P03 PG_Part806.3_Atch7_FAR6_JA_OVER_SAT-signed.pdf

Attachment 7: Request for Sole Source Justification Format >SAT

VHAPG Part 806.3 OFOC Page 1 of 6 Revision: 01 Effective Date: 04/01/23

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C245-23-AP-3397

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): 512-23-4-094-0248

2. Nature and/or Description of the Action Being Processed: The existing bulk oxygen system at the Baltimore VA Medical Center is outdated and noncompliant according to industry’s safety standards. There are 3 phases taking place at the facility in order to remove the existing system and install a brand new one. This requirement is for the first phase, which provides temporary oxygen to the medical center.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: A temporary bulk oxygen system is required in order to remove the current, out-dated system, perform site modifications through construction activities and complete the installation of the new system.

This will be a firm-fixed supply contract with an estimated total of $5,289,801.00. The requirement involves 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:

- provide an engineered vehicle barrier wall

- enhanced fire barrier enhancements on walls and overhang

- loading dock 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

VHAPG Part 806.3 OFOC Page 2 of 6

Effective Date: 04/01/23

Acquisition Plan Action ID: 36C245-23-AP-3397

- 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

A breakdown of costs associated with the requirements listed above are as follows:

Base Period: September 1, 2023 – August 31, 2024 Line Item Number

Description Quantity Unit of Measure

Unit Price Total

0001 Initial setup of the portable liquid oxygen trailer

1 Job $1,026,675.00 $1,026,675.00

0002 Trailer Rental 12 Months $29,960.00 $359,520.00 0003 Liquid Oxygen

- $1.26 per 100

CU FT

(includes delivery fee)

1 Year $260,100.00 $260,100.00

0004 Site Modifications

1 Job $3,023,886.00 $3,023,886.00

Base Period Total: $4,670,181.00

Option Period 1: September 1, 2024 – August 31, 2025

1001 Option Period 1 – Trailer Rental

12 $29,960.00 $29,960.00 $359,520.00

1002 Option Period 1 – Liquid Oxygen - $1.26 per 100

CU FT

(includes delivery fee)

1 Year $260,100.00 $260,100.00

Option Period 1 Total: $619,620.00

GRAND TOTAL: $5,289,801.00

VHAPG Part 806.3 OFOC Page 3 of 6

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;

( X ) (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):

The existing bulk oxygen system at the Baltimore VA Medical Center is outdated and noncompliant according to industry’s safety standards. There are 3 phases taking place at the facility in order to remove the existing system and install a brand new one. This requirement is for the first phase, which provides temporary oxygen to the medical center.

Currently, the bulk oxygen equipment (tanks) belongs to Air Products. The current contract (36C24523P0634), expires on 9/30/2023. The system requires multiple upgrades, as well as construction activities at the facility in order to accommodate and relocate the bulk oxygen system. Throughout the years, Air Products has informed the VAMHCS of the need to upgrade and relocate the system at the Baltimore location. Having expressed their concerns of liability and frustrations with the location, Air Products has decided to severe its ties with the Baltimore VAMC location.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The existing bulk oxygen system at the Baltimore VA Medical Center is outdated and noncompliant according to industry’s safety standards. There are 3 phases taking place at the facility in order to remove the existing system and install a brand new one. This requirement is for the first phase, which provides temporary oxygen to the medical center.

Currently, the bulk oxygen equipment (tanks) belongs to Air Products. The current contract (36C24523P0634), expires on 9/30/2023. (*Note: The current contract is for two sites, Baltimore VAMC and Loch Raven VAMC.) The system requires multiple upgrades, as well as construction activities at the facility in order to accommodate and relocate the bulk oxygen

VHAPG Part 806.3 OFOC Page 4 of 6 system. Throughout the years, Air Products has informed the VAMHCS of the need to upgrade and relocate the system at the Baltimore location. Having expressed their concerns of liability and frustrations with the location, Air Products has decided to severe its ties with the Baltimore VAMC location.

A solicitation set aside for SDVOSB was posted open market set-aside solicitations starting with SDVOSBs aimed at finding a vendor to delivery oxygen only. No quotes were received. Contracting issued another solicitation on the open market, this time, set aside for small business. No quotes were received.

Having unsuccessfully located vendors willing to provide quotes for the delivery of oxygen, a solicitation was posted on SAM.gov set aside for SDVOSB for tank replacement and rental.

During site visits conducted, two contractors brought up the status and age of the existing oxygen set-up. Both vendors agreed that the system needed to replaced in order to bring it up to code and did not submit a quote for the Baltimore location. It became evident through discussions with industry that the existing system at the Baltimore VAMC had multiple problems to include, the location of the tanks, aging/out-dated equipment and access issues.

At this point, the VA needed to go back to the drawing board and strategize on a different way to procure bulk oxygen at both locations.

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. In July 2023, a sources sought notice 36C24523Q0831 was issued on SAM.gov to host a site visit for the Baltimore location only.

Warwick Equipment & Supply Co. (WOSB) and Roberts Oxygen were in attendance.

Warwick proposed a solution to the medical center where a temporary trailer with oxgen tanks could be brought in and hooked up while the old system was being upgraded. Warwick would be responsible for performing the tasks outlined in paragraph 3 above and they would be subcontracting out the supply of oxygen and tanks from Roberts Oxygen.

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

VHAPG Part 806.3 OFOC Page 5 of 6

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.

Carrie Parsons-Dobney Date Supervisory Inventory Management Specialist

VAMHCS

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.

Rebecca Gobble Date Contracting Officer NCO 5, Perry Point VAMC https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

VHAPG Part 806.3 OFOC Page 6 of 6

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.

Angela Burger Date NCO 5, Division Chief

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.

Joseph P. Maletta Date VHA Head of Contracting Activity (HCA)