P03 Sole Source Justification - Over SAT.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items

Effective Date: 12/30/2025 Page 1 of 3 Revision: 02 Acquisition ID#: 36C263-26-AP-2472

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS

Acquisition Plan Action ID: 36C263-26-AP-2472

1. Contracting Activity: Department of Veterans Affairs, VISN 23, 316 Robert St. N., Suite 506, St.

Paul, MN 55101, on behalf of the VA Black Hills Health Care System (BHHCS), 113 Comanche Rd., Ft.

Meade, SD 57741.

2237: 568-26-4-2231-0110

2. Nature and/or Description of the Action Being Processed: This procurement is for a new firm-fixed priced contract in accordance with FAR 12.201-1 Simplified Procedures for Acquisition of Commercial Products and Commercial Services and specifically FAR 12.102 Restricting Competition, 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 6.104.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Specialized diagnostic testing for microbiological organisms from biological samples for the Pathology & Laboratory Medicine Service at Department of Veterans Affairs, Black Hills Health Care System (BHHCS) which consist of Fort Meade VA Medical Center, Hot Springs VA Medical Center, and Rapid City VA Clinic.

Services shall include specimen pick-up from the above-named locations, transport, laboratory testing, consultation, and reporting. The contractor is responsible for ensuring specimen integrity, timely transportation, and testing, with specific turnaround times for various tests. Period of performance is 07/24/2026-07/23/2031 to include a base plus four option years.

Estimated Amount: $814,489.10

4. Statutory Authority Permitting Restricted Competition:

FAR 12.201-1 Simplified Procedures for Acquisition of Commercial Products and Commercial Services. The statutory authority for applying the Simplified Procedures for Acquisition of Commercial Products and Commercial Services of FAR 12.201-1 is 41 U.S.C. § 1901 and is implemented by FAR 12.102(b) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

(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): Biological samples have a limited

Effective Date: 12/30/2025 Page 2 of 3

Acquisition ID#: 36C263-26-AP-2472 viability and must be cultured in a timely manner. Usually, they must be cultured to selective plating media in a matter of hours of collection. There is only one laboratory location in the immediate area with the proper certifications, facilities, and availability to accomplish this testing in the timelines required. Previous procurements for these services utilized overnight shipping to various testing locations. However, all locations proved to be too far away for even overnight shipping from the rural geographic area of the various Black Hills Health Care System sites. Samples would arrive or processed at the shipped to locations 2 to 3 days later and as such, samples would either be rejected due to age, or the delays in processing would result in Veterans having an unnecessary higher risk of needing antibiotic intervention due to the delays in diagnosis and treatment. There is not another credited laboratory location within the geographic area that can process samples in a timely and efficient manner for our Veterans. Accordingly, Monument Health Rapid City Hospital is the only firm capable of providing the services described in Section III above without the Veteran’s Health Administration experiencing unacceptable delays in fulfilling its requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: An intent to sole source notification was posted to SAM.gov in order to determine if there are any other sources available to provide these services in accordance with the statement of work. No responses were received. Personnel from the Black Hills Health Care System and the VISN 23 Laboratory Departments continually query businesses in the geographic region to determine if there are any other companies able to perform the services required as prescribed in the statement of work. The efforts outlined above regarding the survey of the market place confirms our assumptions regarding the capability of industry to meet our needs.

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

Reasonable: Anticipated costs will be fair and reasonable based on comparison with past contract pricing found fair and reasonable. Laboratory services previously purchased under contract 36C26326P0170, awarded 01/22/2026 with a total price of $70,200.00 for six months of service (which equates to $140,400.00 annually). Estimated total pricing for the base year on the new contract is $147,402.00. Additionally, prices found fair and reasonable under contract 36C26325P0834, awarded on 07/19/2025 for similar laboratory testing on 7 of 10 services provided under this contract with a total combined unit pricing of $231.75 versus $193.80 combined unit pricing under this new contract for these same tests.

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

Market Research Was Not Conducted: Minimal SD/VOSBs performing work under the NAICS code as found searching the SBA’s DSBS tool using the NAICS code for this procurement. As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. The intent to sole source notice posted to SAM.gov resulted zero responses. Rule of Two could not be met. No government wide contracts could be located which can provide these services required by the BHHCS.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None.

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

Rapid City Hospital, 353 Fairmont Blvd., Rapid City, SD 57701.

Effective Date: 12/30/2025 Page 3 of 3

Acquisition ID#: 36C263-26-AP-2472

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: Market research will be conducted for future acquisitions to determine if other vendors can meet the requirements found within the statement of work. Recommendations to the BHHCS leadership will be made to suggest small scale testing of other vendor’s ability to meet required timelines throughout the life of the contract in case another vendor is identified that can provide consistent service to the geographic region.

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.

David Klutz Date Administrative Officer VA Black Hills 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.

Cameron Rick Date Contracting Officer Network Contracting Office 23

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.

Michael Casper Date Service Supply Team 4 Branch Chief

Network Contracting Office 23 https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx