SSJ Home Oxygen Bridge - Las Vegas_Redacted.pdf

Request for Sole Source Justification >SAT-SAP RFO 12.201-1

Effective Date: 12/30/2025 Page 1 of 4 Revision: 02 Acquisition ID#:

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH Revolutionary FAR Overhaul (RFO) 12.201-1

Acquisition Plan Action ID:

RPO West JOFOC Tracker:

1. Contracting Activity: Department of Veterans Affairs (VA), Regional Procurement Office West

(RPOW), Veterans Integrated Service Network (VISN) 5, Health Service Area (HSA) 5.2, Network Contracting Office (NCO) 21, VA Southern Nevada Health Care System (VASNHCS).

Payments made using 1358s.

2. Nature and/or Description of the Action Being Processed: This procurement is for a new Sole Source firm fixed price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) bridge contract in accordance with RFO 12.201-1 Simplified Procedures for Certain Commercial Items and specifically RFO 12.102 Restricting competition, where acquisitions valued over the Simplified Acquisition Threshold require a justification using the format of RFO 6.104.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This procurement is for a contractor to provide all required supplies, materials, labor, supervision, transportation, patient education, safety management, and infection control for home oxygen supplies and services to beneficiaries of the Veterans Health Administration, Regional Procurement Office West, Network Contracting Office (NCO) 21 on behalf of the VA Southern Nevada Health Care system service territory.

A sole source IDIQ bridge contract needs to be awarded to the incumbent Rotech Healthcare Inc. to ensure the continued care and health of our Veterans. The period of performance for this bridge contract will be for one (1) twelve-month ordering period, covering October 1, 2026, to September 30, 2027, with one six-month extension available via the inclusion of RFO 52.217-8, Option to Extend Services covering FY27 – FY28.

Ordering Period 1: October 1, 2026, to September 30, 2027

The previously planned long‑term solicitation for three other health care systems were protested during the same time as VASNHCS’s long-term solicitation planning stage. During the protest and subsequent review process, sufficient time was not available to conduct a new competitive solicitation and award a long‑term contract. As a result, an interim solution is required to ensure continuity of essential services while the long‑term acquisition strategy is completed. A five-year IDIQ contract package with the intent to compete will be submitted by the station during this bridge’s performance. In the interim, a sole source IDIQ bridge contract needs to be awarded to the incumbent Rotech Healthcare Inc. to ensure the continued care and health of our Veterans.

The Independent Government Cost Estimate (IGCE) is , which is based on historical information from previous home oxygen supplies and services contracts for the VA Southern Nevada Health Care System.

Effective Date: 12/30/2025 Page 2 of 4

The maximum ceiling of the contract will be $4,000,000.00.

4. Statutory Authority Permitting Restricted Competition:

RFO 12.201, Simplified Procedures. The statutory authority for applying the Simplified Procedures for Commercial Items of RFO 12.201 is 41 U.S.C. § 1901 and is implemented by RFO 12.102(b) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

(X) 6.103-1 Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) 6.103-2 Unusual and Compelling Urgency ( ) 6.103-3 Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) 6.103-4 International Agreement ( ) 6.103-5 Authorized or Required by Statute ( ) 6.103-6 National Security ( ) 6.103-7 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): Home oxygen supplies and services are currently provided by Rotech Healthcare Inc. under 36C26125D0043, which expires on September 30, 2026. Rotech Healthcare Inc. has performed satisfactorily on this contract. This was a sole source due to the Government Accountability Office (GAO) protest against the VISN-wide solicitation for the same service. At this time, Rotech Healthcare Inc. is the only firm capable of providing the necessary supplies and services described in Section 3 in a timely manner, without the Veterans Health Administration experiencing unacceptable or severe delays in fulfilling its requirements. The incumbent contractor is uniquely positioned to ensure uninterrupted support to the current Veteran population and possesses comprehensive familiarity with the required level of effort, including physician coordination, equipment exchange, in-home setup, patient education, and continuity of care. Any transition to a new vendor would introduce unacceptable operational delays and risk a lapse in critical services.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The station and contracting office will continue to perform market research for these services so a long-term IDIQ can be put in place. This action is not a new long-term IDIQ contract solicitation, but a sole source short-term bridge IDIQ contract to the incumbent to prevent the loss of critical home oxygen supplies and services to allow time for the procurement of the long-term IDIQ contract.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer anticipates fair and reasonable pricing will be received for this bridge contract. Pricing received will be compared to the previously established IDIQ, 36C26125D0043, and take into consideration inflation and other increases in costs (i.e. fuel, COVID related expenses, etc.), as well as comparison to similar IDIQs and established contracts in accordance with RFO 12.204(a).

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

Market Research Was Not Conducted: As noted in section 6, market research was conducted on July 2026 and is ongoing for these services so a long-term IDIQ can be put in place. One vendor was

Effective Date: 12/30/2025 Page 3 of 4

Acquisition ID#:

identified through SBA Dynamic Small Business Search. The SBA vendor is based out of Puerto Rico and does not have any history of Government contracts. The incumbent, Rotech Healthcare Inc., has mentioned interest in the new requirement to the Contracting Officer during a performance meeting. The station and contracting office will do a thorough search to identify potential vendors for the long term solution.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: There are no other facts to support the use of full and open competition.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Rotech Healthcare Inc., 6251 Chancellor Dr Ste 119, Orlando, FL 32809.

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 market will be continually assessed to determine if other vendors can provide the required supplies and services supporting VA Southern Nevada Health Care System service area.

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.

Effective Date: 12/30/2025 Page 4 of 4

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.

b. One Level Above the Contracting Officer (Required over $350K but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

c. OALC Advocate for Competition and 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 $900K to $90 million for other than full and open competition.