VA260-17-A-0035-014.pdf

VHAPM Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPM Part 808.405-6 Limiting Sources Page 1 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C257-20-AP-1594

Tracker Number: 2020-03-13T09:43:53

(1) Agency: Department of Veterans Affairs (VA)

Contracting Activity: Network Contracting Office 17 (NCO-17) 7201 W. Interstate 40, Ste 100

Amarillo, Texas 79106-2612

(2) Description of Action: This subject requirement is for Reference Laboratory Testing for the Amarillo VA Health Care System. This action is to be awarded as a firm-fixed-price task order against WSNC BPA VA260-17-A-0035 for six months with one six-month option.

Order against: WSNC BPA Number: VA260-17-A-0035

Name of Proposed Contractor: Quest Diagnostics

Street Address: 1201 S Collegeville Rd

City, State, Zip: Collegeville, PA 19426

Phone: 615-498-7347

(3) Description of Supplies or Services:

The Amarillo Veteran Affairs Health Care System (AVAHCS) Pathology & Laboratory Medicine

Service requires support from an external reference laboratory. The period of performance will be from April 1, 2020 through September 30, 2020 with the potential of one six-month option.

The reference laboratory shall provide, in accordance with all applicable federal, state and local regulations, laws, and ordinances, and in accordance with the specifications outlined for accreditation certification if applicable, reference laboratory testing to the AVAHCS in accordance with the Statement of Work. The reference laboratory shall provide services to include the performance of analytical testing as defined by the Laboratory’s test manual, the

VHAPM Part 808.405-6 Limiting Sources Page 2 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020 reporting of analytical test results, and consultative services as required to assimilate the full scope of its laboratory operations to AVAHCS.

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized. Quest Diagnostics is currently providing these services. Accordingly, Quest Diagnostics is the only firm capable of providing the services described in Section 3 above without the Veteran’s Health Administration experiencing unacceptable delays in fulfilling its requirements. As such, adverse patient outcomes would be unavoidable. Additionally, continuity of services would be compromised because AVAHCS would not be able to conduct any reference laboratory testing without completing a turnover from one reference laboratory to another. The estimated timeframe of transitioning from one reference laboratory to another would take 6 to 18 months to complete resulting in unacceptable delays in performance, especially given the anticipated increase in needed laboratory services amid the current COVID 19 World-Wide Pandemic.

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 8.404(d). The contracting officer has determined that placing a BPA order with Quest is a best value for the government consistent with 8.404(d).

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(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted. A solicitation for a similar requirement for the South Texas VA Health Care System (STVAHCS) was previously published on 4/2/2019 as an unrestricted procurement under RFQ 36C25719Q0031.

A search of the NAC contracts, SIN 621 II, noted that there are 14 vendors that offer laboratory testing services.

A search of GSA Advantage noted that SIN 621 II has 15 different testing categories. A review of all 15 categories noted that only five businesses (four [4] large, and one [1] small) can perform the widest range of all 15 testing categories.

A solicitation for these services was published on September 20, 2019 closed on October 4, 2019.

Quest

Diagnostics is currently providing these services. No other vendor is able to meet the Government’s needs without substantial delays in implementation that would cause harm to the delivery of healthcare by the AVAHCS. As such, adverse patient outcomes would be unavoidable. It is still the intent to award a base plus four contract once further market research is completed.

(7) Any Other Facts Supporting the Justification: Quest Diagnostics is currently providing these services. Accordingly, Quest Diagnostics is the only firm capable of providing the services described in Section 3 above without the Veteran’s Health Administration experiencing unacceptable delays in fulfilling its requirements. As such, adverse patient outcomes would be unavoidable.

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(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

As described in Section 6 above, further market research, in accordance with FAR Part 10, is currently being conducted by NCO 17 Contracting. It is still the intent to award a base plus four contract once further market research is completed.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

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b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K):

I certify the justification meets requirements for other than full and open competition.