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Justifications for Other than Full and Open Competition Page 2 of 2 Department of Veterans Affairs Network Contracting Office 15 3450 South Fourth Street Leavenworth, KS 66048 Page 2 of 2 Justificatio... Justifications for Other than Full and Open Competition Page 2 of 2 Department of Veterans Affairs Network Contracting Office 15 3450 South Fourth Street Leavenworth, KS 66048 Page 2 of 2 Justification for Limited Competition or Sole Source FAR part 6.3 prescribes policy and procedure for contracting without providing for full and open competition. This includes Sole Source limitations and limited competition scenarios. We limit competition through only soliciting a single source (sole source), soliciting to a small group of sources (generally based on market research), soliciting for a short period of time to such a degree that it would prevent some offerors from reasonably being able to provide an offer, or by making the requirements so restrictive that not all potential offerors would be able to compete. Any time we restrict competition to less than full and open (meaning that all companies that are interested would have a reasonable chance to provide an offer) we have a responsibility to justify that limitation. You cannot justify limiting competition on the basis of (6.301(c)) A lack of advance planning by the requiring activity Concerns related to the amount of funds available (e.g., funds will expire) to the agency or activity for the acquisition of supplies or services. We must still solicit offers from as many potential sources as is practicable under the circumstances. Circumstances permitting other than full and open competition: Only One responsible source This means that this company is the only company in the entire world that can provide this service or supply NOT that is this the best of the bunch, NOT that you have already looked at the multiple options and determined this is the only one that you want. For a justification under this authority, we need the following to be included in the justification: What are the unique characteristics of the supply or service that result in this company being the only source? Why are these requirements necessary? What is the VA need being met here? If you are citing a need to match existing equipment, we need to know the age of the existing system, and its expected useful life. If the need is based in savings expected by not replacing an existing system, a cost benefit analysis is needed to show what the costs of a new system would be compared to the costs associated with replacing part of the system. This CBA must take into consideration the lifecycle costs (including replacement at the end of the useful life) of the existing system. We cannot just say that we avoid costs by keeping the current aged system, we must be able to describe the current condition of that system and what expected repair costs, if any, may be needed in the lifetime of the current purchase. We need to know when the system is expected to reach a point where it can be competitively replaced so that industry can know when we anticipate putting out a competitive requirement. If this is a service, we need to know why this company is the only one that can provide this service and how we know that. We cannot just take the company s word for it; we need to corroborate that with outside market research. The ultimate goal of a justification to limit competition based on only one responsible source is to explain to someone who has no experience with this item or service how we know this is the only offeror(s) that can provide what the Government needs. This includes describing what we need and why we need any salient characteristic that may limit the competition. Unusual and Compelling Urgency This authority is based on justifying that the Government s need is so important and so urgent that taking the time to provide for full and open competition would create great harm. This is generally defined as the possibility of loss of life, limb, or eyesight, or such grave financial damage to the Government that it is in the best interest of the Government and the taxpayer to limit competition. This must be an unusual circumstance (i.e. the end of a contract is not unusual). For this authority we need the following in the justification: Describe the unusual circumstance that makes the limitation of competition necessary. What are the ramifications if the Government does not act immediately to place this contract (e.g. significant patient harm, serious financial damage to the Government, etc.). What market research has been done, if any, to find the maximum number of sources possible? What is the Government s plan to avoid this type of situation in the future? How much time do we need to be able to address the situation or to compete a long-term solution? In the case of an unusual and compelling urgency, we cannot contract for more time than needed to compete a long-term need, and we cannot exceed 1 year (including any options). To use this authority we must show that the circumstances are both urgent and unusual that is, the urgency could not have been predicted. Industrial Mobilization The VA does not generally support these actions. The DoC will notify your station should this ever apply. International Agreement Does not affect the VA. Authorized by Statute This authority is used when another statute has provided grounds for the Agency to limit competition. The most prevalent examples of this for the VA are the laws surrounding prosthetic procurements and the Veterans First laws. Under these statues, while limitation of competition is allowed, full competition is still preferred. This authority is used at the discretion of the Contracting Officer and requires the following information in the justification: List the statutory authority that allows for the limitation of competition. A full explanation of the reason that using this statutory authority is in the best interests of the Government. A description of how the Government is working to limit the use of this limitation in the future (if applicable). National Security Not used by the VA. Public Interest Not used by the VA. ALL justifications should be written with the assumption that the person reading it has only a basic understanding of Government contracting rules and has no understanding of the underlying need. Justifications cannot make leaps in logic or assumptions about the market now or in the future. All justifications must be based on verified and verifiable facts. Remember that Competition is the preferred state for Government Acquisitions. To maximize that competition, the Agency must do a few things: Fairly and impartially describe the Government s need not desired bells and whistles, not favorite solution, not a copy and paste of a commercial product s characteristics. Create an Independent estimate of the appropriate cost/price for the items or services requested. Plan the procurement sufficiently in advance to allow time for competition (the FAR states that acquisition planning should take place in the FY prior to the year in which the Agency has the need) Best Practice Get ALL services that will be affected or involved in the procurement into the planning team as early as possible.