Inactive

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >SAT OFOC SOP Revision 11 Original Date: 03/22/11 Revision 11 Date: 02/11/20... VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >SAT OFOC SOP Revision 11 Original Date: 03/22/11 Revision 11 Date: 02/11/2021 Page 1 of 5 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT) Acquisition Plan Action ID: 36C241-21-AP-2226 Contracting Activity: Department of Veterans Affairs, VISN 1, All Medical Centers The U.S. Department of Veterans Affairs, Contracting Office VISN 1, proposes the following justification for a bridge network contract for the pick-up, delivery, repair and storage of Prosthetics durable medical equipment on a basis of other than full and open competition for the VISN 1 Prosthetics Service Line. Nature and/or Description of the Action Being Processed: The nature of the requirement is the ability to award an interim bridge contract for a base year of 6 months plus option periods for the pick-up, delivery, repair and storage of Prosthetics durable medical equipment. It is based upon the VISN 1 DME Contract VA241-14-D-0139 that ended February 28, 2020, a one-week contract 36C24120P0455 that ended March 6, 2020 and 36C24120D0009 that will end June 6, 2021. All three used a set price list for delivery and pick-up of DME, as well as additional mileage rates for deliveries outside of the set contract determined distances for the VA New England Healthcare System. Description of Supplies/Services Required to Meet the Agency s Needs: The Department of Veterans Affairs (VA) has an ongoing program to furnish Prosthetics durable medical equipment to those Veterans that require them and for those that are eligible for assistance, per clinician prescription. Justification for ONLY ONE RESPONSIBLE SOURCE AND NO OTHER SUPPLIES OR SERVICES WILL SATISFY AGENCY REQUIREMENTS: The said contract was posted for competition at a minimum three times over previous years and received no vendor bids. A one-week contract was put in place through March 6, 2020. Given the past contract will exhaust its extensions through June 6, 2021, an interim bridge contract will be needed to provide DME coverage for the VA New England Healthcare System. Moving forward, given the lack of vendor bids, the DME contract was merged into the pending VISN Home Oxygen contract solicitation and its SOW-Statement of Work. DME contract language and specific DME line items are included in the newly created Home Oxygen-DME combined Statement of Work it is pending the Contract Review Board for solicitation. Due to the complexity of the nature of the DME Statement of Work, this contract should be open to one Contractor (Rotech Healthcare, Inc., Orlando, FL) who can provide the valuable service to the entire VA New England Healthcare System. Rotech is the current vendor and has multiple years of DME experience in New England (early 2000 s) and maintains contracts at multiple VAMCs across the country. This bridge contract is in place to allow for the permanent Home Oxygen-DME to be solicited competitively and awarded to a vendor. Pricing for the bridge contract is higher than the current contract, as Rotech previously held both the Home Oxygen and DME contracts for several years in VISN 1, and then lost the Home Oxygen award in 2015/2016. It kept the DME contract but had to close office locations and reduce staffing due to the significantly lower financial reimbursement. It maintained services for the DME contract albeit at a loss to the company. VISN 1 Prosthetics provided the Statement of Work and contract documents for the VISN 1 DME contract solicitation on March 5, 2019, with the FORCE entry: 36C241-19-AP-1386. The new interim DME Bridge contract has the FORCE entry: 36C241-21-AP-2226. Given this continuing uncertainty and the absolute requirement to provide the highest quality of service for Veterans in VISN 1 without delays, VISN 1 Prosthetics and Contracting agreed: VISN 1 must move forward with an interim bridge contract (June 7, 2021 through December 6, 2021 plus option periods through June 6, 2022) for the pick-up, delivery, repair and storage of Prosthetics durable medical equipment. During the interim contract, VISN 1 Contracting will complete the solicitation and award of a permanent VISN 1 network contract for both the provision of Home Oxygen and DME services, to commence in late 2021. This acquisition is expected to result in a firm fixed Price Indefinite Delivery/Indefinite Quantity bridge contract for a six-month period (June 7, 2021 through December 6, 2021) plus a six month option period through June 6, 2022. This will allow the permanent VISN contract to be solicited and awarded through the formal process. The estimated dollar value for this interim contract is $545,400.00 of VISN 1 Prosthetics Specific-Purpose Funding for the six-month and option periods. 