Inactive

VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5 PM Part 813.5 SAP for Certain Comm... VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5 PM Part 813.5 SAP for Certain Commercial Items Original Date: 08/30/17 Revision 03 Date: 02/11/2021 Page 1 of 5 DEPARTMENT OF VETERANS AFFAIRS SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5 Acquisition Plan Action ID: 36C25621AP3892 Contracting Activity: Department of Veterans Affairs, NCO16, Gulf Coast Veterans Health Care System (GCVHCS), Biloxi, MS. 2237: 520-22-1-543-0003 Nature and/or Description of the Action Being Processed: This procurement is for Potable Water Analytic System Maintenance services. This acquisition will be a logical follow on to the current Potable Water Analytic (PWA) System Maintenance service contract. This service is to manage the building water systems in alignment with current Veterans Health Administration (VHA) standards, guidelines and VHA Directive 1061, and VA s Assistant Under Secretary for Health for Operations 28AUG2020 Memorandum: Required critical water systems testing and reporting for Sterile Processing Services (SPS). This action will be awarded as a new firm-fixed-price contract. Description of Supplies/Services Required to Meet the Agency s Needs: The new PWA system maintenance service contract will require the contractor to furnish all labor, tools, software programming, web base management, materials, supplies, equipment, and supervision necessary to perform all work associated with once a month calibration, management and maintenance for the continuous monitoring of potable water analytic equipment at various locations in Buildings 3, 5, 14, 15, 19, 25 and 30, for both hot water and cold water associated with the execution and management of VHA Directive 1061, dated February 16, 2021. The estimated value is with the period of performance of Oct. 1, 2021 through Sep. 30, 2022, with four 12-month option periods. Note: The Base Year pricing is higher than the three option years pricing due to a one-time equipment purchase price of . The service pricing for the Base Year is . Total base year cost: . Each additional option period remains 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): The current PWA system in place at the GCVHCS, Biloxi, MS, will only remain functional and be in compliance with VHA Directive 1061 if service is continued by the incumbent company, Phigenics. The current system monitors all healthcare buildings subject to this directive and gives instant feedback and alarm notifications for all monitored water characteristics. If Phigenics is not permitted to continue the effort in a follow- on service contract, the current analyzer equipment will have to be replaced with equipment usable to a different contractor. This would result in an exorbitant cost (greater than to replace the functional equipment with similar devices to be used by a different contractor. This will result in a significant increase in contract price and will cause the GCVHCS to temporarily be non-compliant with VHA Directive 1061 until the new equipment can be fully installed and calibrated across the campus. Phigenics designed, and is the sole manufacturer, of the continuous monitoring equipment. They sell their equipment directly to their customers and do not authorize third-party selling or service of their equipment. They have the expertise to provide continued maintenance and service to the equipment, in addition to providing uninterrupted facilitation of the Chalmers P. Wylie VAACC Management Program and validation testing. The web-based data management system facilitates the documentation and record keeping necessary to maintain a defensible Water Management Program. In addition, all data recorded from our continuous water monitoring equipment, as well as, our validation test results are automatically uploaded and stored in this system. Six years of WMP, continuous monitoring, and validation test records are stored in the current system. This is proprietary software that can only be purchased through Phigenics. To ensure continuity of our Water Management Program management, it is essential to continue using Phigenics for future Water Management Program actions and record keeping. Changing vendors would require a different data management system and there would be a disruption in continuity between the historical data and new data collected from the continuous monitoring systems as well as from validation testing data. Sample collection, shipping procedures and culture methodology is not standardized. Changing vendors would undoubtedly change the results due to differences in these factors and would disrupt the trend analysis done to prevent Legionella. Due to the data being maintained in the Phigenics website, Phigenics is the only company that can access and update the sample results. