P03 Reference Lab 3 Month - LSJ.pdf

36C246-22-AP-7295

Effective Date: 02/01/2022 Page 1 of 4

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C246-22-AP-7295

(1) Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 6 on behalf of Veteran Integrated Services Network (VISN) 6; 2237 numbers: 558-23-1-044-0010, 558-23-1-118-0007, 565-23-1-042-0001, 590-23-1-023-0039, 637-23-1-167-0002, 652-23-1-096- 0077, 658-23-1-039-0026, 659-23-1-064-0004, 659-23-1-108-0001, and 659-23-1-109-0001.

(2) Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). NCO 6 intends to award a new, sole sourced, firm-fixed-price delivery order to Quest Diagnostics as an interim sole source to provide reference laboratory testing for all esoteric reference laboratory tests to support the VISN 6 Primary VA facilities that include seven Veteran Affairs Medical Centers (VAMC) five Health Care Centers (HCC), and one Community-Based Outpatient Center (CBOC) throughout Virginia and North Carolina. A 3 month delivery order October 1, 2022 through December 31, 2022, will allow for reference laboratory testing to continue without delay in which a competitive acquisition will be solicited.

Order against: FSS Contract Number: V797D-70090

Name of Proposed Contractor: Quest Diagnostics, Inc.

Street Address: 500 Plaza Drive

City, State, Zip: Secaucus, NJ 07940

Phone: 615-498-7347

(3) Description of Supplies or Services:

The estimated value of the proposed action is $2,125,111.17

This requirement is for reference laboratory testing for all esoteric tests to support the VISN 6 VA Medical Facilities in Virginia and North Carolina, consultation services and transportation of clinical laboratory specimens to the contractor’s laboratory(s) for referral laboratory for testing.

These tests are to be performed by an off-site referral laboratory for testing, diagnostic, and consultation on pathology specimens.

Effective Date: 02/01/2022 Page 2 of 4

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays: Multiple schedule holders are available;

however, insufficient time exists to issue and award competitive solicitation. Email correspondence with Quest was exchanged on 9/29/2022 as a notice to proceed for the continuation of services until a sole source award could be put into place as an urgent measure.

Losing reference lab services would be detrimental to VISN 6 and the patients it serves. The 3 month action will allow for continuity of service until a competitive order can be completed.

Quest Diagnostics Inc. is the current provider and holds an active FSS schedule through March 31, 2027.

FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized:

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination: To meet the regulatory requirements as required by FAR Part 8.404(d) and 8.405-2(d), the Contracting Officer anticipates that this order will be determined fair and reasonable based on a verification of the contractors FSS price list and comparison with historical data of a competitively awarded contract.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted. Market research was conducted to identify available sources to fulfill this requirement. Three large business vendors with VA Federal Supply Schedule (FSS) contracts were identified under SIN 621 II Medical Laboratory Testing and Analysis Services: Quest Diagnostics, Laboratory Corporation of America, and ARUP

Effective Date: 02/01/2022 Page 3 of 4

Laboratories. No small business vendors have been identified. No SDVOSB or VOSB vendors capable of providing this requirement were identified from a search of the VA Vendor Information Pages VIP search. However, at this time a competitive award would cause a gap in services. The Contracting Officer determined that no further market research was required due to the necessity of this interim sole source to Quest Diagnostics. This interim sole source will provide the needed time to issue and award a competitive request for quotation amongst eligible VA FSS awardees under SIN 621 II.

(7) Any Other Facts Supporting the Justification: None.

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made: The Government will continue to conduct thorough market research to gauge the commercial marketplace capabilities for future requirements.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

10/11/2022

SIGNATURE DATE

Susan Amos

NAME

COR Pathology & Laboratory Medicine Service

SERVICE LINE/SECTION

Salem VA Health Care System

FACILITY

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Digitally signed by Cherisse A. Hall 613334 Date: 2022.10.11 14:17:43 -04'00'

Cherisse Hall, Contracting Officer DATE Branch Chief Supply 1, NCO 6

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.

Susan L. Amos 205296 205296 Digitally signed by Susan L. Amos

Date: 2022.10.11 12:23:14 -04'00'

Cherisse A. Hall 613334

Effective Date: 02/01/2022 Page 4 of 4

KEESHIA R Digitally signed

NEWMAN

254911

Keeshia Newman, by KEESHIA R

NEWMAN

254911

DATE

Division Chief, NCO 6

c. Director of Contracting: I certify the justification meets requirements for other than full and open competition.

Digitally signed by IRMA FERRO Date: 2022.10.20 15:42:03 -04'00'

Irma Ferro, Date Director of Contracting, NCO 6

HIGHER LEVEL APPROVAL (Required for orders over $750,000):

d. VHA RPO HCA Review and Approval (over $750,000 to $75 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 restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Joseph P. Maletta DATE Executive Director, RPO-East VHA Head of Contracting Activity (HCA)

IRMA FERRO