Sole_Source_Justification_Logistics_Support_Vesa.pdf

Control Number: 18-RHCO-C-299

Sole Source Justification and Approval Under FAR 13.501

1. Contracting Activity: Regional Health Contracting Office- Central, Joint Base San Antonio, Fort Sam Houston Texas.

2. Description of Action: The Regional Health Contracting Officer Central is currently working the long term requirement for Logistics Support Services to serve Brooke Army Medical Center (BAMC), JBSA Fort Sam Houston TX. This bridge contract will be set as a sole source, firm fixed price contract, utilizing Defense Health Program Operation and Maintenance funds.

3. Description of Supplies/Services: Non-personal logistics support services for San Antonio Military Medical Center (SAMMC). Estimated value is $XXX for the two month bridge contract and the six months extension as per FAR 52.217-8 “Option to Extend Services”. The period of performance for this bridge is 1 April 2018 to 31 May 2018 plus six (6) months under FAR 52.217-8 (1 June 2018 thru 30 November 2018). This bridge contract mirrors the previous contract performance work statement (PWS) in its entirety, including service and quantity.

4. Authority Cited: The statutory authority permitting other than full and open competition is 41 United States Code (USC) 1901as implemented in FAR 13.501(a)(1)(ii), sole source under the authority of the simplified procedures for certain commercial items.

5. Reason for Authority Cited: The purpose of this action is for the continuation of Logistics Support Services until the Regional Health Contracting Office – Central awards the long term requirement. The long term requirement solicitation W81K00-18- R-0012 has been solicited on FBO with closing date of 5 March 2018. Due to the large number of proposals received, the evaluation process will not be completed prior to 31 March 2018. In order to avoid a lapse in service and not risk mission failure for BAMC, a two month bridge contract is necessary until an award is made for the future contract.

Contract W81K00-17-P-0333 is currently in place for logistics support services and it is set to expire on 31 March 2018. The contract included FAR Clause 52.217-8, Option to Extend Services, which has already been exercised for the maximum 6 month extension. The incumbent contractor, Vesa Health & Technology Inc. is able to provide uninterrupted services immediately following this award, which results in no disruption, delay, or harm to the Government, soldiers, civilians, and beneficiaries. In addition, Vesa Health & Technology Inc. is familiar with the requirement, has the staff needed, and is already in place to perform services.

For Official Use Only (See FAR 2.101 and 3.104-4)

(25 February 2016)

6. Efforts to Obtain Competition: Market research was conducted for the follow-on requirement for logistics support services, and various 8(a) small businesses were identified as being able to provide services. Based on this result, the follow-on requirement has been solicited as an 8(a) competitive acquisition. A final DD Form 2579 was submitted and approved by the SBA on 6 February 2018. The solicitation was posted on 13 February 2018 with a closing date of 5 March 2018. However, no other vendor is capable of continuing the services for the short term bridge contract within the time line specified. Vesa Health & Technology Inc. is the only contractor that has the staff on-site to continue with logistics support services at SAMMC.

a. Effective competition. Based on market research and responses obtained from 8(a) businesses, the long term requirement solicitation W81K00-18-R-0012 has been set aside for all 8(a) small business concerns. However, the short term bridge cannot be competed at this time.

b. Subcontracting competition. In accordance with FAR Subpart 19.702 (a), Subcontracting Plan is not required for this acquisition due to bridge contract not exceeding $700,000.00.

7. Actions to Increase Competition: The long term requirement is being competed among 8(a) businesses. This requirement is set to close 5 March 2018; however, it will not be possible to award this contract and give the new contractor sufficient transition time by 31 March 2018. Various scenarios have also been considered such as a possible protest and transition of the new company to replace the incumbent; therefore, a 2 month bridge contract is necessary with the extension of services clause FAR 52.217-8, Option to Extend Services for six months to be utilized if necessary.

8. Market Research: Market research was conducted and no other vendor is capable of continuing the services for the short term bridge contract within the timeline specified.

Vesa Health and Technology Inc. is the only contractor that has the staff currently in place to continue services.

9. Interested Sources: There is a list of interested sources that expressed an interest in the long term requirement; however, these sources are not being considered for the bridge contract because there is inability to transition logistics services in this short period of time. Competition for the bridge contract is not in the best interest of the Government. If we compete this requirement, there will be an interruption in a very critical service, which could cause harm to soldiers, civilians, and dependents without this requirement.

10. Other Facts:

a. Procurement history.

(1) Contract numbers and dates of the last several contracts are as follows:

Contract number: W81K00-16-C-0021 Contractor: Vesa Health & Technology Inc.

Period of Performance: 1 January 2016 to 31 March 2017

Contract number: W81K00-17-P-0333 Contractor: Vesa Health & Technology Inc.

Period of Performance: 1 April 2017 to 31 March 2018

(2) The competitive status of these actions is as follows:

Contract number: W81K00-16-C-0021 Competitive Status of Action (procurement method): Direct 8(a) award.

Contract number: W81K00-17-P-0333 Competitive Status of Action (procurement method): Direct 8(a) award.

(3) Authority previously cited if less than full and open competition was used: This is not applicable. All actions were in accordance with FAR 19.8 and were awarded directly to an 8(a) contractor.

(4) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results.

Previous requirements were Direct 8(a) awards. The intent to issue a long term contract is evident due to long term requirement being solicited at this time as a competitive 8(a).

(5) If any prior contract for this requirement was accomplished using full and open competition, include a detailed explanation of the changed circumstances causing this action to now limit the sources.

No prior contracts were accomplished using full and open competition. Previous contracts were awarded as a direct 8(a) to Vesa Health & Technology Inc. and the long term requirement being solicited is a competitive 8(a) at this time. However, Vesa Health & Technology graduated from the 8(a) program in May 2017 . In order to avoid a break in service, Vesa Health & Technology Inc. is needed to continue without service interruption until the long term contract is awarded (scheduled to be awarded by 30 March 2018).

(6) An explanation of any unusual patterns that may be revealed by the history, e.g., several consecutive, urgent buys. N/A

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the procurement and whether there have been any significant changes. N/A

b. Other facts. N/A

11. Technical Certification:

I certify 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.

MANN.KINA.12310

Signature: _9_72_6_7

Digitally signed by

MANN.KINA.1231097267

Da_te:_20_18._03_.08_15_:47_:59_-0_6'0_0'

Date:

8 March 2018

Typed Name: Kina Mann Title: Contracting Officer Representative_

12. Requirements Certification:

I certify 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.

SHIRLEY.JAMES.G.11 Digitally signed by

SHIRLEY.JAMES.G.1150079744

Signature: _5_0_0_7_9_7_4_4 Da_te_: 2_01_8_.03_.0_8 _15_:32_:5_8 _-06_'0_0'_Date: 8 March 2018

Typed Name: James Shirley Title: Deputy Chief

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

BRUNNER.JAMIE.M.1267411235

BRUNNER.JAMIE.M.1267411235

Signature:

Digitally signed by BRUNNER.JAMIE.M.1267411235 ____ Date: 8 March 2018

Da_te: 2_018_.03_.08_20:_20:5_2 -0_6'0_0'

Typed Name: Jamie Brunner Title: Contracting Officer

14. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Digitally signed by BRUNNER.JAMIE.M.1267411235

Signature: ______ Dat_e: 2_018_.03_.08 _20:2_1:1_9 -0_6'00_'

Date:

8 March 2018

Typed Name: Jamie Brunner Title: Contracting Officer