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A Sources Sought Notice (36C25621Q1478) was issued 07/19/2021. The notice stated seeking businesses capable of providing potable water analytic system maintenance services; to include a capabilities statement, DUNS number; and a draft Scope of Work included and annotated must be compatible with existing Phigenics equipment . Four sources expressed interest in the acquisitions. They were: 1) 7 Mountain, LLC plus Grand Slam Universal, LLC (joint venture); 2) Coventina Water, LLC; 3) Paramount Construction Group; and 4) Phigenics, LLC. Based on additional market research conducted there are zero SDVOSBs that have the NAICS code 334513 located within the state of Mississippi. There are two SDVOSBs that have the NAICS code 334513 located in the neighboring states, the closest being approximately five hours from the GCVHCS. After further investigation of these companies, neither appeared to be proficient in the field of water management and analyzation. The market research further substantiates the rationale to source this contract to Phigenics as any downtime of this system results in non-compliance of VHA Directive 1061. With the closest other source being five hours from the GCVHCS, this downtime may be extended due to the need for scheduling and equipment sourcing. These factors coupled with the additional cost of new equipment, if this contract goes elsewhere, points to the logical conclusion that sourcing this contract directly to Phigenics is the most economical and efficient method for the GCVHCS. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The CO has determined that pricing will be fair and reasonable based on the incumbent s equipment is already in place and there will be a minimal increase in price for the required services. If the contract should be awarded to another company, the equipment would have to be replaced with new equipment capable of providing the same information, analysis, etc., and this could result in a significant increase in the contract price, by approximately , if not more. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted via a Sources Sought Notice, in addition to, searching VetBiz Registry, FPDS-NG, beta.SAM.gov, SBA DSBS, GSA Advantage, and searches of various internet sources. Any Other Facts Supporting the Use of Other than Full and Open Competition: Phigenics does not have any SDVOSB/VOSB distributors. They have proprietary rights to the equipment as they are the original equipment manufacturer (OEM). Also, Phigenics not only performs this type of work at the GCVHCS, but also at other VA Medical Centers across the country. The list below was verified to show the VAs with current contracts with Phigenics who perform one or all of the services the GCVHCS is procuring. VA Facility Contract Number WMP PWA phiMetrics Water Testing Legionella Dental SPS VA Anchorage 36C260-20-F-0373 X X VA Ann Arbor 36C250-18-A-0043 X X VA Baltimore & Perry Point 36C24521F0243 X X VA Biloxi VA256-17-P-0944 X X X VA Birmingham 36C247-20-F-0252 X X VA Central Alabama VA247-17-F-2209 36C247-21-F-0208 X X X VA Central Texas (Austin, Temple, Waco) 36C257-19-P-0959 36C257-18-F-1599 X X X X X VA Chicago 36C252-20-F-0348 X X VA Cincinnati VA250-16-F-0964 X X VA Clarksburg 36C245-21-P-0171 36C245-19-C-0078 36C245-21-F-0137 X X X X VA Columbia, SC VA247-16-F-1156 X X X X VA Danville VA251-16-F-0559 X X X X VA Detroit 36C250-21-C-0008 X X X X VA Fayetteville, AR VA256-17-F-0564 X X X X X VA Hampton 36C246-19-F-0169 VA246-16-F-6738 X X X VA Hines 36C252-20-D-0063 36C252-20-D-0013 36C252-21-F-0127 X X X X VA Houston 36C256-20-P-1244 X VA Hudson Valley 36C242-18-C-0148 X X VA Indianapolis 36C250-18-C-0058 X X VA Jackson 36C256-21-P-0376 X X X X X VA Little Rock VA256-16-F-0530 X X X X VA Louisville 36C249-20-C-0005 X X X X VA Memphis VA249-18-F-15699 X X X VA Mountain Home VA249-18-F-15994 X X X VA Murfreesboro-Nashville 36C249-21-F-0100 X X X VA North Chicago-Lovell VA69D-17-F-0086 X X X X VA North Texas 36C257-18-F-1820 X VA Palo Alto VA261-16-P-2405 X X VA Roseburg 36C260-20-F-0306 X X VA San Antonio 36C257-19-F-0079 X X X VA San Francisco 36C261-20-F-0004 X X VA Seattle VA260-15-A-0077 X X VA Shreveport 36C256-19-F-0234 X X X VA Tampa 36C248-20-C-0060 X X X VISN 1 VA241-15-A-0035 X X VISN 7 36C247-19-F-0864 X X X X X X Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: A Sources Sought Notice (36C25621Q1478) was issued 07/19/2021 and four sources expressed interest in the acquisition. They were: 7 Mountain, LLC plus Grand Slam Universal, LLC (joint venture); Coventina Water; Paramount Construction Group and Phigenics, LLC. 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: Other competition may be sought when the software required for the equipment is no longer proprietary. However, it would not be cost effective to replace Phigenics PWA system equipment to a brand which does not have proprietary rights. This requirement is a follow-on to the existing equipment, with an estimated award date of 10/01/2021 and four 12-month option periods. It is in the best interest of the service to sole source this requirement to the incumbent Phigenics. 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. Jay D. Tripp 130431 Digitally signed by Jay D. Tripp 130431 Date 2021.08.05 Aug 5, 2021 Jay Tripp Date Chief, Engineering Station 520 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. Danette R. Digitally signed by Danette R. Impey 224540 Impey 224540 Date: 2021.08.06 14:36:33 -05'00' 08/06/2021 Danette Rene Impey Date Contracting Officer NCO16/Station 520, Biloxi, MS 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. Digitally signed by Windell L. Lance Windell L. Lance 123245 123245 Date: 2021.08.06 15:03:11 -05'00' Windell Lance Date NCO16 Branch Chief, Div. I, Services C Station 520, Biloxi, MS