P03 - Towers JA Final.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 5: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 11 Page 1 of 5 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C776-21-AP-4568 Contract ID: 36C77622C0056

1. Contracting Activity:

2. The Veterans Health Administration, Program Contracting Activity Central (VHA PCAC) issued an AE contract for the Electronic Health Record Modernization (EHRM) Infrastructure Upgrades Design project at the Michael E. DeBakey VA Medical Center (MEDVAMC) in Houston, Texas. This procurement will include one set of Construction Documents in addition to solicitation support services and construction period services. The contracting activity plans to issue a bi-lateral modification to the contract effectively making a sole source award for a proposed scope change.

This document sets forth the justification and approval for this change as required by FAR 6.302.

3. Nature and/or Description of the Action Being Processed: The proposed change is to award an out-of-scope modification to existing firm-fixed price contract number 36C776-22-C-0056 for the NRM project 580-22-700 titled EHRM Infrastructure Upgrades Design – Houston, TX VAMC in accordance with VAAR 819.7004, 819.7005 and 819.7007 as interpreted by GAO Decision RCG of North Carolina, B-419691 which states:

“There is nothing in section 8127 of the Veterans Benefits Act that requires a contracting officer to make award to an SDVOSB on a competitive basis, rather than on a sole-source basis, where the same objective (i.e., award to an SDVOSB) will be met in either instance…”

The original contract award was competed among SDVOSBs and awarded in the original amount of

$3,756,215.00 to Apogee Consulting Group. The modification is estimated at about $743,080.

4. Description of Supplies/Services Required to Meet the Agency’s Needs: The change is to add design services for construction of exterior towers at Building 100 providing additional square footage for Telecommunication Rooms. Project Building locations include: Buildings 100, 103, 104, 108, 108A, 109, 110, 120, 123. The estimated value for these services is $743,080.

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

41 USC § 3304(a)(5), 38 U.S. Code § 8127 and VAAR 806.302-570 provides the express authority to use other than competitive procedures for sole source awards to verified veteran-owned small businesses. COs may use the non-competitive (sole source) procedures authorized by VAAR

819.7007 or 819.7008 for actions not to exceed $5,000,000. As prescribed in VAAR 806.302-570(a), full and open competition need not be provided for when awarding a sole source contract to a

OFOC SOP Revision 11 Page 2 of 5

Revision 11 Date: 02/11/2021 verified SDVOSB in accordance with 819.7007, as authorized. Further, a determination that only one SDVOSB can meet the requirement is not required.

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

In the original EHRM Directive Plan for the Houston facility, the design for construction of telecommunication rooms (TRs) was included as part of this project. At the time of scoping for the subject contract, it was assumed that the space for these new TRs could be taken from existing Telecommunication Spaces located within the building’s mechanical spaces.

However after reviewing the initial design concepts from the AE team, the TRs could not be built within the existing Telecommunication Spaces located within the building’s mechanical spaces. The space for the new TRs would need to be taken from other areas of the building. The Houston VA project team had serious concerns with this plan, as this would create major interruptions of existing functions. The Houston facility already has a large space deficit. The Space Calculator for Building 100 on the Capital Asset Inventory (CAI) showed a facility space deficit of 719,606 sq ft. SCIP Space Gap also shows an overall deficit of 1,773,434 sq ft between the years of 2021 and 2030.

In order to minimize interruptions of existing functions and allow additional space for new TR rooms, another concept was developed which consists three new 6-floor exterior towers. The towers will be attached to the south side of building 100 and reduce the amount of TRs created from interior spaces in the building.

The contractor of this project, Apogee Consulting Group, P.A., is a SDVOSB which possesses the technical knowledge and resources to incorporate this change to this project without affecting the A/E services already done. It is in the best interest of the Government to incorporate the design of the new exterior telecommunication room towers into this project, to avoid duplication of effort that will increase the total cost and overall project duration.

The cabling work accomplished under any future construction effort based on the design currently under contract would have to be demoed and re-done after a new contract for the exterior TR tower design was complete. This would significantly increase the overall cost of this effort to the government, and would increase the overall amount of time the facility is under construction due to both remobilization and re-work.

7. Description of efforts made to ensure that offers are solicited from as many potential sources as deemed practicable:

Modifying the existing A&E contract at this time mitigates significant cost and schedule risk that would come with procuring the TR Tower design under a second, separate contract down the line. It also decreases disruption at the VAMC by integrating the tower project with the existing, related statement of work.

Additionally, and in accordance with VAAR 819.7007(b), Sole Source Awards to a Verified Service- Disabled Veteran-Owned Small Business, the Contracting Officer’s determination whether to make a sole source award is a business decision wholly within the discretion of the Contracting Officer. For the reasons stated herein, and specifically in reference to Paragraph 9, the undersigned Contracting Officer, OFOC SOP Revision 11 Page 3 of 5

Revision 11 Date: 02/11/2021 has determined that CB Design Group is a qualified SDVOSB. The Justification and Approval (J&A) document will be posted within 14 days after award in accordance with FAR Subpart 6.305 and the award synopsis will be posted to Contract Opportunities in accordance with FAR Subpart 5.301(a)(2).

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

Reasonable:

The government will issue an RFP to the existing design contractor for the change after developing the SOW and the IGE. The contractor will be required to submit cost and pricing data with the proposal.

When received the proposal will be evaluated by the COR and the proposal and its data will be the subject of rigorous price analysis. The governments prenegotiation position will be based on costs proposed by the A&E at the time of the competitive project award, technical analysis of the proposal itself and other historical data. The contractor will not be required to certify its cost or pricing data prior to modification award, because thia ction falls under the dollar threshold for requiring certification. The overall contract will also comply with the 6% A&E Fee limitation.

Also, in accordance with FAR 15.406, FAR 15.403-5, and VAAR 852.243-70 a price reasonableness determination will be made before modification award based on historical data, price analysis, and negotiation.

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

Market research was conducted prior to award of the contract. The final market research documents were signed on 20 October, 2021, indicating that an adequate number of SDVOSB concerns had been obtained to comply with the rule of two. Since this market research and the subsequent determination were completed within the last 18 months, additional market research at this time would not be beneficial.

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

GAO Decision RCG of North Carolina, B-419691 states:

“There is nothing in section 8127 of the Veterans Benefits Act that requires a contracting officer to make award to an SDVOSB on a competitive basis, rather than on a sole-source basis, where the same objective (i.e., award to an SDVOSB) will be met in either instance…”

The decision references VAAR 819.7004, 819.7005 and 819.7007 which provide the VA with independent authority to award contracts using other than full and open competition (including set-aside procurements and sole-source awards) in certain circumstances.

Specifically:

(a) A contracting officer may award contracts to SDVOSB concerns on a sole source basis provided:

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

OFOC SOP Revision 11 Page 4 of 5 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

(2) The requirement is synopsized in accordance with FAR part 5;

(3) The SDVOSB concern has been determined to be a responsible contractor with respect to performance; and

(4) Award can be made at a fair and reasonable price.

Assuming that the Contracting Officer can make a determination that the price ultimately negotiated with the contractor is fair and reasonable, there is no barrier to awarding this work to the incumbent on a sole source basis since the incumbent is a responsible SDVOSB, and the change will be synopsized in accordance with FAR part 5, and the requirement is less than $5M.

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

The incumbent, Apogee Consulting Group, P.A. is a qualified SDVOSB who has expressed interest in the acquisition.

12. 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:

This J&A represents an effort by the VA to mitigate project timing and coordination issues which had previously resulted in issuing a statement of work that, while actionable, resulted in greater costs and increased schedule risk to the goverment. The base award was competitively awarded to a SDVOSB, and the work that is the subject of this modification will also be awarded to an SDVOSB.

13. 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.

Date

Stephen Yu General Engineer Projects Planning, Design & Construction Facilities Management Service Line

9/7/2022

OFOC SOP Revision 11 Page 5 of 5

Revision 11 Date: 02/11/2021

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.

Anthony Wilson Date Administrative Construction Contracting Officer Program Contracting Activity Central (PCAC)

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.

Nicolas Maitland Date Supervisory Contract Specialist Program Contracting Activity Central (PCAC)