JA_SAMMC-N_Approved_Redacted.pdf

Control Number: 19-HRCO-63

Healthcare Environmental Services in Support of SAMMC-N

For Official Use Only

(See FAR 2.101 and 3.104-4) (25 February 2016)

Justification and Approval

For Other Than Full and Open Competition

1. Contracting Activity: U.S. Army Health Contracting Activity (USAHCA), Health Readiness Contracting Office (HRCO), 2199 Storage Street, Building 4197, Suite 68, Joint Base San Antonio (JBSA) Fort Sam Houston, Texas 78234-5074.

2. Description of Action: The USAHCA HRCO requests approval to negotiate and award a new non-personal services interim sole-source contract with a 12-month base period with the incumbent contractor, J&J Maintenance, Incorporated, 7710 Rialto Blvd.

Suite 200, Austin, Texas 78735 (CAGE 5P021), to provide “green” healthcare environmental services in support the San Antonio Military Medical Center – North (SAMMC-N) and the Military Treatment Facilities (MTFs) located in the Health Service Area (HSA) of the SAMMC-N, Fort Sam Houston, San Antonio, Texas. This new sole-source effort is to continue services until the Government can award the competitive action in November 2019. An Indefinite Delivery, Indefinite Quantity (IDIQ) contract with Firm-Fixed Price (FFP) Task Order (TO) is anticipated. The type of funds to be used is Fiscal Year (FY) 19 Defense Health Program (DHP) for the 12-month base period.

3. Description of Supplies/Services:

a. These services are necessary to provide continuous uninterrupted healthcare environmental services in support of the SAMMC-N and the MTFs located in the HSA of SAMMC-N, Fort Sam Houston, San Antonio, TX.

b. The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items necessary to perform non-personal “green” healthcare environmental services except as may be expressly set forth as Government furnished, and otherwise do all things necessary to perform healthcare housekeeping for SAMMC-N and the MTFs located in the HSA of SAMMC- N, Fort Sam Houston, San Antonio, Texas. Services include hospital (aseptic and non-aseptic) housekeeping services; collection and distribution of linen with the SAMMC-N HSA to a MTF-specified site for control and exchange of linen; collection, consolidation, packaging, labeling, and preparation of Regulated Medical Waste (RMW) for hazardous transport; collection of general solid waste (trash) for waste disposal pickup; collection and transport of recyclable materials within the HSA of SAMMC-N to a MTF-specified site for recyclable materials pick-up; recyclable document collection and transport within the HSA of SAMMC-N to a MTF-specified site for document shredding, bundling, and preparation of shredded paper bales for recyclable materials pick-up; and, exterior building services (e.g., windows, doors, and walkways) such as window cleaning and snow removal. The direct patient care settings, such as surgical/operative (operating

(25 February 2016) rooms), emergency rooms, critical and non-critical care units, and burn care units, require healthcare environmental services 24-hours a day, seven days a week. The other direct and non-direct patient care and healthcare-related settings, such as clinics, laboratories, and administrative areas require healthcare environmental services on a MTF area/room-specific scheduled basis. The medical center complex consists of a seven-story hospital and nineteen outpatient clinic buildings. The seven-story hospital includes 32 operating room suites, 481 total beds, 84 labor-delivery-recovery beds, and transition nurseries. Clinics and services include: Level I trauma emergency room, burn unit, bone marrow unit, laboratory, obstetrical/gynecology, ophthalmology/optometry, orthopedics, pharmacy, physical therapy, and radiology. The command suite and other administrative support function facilities include: outpatient records, outpatient pharmacy, admissions and dispositions, primary care unit, and specialty care clinics that are located within the complex. The current estimated total Square Feet (SF) of SAMMC-N and the multiple MTFs areas are 2,348,559 SF.

c. The estimated dollar value of this proposed action is $44,496,000.00 for the

12-month base period of performance from 1 February 2019 through 31 January 2020.

The North American Industry Classification Code (NAICS) is 561720.

4. Authority Cited:

a. The statutory authority permitting other than full and open competition is 10 USC 2304(c)(1) implemented by FAR 6.302-1(a)(2)(iii)(B), Only One Responsible Source And No Other Supplies Or Services Will Satisfy Agency Requirements. Award to any other source would result in unacceptable delays in fulfilling the agency requirements.

b. Federal Acquisition Regulation 6.304(a)(3) states a proposed sole source contract action over $13.5M but not exceeding $93M for Department of Defense (DoD) requires approval by a general officer or a civilian in a grade above a GS-15.

