P03_Sole Source JA for MDEO Business Advisory Support_REDACTED.pdf

DEPARTMENT OF VETERANS AFFAIRS

Office of Procurement, Acquisition and Logistics (OPAL)

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103

Frederick, MD 21703

Justification and approval for other than full and open competition

6.302-5 – Authorized or required by statute.

(1) Identification of the agency and the contracting activity, and specific identification of the document as a "Justification for Other Than Full and Open Competition."

This Justification and Approval (J&A) for Other Than Full and Open Competition is executed by the Strategic Acquisition Center (SAC), on behalf of the Department of Veterans Affairs (VA), Medical Disability Examination Office (MDEO).

(2) Nature and/or description of the action being approved.

This activity proposes to negotiate a non-competitive firm fixed price sole source award to Blue Phoenix Solutions LLC, a Service-Disabled Veteran-Owned Small Business, (SAM Unique Entity ID: EE9FJ7MXJ5Z7; CAGE: 9KLT9) located at 3033 Wilson Boulevard, Suite 700 Arlington, Virginia 22201-3868 to provide Business Advisory Support.

(3) A description of the services required to meet the agency’s needs (including the estimated value).

The Contractor shall provide all the labor and supervision required to perform business advisory support services, to include program management office (PMO) support, to aid in accomplishing

MDEO strategic goals. In addition, the vendor will also be providing support for Program Goals, Objectives, and Key Results, Business Analysis and Product Management, Stakeholder and

Organizational Change Management, Strategic Program Communications, Policy and

Procedural Development Support, and Governance Structure Development Support.

The estimated value for this acquisition is $5M for a 12-month period of performance with an estimated start date of November 30, 2024.

(4) An identification of the statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is 41 U.S.C.§ 3304(a)(5) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-5 entitled, “Authorized or required by statute”. The applicable statute is Public Law 109- 461: “Veterans

Benefits, Health Care, and Information Technology Act of 2006” specifically, the “Veterans First

Contracting Program” outlined in 38 U.S.C.§ 8127(c) and VAAR 806.302-570(c).

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103

(5) A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

Blue Phoenix Solutions LLC has the required capabilities required to fulfill the needs for this acquisition.

VAAR 819.7008 states explicitly, “A contracting officer may award a contract to an SBA VetCert-listed service-disabled veteran-owned small business (SDVOSB) using other than competitive procedures provided” and that using this authority, the following must be verified:

(1) The anticipated award price of the contract (including options) will not exceed $5 million.

The anticipated award estimated contract value is $5M for one (1) year and does not exceed

$5M.

(2) The requirement is synopsized and the required justification pursuant to FAR 6.302-

5(c)(2)(ii) is posted in accordance with FAR subpart 5.301(d).

This J&A will be posted on the Governmentwide Point of Entry, Contract Opportunities, after award IAW FAR 6.305.

(3) The SDVOSB concern has been determined to be a responsible source with respect to performance.

The SDVOSB concern has been determined to be a responsible source with respect to performance; Blue Phoenix Solutions LLC is a registered and verified SDVOSB in the Small

Business Administration (SBA) VetCert portal. Blue Phoenix Solutions LLC is currently performing a VA contract awarded on September 17, 2024, for similar size. FPDS query yielded 10 additional contracts awarded to Blue Phoenix Solutions LLC, from other Federal agencies. Currently, the Contractor Performance Assessment Reporting System (CPARS) shows no CPARS for Blue Phoenix Solutions LLC. The Federal Awardee Performance and

Integrity Information System (FAPIIS) database established to track contractor misconduct and performance was accessed and showed no adverse notations for Blue Phoenix

Solutions LLC. The Dun & Bradstreet (D&B) reports were reviewed for each of the Joint

Venture vendors: Phoenix Oversight Group LLC and Blue Bay Business Delivery LLC.

Phoenix Oversight Group LLC showed a composite risk of 82 Low, while Blue Bay Business

Delivery LLC, showed a medium composite risk score of 72. As of October 22, 2024, Blue

Phoenix Solutions LLC does not appear in the Excluded Parties List System (EPLS).

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103

(4) In the estimation of the contracting officer contract award can be made at a fair and reasonable price that offers best value to the Government.

The Contracting Officer will make a fair and reasonable price determination prior to award, by using FAR 13.106(a)(2)(ii) Comparison of the proposed price with prices found reasonable on previous purchases; FAR 13.106(a)(2)(iii) Current price lists, catalogs, or advertisements; FAR 13.106(a)(2)(vi) Comparison to an independent Government estimate;

or FAR 13.106(a)(2)(vii) Any other reasonable basis.

(6) A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under 5.202 applies.

