Redacted J_A.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 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C242-22-AP-1741

1. Contracting Activity: Department of Veterans Affairs, Network/Program Contracting Office NCO 02, located at 2875 Union Road, Suite 3500, Buffalo, NY 14227, in support of VISN 02 Buffalo VA Medical Center, 3495 Bailey Avenue, Buffalo, NY 14215, and Batavia VA Medical Center, 222 Richmond Avenue, Batavia, NY 14020.

A. 2237#: 528-22-4-4895-0068

2. Nature and/or Description of the Action Being Processed: This is a request for other-than full and open competition for the procurement of the domestic water supplementation treatment service at the Buffalo VA Medical Center and the Batavia VA Medical Center. The proposed purchase order shall be provided to Nalco Water Pretreatment Solutions, LLC., 1601 W. Diehl Road, Naperville, IL 60563 from 8/1/2022 to 7/31/2023 with the provision of four (4) option years, for a consideration of

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This procurement is to provide a service agreement to install, test, commission, monitor and maintain five (5) domestic water supplemental disinfection units and associated monitors. Two (2) electrolytic chlorine generators in Building One (1) and one (1) sodium hypochlorite solution injection system in Building Three (3) shall be used at the Buffalo VA Medical Center and two (2) electrolytic chlorine dioxide generators shall be used, one each in Building One (1) and Building Thirty (30) at the Batavia VA Medical Center. The controller shall be capable of web-based data logging, monitoring, emailing alarm notifications, and 24/7 monitoring of system conditions, in accordance with VHA Directive 1061.

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and 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

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

Effective Date: 02/01/2022 Page 2 of 4 performed, NALCO is the only vendor that has been identified that can provide the services required, in accordance with VHA Directive 1061. Furthermore, NALCO is the only authorized service provider for the Envirox, eChlorine, and liquid chlorine applications for hospital domestic water treatment.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A VIP search using NAICs code 221310 and keyword “Legionella Disinfection” identified zero (0) vendors who could possibly fulfill this procurement.

A GSA eLibrary search using keywords “Legionella Disinfection” identified zero (0) vendors who could possibly fulfill this procurement.

A search of SBA QMR tool using NAICs code 221310 and keyword “Legionella Disinfection” identified one (1) SDVOSB vendor, Legionella Specialties, LLC., who could possibly fulfill this procurement. This vendor was contacted by phone with no reply.

A search of Google.com identified one (1) vendor, ChemTreat, verified as a large business in sam.gov. This vendor was contacted by phone with no reply.

A beta.sam.gov intent to sole source notice (36C24222Q0722) was posted on 5/11/2022 and closed on 5/18/2022 in which zero (0) responses were received.

The customer was in contact with two companies while conducting their Market Research (NALCO and Phigenics). Nalco, a verified large business in sam.gov, provided pricing and interest in this procurement, while Phigenics stated they did not have the full capability of the requested Scope of Work (SOW).

In reviewing the market research for a Legionella Water Treatment procurement at the Buffalo VAMC (36C24219P0974), two small businesses that could possibly meet the needs of this procurement were identified (MIS and Maclean Group). Both were contacted on 6/2/22, with no responses.

Nalco provided a sole source memorandum, dated 6/2/22, pertaining to the patents and copyrights of the 24/7 monitoring and maintenance service on their Envirox (chlorine dioxide), eChlorine, and liquid chlorine applications.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Price reasonableness was determined by comparing the vendor’s quoted annual price to past comparable quotes, for the same equipment/service agreements, provided by the vendor.

The vendor’s quoted annual price for each of the two (2) eChlorine applications is $ , a decrease of $ ( ) from comparable quoted annual price of $ for another Buffalo area hospital.

The vendor’s quoted annual price for the one (1) Liquid Chlorine application is $ , a decrease of $ ) from comparable quoted annual price of $ for another Buffalo area hospital.

Effective Date: 02/01/2022 Page 3 of 4

The vendor’s quoted annual price for each of the two (2) Envirox applications is $ , a decrease of $ ) from comparable quoted annual price of $ for a facility in Hobart, NY.

The four (4) provisional option years of the current vendor’s quote increase at a percent rate for all covered equipment above.

As the lower quoted annual prices provided to the Buffalo and Batavia VAMCs are due to both a Government discount and a volume discount, pricing is determined to be fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: See section 6.

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

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

A. Nalco Water Pretreatment Solutions, LLC. (Large Business), 1601 W. Diehl Road, Naperville, Illinois, 60563-0130

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: None, as the reason for this sole-source is that NALCO is the only vendor identified based upon market research performed.

Effective Date: 02/01/2022 Page 4 of 4

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.

Jerome Okonzak Date Maintenance Mechanic/COR Buffalo VA Medical Center

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.

Michael Spivack Date Contracting Officer, Services Team 1 RPO East, NCO 2 Contracting Office

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.

Cheryl Brimmer Date Branch Chief, Services Team 1

RPO East, NCO 2 Contracting Office

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 approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Joseph P. Maletta Date Executive Director, RPO East VHA Head of Contracting Activity (HCA)