P03- PG_Part819.7008-7009_Atch1_FAR6_JA_OVER_SAT 12.12.23_Redacted.pdf

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Revision: 02 Effective Date: 04/15/2023

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C257-23-AP-4632

JOFOC: FY24 - NCO 17 - 312

1. Contracting Activity: Department of Veterans Affairs, VISN 17, The North Texas

Veterans Affairs Health Care System (VAHCS), 4500 S. Lancaster Rd. Dallas, Tx 75216, has a requirement for Steris equipment maintenance. 2237#: 549-24-2-5096-

2. Nature and/or Description of the Action Being Approved: The Proposed action is for a firm-fixed price task order for preventative maintenance services for Steris equipment within the VA Medical facilities. The period of performance shall be a base year plus four (4) 12-month option periods beginning January 1, 2024, until December 31, 2028. The requirement will be awarded to a Service-Disabled Veteran Owned Small Business (SDVOSB) on a sole source basis in accordance with 38 USC 8127 and VAAR 819.7007.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The requirement is for preventative maintenance on Steris equipment located throughout the facilities at Dallas and Fort Worth Veteran Affairs Medical Centers (VAMC). The Contractor shall provide preventative Maintenance to include support services for each Steris Corporation/AMSCO Sterilizer Systems, located within the North Texas Veterans Health Care System. Contractor shall provide 24-hour, seven days a week, customer service. Technical support and assistance are to be available within two (2) hours of a telephone request for troubleshooting assistance. Steris qualified service technician shall be on-site to respond to service condition within twenty-four

(24) hours once a call for service is reported. Services are to include troubleshooting, repair, preventive maintenance inspections (PMI), calibrations and replacement of defective parts. This requirement falls under VHA Directive 1116 dated July 17, 2023; which includes specific requirements for the standardization of equipment types and for ensuring that reprocessing requirements are met; this equipment ranges from washer/disinfectors to storage of surgical instrument. This Directive applies anywhere sterile processing or High-Level Disinfection (HFD) occurs in VA facilities. AUTHORITY: 38 U.S.C. 7301. The estimated total contract value is (inclusive to Option periods). In addition, FAR Clause 52.217-8 will be included in the contract which allows the government to extend services without negotiating short extensions.

Revision: 02

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7008 (DEVIATION) or VAAR 819.7009 (DEVIATION) up to $5,000,000. Check the specific VAAR clause used below:

( X ) 819.7008 Sole source awards to a certified service-disabled veteran-owned small business; or ( ) 819.7009 Sole source awards to a certified veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

In accordance with 38 USC 8127, Veterans First Contracting Program, and VAAR 819.7007, Contracting may award contracts to SDVOSBs if the anticipated award price will not exceed $5 million, the SDVOSB is determined to be a responsible contractor and if the award can be made at a fair and reasonable price.

The anticipated awardee, Sustainment Technologies, LLC, is a verified SDVOSB who has provided the same/similar preventative maintenance services at the Dallas and Fort Worth VA for several years and has done so at a satisfactory level or better. Pricing has been deemed fair and reasonable based on previous procurement history. The intended awardee has the resources to meet the government’s need.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies: Initial Market research determined there were multiple SDVOSBs capable of providing the Steris Maintenance service; however in an email from the Steris, The Original Equipment Manufacturer (OEM) dated 10/26/2023, revealed only Sustainment Technologies is an authorized partner of Steris and the only SDVOSB allowed to purchase STERIS Parts, provide Service Training, and conduct Preventative Maintenance.

Furthermore, in accordance with FAR 5.301, 16.505(b)(2)(ii)(D), and 16.505(a)(4)(iii), the award notice for this action will be synopsized on the Contract Opportunities website (www.Sam.gov) and this justification will be made publicly available within 14 days of award.

7. Determination by the CO that the Anticipated Cost to the Government will be

Fair and Reasonable: Pricing has been deemed fair and reasonable based on previous procurement history and the Independent Government Cost Estimated.

Further price analysis, to include a comparison to historical and published prices, will be conducted and subsequent negotiations held as necessary. Additionally, price discounts will be sought.

8. Description of the Market Research Conducted and the Results, or a https://www.va.gov/oal/docs/business/pps/deviationVaar20230216.pdf https://www.va.gov/oal/docs/business/pps/deviationVaar20230216.pdf https://www.va.gov/oal/docs/business/pps/deviationVaar20230216.pdf https://www.acquisition.gov/far/part-5#FAR_Subpart_5_2 https://www.acquisition.gov/far/part-5#FAR_5_202

Revision: 02

Statement of the Reasons Market Research Was Not Conducted: Based on market research and the email from the Steris (OEM), there are not two or more SDVOSB, Veteran owned small business (VOSB), or other small business concerns capable of meeting the full requirement. Therefore, this action cannot be set-aside for SDVOSB, VOSB, or any other socioeconomic group. In addition, VA Subject Matter Experts regularly review industry trade publications and conduct internet research to ascertain if any other preventative maintenance is available. Based on the market research efforts, the Government's technical experts have determined that only Sustainment Technology can meet all of the Governments requirements. As a result, the requirement will be awarded as a Sole source to a Sustainment Technology

(SDVOSB).

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

None; IAW 38 USC 8127, Veterans First Contracting Program, and VAAR 819.7007, Contracting may award contracts to SDVOSBs if the anticipated award price will not exceed $5 million.

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

1. - SDVOSB

2. -SDVOSB

3. - SDVOSB

4. - SDVOSB (Identified in past Market research)

5. SDVOSB (Identified in past

Market research) Though these sources have shown an interest in this acquisition, only Sustainment Technology can provide the certified staff, and preventative maintenance needed for this contract action.

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 Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

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:

https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx

Revision: 02

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 the 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 recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition.