If the procurement were to be solicited for competition and potentially awarded to a different contractor, the existing modified trailer and its system would have to be demobilized and allow for a new, temporary system to be re-installed. Thus, creating a substantial duplication of cost and unacceptable delays to the government. It is critical that there are no disruptions to the oxygen being provided to the medical center’s patients.

Accordingly, Warwick Supply & Equipment Co. is the only firm capable of providing the supplies and services descrived in Section III above without the Veteran’s Health Administration experiencing unacceptable delays and substantial duplication of cost that could not be expected to be recovered through competition.

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

The proposed contract action is made under the terms of an existing contract that was previously synopsized in sufficient detail to comply with the requirements of FAR 5.207 with respect to the current proposed contract requirement.

A solicitation (36C24522Q0982) set aside for SDVOSB was posted on SAM.gov on 8/26/22.

The solicitation was aimed at finding a vendor to deliver oxygen only. No quotes were received. Solicitation 36C24522Q1038 set aside for small business was posted on SAM.gov on 9/19/22. No quotes were received. Having unsuccessfully located vendors willing to provide quotes for the delivery of oxygen, a solicitation (36C24523Q0117) was posted 11/23/22 on SAM.gov set aside for SDVOSB for tank replacement and rental. A site visit was conducted on 12/12/2022.

A decision was made by the VA to contractually separate Loch Raven and Baltimore due to the amount of work required at the Baltimore VAMC. On 7/5/2023, a sources sought notice 36C24523Q0831 was issued on SAM.gov to host a site visit for the Baltimore location only.

The site visit took place on 7/15/2023. Warwick Equipment & Supply Co. and Roberts Oxygen were the only contractors in attendance. Warwick proposed a solution to the medical center where a temporary trailer with oxygen tanks could be brought in and hooked up while the old system was being upgraded, while Roberts Oxygen would act as a subcontractor to supply tanks and perform the routine fills.

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There have been no changes to the market within the last year.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Costs will be determined fair and reasonable IAW FAR 13.106-3(a)(2)(vi).

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: See paragraph #6 above.

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

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

Warwick Supply & Equipment Co.

11011 McCormick RD Suite 600A Hunt Valley, MD 21031

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 VA will continue to conduct market research in attempt to remove the sole source barrier in the future.

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.

Eric Deshields Date Acquisitions Utilization Specialist Baltimore VAMC

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.

https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

VHAPG Part 806.3 OFOC Page 5 of 5

Rebecca Gobble Date Contracting Officer Commodities Team 1, NCO 5

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.

Allison Lewis Date Branch Chief, Commodities Team 1

NCO 5