SSJ - Cleanroom Lease_Redacted.pdf

Effective Date: 02/01/2022 Page 1 of

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C247-23-AP-1036

1. Contracting Activity: Department of Veterans Affairs, NCO 7, SC Commodities Team Requesting Activity: VISN 07, Columbia VA Health Care System, WJB Dorn VA Medical Center, Pharmacy Services located at 6439 Garners Ferry Rd, Columbia SC 29209. The purchase request number is 544-23-2-168-0023.

2. Nature and/or Description of the Action Being Processed: This request is for a firm-fixed price purchase order to be awarded as a sole source to JMG Veteran Contracting LLC 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 requirement is to lease a Modular Pharmacy Cleanroom for one base year with the option to extend up to six months effective March 15, 2023.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Columbia VA Pharmacy Service requires a contract to lease a modular pharmacy cleanroom to continue to meet patient’s medical requirements until construction on the existing clean rooms are complete. Construction was delayed and purchase order 36C24722P0483, awarded to JMG Veteran Contracting LLC for the current clean room expires March 14, 2023.

Another purchase order is needed for continued use of JMG’s cleanroom for one base year with the option to extend up to six months. The total estimated value of the proposed award is $939,000.00 including option periods.

Period of Performance Qty Unit Unit Price Total Cleanroom Lease 3/15/2023 – 3/14/2024 12 MO $51,000.00 $612,000.00 Decommission 3/15/2023 – 3/14/2024 1 JB $21,000.00 $21,000.00 Cleanroom Lease 3/15/2024 – 9/14/2024 6 MO $51,000.00 $306,000.00

Total Estimated Contract Value: $939,000.00

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

36C247-23-AP-1036

Effective Date: 02/01/2022 Page 2 of

( ) 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: The current modular cleanroom is being leased from JMG Veteran Contracting LLC under purchase order 36C24722P0483. The unit has already been delivered, installed, and is being utilized for scheduled patients. Removing the current unit and bringing in another unit would cause unacceptable delays to existing schedules due to a new solicitation, award, delivery, and installation of a new unit. Additionally, a new solicitation will result in a duplication of cost to the government that is not expected to be recovered through competition. The Government has expended $21,000 for installation of the existing unit and will expend another $26,000 for removal of that unit. Based on the current purchase order value, the estimated cost to deliver and remove a new unit will be an additional $47,000. Furthermore, the monthly price for a new award to JMG will remain the same as the existing price, but the monthly price could increase if competition is sought under a new solicitation. Therefore, it is in the best interest of patient care and cost effectiveness to make a sole source award to JMG Veteran Contracting LLC for continued use of their clean room.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: No other sources are being sought at this time. The intent is to make a sole source award to the incumbent for continued use of the equipment already installed at the facility. As noted above, resoliciting for new equipment would cause unacceptable delays to existing patient schedules and a duplication of cost to the government that is not expected to be recovered through competition.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated cost for the proposed award will be compared to prices found reasonable under the current purchase order. The prices under 36C24722P0483, awarded to JMG with a period of performance from 3/15/2022 – 3/14/2023, were considered fair and reasonable based on multiple estimates received during market research. The prices for the proposed sole source award to JMG will remain the same as prices found reasonable under 36C24722P0483. Based on these comparisons, the Government anticipates the total cost for the proposed award will be 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 search in Vendor Information Pages (VIP) using the keyword “cleanroom” returned 9 vendors. A review of their capability narratives suggests (4) SDVOSBs may be able to provide the requested equipment. The market research for the existing award was reviewed and showed that despite multiple vendors from the previous VIP result, only (1) SDVOSB could meet the requirement for the cleanroom within the required timeframes. As a result of those findings a sole source award was made to JMG Veteran Contracting (SDVOSB) under 38 USC 8127(c). JMG Veteran Contracting SAM registration was reviewed and found to be active with no active exclusions.

A notice of intent to sole source to JMG Veterans Contracting LLC for the new cleanroom

Effective Date: 02/01/2022 Page 3 of requirement was published to contracting opportunities from 1/17/2023 – 1/20/2023 and no vendors responded to the notice.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The modular cleanrooms must meet United States Pharmacopeia (USP) 797 and 800 standards.

Procuring a new cleanroom would require additional delivery and installation times because the units must be manufactured and/or customized to meet the organization’s space and layout requirements; must be delivered and installed; and require third-party inspection and certification before the organization can begin using the equipment. Based on the delivery lead times for the existing award, it could take 3-9 months to get a new unit in place which could cause interruptions to patient care.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: JMG Veterans Contracting LLC located at 7235 E. Hampton Ave, Ste 111, Mesa Arizona expressed interest in this requirement.

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 Columbia VAMC Pharmacy Services and Contracting staff will continually conduct research to identify products, services, and capable sources to maximize competition where possible, while meeting the needs of the facility.

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.

Chief, Pharmacy Services Columbia VA Health Care System

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.

Earnest Ellison Contracting Officer

MARY L BUSH

455101

Digitally signed by MARY L

BUSH 455101

Date: 2023.01.20 12:46:53 -05'00'

EARNEST J ELLISON

900039

Digitally signed by EARNEST J

ELLISON 900039

Date: 2023.01.24 14:50:03 -06'00'