-13302.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >$150K

OFOC SOP Revision 06 Page 1 of 4 Original Date: 03/22/11 Revision 06 Date: 08/30/2017

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>$150K)

Planning: VA-18-00033427/Contracting: VA241-18-AP-2137

1. Contracting Activity: Department of Veterans Affairs, NCO1, VISN 1 Medical Centers

523-18-3-2765-0127

2. Nature and/or Description of the Action Being Processed: Initiate a bridge contract for a 6 month base period of performance plus 6 month option to continue VISN1 Reference Laboratory Testing Services by the incumbent, Quest Diagnostics . Current BPA VA241-15-A-0036 is due to expire 3/31/2018 and no further extensions are available. A new bridge contract is required to meet the need for these crucial laboratory testing services that have a direct impact on patient care.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is to continue VISN1 Reference Lab Testing Services by putting a bridge contract in place for a 6 month base plus 6 month option period of performance 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: VISN1 Reference laboratory testing services, intra-VISN specimen transport courier and Patient Service Center (PSC) with phlebotomy and urine collection services are imperative and directly related to direct patient care. VA practitioners order laboratory testing services that are not available in the VISN1 medical center laboratories to assist in diagnosing Veterans’ medical conditions. Estimates are based on patient need for these laboratory testing services. Anticipated usage is estimated based on historical quantities. Total potential value for the 6 month base and 6 month option period of performance is estimated at $6,318,000.00

4. Statutory Authority Permitting Other than Full and Open Competition

( x ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements per FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

OFOC SOP Revision 06 Page 2 of 4

Revision 06 Date: 08/30/2017

FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2).

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Current BPA VA241-15-A-0036 is due to expire 3/31/2018. No further extensions are available. The requirement was resolicited unrestricted open market and after evaluation of the 3 offers, award was made to the incumbent, Quest Diagnostics, on 1/10/2018. However, since one of the unsuccessful offerors filed a GAO Protest, performance on the new contract, scheduled to begin 2/1/2018, was suspended. The VA agreed to take corrective action by re-evaluating proposals and the GAO protest was subsequently dismissed. In order to provide continuity of these crucial laboratory testing services which directly impact patient care and maintain VA laboratory operations, a bridge contract is required. As the incumbent, Quest is uniquely qualified to continue these services under the bridge contract without any issues or negative impact to patient care.

a. Only One Responsible Source (FAR 6.302-1):

The current BPA with Quest Diagnostics is due to expire 3/31/2018. No further extensions are available. In order to continue laboratory operations within VISN 1, a bridge contract with the incumbent, Quest, is required. Quest currently provides VISN1 reference lab testing services, phlebotomy collection services for VISN 1 Veterans, and intra-VISN specimen transport and courier services for all the VA Medical Centers in New England. Resoliciting a brand new requirement requires months and months of of planning, preparation, and evaluation and could not be provided by any other contractor in this short time period. It took two years of planning to resolicit the new VISN1 Reference Laboratory IDIQ contract awarded under VA241-17-D-0067 that is currently suspended. Not having a bridge contract in place on 4/1/2018 would seriously jeopardize direct patient care and all VISN1 laboratory operations.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Current BPA VA241-15-A-0036 is due to expire 3/31/2018. A new contract was solicited for a 12 month base plus 4 option year IDIQ. 3 offers were received in response to that solicitation. Proposals were evaluated and award was made to the incumbent, Quest Diagnostics, on 1/10/2018. One of the unsuccessful offerors filed a protest with GAO which was later dismissed since the VA agreed to take corrective action and re-evaluate proposals. In order to provide continuity of operations, a bridge contract is required while the offers are re-evaluated.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The pricing will be determined to be fair and reasonable since it will be compared to current Quest Diagnostics pricing under the BPA, proposed pricing under the new suspended contract as well as comparison to laboratory testing services under various VISN1 contracts. This Sole Source Justification will be posted to FBO after award.

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

Market Research Was Not Conducted: Current BPA VA241-15-A-0036 is due to expire 3/31/2018.

No further extensions are availab le. Market research was completed over a two year time period prior to the solicitation for the new IDIQ contract, awarded to the incumbent, Quest Diagnostics, on 1/10/2018. Due to a GAO protest filed by one of the unsuccessful offerors, VISN1 agreed to take https://www.acquisition.gov/?q=/browse/far/6

OFOC SOP Revision 06 Page 3 of 4

Revision 06 Date: 08/30/2017 corrective action by re-evaluating offers in order to render a new Source Selection Decision. In order to provide continuity of operations for these crucial services, a bridge contract is required.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: This requirement was solicited open market and 3 offers were received. Since that IDIQ contract is currently suspended pending re-evaluation of proposals, it is imperative that a bridge contract be put in place immediately so there is no gap in these services that have a direct impact on patient care.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Quest Diagnostics, the incumbent, is the sole offeror that was approached about continuing to provide the laboratory testing services under the bridge contract in order to provide continuity of services. The newly awarded IDIQ contract is currently in suspension pending re-evaluation after a GAO protest was filed by one of the unsuccessful offerors. 3 offers were received in response to the competed IDIQ contract.

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:

Current contract VA241-15-A-0036 is due to expire 3/31/2018. No further extensions are available.

A new IDIQ contract was solicited and awarded on 1/10/2018, however, due to a GAO protest filed by one of the unsuccessful offerors, that contract is currently suspended. The protest was dismissed since the VA agreed to take corrective action and re-evaluate proposals. A re-evaluation of the offers is underway. In order to provide continuity of operations, a bridge contract is required. The new solicitation was competed unrestricted full and open 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, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

_____________________________ __3/2/2018__________________ Janet Lane Date Network Consolidated Laboratory Program Director

VAMC VISN1

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.

_____________________________ ___3/2/2018________________ Valerie J. DeAngelis Date Contracting Officer VAMC Providence, RI http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

OFOC SOP Revision 06 Page 4 of 4

Revision 06 Date: 08/30/2017

b. One Level Above the Contracting Officer (Required over$150K but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Paul Marvin Date Branch Chief, NCO1 VISN1 NCO1 Designee VAMC West Haven, CT

c. VHA SAO 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 $68 million) or approve ($700K to $68 million) for other than full and open competition.

Joseph Maletta Date SAOE Director VHA Head of Contracting Activity (HCA)