P03- SSJ for Ohio Optical Bridge.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: 02/01/2022 Page 1 of 6

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C250-22-AP-6881

1. Contracting Activity: Department of Veterans Affairs, VISN 10, Louis Stokes Cleveland Department of Veterans Affairs Medical Center (VAMC), Network Contracting Office (NCO) 10, 6100 Oak Tree Blvd, Suite 490, Independence, OH 44131

2. Nature and/or Description of the Action Being Processed: In accordance with FAR 13.5, Simplified Procedures for Certain Commercial Products and Commercial Services, and FAR 13.501, Special Documentation Requirements, acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6. However, such acquisitions require a justification using the format at FAR 6.303-2, modified to reflect that the procedures in FAR subpart 13.5 were used (see FAR 13.501(a)(2)(ii)).

The Louis Stokes Cleveland VAMC and the Columbus VA Ambulatory Care Center (VAACC), along with their associated Community-Based Outpatient Clinics (CBOCs) and clinics, require a firm-fixed price contract for optical dispensing services. These services are currently being provided under contract number 36C25021D0088, which was awarded to Steven Schaller Optician, LLC. On 7/28/2022, the NCO 10 Director of Contracting approved a six-month extension to contract number 36C25021D0088, in accordance with FAR 52.217-8.

However, in preparing the modification to extend services for a period of six months, the Contracting Officer (CO) learned that the average monthly spending on contract number 36C25021D0088 was such that the contract maximum of $1,500,000 would be reached on or about 10/26/2022, approximately one month after the base year concluded on 9/26/2022. Consequently, on 9/1/2022, the CO awarded contract modification P00002 to contract number 36C25021D0088, which extended services in accordance with FAR 52.217-8 for a one-month period, through 10/26/2022. Steven Schaller Optician, LLC is not interested in providing these services beyond 10/26/2022. L & S Optical, LLC is willing and able to provide these services beginning 10/27/2022.

The eyeglass dispensing service requirement was originally divided into southern and northern tiers in September 2021 through an emergency bridge contract to avoid a lapse in services. The emergency bridge was necessary because the then-contract (number 36C25021D0071), awarded to Carter and Lambert Divisions – and which included eyeglass dispensing services for the entire state – was terminated for cause. The northern tier contract included the Louis Stokes Cleveland VAMC and Columbus VAACC, and their associated CBOCs. The southern tier contract included the Cincinnati, Chillicothe, and Dayton VAMCs and their associated CBOCs. Currently, eyeglass dispensing services for the southern tier of Ohio are provided under modification number P00002 to contract number 36C25021D0089, awarded to L & S Optical Inc. The period of performance for said modification is 9/27/2022 through 3/26/2023.

Although the optical dispensing requirement was divided into northern and southern tiers to facilitate the award of emergency bridge contracts, the intent going forward is to procure eyeglass dispensing services for the entire Ohio VA catchment area under one contract, in keeping with the historical norm. This J&A request will discuss the provision of services during the five-month period

Effective Date: 02/01/2022 Page 2 of 6 between October 27, 2022 (when the contract modification for optical dispensing services for the northern tier expires), and March 26, 2023 (when the contract for optical dispensing services for the southern tier expires). To avoid a disruption in the availability of prescription eyeglasses for Veterans in the northern tier of Ohio, NCO 10 is requesting a sole source short-term contract pursuant to FAR 13.106-1(b)(2), only one responsible source and no other supplies or services will satisfy agency requirements. Given that the current vendor, Steven Schaller Optician, LLC, is uninterested in pursuing a follow-on contract upon the expiration of the current option period, the intent is to award the sole source contract to L & S Optical Inc., the vendor providing optical dispensing services for the southern tier of Ohio.

Note, the J&A request will not refer to a Purchase Request/VA Form 2237, as optical dispensing services are purchased using the VA Form 1358.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The VISN 10/12 optical laboratory fabricates eyeglasses for VISN 10 beneficiaries. The vendor will be required to provide on-site and off-site dispensing services for Ohio VA facilities and catchment areas. Off-site dispensing services are primarily offered (1) when the VA facility does not have sufficient space and/or resources for dispensing services; or (2) when there is insufficient demand at the VA facility to justify in-house optical dispensing services. Additionally, the vendor will be required to manufacture/supply upgraded eyeglasses for those Veterans that request features not available in VA-manufactured glasses. Veterans must pay for any such upgraded eyeglasses.

The vendor will be required to provide all labor (including licensed opticians), equipment, materials, supplies, and supervision necessary to provide eyeglass dispensing services. The vendor will be responsible for functions including but not limited to fitting, ordering, adjusting, dispensing, and repairing eyeglasses. Because the vendor will require regular access to VA facilities and the VA’s information technology (IT) system, background checks will be required.

