P03 Sole Soure to an SDVOSB - Lean Management - fully signed.pdf

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT

Page 1 of 5 VHAPM Part 819.7007/7008

Original Date : 08/30/2017

Revision 03 Eff Date : 04/03/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval {J&A)

For

Other Than Full and Open Competition {>SAT)

Acquisition Plan Action ID: 36C241-AP-20-3143

1. Contracting Activity: Department of Veterans Affairs, VISN 01, Veterans Health Administration

Network Contracting Office 1 (New England), 623 Atwells Avenue, 3rd Floor, Uncas Building, Providence, RI 02909-4799 has a requirement for the VA New England Healthcare System (Veterans

Integrated Service Network, VISN or VISN 1) Office of Performance Improvement to deploy the Lean

Management System (LMS) . A Blanket Purchase Agreement (BPA) will be put in place for this requirement. Individual task orders will be issued against the BPA with the required funding provided at the time of need.

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

This request is for a non-competitive, Blanket Purchase Agreement (BPA) with Air Academy

Associates, LLC to provide expert guidance and methodological support to deploy the Lean

Management System (LMS) and provide Leadership Coaching and Strategic Initiative Support, based on the VHA High Reliability Organization (HRO) Framework. In accordance with VAAR 819 .7007 this will be a sole source awards to a verified service-disabled veteran-owned small business.

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

The purpose of this blanket purchase agreement (BPA) is to provide expert guidance and methodological support to deploy the Lean Management System (LMS) and provide Leadership

Coaching and Strategic Initiative Support . The VA New England Healthcare System (Veterans

Integrated Service Network, VISN or VISN 1) Office of Performance Improvement has formulated the

VISN 1 Lean Management System which outlines goals in regard to transforming the culture of work, based on Lean and HRO principles. The estimated value of the proposed action is$ 750,000.00 to include a base year plus two one year options. The estimated period of performance for the base year is 11/06/2020 through 11/05/2021.

The key services include the following:

• Coaching and mentoring of leadership level staff to support the LMS and the HRO Framework deployment, basing this coaching/approach on Lean Management Systems (see Shook, Managing to Learn, LEI, 2008, Toussaint and Gerard, On The Mend, LEI, 2010, and Mann, Creating a Lean Culture, CRC, 2015).

• Coaching and mentoring of leadership level staff at VISN 1 facilities to implement policies and structures that support a continuous process improvement structure based on the Lean

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Management System, and align with the VISN 1 Strategic Initiatives and strategic planning process (see Pollock and Kiemele, Reversing the Culture of Waste, AAA, 2012).

• Act as consulting experts for a targeted group of Strategic Initiatives and as LMS consultants for implementation of the High Reliability Organization Framework.

4. Statutory Authority Permitting Other than Full and Open Competition:

41 USC §3304(a)(S), 38 U.S. Code§ 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR

819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

( X) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business;

or

( ) 819.7008 Sole source awards to a verified veteran-owned small business

5. Demonstration that the Contractor's Unique Qualifications and/or Nature of the Acquisition

Requires the Use of the Authority Cited Above (applicability of authority):

In accordance with VAAR 819 .7007 this will be a sole source award to a verified service-disabled veteran-owned small business .

38 U.S.C. 8127(c) allows sole source award to SDVOSB contractors . This requirement is a logical follow-on to a previously competed BPA VA241-14-A-0127 for a continuation of coaching and mentoring leadership level staff to align with the VISN 1 strategic initiatives and strategic planning processes in VISN 1. The contracting officer determines sole source award to Air Academy

Associates is in the best interest of the government because they have provided excellent services to VISN 1 during the performance of this contract. The contractor has stated they still have personnel located throughout New England. This will dramatically save cost against this BPA as travelling will rarely be required. The Lean Management System is already in place and the contractor has established successful relationships with the facilities throughout VISN 1, which will also reduce cost due to the continuity from the previous requirement. Additionally, Air Academy

Associates is capable of providing services as describe above without the VHA experiencing substantial duplication of cost that could not be expected to be recovered through competition.

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

A pre-solicitation notice of intent to sole source will be publicized through the Government Wide

Point of Ent ry.

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

Reasonable:

Air Academy will honor the hourly rate based off of the current pricing from Air Academy's GSA contract number GS-10F-0057S. The pricing on the GSA schedules are determined fair and reasonable. The additional classes and consultations not on the GSA schedule will be offered at a reduced rate based off of their current catalog pricing. In addition, there will be online classes that

Page 3 of 5 VHAPM Part 819.7007/7008 will significantly reduce cost in addition to the hourly rate discount we are receiving from the contractor.

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

Market Research Was Not Conducted:

A search was conducted in VetBiz with the NAICS 541611, product service code R499, and key words

Lean Management and showed no SDVOSB vendors . A search was also conducted in the SBA

Dynamic Small business search using Lean Management number which some small business' but no

SDV OSB' s. The incumbent does have a GSA schedule in place, but the required classes are not on their GSA schedule because they are specifically designed for the VA. The incumbents schedule is

(GS-10F-0057S) and is currently active. We have received confirmation from the contractor that this requirement's hourly rate will be based off their GSA schedule. GS-10F-0057S is the only contract found on GSA while conducting market research, which was awarded to the incumbent. Contract number VA241-14-A-0127 was previously awarded to Air Academy Associates which yielded satisfactory results. In accordance with VAAR 819 .7007 this will be a sole source award to Air

Academy Associates LLC, a verified service-disabled veteran-owned small business .

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

In accordance with VAAR 819.7007 and VAAR 819.7008, the contracting officer's determination to make a sole source award is a business decision wholly within the discretion of the contracting officer. Air Academy Associates, LLC has been determined to be a responsible source with respect to performance. The contractor has successfully performed the duties required by the previous contract in VISN 1 with highly successful outcomes.

Air Academy Associates, LLC is a verified Service-Disabled Veteran Owned Small Business as confirmed on the Center for Veterans Enterprise Vendor Information Pages (VIP) database at https:// www .vip.vetbi z.va.gov and meets eligibility requirements in 819.7003.

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

Below are the vendors that have expressed an interest in this requirement:

Air Academy Associates, LLC - SDVOSB certified in VetBiz

Data2Designs Technologies - SDVOSB certified in VetBiz

Racca Solutions Group - VOSB not certified in VetBiz

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 indicates that there are other firms that provide lean consulting services. However, utilizing an established vendor with a system already in place in VISN 1, who has demonstrated highly successful results, will cut costs and inefficiencies to the U.S. Government by continuing with an industry standard methodology and approach. This new requirement is a logical follow-on to a previously competed BPA VA241-14-A-0127 for a continuation of coaching and mentoring leadership level staff to align with the VISN 1 Strategic Initiatives and strategic planning process in VISN 1. The new BPA is for a base year plus two option years to extend. Any future requirements for

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

Tammy A Fox 706200

Digitally signed by Tammy A Fox 706200 Date: 2020.10.29 13:29:43 ‐04'00'

c. VHA 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 recommend approval (if over $68 million) or approve ($700K to $68 million) for other than full and open competition.

Joseph Maletta

Executive Director, RPO East

Date

VHAPM Part 819.7007/7008