Sole Source Justification - Over SAT_Redacted1.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: 36C255-24-AP-0643

1. Contracting Activity: Department of Veterans Affairs, Veterans Healthcare

Administration, Regional Procurement Office Central, Network Contracting Office 15, 3450 S. 4th Street Trafficway Leavenworth, KS 66048

Organizational Activity: Department of Veterans Affairs, Veterans Integrated Services Network (VISN) 15, St. Louis VA Health Care System, John J. Cochran Veterans’ Hospital , 915 N Grand Blvd St. Louis, MO 63106. Purchase Request No.

2. Nature and/or Description of the Action Being Processed: This procurement is for new firm-fixed price Indefinite Delivery Indefinite Quantity (IDIQ) contract for Home Sleep Apnea Testing (HSAT) Services 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.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Contractor shall provide home sleep studies for referred patients experiencing sleep apnea symptoms, such as snoring, daytime sleepiness, poor memory, cognitive impairment and witnessed apneas. The Contractor will provide temporary HSAT device(s) and training to patients for use up to three (3) nights. Patients will return HSAT device(s) to the Contractor upon completion of testing. The Contractor shall utilize a Registered Polysomnography Technician to score sleep study data. After sleep study data has been scored, the Contractor shall make test results available to the John J. Cochran Veterans’ Hospital for review and interpretation. The estimated total value of this requirement is The estimated period of performance is a base plus three (3) option years.

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:

( ) 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

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( ) International Agreement

(X) 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): The anticipated award price of the contract (including options) will not exceed $5 million. A CPARS query for Home Care Equipment, Inc., Service-Disabled Veteran-Owned Small Business (SDVOSB), shows the firm has successfully performed on previous Government contracts and has been determined to be a responsible source with respect to performance of this contract opportunity. The Contracting Officer has estimated that an award can be made at a fair and reasonable price that offers the best value to the Government. Therefore, pursuant to 38 U.S. Code § 8127(c) and VAAR 819.7008, the contracting officer may award a contract to a VIP-listed SDVOSB using other than competitive procedures.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: As a result of the market research conducted in Section 8, a total small business set-aside, request for quotes (RFQ) was published to SAM.gov on December 20, 2023. Five (5) small business quotes were received. Only one quote was received from a capable, SBA VetCert registered and verified SDVOSB (i.e., Home Care Equipment, Inc.). Home Care Equipment, Inc.

provided a technically acceptable quote, the lowest price, and received an evaluation credit in accordance with VAAR 852.208-70. The Contracting Officer determined that Home Care Equipment, Inc. provided the best value to the Government, resulting in the award of IDIQ Contract No. 36C25524D0028 to Home Care Equipment, Inc. On March 13, 2024, Sleep Care, Inc. filed a post-award protest to the U.S. Government Accountability Office (U.S. GAO), challenging the past performance and technical evaluations as well as the award decision. As a corrective action, VA Office of General Counsel informed the U.S. GAO that the Contracting Officer will cancel the RFQ and terminate IDIQ Contract No. 36C25524D0028.

With regard to the above information, the Contracting Officer is knowledgeable of at least one (1) small business owned and controlled by veterans that is capable of performing the requirement.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Price fair and reasonableness will be determined by comparing the vendor’s quote to both the Independent Government Cost Estimate (IGCE) and historical pricing.

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8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: This requirement for services does not require the furnishing of supplies to the Government, therefore, the Buy American Act/Trade Agreements Act do not apply.

An Ability One query using key phrase “sleep study,” found no relevant results.

A Small Business Administration’s (SBA) Veteran Small Business Certification (VetCert) query using NAICS 621610, found 437 firms. Due to the limitations of SBA’s VetCert search engine (i.e., ability to refine searches, data drill down, data export capability), the ability to refine the data and identify capable sources was determined impractical.

An SBA Dynamic Small Business Search (DSBS) query using key phrase “sleep study,” found three (3) results.

1. V- V Sleep DME, LLC (UEI: C4JCJZML5348), No active SAM.gov

Registration (i.e., expired Dec 12, 2007).

2. Mobile Medical Professional Clinic, LLC (UEI: XGS9C83AD397) - No active SAM.gov Registration (i.e., expired Mar 6, 2021).

3. Sleep Specialist-MD (UEI: TH29GC7M5PN5) - No active SAM.gov

Registration (i.e., expired Dec 12, 2007).

A VA Strategic Acquisition Center (SAC) query using key phrase “sleep study,” found no relevant results.

A VA Supply Chain Master Catalog (SCMC) query using key phrase “sleep study,” found 29 results. A total of 10 contractors were found, however, only one (1) contractor (i.e., PM Sleep Lab II, LLC) received awards related to sleep studies. All other contractors received awards for equipment only or non-related services.

1. Thirteen (13) results found for VA IDIQ Contract#: 36C25522D0012 with

PM Sleep Lab II, LLC (Small Business). This IDIQ is available to VA NCO 15; however, the scope only supports the Robert J. Dole VA Medical Center located in Wichita, Kansas.

A VA National Acquisition Center (NAC) Contract Catalog Search Tool (CCST) query using key phrase “sleep study,” found no relevant results.

A General Services Administration (GSA) Advantage query using key phrase “sleep study,” found no relevant results.

An FPDS search using keywords “sleep study,” found 796 total results, however, only three (3) contractors were awarded sleep study related contracts within the last 18 months.

1. Sleep Care, Inc. (UEI: EQNMU1YE44V7) (Small Business). Fifteen awards found within the last 18 months.

2. Itamar Medical, Inc. (UEI: RFUSHQL6BM78) (Large Business). Twenty-one (21) awards found within the last 18 months.

3. Leader Six, Inc. (UEI: JCV2RSD8CNZ6) (SDVOSB). One award found within the last 18 months.

• A sources sought was emailed to the Leader Six, Inc. (SDVOSB) on December 8, 2023, to determine interests and capability to perform the requirement, however, no response was received.

• A review of the market research completed for Contract Number 36C25523D0058 showed there were no small businesses owned and controlled by veterans that were interested and capable of performing the requirement. However, market research did support a total small business set-aside. The request for quotes resulted in three (3) responses:

1. Sleep Associates of Florida, LLC (UEI: N8NUD7YFTVR2) (Small

Business)

2. Buxmont Pulmonary & Sleep Medicine, P.C. (UEI: L2JJDYZ9J2K3)

(Woman-Owned Small Business)

3. Sleep Care, Inc. (UEI: EQNMU1YE44V7) (Small Business).

• A sources sought was emailed to the Leader Six, Inc. (SDVOSB) on December 8, 2023, to determine interests and capability to perform the requirement, however, no response was received.

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

None.

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

Home Care Equipment, Inc. (UEI: NEXTC9FBT4L3) (SDVOSB) Sleep Care, Inc. (UEI: EQNMU1YE44V7) (Small Business) Lumbee Resource Management Group, LLC (UEI: MG4CJDAYLU66) (Small Disadvantaged Business) Maison Medical, Inc. (UEI: Z5LCM99UVM31) (Small Business) Cheema, LLC (UEI: WFVUEHE9UHE4) (Small Disadvantaged Business)

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: NCO 15 will continue to conduct market research before each award to ascertain if there are any changes in the marketplace that would enable competition for future actions.

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.

Gina Seltzer Associate Chief Nurse Department of Veterans Affairs St. Louis VA Health Care System

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Date

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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.

Courtney Chattman Date Contract Specialist, Medical Services & Equipment Team Department of Veterans Affairs

VHA | RPOC | NCO 15

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.

Randall Combs Date Division Chief Department of Veterans Affairs

VHA | RPOC | NCO 15