5. Reason for Authority Cited:

a. This requirement is a sole source acquisition and only one responsible source is able to satisfy agency’s requirements to continue mission essential and critical services until the competitive IDIQ contract is awarded. An award delay of a new interim contract for Healthcare Environmental Services is unacceptable and would significantly impact, and thus jeopardize, the mission of providing SAMMC with patient care.

b. Contract W81K04-17-D-0014 was set to expire on 31 July 2018; however, prior to expiration of the contract, on 29 July 2018, the Government exercised FAR Clause 52.217-8 for the maximum 6-month extension in order to continue receiving services from 1 August 2018 – 31 January 2019. On 20 September 2018, two task orders, (25 February 2016)

W81K00-18-F-0291 and W81K00-18-F-0292, were issued with a period of performance of 1 October 2018 – 31 January 2019. No additional extensions may be made under the existing contract. The proposed 12-month contract will need to be awarded by 28 January 2019, in order to continue the current level of service. The follow-on contract requires a 60-day transition period in order for the new contractor to hire required personnel and complete in-processing procedures to ensure a smooth transition and no interruption in services. As such, and for the reasons described below, the incumbent contractor, J&J Maintenance is the only responsible contractor with the required and qualified personnel ready to start performance on 1 February 2019.

c. The original acquisition strategy was to solicit the follow on with an AbilityOne source. Due to internal source selection complications at SourceAmerica, it was jointly determined by the Contracting Officer and the requiring activity in December 2016 that it was not in the best interest of the Government to continue procuring these services through AbilityOne. The contract acquisition strategy team met in January 2017 to develop a new acquisition strategy. During the development of the acquisition strategy, the team was confronted with multiple requirements changes and personnel departures from the requiring activity. As a result the requiring activity had to completely revise the requirement to include, but not limited to, changes in cleaning square footage, type of cleaning, and revalidation of required equipment and supplies (i.e., government-furnished and contractor-furnished). In order to accomplish these changes, the requiring activity had to coordinate with Medical Command (MEDCOM) functional specialists. Because the process to validate this information was labor intensive and required coordination with several functional specialists, it took approximately a year to finalize the Exhibits C and D of the PWS. Validating and changing information in Exhibits C and D of the PWS caused several rewrites of the PWS and other required re-procurement documents. The following chart summarizes intended acquisition milestones for the competitive reprocurement.

Acquisition Strategy Review/Approval 28 January 2019 Solicitation Issued 08 February 2019 Proposal Due Date 08 March 2019 Technical Evaluation 26 April 2019 POM/PNM Approval 28 June 2019 Congressional Notification 27 September 2019 Award Contract 02 October 2019 Transition Start 01 November 2019 Performance Start 1 February 2020

(25 February 2016)

d. It is not feasible to solicit a bridge contract with any source other than the incumbent contractor, J&J Maintenance, Inc. J&J possess the qualifications to instantly perform the continuation of these services given that they already have the required Industry Sanitary Supply Association (ISSA) Cleaning Industry Management Standard Green-Building (CIMS-GB) certification, pre-employment health screening requirements, resources, trained work force, and have complete all in-processing requirements for their employees, thus requiring no transition efforts to continue performing these services. Furthermore, without a fully-awarded healthcare environmental services bridge contract, SAMMC-N risks violating Joint Commission (JC) infection control standards and, jeopardizing JC accreditation of SAMMC-N and the multiple MTFs. Moreover, the Government has identified healthcare environmental services as a mission-essential function and the Government would suffer serious injury if award of this bridge contract is delayed. Only J&J Maintenance can satisfy these mission critical services without causing unacceptable delays or disruption of mission essential services. Award to any other source would require a minimum transition period of at least 60 days to onboard a new staff, following a source selection that itself would require over ten months to complete. Failing to award the sole-source contract now would result in a 12-month break in service and mission failure.

6. Efforts to Obtain Competition:

a. Effective competition. The Government is in the process of completing a competitive acquisition for these services with an expected award date of 1 November 2019. In addition, the Contracting Officer published a Request for Information (RFI)/Sources Sought (SS) on FedBizOpps website to identify potential sources on 12 September 2018. The Contracting Officer received nine responses to the RFI/SS notice and after carefully considering each submission, determined that no other contractor can perform these short-term services for the reasons mentioned in paragraph 5 above.

No other efforts will be made to obtain competition for this interim effort as only one responsible source, J&J Maintenance, is capable of meeting the minimum requirements prior to the expiration of the current contract.

b. Subcontracting competition. The subcontracting plan that contains all the elements required by FAR Subpart 19.704 (a)(1) through (15) shall be submitted by J&J Maintenance In Accordance With (IAW) FAR Clause 52.219-9, Small Business Subcontracting Plan.

7. Action to Increase Competition: It is not possible to complete the competitive follow-on acquisition in time for services to commence on 1 February 2019. However, HRCO is continuing to work the competitive follow-on contract to be awarded in November 2019. The competitive follow-on will to be posted through the Government point of entry and internet search engines. Additionally, a synopsis will be posted for

(25 February 2016) this bridge IAW FAR 5.201. The draft solicitation for the follow-on contract was issued on 7 November 2018, and the Contracting Officer intends to release the Request for Proposal on 25 January 2019.