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; Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Rotech Healthcare, Inc., Orlando, FL - holder of the past permanent DME Contract that ended February 28, 2020, the one-week contract that ended March 6, 2020, and the interim contract that will end June 6, 2021 - is uniquely qualified to provide the services outlined in the network DME bridge contract for the VISN 1 Prosthetics and Sensory Aids Program based upon the following: VISN 1 patients requiring DME services based on a VA clinician s consult (various VA purchased DME equipment including home care beds, innerspring & specialty mattresses, patient lifts, trapeze assemblies, manual and power wheelchairs, all with specific dimensions and requirements for each patient) require urgent delivery to the patient s home and/or require pick-ups from the VAMC itself and provide the required education and training on the DME equipment in accordance with Joint Commission standards. The cost to the government/ VISN 1 Prosthetics and Sensory Aids would be exorbitant without an interim contract the contract requires the vendor to provide/repair/pick- up/store VA-purchased DME equipment in normal, urgent and emergent situations. If there was no contract, the government would be required to solicit for vendors who can provide the required services, forcing the government to pay extra for this immediate service, delaying patient care and delaying the purchase card reconciliation process while following the Joint Commission standards. Given the previous three solicitations for DME alone, there were no bidders for network contract. The VA would also have no designated space for the VA purchased durable medical equipment network-wide that meets the requirements. VA staff could not deliver DME equipment to patients directly, as it would make their facility a DME provider and be susceptible to a Joint Commission survey. The projected DME patient workload for the base six-month period is approximately 716 patients network-wide. (In FY 2019, there were 1,431 patients recorded for services with Rotech, per NPPD- National Prosthetics Patient Database.) The government would be forced to pay other vendors to provide DME equipment, educate patients and store equipment and provide the same type of electronic invoicing and timely reconciliation process on an adhoc basis while the vendor with the knowledge of the process would be able to continue this successful process during this bridge contract. The permanent contract which includes a combined Statement of Work for Home Oxygen and Durable Medical Equipment is being prepared for the new solicitation. Prospective vendors have been reviewed, requiring VISN 1 Contracting to reassess the solicitation and award process. . The period to be covered by this contract will be June 7, 2021 through December 6, 2021 plus a six month option period through June 6, 2022. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: For the previously solicited permanent DME contract, VISN Contracting received no vendor bids during any of the solicitations. With the plan to combine the DME requirements with the Home Oxygen contract Statement of Work, there are a number of vendors who will bid on a combined contract solicitation following its approval and posting. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated cost should be fair and reasonable to the government based on the issues surrounding this bridge contract; namely, the previous three DME solicitations had no vendor bid offers; Rotech is the current vendor, is Joint Commission accredited and is willing to participate in the bridge contract; and Rotech s increase in pricing can be justified with the number of inpatients decreasing in the VA as more services are done in the outpatient arena. The increased pricing can be justified as an acceptable fact, in light of the plan to combine the DME requirements with the Home Oxygen contract, providing multiple vendor bids and competitive pricing. An IGCE was originally prepared in March 2019, and additional documentation was provided in February & March 2020. NCO1 Contracting provided a determination that the pricing is determined to be fair & reasonable. The anticipated total cost to the government for the six-month and option periods is $545,400.00 of VISN 1 Prosthetics Specific-Purpose Funding, based on the new IGCE dated May 14, 2021. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted by VISN 1 Contracting and from the VISN 1 Prosthetics Service Line for the permanent contract. Sources sought were posted on government sites regarding the requirement, and the solicitation was posted on Sam.gov. Any Other Facts Supporting the Use of Other than Full and Open Competition: Not Applicable. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: For the permanent contract: A sources sought was issued by VISN 1 Contracting, requesting that parties express their interest in writing to the Contracting Officer. 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: NCO1 Contracting and the VISN 1 Prosthetics and Sensory Aids Service Line will continue to work on the permanent contract which will add DME SOW requirements into a combined Home Oxygen- DME VISN contract. 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. Alexander L. Digitally signed by Alexander L. Dowgiallo 220604 Dowgiallo 220604 Date: 2021.05.14 10:26:37 May 14, 2021 -04'00' Name: Alexander Dowgiallo, MA Date Title: VISN 1 Prosthetics Health Systems Specialist/COR Facility: VISN 1 VA New England Healthcare System Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: 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. KARLA K. ROTONDO 223339 Digitally signed by KARLA K. ROTONDO 223339 Date: 2021.06.01 07:48:52 -04'00' Name: Karla Rotondo Date Title: Supervisory Contracting Officer Facility: Network Contracting Office (NCO1) One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition. Tammy A Fox Digitally signed by Tammy A Fox 706200 706200 Date: 2021.06.01 10:50:27 -04'00' Name: Tammy A. Fox Date Title: Division Chief Facility: Network Contracting Office (NCO1)