P03 - Sole Source Justification v2.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

Effective Date: 11/15/24 Page 1 of 4

REVISION: 01

Acquisition ID#: 36C250-25-AP-3943

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN

ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C250-25-AP-3943

1. Contracting Activity:

Department of Veterans Affairs, VISN 10, VA Indiana Health Care System (VA IHCS), Richard L.

Roudebush VA Medical Center located at 1484 West 10th Street, Indianapolis, IN 46202, submits to Network Contracting Office (NCO) 10, located at 24 Frank Lloyd Wright Drive, Suite M2200, Ann Arbor, MI 48105, a request for paratransit/special needs transportation services.

Funding for this request has been provided through 2237 number 583-25-3-826-0023.

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

Requesting approval of a sole source justification to award a new short term Indefinite Delivery, Indefinite Quantity (IDIQ), Firm-Fixed Price (FFP) contract for paratransit transportation services to Navarre Corporation (Navarre), a large business in North American Industry Classification System (NAICS) code 485991. This procurement is to provide continued paratransit/special needs transportation services to patients serviced by the Department of Veterans Affairs, Veterans Health Administration (VHA), VA IHCS. The contract is required to provide services immediately without interruption of current services.

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

VA IHCS requires the services of a contractor who is capable of providing services without interruption, has a minimum of 25 wheelchair van, personnel, equipment. And VetRide compatibility for eligible patients in the VA IHCS geographical coverage area. Contractor shall provide paratransit/special needs transportation services as required by the Performance Work Statement (PWS) to VA IHCS beneficiaries. Services consist of transportation of VA beneficiaries that are mobility challenged individuals in wheelchairs, aged and infirm persons, their attendants, and personal belongings between specific points in Indiana and surrounding states.

Contractor shall provide all labor, materials, VetRide compatible software, a minimum of 25 vehicles, and equipment necessary to transport VA IHCS beneficiaries by wheelchair van method.

Services are required for a six (6) week base period from 05/21/2025 – 07/01/2025. The total estimated contract value is $745,000.00.

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

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

(X) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services ( ) International Agreement ( ) Authorized or Required by Statute

Effective Date: 11/15/24 Page 2 of 4

Acquisition ID#: 36C250-25-AP-3943

( ) 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):

Navarre is familiar with the medical center, needs of the patients being transported, has as established management approach, all necessary labor, minimum number of 25 vehicles, VetRide compatible software, and other required resources to perform services. Paratransit/special needs transportation services are critical to the medical center’s timely service in delivering patient care.

Contracted services are required, as the Government does not have a fleet of vehicles or trained staff to provide paratransit/special needs transportation services for such a large catchment area.

Disrupting the transportation of Veterans who rely on transportation assistance will be detrimental to their health if they cannot be present for treatment. A break, stoppage, or delay in services to switch companies in the short-term will leave Veterans without a way to obtain transportation to their appointments, and in turn; will cause untimely treatment and harm if not provided.

Paratransit/special needs transportation services span the state of Indiana, as well as any neighboring states that require transport of VA IHCS patients. As the contractor is required to immediately perform without service interruption, possess a minimum of 25 vehicles, have VetRide compatible software, other required resources, and trained staff for the geographical coverage area, the number of immediately available contractors is limited. Navarre meets all requirements in the PWS and is immediately available to provide continued coverage for this short-term contract without interruption.

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

Market research efforts included contracting officer’s personal knowledge of the types of services required and available firms who can immediately provide services without interruption. Also, searches were conducted in the SBA VetCert, DSBS SBA databases, GSA e-library, and FPDS.gov.

More in-depth details are found in the market research report.

These efforts, based on the circumstances surrounding this procurement, did not yield another source that could meet the Governments requirements at a fair and reasonable cost without additional lead startup costs who were immediately available.

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

It is anticipated that the cost to the Government will be fair and reasonable. The contracting officer will use the price analysis techniques at FAR 13.106-3(a)(2) and any other price analysis techniques necessary to determine the prices to be fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

While market research found 336 results through a search of the VetCert database using NAICS code 485991, and the following results from DSBS SBA using NAICS code 485991 for Service Disabled Vetern Owned Small Business (SDVOSB), or Veteran Owned Small Business (VOSB) concerns using keywords search “Special Needs,” resulted in 16 SDVOSBs and four (4) VOSBs.

None were capable of immediately providing services as needed at a fair and reasonable cost for

Effective Date: 11/15/24 Page 3 of 4

Acquisition ID#: 36C250-25-AP-3943 such a short period of time. While there was more than one (1) SDVOSB/VOSB firms identified, it was determined that none could satisfy the Government’s requirements, based on the Urgent and Compelling nature of this procurement, and at a fair and reasonable price which will provide the best value to the VA. Accordingly, the VA Rule of Two (2) was not met.

A search was conducted in the DSBS SBA database for Small Business (SB) concerns using NAICS code 485991 and key words “Special Needs” and there were 104 results. None were immediately capable of providing the required services in accordance with the PWS at a fair and reasonable price. The SBA Rule of Two was not met.

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

There has been a change in the proposed long-term contract from a single award contract to a multiple award IDIQ contracts with the use of ordering officers. This will require additional planning, documentation, and adjustment to aptly reflect the acquisition strategy change, competition, and allow time for the new contractors to implement services without the same additional costs such as lack of vehicles available, labor force, and knowledge of medical center policies and routes associated with a short- term contract. The incumbent already has the vehicles, labor force, and are familiar with the medical center policies and routes. Navarre was found capable of continuing services without interruption.

VA IHCS will compete the proposed long-term requirement based on the results of extensive market research to determine the appropriate set-aside type as a multi award IDIQ to provide additional competition and award to multiple companies to ensure that there is constant availability and choice to VA IHCS when a veteran needs transportation to an appointment. As the number of rides have continued to increase, the limitations of a single award are not conducive nor in the best interest of the Government.

Due to the re- evaluation of the acquisition strategy the proposed long-term contract would be solicited, evaluated, or awarded by the expiration date of 07/01/2025 for the current contract.

Navarre has a successful past performance history with VA IHCS in providing paratransit transportation services and is familiar with its patients, locations, processes, and has an established fleet of vehicles and staffing.

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

Navarre Corporation 7649 Gulf Bolevard Navarre, FL 32566 POC: Sonja Johnson Ph: (850) 218-9283 Email: Sonja.Johnson@yahoo.com

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:

For the long-term requirement, market research will be performed to ensure potential sources are identified to determine the appropriate type and degree of competition. The barrier associated with this procurement is having a company in the short-term be able to immediately provide services at a fair and reasonable price without passing along start-up costs for such a short time. This will not be a barrier as the new requirement will be a competitive effort. The long-term requirement was competed as a multiple award IDIQ requirement in advance of this short-term contract’s expiration to allow for any start-up time and continuity of services. Making mailto:Sonja.Johnson@yahoo.com

Effective Date: 11/15/24 Page 4 of 4

Acquisition ID#: 36C250-25-AP-3943 multplesi awards may reduce the possibility that the SDVOSB contractors will out grow their SDVOSB status, or will outgrow it at a slower pace, and multiple awards will prevent putting all the risk on contractor to provide services.

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: Andrea J. Roach, Contract Specialist Date: 05/20/2025

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.

Kristina L. Peart Contracting Officer Network Contracting Office (NCO) 10 Services Team 3

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Toni Waggoner-Boykin Division Chief, General and Healthcare Services Network Contracting Office (NCO) 10 https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx