Redacted JNA.pdf

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 5 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C259-21-AP-2590, CNH Legacy Living, Gillette, WY

RPOW JOFOC Tracker: 2021-10-07T06:07:13

1. Contracting Activity: Department of Veterans Affairs, 6162 S. Willow Drive, Suite 300, Greenwood Village, Colorado 80111, in support of the Sheridan VA Medical Center located on 1898 Fort Road, Sheridan, WY 82801. This action is funded by a 1358. Therefore, there is no associated 2237.

2. Nature and/or Description of the Action Being Processed: This procurement is for the establishment of a sole source Firm-Fixed Price Indefinite Delivery Contract (IDC) for Community Nursing Home (CNH) Services for the Sheridan VA Medical Center in Gillette, WY with Campbell County Hospital District dba The Legacy Living and Rehab Center. It will utilize procedures in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

This will be an Indefinite Delivery Contract (IDC). The period of performance for this IDC will be 01 April 2022 through 31 March 2027, 5 years (60 months) with a 6-month option (52.217-8 Option to Extend Services).

3. Description of Supplies/Services Required to Meet : The CNH will provide all facilities and services to support short and long-term care for Veterans. These services include rehabilitation, nursing, and clinical care in accordance with the performance work statement. The current contract, 36C25920D0040, expires on 31 March 2022.

Campbell County Hospital District dba The Legacy Living and Rehab Center has met all requirements under the VHA Notice 2019-22, Community Nursing Home Program (CNHP) and VHA Office of Community Care (OCC) Field Guidebook, Specialty Programs Section 1.2, Geriatric Extended Care (GEC). Additionally, they are certified under Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Wyoming. This will be a 5-year IDC (60 months) with a 6-month option (52.217-8). The period of performance will be 01 April 2022 through 31 March 2027. The total estimated value of this contract is

, and the estimated value of the 52.217-8 option (6 months), if exercised, would be

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

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( ) 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.

Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Currently, there is one Veteran being treated and housed at Campbell County Hospital District dba The Legacy Living and Rehab Center under an existing IDC 36C25920D0040.

The Legacy Living and Rehab Center facility meets VA standards for quality of care to provide care and treatment to Veterans. The Legacy Living and Rehab Center facility has had a contract with the VA since 2018. They have consistently provided quality care to our Veteran. The Veteran at this facility cannot be moved without causing a disruption in the continuity of care and undue stress to both the Veteran and family. The relocating of Veterans is not in accordance with VA policy/directive established by the Office of Geriatrics and Extended Care. In accordance with FAR 13.5, this requirement for community nursing homes services will be a sole source IDC to Campbell County Hospital District dba The Legacy Living and Rehab Center. In addition, as stated in paragraph 6 below, no responses were received from any potential offerors regarding the sources sought notice issued for this procurement.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A Sources Sought Notice, 36C25921Q0459, was issued on 19 May 2021 and closed 19 June 2021. No responses were received to the sources sought.

The notice requested basic contractor information from interested parties to gain knowledge of potential interested parties and their size classification (HUBZone, 8(a), small, small disadvantage, service-disabled Veteran owned small business, veteran owned small business or large business) relative to NAICS 623110 Nursing Care Facilities (Skilled Nursing Facilities) ($30 Million size standard). A search of the Medicare Compare website https://www.medicare.gov/care-compare/ resulted in one community nursing home within 50 miles of Gillette, WY where the current CNH is located. The VA Vendor Information Page (VetBiz) was used to determine if potential offerors exist who would be able to provide the services required. However, the site failed to produce any results for Gillette, WY. The CNH Guidebook requires the CNH Coordinator to review the Medicare Compare Score to determine if the CNH is above or below the required score to determine if a waiver is required or not before a new CNH may be considered for a contract. Any required waiver should be submitted with the procurement package. As a part of the acquisition process, a CNH must provide a current state license, insurance and a copy of the state inspection. These documents are provided to the CNH Program Coordinator for review and evaluation. The CNH Coordinator will either provide a recommendation to contract or state that the CNH did not receive a recommendation to contract. A redacted J&A will be posted on Contract Opportunities.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Medicaid rates are used as the basis for pricing the CNH contracts. The

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Medicaid rates are established by each state based on national average. The VA Geriatrics and Extended Care Office through the VHA PM and VA pulse publishes an annual maximum allowable percentage that are applied to each RUGS IV category. The RUGS IV category identify the different levels of treatment. The add-on percentages are added to the basic Medicaid rate then applied to each RUGS IV category. The Medicaid rate and the VA add-on percentage make up the per diem rate paid for each Veteran. The line item structure will illustrate the different RUGS IV category and the add- on percentage and the total per diem rate for each level of care. After conducting research on the current Medicaid and rates are fair and reasonable. If not, the Government will negotiate a change in the rate based on the allowable add-on percentage established by the Office of Geriatrics and Extended Care. The add-on percentages do not change through the life of the contract.

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

Reasons Market Research Was Not Conducted: As described in Section 6 above, a search of the Medicare Compare website https://www.medicare.gov/care-compare/ resulted in one Community Nursing Home within 50 miles of the zip code of 82716 Gillette, WY where the current CNH is located. The CNH Coordinator reviewed the Medicare compare score and determined a waiver was not required. A search of VetBiz using zip code 82716 and the NAICS code 623110, yielded no results. A search of the SBA Small Business Dynamic Search was conducted using the NAICS code 623110 and zip code 82716 and there were no results. A Sources Sought announcement (36C25921Q0459) was posted on 19 May 2021 and closed 19 June 2021. No responses were received to the sources sought. Typically, CNH's are not competed. Based on the CNH program requirements, the Veterans preference is taken into consideration when selecting a CNH based on the Veteran needs, proximity to home/residence and family. The CNH Program Coordinator at the Medical Center reviews the Medicare compare score of various CNH's in a given area to determine the feasibility to be required in an area based on future needs.

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

CNH is currently providing care for one Veteran in this facility who cannot be relocated due to continuity of care and medical complexity. This CNH is located near the family of the Veteran and moving them would cause undue stress to the Veteran and their family if the government tried to relocate the Veteran to a new nursing home.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other CNH expressed interest in this acquisition. The current contractor, Campbell County Hospital District dba The Legacy Living and Rehab Center has expressed an interest to continue providing CNH services to the VA and continue in providing care and services to the Veteran currently placed there.

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: There is currently only one (1) facility capable of providing the specialty care and medical needs of the existing Veteran. Based on the CNH program requirements, Veteran needs, proximity to home/residence and family. The CNH Program usually attempts

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Revision 03 Date: 02/11/2021 to inspect a sample of CNH's in a given area to provide the Veterans with several choices but there has been a hold on doing these in person inspections due to COVID and access restrictions. However, the selection of the CNH is determined on whether the CNH has the resources available to meet each Veteran's needs. The CNH Program Coordinator is responsible for conducting market research and required inspections to increase the number of available and qualified CNH's. The contracting office and CNH Program office will continue to canvas the market for new CNH entrants capable of meeting program 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.

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

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.

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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.