Sole Source JA - Seattle EHRM Const_HCA.pdf

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 1 of 5 Revision: 03 Effective Date: 06/15/2024

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C776-24-AP-3356

1. Contracting Activity:

The contracting activity for this requirement is the Department of Veterans Affairs, Veterans Health Administration (VHA) Program Contracting Activity Central (PCAC).

2. Nature and/or Description of the Action Being Approved:

The justification is in support of a new, single award, Firm Fixed Price (FFP) contract for a Construction company to provide construction services for the EHRMWAN Path Upgrades project at the Seattle VA Puget Sound Healthcare System in Seattle, WA.

This project is to remove existing 48ct Fiber, 24ct Fiber & 400x Copper cable off Mercer International Middle School and place new 48ct Fiber, 24ct Fiber, and 400x Copper cable following new conduit path, and installation of a new manhole on South Columbian Way, connecting to the Seattle VA Medical Center. The Contractor shall provide all labor, material, and equipment to remove, install, and replace the existing fiber cables, copper cables, and conduits.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The Contractor shall provide all data, information, materials and labor to achieve the following: 1) Establish pathway and conduit for relocated fiberoptic and copper cabling, in accordance with standards required in off VA property; 2) Coordinate fiberoptic (48ct, 24ct) and copper (400x) cable relocation with service provider (in this case Lumen Technologies); 3) Coordinate when and how the cutover of network services will take place (cut over is used here to describe the at of connecting the VA Data systems to the new fiber optic cable infrastructure without service interruption.

Lumen Technologies is the fiberoptic service provider who uses the fiberoptic cable infrastructure being worked on. They have provided a concept proposal for the future conduit and fiber pathway to achieve relocation of VA servicing infrastructure onto VA owned and public property.

VA Puget Sound, Seattle campus (VAPS), is neighbors with Seattle Public Schools – Asa Mercer Middle School (SPS AMMS). A portion of the VA servicing fiberoptic infrastructure is currently crossing SPS AMMS property, where SPS AMMS is completing construction. This necessitates relocating this service line out of the way of construction. VAPS has been attempting coordination and planning with SPS AMMS and Lumen Technologies for several months, to define and complete this work. It is imperative that this work is to be done so that it does not have a prolonged impact on the ongoing activities at the school.

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Effective Date: 06/15/2024

The period of performance for this requirement is 142 calendar days after the Notice to Proceed is issued. The anticipated award date is the end of September 2024. The estimated cost of this requirement is $3,376,380.

4. Statutory Authority Permitting Other than Full and Open Competition:

For this requirement, 38 U.S.C. 8127(c), known as the Veterans First Contracting Program, provides the authority to directly contract with an SDVOSB or VOSB. Check the specific VAAR clause utilized 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):

38 U.S.C. 8127(c) states, in part, “a contracting officer at the Department may award a contract to a small business concern owned and controlled by veterans using procedures other than competitive procedures if –

(1) Such concern is determined to be a responsible source with respect to performance of such contract opportunity;

(2) The anticipated award price of the (including options) will exceed the simplified acquisition threshold (as defined in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)) but will not exceed $5,000,000; and

(3) In the estimation of the contracting officer, the contract award can be made at a fair and reasonable price that offers best value to the United States.

The implementing regulations at VAAR 819.7007 (b) & (c) [DEVIATION] state in part:

(b) “The contracting officer’s determination whether to make a sole source award is a business decision wholly within the discretion of the contracting officer...”

(c) “A determination that only one SDVOSB can meet the requirement is not required…”

The proposed source for this acquisition is Advanced Technology Construction Corporation (ATC), located at 3828 E. Portland Ave. Tacoma, WA., 98404; a registered and verified SDVOSB by their Veteran Small Business Certification on Veterans.certifiy.sba.gov. ATC is experiences and technically qualified for this project as they have been awarded numerous VA EHRM Infrastructure projects.

Three of their most recent projects reviewed ranged in value between $3,000,000.00 and $8,000,000.00 further substantiating their ability to work a requirement estimated in small fraction of that range. A review of the contractor on the Contractor Performance Assessment Reporting System (CPARS) 67 different assessments for ATC. Of these assessments the majority of the ratings were Satisfactory, Very Good, or Exceptional. ATC’s CPARS demonstrates a history of successful performance. It has been determined that ATC is the most qualified to perform the required services for this project due to their past performance, experience and a performing as a responsible SDVOSB. Award will be made provided that a fair and reasonable price that offers best value to the Government can be attained.

36C776-24-AP-3356

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 3 of 5

Effective Date: 06/15/2024

Pertaining the specific details of the project, VAPS provides information that fiberoptic service provision in the area is provided by Lumen Technologies, which is a large business that holds the primary VA contract for network infrastructure. Additionally, because of joint interest with SPS AMMS and their need to relocate VA serving fiber infrastructure off their property, it is necessary that the Contractor for the VA is familiar with the circumstances and relationship with SPS AMMS to complete this work. Furthermore, SPS AMMS must meet a fixed deadline to complete their own construction in time for the start of the school year in September 2025. This project to relocate VA servicing fiberoptic infrastructure, directly impacts a portion of the road that leads to the middle school, preventing vehicle access to the middle school campus. Therefore, it is time sensitive for the project to finish in the summer of 2025 before the school year begins.