• Contract type: Indefinite-delivery, indefinite quantity (IDIQ)

• Estimated quantity required: 16,007 pairs of eyeglasses

• Total estimated value of acquisition based upon the Independent Government Cost Estimate

(IGCE): $562,426.60

• Period of performance: 10/27/2022 through 3/26/2023

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Products and Commercial Services. The statutory authority is 41 U.S.C. § 1901, which 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:

(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

Effective Date: 02/01/2022 Page 3 of 6

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

L & S Optical Inc., the contractor currently providing optical dispensing services for the southern tier of Ohio under contract 36C25021D0089, is the only supplier with the unique capabilities necessary to fulfill the requirement while also avoiding a lapse in services, based on the following: the vendor’s experience with and capability of staffing VA dispensing sites and establishing off-site dispensing locations in Ohio; the vendor’s geographic proximity to the area serviced under the contract; and the vendor’s access to the Remote Order Entry (ROE) system and ability to immediately satisfy the information technology/security requirements applicable under the contract.

As stated above, in September 2021, the Government terminated for cause the optical dispensing contract for the entire Ohio VA catchment area, contract number 36C25021D0071. The then-contractor, Carter and Lambert Divisions, demonstrated that there is a significant learning curve for vendors new to VA optical dispensing in Ohio. One of the primary challenges faced by the contractor was its consistent inability to sufficiently staff VA optical dispensaries; a task made more difficult due to the COVID-19 pandemic. L & S Optical Inc. has provided optical dispensing services for the southern Ohio VAMCs and associated clinics since the Government terminated for cause Carter and Lambert Divisions in September 2021. Given that L & S Optical Inc. is currently the contractor for the southern tier of Ohio, the contractor is uniquely qualified to assess the requirements for the northern tier of Ohio, especially the staffing challenges in the region. Despite the inherent challenges posed by operating during a pandemic, L & S Optical Inc. has a highly satisfactory record of past performance in Ohio, and has demonstrated the ability to consistently staff dispensing sites at/near three VAMCs, 15 CBOCs, and one Outreach Clinic. Furthermore, L & S Optical is uniquely qualified based upon the contractor’s demonstrated ability to subcontract for off-site dispensaries across the state of Ohio. These subcontracting relationships will be required at the outset of the contract (on or before 10/27/2022), as numerous VA facilities in northern Ohio do not provide on-site optical dispensing services.

In addition to L & S Optical Inc.’s ability to staff VA dispensaries and establish subcontracts for off-site dispensaries, L & S Optical Inc. is already operating across the state. The contractor’s geographic proximity to the locations in the northern tier of Ohio will allow the contractor to timely provide the equipment required under the contract and avoid unacceptable delays in fulfilling this healthcare service. As detailed in the Performance Work Statement:

Unless provided by the Government at a Government facility, the contractor shall provide the following: furniture; a lensometer; and basic tools and materials for adjusting and completing simple repairs (e.g., to nose pads or screws, and adjustments) to eyeglasses at all dispensing locations appropriate to the size of the location and estimated quantity of customers. The contractor is responsible for display boards, equipment, and tools required for the display of frames.

Optical dispensing will not be possible without fulfilling the above-stated equipment requirements.

Finally, L & S Optical Inc. is the only contractor capable of timely satisfying the information technology and security requirements on or before October 27, 2022. In accordance with the Performance Work Statement, the vendor will be required to gain access to VA’s ROE system to enter prescription and patient measurements, which will allow the VISN 10/12 Optical Lab to fulfill orders. Veterans Health Information System Technology Architecture (VISTA) access is also required;

Effective Date: 02/01/2022 Page 4 of 6 after the vendor places the eyeglass order, vendor will add a comment to the Veteran’s electronic record in VISTA. However, VISTA access is only granted after privacy training through the VA’s Training Management System and the VISN 10 Unified Access Request form have been completed;

submitted to COR; and approved by the COR. Finally, because the contractor will perform a function that requires access to a VA system and VA sensitive information, background checks will be required. Given that L & S Optical Inc. has already gained access to the ROE system and VISTA, and has completed the requisite background check, L & S Optical Inc. represents the only firm capable of timely providing services under the forthcoming emergency bridge.

