P03 PG_Part806.3_Atch1_FAR6_JA_OVER_SAT STX Medical Courier Service Bridge 3-1-2025 - Redacted.docx

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C257-25-AP-2290 JOFOC Tracker Number: FY25-NCO17-859

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 17, South Texas Veterans Health Care System (STVHCS), 2237 number .

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

The South Texas Veterans Health Care System (STVHCS) has an emergent need for a continued medical courier services contract for the STVHCS P&LMS Laboratory. The Government shall not exercise any supervision or control over the service providers providing the services described herein. The contractor will provide all necessary labor, transportation, equipment, material, and supplies for twenty-four (24) hours a day, seven (7) days a week pickup and delivery of routine and emergency reagents, blood and/or blood products, lab products and specimens to locations outlined in the Schedule of Delivery for the STVHCS.

The expiring contract was awarded to DalyWorks, LLC (DalyWorks), who is an SDVOSB as a sole source bridge contract. The contract number is 36C25724C0074, the period of performance began on 9/1/2024, and ends on 2/28/2025. The total award amount was $422,687.40.

The follow-on requirement has since been procured as an SDVOSB set-aside and was awarded to Caduceus Medical Logistics LLC (Caduceus). Shortly after the new contract was awarded, three of the unsuccessful vendors filed GAO protests and a stay on the new award was invoked. Corrective action was taken, and the contract awarded to Caduceus was terminated and all proposals were re-evaluated.

A new award was made to Acute Response Inc (Acute Response); however, this award was protested again by two of the unsuccessful vendors. Corrective action is again to be taken by terminating the award to Acute Response and re-evaluating proposals.

As medical courier services are vital to the STVHCS, a sole source bridge contract must be awarded without delay to DalyWorks, the incumbent contractor.

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

A sole source bridge contract to DalyWorks is required for the continuation of courier services for the STVHCS. They are the only vendor that is familiar with the current routes and have all approvals and training needed to perform courier services while corrective Attachment 1: Request for Sole Source Justification Format >SAT

VHAPG Part 806.3 OFOC Revision: 03 Effective Date: 04/15/24 Acquisition ID#: 36C257-24-AP-5034 action is being conducted on the long term action. No other vendor would be able to provide services by March 1, 2025.

The period of performance will be from March 1, 2025 through June 30, 2025. It is also the intent to include one (1) three (3) - month option should it take longer than anticipated to perform the corrective action, which could extend the bridge contract to August 31, 2025.

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

( ) (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 ( X ) (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):

As stated in Section 3 above, DalyWorks is the only vendor that is familiar with the current routes and have all approvals and training needed to perform courier services while corrective action is being taken on the long term action. No other vendor would be able to provide services by March 1, 2025. A delay in award will have negative consequences to Veteran patient care.

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

As stated in Section 2, a solicitation for the follow-on requirement was issued as an SDVOSB set-aside and award was made to Caduceus. Shortly after the new contract was awarded, three of the unsuccessful vendors filed GAO protests and a stay on the new award was invoked. Corrective action was taken, and the contract awarded to Caduceus was terminated and all proposals were re-evaluated.

A new award was made to Acute Response Inc (Acute Response); however, this award was protested again by two of the unsuccessful vendors. Corrective action is again to be taken by terminating the award to Acute Response and re-evaluating proposals.

As medical courier services are vital to the STVHCS, a sole source bridge contract must be awarded without delay to DalyWorks, the incumbent contractor.

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

Market price will be determined fair and reasonable by comparison to the IGCE and prior contract pricing.

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

A search of SBA’s Dynamic Small Business Search (DSBS) database found 839 SDVOSBs and 135 VOSBs using NAICS code 492110. Several of these businesses have been performing similar requirements for the VA. Additionally, there are several known SDVOSBs who have been successfully performing these services for the VA for a number of years.

Market research was conducted on the long term contract and a solicitation was issued on Contract Opportunities as an SDVOSB set-aside.

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

None.

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

A solicitation for the follow-on action was issued on Contract Opportunities as an SDVOSB set-aside from May 6, 2024, to May 20, 2024. A total of proposals were received. Of those, the following vendors were found to be in the competitive range after initial review of proposal materials and confirming SDVOSB status:

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:

There are no barriers to competition for medical courier services. As stated in Section 8, there are several known SDVOSBs, a priority source, who have been successfully performing these services for the VA for a number of years.

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.

Laboratory Manager Date South Texas VA Health Care System

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.

Robyn J. Nussbaum Date Contracting Officer

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.

Michael J. Tusinger Date Branch Chief, NCO 17 image1.png image2.png