ATC has successfully completed two similar EHRM projects within the area. The first was the Data Center and IT Closet Upgrade at the American Lake Campus under Contract 36C26018D0006; Task Order 36C26121N0473. The second EHRM project was located at the Seattle Medical Center, same site of this requirement, for the Infrastructure Upgrades Fiber Backbone under Contract 36C26018D0006; Task Order 36C25721N0466. The successful completion of this project for VAPS established a refreshed fiber pathway within the VAPS campus. This resulted in ATC having high level of familiarity with the site layout, key personnel and understanding of the current requirement and fast paced timeline.

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:

In accordance with the Class Deviation from the VAAR 819.7007(b), Sole Source Awards to Service Disabled Veteran Owned Small Business Concerns, the Contracting Officer’s determination whether to make a sole source award is a business decision. For the reasons stated herein, and specifically, in response to Paragraph 5, the undersigned Contracting Officer, has determined that ATC is a qualified, responsible SDVOSB.

A special notice announcing the proposed contract action will be posted to SAM.gov | Contract Opportunities, the government’s point of entry (GPE). The Justification and Approval (J&A) document will be posted within 14 days after award in accordance with FAR Subpart 6.305. The award synopsis will be posted to GPE in accordance with FAR Subpart 5.301(a)(1).

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

Based on the authorities cited in this justification, a sole source award under the Veterans Benefits, Health Care, and Information Technology Act of 2006 (Sec 502) to ATC is proposed pending negotiation of a fair and reasonable price for the work to be performed. It is expected negotiations will result in a price which compares favorably to the Independent Government Estimate and previous projects performed by ATC within VISN 20. The Contracting Officer may need to conduct additional analysis before making a fair and reasonable price determination.

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

Several market research techniques were used to identify potential sources for this requirement. To begin a query was performed on SBA Small Business Certification (VetCert) for NAICS code 236220.

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Then a sources sought notice was issued and responses were received from four (4) contractors. All of which were deemed not capable of performing this requirement, excluding ATC. Lastly a notice of intent to pursue a sole source award to ATC was posted on June 6th, 2024, to which no responses were received.

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

It is recommended that a sole source award be made to ATC. ATC is a Service Disabled Veteran Owned Small Business (SDVOSB) that has a successful past performance history on various projects within VISN 20. As referenced above, two most recent projects within the VISN were both EHRM related. More specifically they successfully completed an EHRM infrastructure fiber upgrade at the Seattle Medical Center. Due to the aggressive timeline and several vested interests of the VA, local government and several contractors, ATC was the most capable in pursuing a timely award. ATC not only has the EHRM experience but the direct insight on working at this site along with past and current experience with Lumen, which allowed them to effectively plan and propose on this project without a substantial specification and drawing package. ATC was able to coordinate, understand and effectively plan a path forward of completion for this requirement. If made to compete it would severely delay the requirement and increase the overall risk of this project not being completed on time. Many rounds of technical questions would have to be pursued by other contractors that do not have the same understanding or capabilities of an EHRM project at this specific site and would surely push the award timeframe well into the first quarter or beyond in FY25. A sole source award to ATC is in the government’s best interest to successfully complete the construction period services for the EHRMWAN Path Upgrade Seattle, WA project without significant delay or impact to the campus and surrounding community.

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

The following sources expressed interest in this project via the publish sources sought notice:

a. Advanced Technology Construction Corporation (ATC)

b. BHPE LLC

c. NW Tel LLC

d. TW Professional Solutions LLC (TW PRO)

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:

The Seattle VAMC and VHA PCAC will attempt to solicit future construction projects through IFB FAR Part 14 or RFP FAR Part 15 procedures utilizing SDVOSB set asides.

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.

Ryan Reyes Date Healthcare Engineer VA Puget Sound Healthcare System

RYAN

REYES

Digitally signed by

RYAN REYES

Date: 2024.09.03 14:43:31 -07'00'

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 5 of 5

Effective Date: 06/15/2024

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.

Joseph Rossano Date Contracting Officer

VHA PCAC

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.

Donald A. Marsh III Date Division Chief

VHA PCAC

c. Director of Contracting (If HCA review/signature is required): I certify the justification meets requirements for other than full and open competition.

Richard C. Dahmen Date Director of Contracting, VHA PCAC

d. 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 recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition.

Daryl A. Berg Date Executive Director, Regional Procurement Office Central Head of Contracting Activity

DONALD MARSH Digitally signed by DONALD MARSH Date: 2024.09.04 06:54:00 -04'00'

JOSEPH ROSSANO Digitally signed by JOSEPH ROSSANO Date: 2024.09.04 07:31:23 -04'00'

36C776-24-AP-3356

VHAMINBergD2 Typewritten Text 9/12/2024