P03 Redacted JA_36C259-21-AP-0362 for Posting after Award.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP

Attachment 2: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 10

Original Date: 03/22/11

Revision 10 Date: 09/10/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C259-21-AP-0362, Northern Montana Hospital DBA Northern

Montana Care Center; CNH for Fort Harrison, Montana

RPOW JOFOC Acquisition Plan Action ID: 2020-12-07T07:26:39

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19 (NCO19), 6162 South Willow Drive, Greenwood Village, CO 80111. The Organizational Activity is Montana

VA Health Care System, 3687 Veterans Drive, Fort Harrison, MT 59636. This action is funded by a

1358. Therefore, there is no associated 2237.

2. Nature and/or Description of the Action Being Processed: This procurement is for the establishment of a sole source Firm-Fixed Price Indefinite Delivery Contract (IDC) for community nursing home (CNH) services for the Montana VA Health Care System to the Northern Montana

Care Center. This will be a 5-year IDC (60 Months). The period of performance will be 1 May 2021 through 30 April 2026.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for the establishment of an IDC utilizing procedures in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6. 303-2. This acquisition does not fall within FAR Part 8 Required Sources of Supplies and Services, therefore the procedures associated with limited sources justification will not be utilized.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The CNH will provide all facilities and services to support long-term care for Veterans. These services include rehabilitation, nursing, and clinical care in accordance with the performance work statement. The current contract 36C25919P0584 expires on 30 April 2021. Northern Montana Hospital (DBA

Northern Montana Care Center) has met all requirements under VHA Notice 2019-22, Community

Nursing Home Program (CNHP) and VHA Office of Community Care (OCC) Field Guidebook

Specialty Programs Section 1.2, Geriatric Extended Care (GEC). Additionally, they are certified under Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Montana.

This will be a 5-year IDC (60 Months). The period of performance will be 1 May 2021 through 30

April 2026. The total estimated value of this contract is $2,483,398.00. This requirement will include

FAR 52.217-8.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC

§3304(a)(1), as implemented by FAR 6.302-1 (a)(2).

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency

Requirements per FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability

OFOC SOP Revision 10

Original Date: 03/22/11 or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4

( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the

Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106- 1(b)(2).

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

Requires the Use of the Authority Cited Above (applicability of authority): Currently, there is one Veteran being treated and housed at the Montana Care Center facility under an existing contract.

The Montana Care Center nursing home facility meets VA standards for quality of care to provide care and treatment to Veterans. They have consistently provided quality care to our Veterans. In accordance with FAR 6.302-1, this requirement for community nursing homes services will be sole sourced to the Montana Care Center facility. In addition, as stated in paragraph 6 below, no responses were received from any potential offerors regarding the sources sought notice issued for this procurement.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A source sought was posted to Contract Opportunities on November 2, 2020 and closed on November 12, 2020. No responses were received from any potential offerors regarding the sources sought notice. A search of the Medicare Nursing Home Compare website https://www.medicare.gov/nursinghomecompare/search.html resulted in 14 Community Nursing

Homes within the zip code of 59501, where the current CNH is located. The VA Vendor Information

Page (Vet Biz) was used to determine if potential offerors exist who would be able to provide the services required. However, the site failed to produce any results for Havre, MT. The CNH Program

Coordinator will review the compare score to determine if they are eligible for a contract. As part of the acquisition process, a CNH must provide a current state license, insurance and a copy of the state inspection. These documents are provided to the CNH Program Coordinator for review and evaluation. The CNH Coordinator will either provide a recommendation to contract or state that the

CNH did not receive a recommendation to contract. A redacted J&A will be posted on Contract

Opportunities.

