Redacted JNA - Rowan Community.pdf

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DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C259-23-AP-0207

RPOW JOFOC Tracker: 2023-03-06T07:00:22

1. Contracting Activity:

Department of Veterans Affairs 6162 S. Willow Drive, Suite 300 Greenwood Village, Colorado 80111

Organizational Activity:

Department of Veterans Affairs Rocky Mountain Regional VA Medical Center 1700 North Wheeling Street Aurora, CO. 80045

2237: 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 Community Nursing Home (CNH) services for the Rocky Mountain Regional VA Medical 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.

The action will result in a follow on, sole source firm-fixed-price Indefinite-Delivery Indefinite-Quantity (IDIQ) Contract.

3. : The CNH will provide all facilities and services to support short and long-term care for Veterans. These services include but are not limited to rehabilitation, nursing, and clinical care in accordance with the performance work statement. Rowan Inc dba (doing business as) Rowan Community 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, Geriatrics Extended Care (GEC). Additionally, they are certified under Centers for Medicare and Medicaid Services (CMS) and licensed by the State of Colorado. This will be a 5-year IDIQ (60 months) with a 6-month option, if needed per FAR 52.217-8 Option to Extend Services. The period of performance will be 1 July 2023 through 30 June 2028. The total estimated value of this contract is The evaluation of FAR 52.217-8 Option to Extend Services is included for this requirement and the specified rates will be those rates in effect under the contract each time an option is exercised under this clause.

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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.

Requires the Use of the Authority Cited Above (applicability of authority): Currently, there are 11 Veterans being treated and housed at Rowan Inc dba Rowan Community. Rowan Inc dba Rowan Community meets the VA rating on quality-of-care standards to provide treatment to Veterans. The Veterans at this facility cannot be moved without causing a disruption in the continuity of care and undue stress to both the Veteran and family. In accordance with FAR 13.5 this requirement for community nursing homes Services will be sole sourced to Rowan Inc dba Rowan Community.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A Sources Sought notice, 36C25923Q0054, was posted on 26 October 2022 and closed on 25 November 2022, zero (0) responses were received from this posting in the Aurora, Colorado area. A search of the Medicare.gov, SBA Small Business Dynamic Search and Vendor Information Pages was conducted. A search was conducted using Medicare.gov nursing home compare website to find homes in the Aurora, Colorado area. There are 33 Community Nursing Homes within 10 miles of the zip code of 80045 Aurora, Colorado. While this shows there are 33 facilities within the same area code, these facilities have not been vetted through the VA process to establish them as viable options. A search of VetBiz using zip code 80045 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 80045 and there was one (1) result. This facility has not been vetted through the VA process to establish them as viable option. The CNH program requires the CNH Coordinator review the Medicare compare scores and provide a recommendation based on the current score. The CNH Coordinator reviewed the Medicare compare score for Rowan Inc dba Rowan Community and determined a waiver was not required. As part of the acquisition process, a CNH must provide a current state license, insurance and copy of the state inspection to ensure compliance to contract.. A redacted J&A will be posted on Contract Opportunities

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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 Medicaid rates are established by each state based on national average. The VA Geriatrics and Extended Care Office through the VHA Procurement Guide (VHA PG) and VA pulse publishes an annual maximum allowable percentage that are applied to each Resource Utilization Group (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 RUGS IV rates, the CO has determined that the results are determined to be fair and reasonable when the add-on percentage agreed upon by both parties is at or under the maximum allowable percentage established by VA. 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: This is a follow-on acquisition to provide Community Nursing Home Services to the Eastern Colorado Healthcare System. Rowan Inc dba Rowan Community has had a contract with the VA since July 2018. The current contract, 36C25918D0218, was an Indefinite-Delivery Indefinite-Quantity Contract (IDIQ) awarded in July 2018 for a five year period and expires 30 June 2023. As described in Section 6 above, a search of the Medicare Nursing Home Compare website https://www.medicare.gov/nursinghomecompare/search.html resulted in 33 Community Nursing Homes within 10 miles of the zip code of 80045 Aurora, Colorado where the current CNH is located. A search of VetBiz using zip code 80045 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 80045 and there was one (1) result. This facility has not been vetted through the VA process to establish them as viable option. A Sources Sought Notice 36C25923Q0054, was posted on 26 October 2022 and closed on 25 November 2022 and received zero (0) responses. 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 number of CNH's that may be required in an area based on future needs.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: There is no other supporting information not previously stated to support the use of other than full and open competition.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: The current contractor, Rowan Inc dba Rowan Community located at 4601 E Asbury Circle, Denver, CO 80222, has expressed an interest to continue providing CNH services to the VA and continue in providing care and services to the Veterans 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: Overcoming or removing barriers to competition is unavoidable because there is only one facility, Rowan Inc DBA Rowan Community, who can provide services to the Veterans currently residing at the facility. In the future, the contracting office and the

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CNH Program office will continue to canvas the market for new community nursing homes that are capable of meeting program requirements.

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.