Sole Source Justification - Over SAT - Dental Water Sampling signed by BC - 2_Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Request for Sole Source Justification Template > 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: 36C248-22-AP-3146

1. Contracting Activity: Department of Veterans Affairs, Regional Procurement Office (RPO) East, Network Contracting Office (NCO) 8, VA Caribbean Healthcare System, San Juan, Puerto Rico. The 2237 for this procurement is .

2. Nature and/or Description of the Action Being Processed: This procurement is for Dental Water Sampling Services for two (2) different locations- VA Caribbean Healthcare System in San Juan Puerto Rico and Mayaguez Outpatient Clinic (MOPC) in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items nd 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 planned procurement method is a Firm-Fix price type of contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The services to be acquired are for the sampling and testing of the dental water at San Juan and Mayaguez , Puerto Rico. Service contract has e estimated value of which includes one (1) base year from November 1, 2022 – October 30, 2023 and four (4) years options periods. The breakdown is as follows:

A. Base year – November 1, 2022 – October 30, 2023.

B. Option Period 1 – November 1, 2023 – October 30, 2022 C. Option period 2 – November 1, 2024 – October 30, 2022 D. Option period 3 – November 1, 2025 - October 30, 2026 E. Option period 4- November 1,2026- October 30, 2027.

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):

Request for Sole Source Justification Template >SAT- under FAR13.5

Effective Date: 02/01/2022 Page 2 of 4

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

When this procurement was originally assessed, a source sought was published on GSA, one (1) response was received from the former vendor providing the service under a GSA contract and responses from three (3) different vendors confirming their inability to perform these services. Also, an additional source sought was published on SAM.gov, which yield one (1) response from a potential SDVOSB vendor.

Solicitation 36C24822Q1085, set aside for SDVOSB was posted on July 25, 2022 due date for the responses was August 11, 2022, by the closing date only one (1) quote was received, however significant issues arose regarding the vendor compliance with the limitation on subcontracting. For this reason a Certificate of Competency was requested to SBA, the potential vendor

) refused to comply with the process. Therefore, SBA closed the case and instruct us to move forward with the next vendor in line for award. Due to the fact that no additional vendors submitted a quote, the solicitation was cancelled. Supplemental market research was conducted in SAM.gov after that event indicating there are no other vendors that can comply with the 24 hours sampling culture and reading requirement on the day the sample is taken as established on the Performance Work Statement (PWS) while at the same time be compliant with the LOS.

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

Since there will be no competition, the vendor will be required to provide evidence of catalog prices and or other sales receipts to other customers in order to validate that the final prices are fair and reasonable.

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

Market Research Was Not Conducted:

A query was conducted in the Veteran Information pages (VIP), using NAICS and PSC codes for this procurement (541620, H946) zero results came from this search. An additional search was conducted on VIP using the NAICS code and key word “water sampling”, resulted on one hundred and sixty-two (162) vendors, one hundred and forty-five (145) SDVOSB and seventeen (17) VOSB. A search was conducted on GSA using NAICS code 541620 and code word “water testing”, found one hundred and sixty-eight (168) vendors, thirteen (13) of those are SDVOSB including the current vendor. Additionally, a source sought was published on GSA, received one (1) response from the current vendor providing the service under a GSA contract and responses from three (3) different vendors confirming their inability to perform these services. Also, an additional source sought was published on SAM.gov, received one (1) response from a potential SDBOSV vendor.

After the original market research findings, it was determined to compete the procurement as a Service Disable Veteran’s Own Small Business (SDVOSB) set aside. The solicitation was posted on SAM.gov under number 36C24822Q1085 on July 25 2022, due date for the responses was August

Request for Sole Source Justification Template > under FAR13.5

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

11, 2022, by the closing date only one (1) quote was received, the incumbent submitted a price and a technical response. The received quote was evaluated, and significant issues arose regarding the vendor compliance with the limitation on subcontracting clause. In order to clarify the concerns, a breakdown of the quote was requested on 8/17/2022 to

, which she refused to provide; therefore, it was determined to refer to SBA for a certificate of competency (COC). On September 1, 2022, the request was submitted to SBA, COC coordinator received it and was assigned to complete the requirement. On Monday September 19, 2022, SBA closed the COC solicitation since declined to comply with the process and we were allowed to continue with the procurement action.

To determine the new course of action for this procurement, I contacted the subcontractors the mentioned vendor (current service provider) is using to provide the required services, to evaluate the extend of their respective participation on the contract. First, I talked to , quality assurance manager for Sanco Laboratories, she explained they oversee basically most of the services, their certified technicians collect the samples, they perform the testing and certify the results, she also explained the laboratory has a strategic alliance with or the microbiological certification. Finally, I contacted , he explained that for this procurement they did not provide any services (

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

Sanco Laboratory is the only vendor capable to fullfil the government’s emergency requirements due to the following reasons:

a. Has Puerto Rico Department of Health certified technicians to collect the samples b.Has the ability to cultured the samples the day of delivery and read after 24 hours of incubation, it will not allow the time elapsing between sample collection and examination to exceed 24 hours.

c. Has the capability to comply with emergency services that require the contractor to conduct sampling collection within 24 hours of notification from the government.

Sanco Laboratory (Small business) was a subcontractor for the former vendor

. However, the small business was the one completing all the requirements and providing all the services for the dental water sampling contract. The SDVOSB involvement was limited to coordinations and invoicing. The small business has the experience, required certified personnel and local certifications to comply with the contract requirements successfully and accurately.

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

Originally a sources sought was published on SAM.gov , only two (2) vendors responded, and , however only the submitted a quote for the previous solicitation. An award couldn’t be made due to the reasons explained above.

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 San Juan Contracting Office will continue performing market research to identify any capable sources for future competition.

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,