In regard to the optical dispensing requirement for the northern tier of Ohio, services are available at over 18 locations, which provide care to more than 3,100 Veterans each month. For Fiscal Year 2021, 38,844 pairs of eyeglasses were dispensed for the Louis Stokes Cleveland VAMC and Columbus VAACC. If there is no short-term contract to bridge the period from the current contract’s end to a new competitive award, the services will be unavailable in Cleveland and Columbus. This will trigger a direct, adverse impact to Veteran care. A lapse in these services will cause severe harm to the Government and the Veterans that depend on these services. For all of the reasons stated above, L & S Optical Inc. is the only contractor capable of providing the services described in Section III above without the Veteran’s Health Administration (VHA) 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: Market research is currently underway for the long-term competitive requirement, which will include services for the entire Ohio VA catchment area. Sources sought notice (SSN) 36C25022Q0416 was posted on Contract Opportunities for a period of two weeks, from March 17, 2022 through March 31, 2022. Three firms responded to the sources sought notice, including two service disabled veteran-owned small businesses (SDVOSBs) and one women-owned small business/small, disadvantaged business. Only one of the small businesses responding to the SSN, an SDVOSB, has the necessary technical capability of fulfilling the long-term requirement. In regard to the second SDVOSB responding to the sources sought notice, the firm has no history of providing optician services for VA or otherwise. Likewise, the third small business that responded to the sources sought notice is not a capable vendor due to offering only general medical staffing services. The firm has no relevant experience with optical dispensing, and does not offer optical manufacturing/supply services, which is required when Veterans request upgraded eyeglasses.

The previous competitively procured contract took approximately 11 months to award. Additionally, the solicitation for said contract only resulted in one interested party. Performing a new solicitation and receiving no responses or limited responses from unqualified vendors represents an unacceptable risk at this time. Furthermore, the unacceptable performance of the previous SDVOSB awarded the Ohio optical dispensing services contract exemplifies the challenges firms may face in satisfying the contractual requirements, especially during the current pandemic, which has had (and continues to have) a direct negative impact on staffing optical dispensaries. The optical dispensing contract directly impacts patient care. Upon expiration of the current contract modification on 10/26/2022, a new vendor will be required to perform the requirements of this contract to prevent a serious lapse in services. Although one of the SDVOSBs responding do the above-referenced sources sought notice appears generally capable of fulfilling the long-term requirement, awarding the emergency bridge to said vendor will result in unacceptable delays in fulfilling the contract’s requirements. The purpose of this emergency award is to provide a short-term contract to avoid lapse in services while a longer-term contract can be solicited. Based upon the vendor’s

Effective Date: 02/01/2022 Page 5 of 6 demonstrated capability of fulfilling optical dispensing services in Ohio, L & S Optical Inc. is the only responsible source, and no other firm is capable of timely satisfying VHA requirements.

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

Reasonable: The CO determined the anticipated cost will be fair and reasonable based upon a comparison of the Independent Government Cost Estimate and by reviewing current contract pricing under contracts 36C25021D0088 and 36C25021D0089.

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

Market Research Was Not Conducted: Market research was conducted from January 2022 through present day. Vendor Information Pages (VIP) was searched using NAICS 446130; 17 small business concerns were identified. A VIP search was also conducted under NAICS 446130 and with the keyword “eyeglasses;” four SDVOSB or VOSB firms were identified. Based on the market research conducted, only one VIP verified and capable SDVOSB or VOSB was identified that appeared capable of performing the requirement. The VA Rule of Two cannot be satisfied.

Although one SDVOSB that responded to sources sought notice 36C25022Q0416 appears capable of performing optical dispensing services based upon past satisfactory performance at other VAMCs, there is insufficient time to award the Ohio requirement to a new vendor while still ensuring a lapse of services does not occur. Only two small businesses (i.e., the current vendors) are capable of providing for continuity of services in the time frame needed. Given that the current vendor for the northern tier of Ohio intends to move on from optical dispensing services in Ohio following the expiration of modification P00002 to contract 36C25021D0088, only one responsible source (L & S Optical Inc.) is capable of providing for continuity of services in the time frame required.

The Buy American Act (BAA) and the Trade Agreements Act (TAA) do not apply to the subject procurement. Eyeglasses are fabricated by the VISN 10/12 optical laboratory. The services that will be provided are not subject to the BAA or TAA.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: This emergency bridge action will be the sole stopgap to ensure patient care does not lapse.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: The Program Office first approached the current vendor, Steven Schaller Optician, LLC to gauge the vendor’s interest in the acquisition. However, the Mr. Schaller expressed no interest in providing optical dispensing services for the northern tier of Ohio following the expiration of the current contract modification to contract number 36C25021D0088, on 10/26/2022. The Program Office next contacted the current vendor for the southern tier of Ohio, L & S Optical Inc. The vendor expressed an interest in the acquisition and provided a quote for the projected period of performance of the prospective emergency bridge, 10/27/2022 through 3/26/2023.

• Vendor: L & S Optical Inc.

• Address: 30 1st St SW, Carmel, IN 46032

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: A follow-on competitive acquisition is in progress. The planned effective date of the follow-on award is March 27, 2023.

Effective Date: 02/01/2022 Page 6 of 6

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.

Steven D. Rowland Date Supervisory Acquisition and Utilization Specialist VISN 10 Prosthetics

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.

Kelly Poole Date Contracting Officer NCO 10, Services Team 2

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.

Jason E. Lawson Date Division Chief

NCO 10, General and Healthcare Services https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx