P03 - URGENT JOFOC Over SAT_Trailer Rental_AP2915.pdf

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

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C259-24-AP-2915 JOFOC Tracking Number: FY24 - NCO 19 - 1632

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19 (NCO 19), 6162 South Willow Drive, Suite 300, Greenwood Village, Colorado 80111.

Organizational Activity: VISN 19, Station 635 Oklahoma City VA Health Care System 921 NE 13th ST.

Oklahoma City, Oklahoma 73104.

PR IFCAP# 635-24-3-250-0059

2. Nature and/or Description of the Action Being Approved: The action being reviewed and approved is a justification for a sole source firm-fixed-price award to a Service-Disabled Veteran Owned Small Business (SDVOSB), Stripes Global Inc., for Oklahoma City VA Healthcare System requirement for the rental of a bioGO Rx Compounding Pharmacy Trailer. Stripes Global Inc. is a Service Disabled Veteran Owned Small Business (SDVOSB) verified vendor.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Oklahoma City VA Healthcare System has a requirement for a follow-on to contract (36C25923P0839) for the rental of a bioGO Rx Compounding Pharmacy Trailer due to the on-going construction delays in the completion of facility renovations. The trailer is a temporary facility that is critical component of patient treatment during the facility renovations. It is required to ensure pharmacy actions continue to meet the needs of patient care.

The estimated period of performance is a one (1) month base period plus five (1) additional one-month option periods. The total estimated amount for this requirement is $356,000.00 The base month is estimated to cost $56,000.00 with each additional month costing $56,000.00 and $20,000.00 for the removal of the trailer for a total of $356,000.00. The FAR clause 52.217-8 Option to Extend Services will be included in contract for up to an additional 6 months and used if construction delays continue beyond the currently anticipated 6-month period.

The anticipated period of performance for leasing of the pharmacy trailer for a base period of one month plus five one-month option periods from Jun 16, 2024 – Dec 15, 2024.

Base Period Option 1 Option 2 Option 3 Option 4 Option 5

June 16 – July 15 July 16 – Aug 15 Aug 16 – Sep 15 Sep 16 – Oct 15 Oct 16 – Nov 15 Nov 16 – Dec 15

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Revision: 02 Effective Date: 04/15/2023

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 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 819.7008 (DEVIATION) or VAAR

819.7009 (DEVIATION) up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7008 Sole source awards to a certified service-disabled veteran-owned small business; or ( ) 819.7009 Sole source awards to a certified 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): VAAR 819.7007 allows sole source awards to a SDVOSB based on 38 U.S.C. 8127(c). The SDVOSB concern (Stripes Global Inc.) has been determined to be a responsible source with respect to performance. The SDVOSB meets the eligibility requirements outlined in 819.7003.

The trailer that is currently supplied for lease by Stripes Global Inc., is on location and already outfitted with the modifications that were necessary to allow the staff and patients to conduct pharmacy functions within this temporary facility. The cost of the modifications exceeded $100,000.00. These modifications would have to re-occur if a new trailer was leased or purchased. Furthermore, a review of lease vs. buy determination was conducted and found that it would take an additional six months to refit a new trailer with the equipment needed to perform the functions of the pharmacy and is estimated to cost the government $1.7 million in ownership costs.

Additionally, once construction renovations are completed, the VA will return all actions taking place in this trailer to the main hospital and the trailer will no longer be required. Therefore, it is most advantageous to the government to continue the lease of the altered trailer until construction is completed and an award be made to Stripes Global Inc. (SDVOSB) IAW FAR PART 13 as a follow-on contract.

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 FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies: Stripes Global Inc. was contracted to see if they had any other distributors of their already altered trailer and cost to purchase vs. lease the trailer. It was noted that it would take six months to build a new trailer for rent or purchase, exceeding the required need date for this contract to be completed because the current contract 36C25923P0839 expires June 15, 2024. A notice of intent to sole source will be published to Contract Opportunities IAW FAR 5.201(b).

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Price analysis will be conducted at time of award using FPDS and IGCE. The cost of the rental is found to be fair and reasonable based on review of recent mobile pharmacy trailer rentals.

Contract 36C26220P1439 with a five-month lease extension costing $475,000.00 compared with this base month plus five additional option months estimated total cost of $327,000.00.

Stripes Global Inc. has met the eligibility criteria outlined in VAAR 819.7003, they are verified with the SBA Veteran Small Business Certification, and the action is below the $5M threshold.

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 by searching the SBA

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Revision: 02 https://www.va.gov/oal/docs/business/pps/deviationVaar20230216.pdf https://www.va.gov/oal/docs/business/pps/deviationVaar20230216.pdf https://www.va.gov/oal/docs/business/pps/deviationVaar20230216.pdf https://www.acquisition.gov/far/part-5#FAR_Subpart_5_2 https://www.acquisition.gov/far/part-5#FAR_5_202

Veteran Small Business Certification and a search in the Federal Procurement Data System (FPDS) was conducted. Stripes Global Inc. was identified as a SDVOB capable of meeting this requirement.

This is a follow-on contract and Stripes Global Inc., was contracted to confirm that they are the only distributor that could meet the required need date with the altered trailer.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None. The sole source authority is under 38 USC 8127(c).

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

Stripes Global Inc. (SDVOSB) 245 4th Street Bremerton, WA 98337

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: Actions are not being taken since this a sole source award authorized by 41 USC §3304(a)(5), 38 U.S. Code § 8127(c) and VAAR 819.7007. However, if a similar requirement for a newly fitted trailer becomes available in the future, additional market research will be conducted to determine if there are more than one SDVOSB capable of fulfilling the requirement.

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.

Benjamin Nichols Associate Chief Oklahoma City VA Healthcare System

Date

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.

Jesse San Nicolas Contracting Officer Network Contracting Office (NCO 19)

Date

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Revision: 02 https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx

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

Sarilynn Thomas Branch Chief, Supply 1 Network Contracting Office (NCO 19)

Date

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Revision: 02