In accordance with VAAR § 819.7008(b) Sole source awards to service-disabled veteran-owned small business concerns (b), “The contracting officer’s determination whether to make a sole source award is a business decision wholly within the discretion of the contracting officer”;

therefore, the requirement to ensure that offers are solicited from as many potential sources as practicable is not applicable to this procurement. In addition, 819.7008(c) A determination that only one SDVOSB can meet the requirement is not required. However, in accordance with FAR

6.302-5(c)(2)(ii), contracts awarded using this authority shall be supported by a written justification and approval described in FAR 6.303 and 6.304, as applicable.

A notice of the proposed action will be synopsized via the Government Point of Entry (GPE) in accordance with FAR Section 5.201, and the agency will make publicly available the justification required by 6.305(a) within 14 days after contract award.

(7) A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

No award shall be made until the Contracting Officer determines the cost to the Government to be fair and reasonable. This determination will be based on a comparison of current contract pricing, the Independent Government Cost Estimate, past proposal submissions (if available), current price lists, catalogs, or advertisements and other information as made available.

(8) A description of the market research conducted (see part 10) and the results or a statement of the reason market research was not conducted.

VA conducted Market Research conducted in accordance with VAAR 810 found multiple

SDVOSBs that may be capable of providing these services. VA posted a solicitation to competitively award in FY24, but none of the vendors were determined awardable. VA decided negotiating a sole source effort for a short term, while forming an Integrated Product Team and https://www.acquisition.gov/far/part-5#FAR_Subpart_5_2 https://www.acquisition.gov/far/part-5#FAR_5_202

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103 refining the long-term requirement with proper evaluation criteria would be in the best interest of the government.

Market Research on Blue Phoenix Solutions LLC determined them to be a responsible source with respect to performance. Blue Phoenix Solutions LLC has the capabilities required to fulfill the needs for this acquisition. They are registered and certified in VetCert (Veteran Small

Business Certification (sba.gov)) as an SDVOSB with the NAICS code for this requirement, which in accordance with Public Law 109-461 Section 502(c), meets the requirements of this statute to sole source to an SDVOSB. In addition, a review of their Representations and

Certifications was conducted in the System for Award Management (SAM) and Blue Phoenix

Solutions LLC has no exclusions.

(9) Any other facts supporting the use of other than full and open competition.

In accordance with Public Law 109-461, codified at 38 USC § 8127(c), in order to increase contracting opportunities for small business concerns owned and controlled by veterans and small business concerns owned and controlled by veterans with service-connected disabilities, contracting officers of the VA are given specific statutory authority to award a contract to a small business concern owned and controlled by veterans using procedures other than competitive procedures (i.e. a “sole source” contract). The contracting officer may do so in accordance with

VAAR 819.7008.

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

The following parties expressed interested in the solicitation that was cancelled due to the vendor’s lack of full understanding of the task and scope associated with this new requirement.

• Intelligence Systems, LLC

• Andrew Morgan Consulting, LLC

• RB Consulting, Inc

• Rios Partners, LLC

• Reefpoint Group, LLC

• Cortek, Inc

• RockITData, LLC

• Dynamic Integrated Services, LLC

• Visionary Consulting Partners, LLC

• Ben Allegretti Consulting, Inc.

• Sprezzatura-Governmentcio Joint Venture, LLC

• Artemis Arc, LLC

• Blue Water Thinking, LLC

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103

• National Consulting Partners, LLC

• Technical Assents, LLC

(11) A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

All future requirements will be handled on a case-by-case basis. Toward the expiration of this contract, consideration will be given as to whether any future acquisition should be competitive.

(12) Evidence that any supporting data that is the responsibility of technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Signature:

Program Manager

Medical Disability Exam Office

Veterans Benefits Administration

Date:

(13) Contracting officer certification that the justification is accurate and complete to the best of the contracting officer ’s knowledge and belief.

I certify that this justification is accurate and complete to the best of my knowledge and belief.

As this action does not exceed $5,000,000.00, the certification below required by FAR 6.304 serves as approval.

Signature: Date:

Contracting Officer

Strategic Acquisition Center

Strategic Acquisition Center (SAC) 5202 Presidents Ct, Suite 103

For acquisitions over $750K not exceeding $15M

Approval

In my role as Contracting Activity Competition Advocate, based on the foregoing justification, I hereby approve this acquisition on an “other than full and open competition” basis pursuant to the statutory authority cited in paragraph four above, subject to availability of funds, and provided that the property and services herein described have otherwise been authorized for acquisition. As this action does not exceed $15M, the certification below required by FAR 6.304 serves as approval.

Signature: Date:

Director of Contracts, Acquisition Services 1-3 Procuring Activity Advocate for Competition (SAC-Frederick) Strategic Acquisition Center