7. Determination by the Contracting Officer (CO) that the Anticipated Cost to the Government will be Fair and Reasonable: The Medicaid rates are used as the basis for pricing the CNH contracts. The Medicaid rates are established by each state based on national average. The VA

Geriatrics and Extended Care Office through the VHA PM and VA pulse publishes an annual maximum allowable percentage that are applied to each RUGS IV category. The RUGS IV category identify the different levels of treatment. The add-on percentages are added to the basic Medicaid rate then applied to each RUGS IV category. The Medicaid rate and the VA add-on percentage make up the per diem rate paid for each Veteran. The line item structure will illustrate the different RUGS IV category and the add- on percentage and the total per diem rate for each level of care. After conducting research on the current Medicaid and RUGS IV rates, the CO and Contractor can agree with add-on percentages that are under the maximum allowable add-on percentages then prices are considered fair and reasonable. The add-on percentages do not change through the life of the contract.

http://www.medicare.gov/nursinghomecompare/search.html http://www.medicare.gov/nursinghomecompare/search.html

OFOC SOP Revision 10

Original Date: 03/22/11

8. Description of the Market Research Conducted and the Results, or a Statement of the

Reasons Market Research Was Not Conducted: As described in Section 6 above, a search of the

Medicare Nursing Home Compare website:

https://www.medicare.gov/nursinghomecompare/search.html resulted in 14 community nursing homes within the zip code of 59501 of Havre, MT where the current CNH is located. A sources sought was posted to Contract Opportunities on November 2, 2020 and closed on November 12, 2020. There were no other responses received from any other potential offerors regarding the sources sought notice issued for this procurement. The VA’s Vendor Information Page (Vet Biz) was used to determine if any potential Service-Disabled Veteran-Owned Small Business or

Veteran-Owned Small Business offerors exist for this requirement. However, the site failed to produce any results for Havre, MT. The results of the market research showed there is no other

CNH that expressed interest. CNHs are not competed. Based on the CNH program requirements, the Veterans’ preference is taken into consideration when selecting a CNH. The CNH selection is based on the Veterans’ needs, proximity to home/residence and family. The CNH Coordinator is responsible for conducting market research and will review the compare score to determine if there are any available and qualified CNHs that are eligible for a contract.

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

Veteran receiving care and treatment at this facility. The Veteran cannot be relocated due to continuity of care and medical complexity. This CNH is located near the family of the Veteran. It would cause undue stress to the Veteran and family if the Veteran was to be relocated.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other CNH expressed interest in this acquisition. The current contractor, Northern Montana Hospital (DBA

Northern Montana Care Center) has expressed an interest to continue providing CNH services to the

VA and continue in providing care and services to the Veterans.

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 is currently one facility capable of providing the specialty care and medical needs of the existing Veterans. Based on the CNH program requirements, the Veterans’ preference is taken into consideration when selecting a CNH based on the Veterans’ needs, proximity to home/residence and family. The CNH Program attempts to review the compare score for a sample of CNHs. However, the selection of the CNH is determined on whether the CNH has the resources and program requirements available to meet the Veteran’s need. The CNH Program Coordinator is responsible for conducting market research and will review the compare score to determine if they are eligible for a contract. The contracting office and CNH Program office will continue to canvas the market for new CNH entrants capable of meeting program requirements.

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.

https://www.medicare.gov/nursinghomecompare/search.html

OFOC SOP Revision 10

Original Date: 03/22/11

Kelli Antonick Date

Manager, Geriatrics & Extended Care

Facility: VA Montana Health Care System

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.

David J. Medina Date Contracting Officer

Branch Chief, NCO 19

b. NCO-19 Director of Contracting REVIEW AND APPROVAL (over $700,000 to $13.5 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for other than full and open competition.

Danny O. Freeman Date Director of Contracting

Network Contracting Office 19

c. VHA RPO HCA REVIEW AND APPROVAL (over $700,000 to $13.5 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for other than full and open competition.

Curtis M. Jordan Date Executive Director, RPO West

Head of Contracting Activity (HCA) http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx VHAV19FreemD Typewritten Text 12/11/2020