8. Market Research: Based on recent market research (4 October 2018), to include the Contracting Officer’s personal knowledge of recently awarded healthcare housekeeping contracts, other contractors are capable of providing similar services if there were adequate time to compete the requirements and allow for a reasonable transition period. However, it is not feasible to competitively solicit and evaluate proposals, and make an award on or about 28 January 2019. J&J Maintenance has experience in healthcare housekeeping and has the management and support structure, resources, and demonstrated experience to perform these services.

9. Interested Sources:

a. To date, nine sources have written to express an interest in the RFI.

Responses include:

b. None of the nine sources responding to the RFI could meet the 1 February 2019 required start date; only J&J Maintenance can meet that requirement.

c. The notice required by FAR 5.201 of our intent to award a sole-source contract for this requirement will be published in FebBizOpps and any quotes, proposals, or capability statements received will be considered.

(25 February 2016)

10. Other Facts:

a. Procurement history.

(1) Contract numbers and dates of last several awards:

• W81K04-17-D-0014, J&J Maintenance Inc., 1 August 2017 – 31 January 2019, with the extension of services, and task orders W81K00-18-F-0291 and W81K00-18-F-0292, for the performance period of 1 October 2018 – 31 January 2019.

• W81K04-11-D-0014, J&J Maintenance Inc., 1 August 2011 – 31 July 2016 and extension of services 1 August 2016 – 31 January 2017.

Several tasks were issued for the period of performance 1 October 2016 – 31 July 2017.

(2) Competitive status of the actions.

• Contract W81K04-17-D-0014 was solicited sole-source and a single-award IDIQ contract was awarded to J&J Maintenance Inc. for the follow-on bridge contract.

• Contract W81K04-11-D-0014 was solicited full and open competition and a single award IDIQ contract was awarded to J&J Maintenance Inc. on a competitive basis.

(3) Authority previously used for less than full and open competition. 10

USC 2304(c)(1) and FAR 6.302-1(a)(2)(iii)(B), Only One Responsible Source And No Other Supplies Or Services Will Satisfy Agency Requirements (W81K04-17-D-0014).

(4) Justification prepared to support the procurement made before this one with a summary of the contents of paragraph 7, Actions to Increase Competition, of the justification for that procurement and an explanation of the results. Not applicable.

(5) If prior award accomplished by full and open competition, a detailed explanation of the changed circumstances. Not applicable.

(6) Explanation of unusual patterns revealed by history, e.g., several consecutive, urgent buys. Not applicable.

(25 February 2016)

(7) Justification prepared to support the procurement made before this one and description of circumstances for justification & any significant changes. Not applicable.

b. Other facts.

(a) In 2003, this requirement was accepted into the Small Business Administration (SBA) Business Development (BD) Program. After acceptance into the 8(a) BD Program, a competitive 8(a) procurement resulted in a contract award, DADA10-03-C-0005, to Quality Services International (QSI) in 2003. Pursuant to FAR Subpart 19.8 regarding the SBA 8(a) Program, if a requirement has been accepted by the SBA under the 8(a) Program, it must remain in the 8(a) Program unless SBA agrees to its release in accordance with applicable regulations.

(b) In April 2008, this requirement was competitively re-solicited as an 8(a) procurement; however, because of protests and substantial changes to the technical requirement, the competitive 8(a) solicitation, W81K04-08-R-0015, was cancelled on 1 March 2010. The substantial changes to the technical requirement were due to base realignment and closure (BRAC) renovation and construction projects affecting Fort Sam Houston MTFs.

(c) In March 2010, a new requirement for hospital environmental services were established due to the increased scope and value of the original technical requirement.

This new requirement was awarded on 28 April 2010 (effective award date of 1 May 2010) to Ahtna Facility Services, Inc. (AFSI) under the authority of FAR 19.8, Contracting with the SBA (the 8(a) Program) and IAW 15 USC 637, Small Business Act. The estimated value of the IDIQ contract was $32 million with a period of performance of 12 months; however, task orders 0001 (transition) and 0002 (12-month performance) were valued at $1.3 million and $22 million, respectively. This contract, W81K04-10-D-0006 expired on 30 April 2011.

(e) An unrestricted solicitation for the procurement of “green” healthcare environmental services at the multiple MTFs on Fort Sam Houston and Camp Bullis, TX was released in December 2010. The requirement was substantially greater ($30 – $35 million per year with an overall estimate of $170 million) in value than the existing 8(a) requirement. Thus, this requirement was also considered a “new requirement” per SBA regulations and approval to remove the requirement from the 8(a) BD Program did not need to be acquired from the SBA.

(f) On 31 July 2017 a sole source bridge contract was awarded to J&J

Maintenance Inc., as the incumbent contractor. J&J Maintenance is the only logical and responsible contractor with healthcare environmental services experience and the