P03 RFO 12_JA OVER SAT_SAP Panakeia Home O2_Final.pdf

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Acquisition ID # - 36C242-26-AP-4824

DEPARTMENT OF VETERANS AFFAIRS

RESTRICTING COMPETITION USING SIMPLIFIED PROCEDURES

FOR COMMERCIAL ITEMS IN ACCORDANCE WITH RFO 12.102

Acquisition Plan Action ID: 36C242-26-AP-4824

1. Contracting Activity:

Department of Veterans Affairs, New York/New Jersey Healthcare System, Veterans Integrated Services Network (VISN) 2 Downstate, James J. Peters Veterans Affairs Medical Center 130 West Kingsbridge Road, Bronx, NY 10468

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

Network Contracting Office (NCO) 2 Upstate intends to award a sole source contract for Home Oxygen services to Apnea Care Inc. a small business, for the procurement of Home Oxygen services for Veteran patients located in the Albany, Bath, Canandaigua, Syracuse, WNY and their entire catchment area (including outpatient clinics). The proposed sole source contract is for a six-month Firm Fixed Price (FFP) Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The performance period is September 1, 2026 – February 28,2027. The total estimated value of this procurement is $4,800,000.00. Contract 36C24226D0083 was awarded on 8/14/2026, a debrief was requested by Warrior and provided on 8/17/2026. Warrior has 10 days to protest, if they do not protest, the bridge contract will still be needed because it will take a minimum of 6 months to transition from Apnea Care to Panakeia. The services and supplies are currently being provided by Apnea Care Inc.

via contract 36C24226D0020. The current Firm Fixed Price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) contract will expire on August 31,2026.

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

Apnea Care Inc. will provide Home Oxygen and associated services to Veteran beneficiaries on the Home Oxygen Program. The requirement is for all materials, equipment, transportation of equipment, set up, labor, supervision, patient education, safety management, and infection control as necessary for patients receiving home respiratory care therapy as outlined in the performance Work Statement (PWS). These supplies and services are required twenty-four (24) hours per day and seven (7) days per week including holidays. The NAICS code for this procurement is 325120, PSC code 3860.

4. Statutory Authority Permitting Restricted Competition:

RFO 12.102 Restricting Competition. The statutory authority for applying the Simplified Acquisition Procedures is 41 U.S.C. § 1901 and is implemented by RFO 12.102(b) for Restricting Competition using Simplified Acquisition Procedures for Commercial Products and Services. Competition is restricted on this procurement for the reason below:

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

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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

Apnea Care Inc. has a proven track record of providing these services to the Albany, Bath, Canandaigua, Syracuse, WNY VA Medical Centers and their entire catchment area (including outpatient clinics) throughout the lifecycle of the current contract in place which expires August 31, 2026. It will take approximately six (6) more months to continue to process and ultimately award the new VISN-2 Upstate Home Oxygen East contract. Home Oxygen and related oxygen therapy interventions are lifesaving medical treatments that provide increased physical function and quality of life to the veterans that rely on it. Due to the high startup costs and lengthy transition period required for another vendor to assume the supply and services, it is unrealistic to acquire these supplies and services for another vendor for this short period of time.

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

Due to the need to have a new, short term contract in place at the time of expiration of the existing contract, additional sources were not sought out for this requirement. The current contract was awarded to Apnea Care Inc. at a fair and reasonable price.

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

The Contracting Officer will determine fair and reasonableness of the proposed prices through a comparison of those prices to the Independent Government Estimate (IGE), market research, and other available price analysis techniques in accordance with FAR 15.404-1. Existing prices under the current contract with Apnea Care Inc. were determined fair and reasonable prior to award and it is expected that pricing would remain the same or similar, however, the Contracting Officer will not award a contract without a determination of fair and reasonable pricing being completed.

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

Market Research Was Not Conducted:

Due to the complexities involved in a transition to another contractor who could provide the same or similar services, care would undoubtedly be disrupted, therefore, follow-on market research regarding availability of sources was not conducted at this time. Competition will be sought after to the maximum extent practical on the new, long term VISN 2 Upstate contract.

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

The current contract with Apnea Care Inc. will expire on August 31,2026. This short-term procurement is required to provide uninterrupted home oxygen services until a long-term contract is awarded. It would be impossible to compete a short-term requirement and would not be practical for a new contractor to begin providing these services in such a short amount of time given the transition activities that would need to occur.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None

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:

Competition was not sought because Apnea Care Inc. is currently providing these same supplies and services on a contract that expires August 31,2026. At this time, the current contract expiration date does not allow for adequate time to solicit for and evaluate offers. The current effort in place to award the new VISN 2 Upstate Home Oxygen contract will ensure competition is sought after to the maximum extent possible.

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.

Name: Christopher Costantini Date Title: VISN 2 PSAS Manager Facility

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.

Name: Corey Swinton Date Title: Contracting Officer Facility: Albany VAMC

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b. One Level Above the Contracting Officer (Required over $350K but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Name> Anthony Murray Date NCO 02/ Division Chief

Facility: Albany

c. VHA Advocate for Competition and 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 approve $900K to $90 million for other than full and open competition.

Brent Goe Acting Executive Director Head of Contracting Activity Regional Procurement Office – East