PM_Part813.106_Atch1_SingleSourceJustification_MPT-SAT.pdf

VHAPM Part 813.106 Simplified Acquisition Procedures: Soliciting from a Single Source Attachment 1: Single Source Justification for SAP under the SAT

VHAPM Part 813.106 Page 1 of 2 Original Date: 08/30/17 Revision 02 Eff Date: 03/31/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification for Single Source Awards IAW FAR 13.106-1 For

Over Micro-Purchase Threshold but Not Exceeding the SAT ($250K)

Acquisition Plan Action ID:36C242-21-AP-3393

1. Contracting Activity: Department of Veterans Affairs, VISN 02, Upstate VA Medical Centers located in Buffalo, Batavia, Canandaigua, Bath and Albany, New York.

2. Brief Description of Supplies/ Services required and the intended use/Estimated Amount: The New York VA VISN2 Medical Centers listed above require bulk treated road salt to be used during the winter months of 2020-2021 on roadways, parking lots and sidewalks. This is an annual requirement with a period of performance that runs from November to April each year. Deliveries are made by truckload consisting of 20-25 tons per trip. Road salt must be made available within 24 hours of request under emergency weather conditions.

3. Unique characteristics that limit availability to only one source, with the reason no other supplies or services can be used: Located in Mount Morris, New York is the Retsof Salt Mine owned and operated by American Rock Salt Company, LLC. The mine produces between 10,000 and 18,000 tons of salt each day depending on demand. American Rock Salt the largest producing salt mine in the United States.

American Rock Salt sells exclusively to the States of NY, MD, NJ, OH, PA, VA, WV, CT, MA, ME, NH, RI, VT, and Canada. Pricing directly from American Rock Salt is and always has been the lowest price available to the Government as they are the minor (manufacturer).

4. Description of market research conducted and results or statement why it was not conducted:

Over the past six years of requiring bulk road salt, the NY VISN2 VA Medical Centers have been supplied by American Rock Salt either directly by them or through a subsidiary vendor. In accordance with the VA’s Rule of Two, there is no expectation that the Government will receive reasonable pricing from any small business (SDVOSB/VOSB) by simply being a middleman or pass-through that places an order on behalf of the VA with the large business vendor, American Rock Salt.

The Government has to abide by the Nonmanufacturing rule which identifies exceptions to the manufacturing requirement, allowing a small business to supply products it did not manufacture as long as those products come from another small business (or in the case of an SBA waiver, from a large business). Also in accordance with the Nonmanufacturing Rule, 13 CFR 121.406, SDVOSB, VOSB or small businesses do not, in a manner consistent with industry practice, take ownership of the item, or take possession of the items with its personnel, equipment or facilities as part of being primarily engaged in the sale of the items (13 CFR 121.406(b)(1)(iii). Since the manufacturer is a large business, by regulation, (13 CFR 121.406(b)(1)(iv) the Government would be required to obtain a waiver from the Small Business Administration.

https://www.acquisition.gov/?q=/browse/far/13

VHAPM Part 813.106 Simplified Acquisition Procedures: Soliciting from a Single Source Attachment 1: Single Source Justification for SAP under the SAT

VHAPM Part 813.106 Page 2 of 2 Original Date: 08/30/17 Revision 02 Eff Date: 03/31/2020

5. Contracting Officer's Certification: Purchase is approved in accordance with FAR13.106-1(b). I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

____________________________ ____10/28/2020________ Sam DeMuzio Date Contracting Officer https://acquisition.gov/far/current/html/Subpart%2013_1.html#wp1125466