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VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification >SAT-$7.5M under FAR13.5 PM Part 813.5 SAP for Certain Commercial It... VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification >SAT-$7.5M under FAR13.5 PM Part 813.5 SAP for Certain Commercial Items Page 1 of 9 Original Date: 08/30/17 Revision 03 Date: 02/11/2021 DEPARTMENT OF VETERANS AFFAIRS SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5 Acquisition Plan Action ID: 36C250-21-AP-2632 Contracting Activity: Department of Veterans Affairs, VISN 10, Station 583, Indianapolis VA Medical Center, Laboratory and Pathology Service, submits to Network Contracting Office (NCO) 10 located at 8888 Keystone Crossing, Suite 1100, Indianapolis, IN 46240 a single source procurement request for Esoteric laboratory testing services with IU Health, Inc., PO Box 66835, Indianapolis, IN 46266-6835. Nature and/or Description of the Action Being Processed: Indianapolis VA Medical Center is requiring a follow-on Blanket Purchase Agreement (BPA) for Esoteric testing services. The current open market Indefinite Delivery Indefinite Quantity (IDIQ) contract will expire on 9/30/2021. The Laboratory & Pathology service requires a local contractor to provide esoteric testing services to provide timely and effective medical care to the Veterans enrolled in the Indianapolis VA Medical Center system for tests that cannot be sent to the Reference Laboratory Contract. The estimated total BPA cost for a base year with four one-year options is $258,429.20. Description of Supplies/Services Required to Meet the Agency s Needs: Indianapolis VA Medical Center s Pathology and Laboratory services requires a wide range of specimen esoteric testing services in order to provide appropriate and timely medical care to Veterans enrolled in the VA system. As some tests cannot be sent out to the current reference laboratory testing contractor due to specimens having a very small life-cycle. As the VA cannot perform all tests in-house, it is necessary to send the esoteric testing out to a local medical center who can not only process the testing, but provide timely results at a fair and reasonable price. IU Health is affiliated with the VA Medical Center, and has the capability and availability to provide these immediate services. Statutory Authority Permitting Restricted Competition: FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement.  Competition is restricted on this procurement for the reason below:        ( X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements        ( ) Unusual and Compelling Urgency        ( )  Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services        ( ) International Agreement        ( ) Authorized or Required by Statute        ( ) National Security        ( ) Public Interest Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): a. Only One Responsible Source These services were previously supported through Indiana University Health, Inc (IU Health). Contract 36C25019D0167 was awarded on 10/1/2018 for the same services for a base year with four one-year options in the total estimated contract value of $90,630.00. However due to the COVID-19 pandemic it was necessary to remove option years in order to obtain COVID-19 testing and remain at or below the designated contract maximum. This follow-on BPA will provide for continued services from the previous contract that had to be shortened to keep it within the contract maximum due to COVID-19. Any break in service will negatively impact the delivery of health care services for the patient. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The identified vendor is known to be capable of meeting the requirement at a fair and reasonable price. Other possible contractors considered was local medical center Eskenasi. IU Health, is specifically affiliated with the Indianapolis VA Medical center and their laboratory within our local community that will take specimens as needed by the VA. The integrity of the specimen will be compromised if the specimen is sent a further distance frozen or shipped overnight. Due to the VA affiliation with IU Health, and the ability for them to provide quick test results and coverage for all needed tests, further market research was not conducted. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The CO will ensure that pricing is determined fair and reasonable by comparing historical pricing with quoted pricing along with comparing pricing to similar tests listed on FSS contracts as well as other laboratory testing contracts. Previous sole source IU Health, Inc. contracts for the same services: VA250-17-P-4654 awarded 10/1/2017 9/30/2018 in the total amount of $90,630.00 36C25019D0167 awarded on 10/1/2018 9/30/2021 in the total amount of $91,749.27. $91,749.27 was spent over a 3-year period of time. Due to ever changing tests, new tests, and increasing number of test orders the estimated quantities for this new request have been increased to reflect a more accurate total. The per test price is still in line with the last two contracts, and test pricing has not drastically changed. If the contract maximum would have been higher, the current contract would have been increased to reflect the new estimated totals on this contract. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The identified vendor is known to be capable of meeting the requirement at a fair and reasonable price. Other possible contractors considered was local medical center Eskenasi. IU Health, is specifically affiliated with the Indianapolis VA Medical center and their laboratory within our local community that will take specimens as needed by the VA. The integrity of the specimen will be compromised if the specimen is sent a further distance frozen or shipped overnight. These services are not available from any mandatory source, FSS, Ability One or Unicor. The VA Rule of Two has not been met as there are not two or more SDVOSB/VOSB concerns capable of providing the required services in accordance with the Statement of Work. The VAMC has procured these specific services through IU Health for the past seven years through 12-month purchase orders; VA250-17-P-4654 awarded 10/1/2017 9/30/2018 in the total amount of $90,630.00 and 36C25019D0167 awarded on 10/1/2018 9/30/2021 in the total amount of $91,749.27. Due to the VA affiliation with IU Health, the ability for them to provide quick test results and coverage for all needed tests, and there are no small businesses capable of providing the services required, further market research was not conducted. Any Other Facts Supporting the Use of Other than Full and Open Competition: These services were previously supported through IU Health Contract 36C25019D0167 was awarded on 10/1/2018 for the same services for a base year with four one-year options in the total estimated contract value of $90,630.00. However due to the COVID-19 pandemic it was necessary to remove option years in order to obtain COVID-19 testing and remain at or below the designated contract maximum. This follow-on BPA will provide for continued services from the previous contract that had to be shortened to keep it within the contract maximum due to COVID-19. Any break in service will negatively impact the delivery of health care services for the patient. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: IU Health, Inc., PO Box 66835, Indianapolis, IN 46266-6835 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: A special notice will be posted to beta.sam.gov for the Sole Source Justifcation (SSJ) as required by FAR 6.305 Availability of the Justification. By posting the SSJ this could spark interest or provide additional market research that will be used to ensure all potential interested companies are provided a fair opportunity prior to award of option periods and new contracts. At this time there is no reasonable expectation that there are other interested companies able to provide the services required in the statement of work at a fair and reasonable price. 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. _____________________________ ________________________ Shelly Schmidt Date Contracting Officer Representative (COR) Pathology & Laboratory Services Indianapolis VA Medical Center 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. _____________________________ ________________________ Sally L. Leitch Date Contracting Officer, Services Team 3 Network Contracting Office (NCO) 10 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. _____________________________ ________________________ Toni Waggoner-Boykin Date Branch Chief, Services Team 3 Network Contracting Office (NCO) 10