6532--PPE Procurement - COVID-19

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION Upon the basis of the following justification, I hereby approve the issuance of the contractual action described below using other than full and open competition, pursuant to the authority cited herein. Contracting Activity: Department of Veterans Affairs OCFM Project Management Office (PMO) COVID-19 3801 Miranda Avenue, Bldg. T601A Palo Alto, CA 94304 Nature and/or Description of Action Being Approved: This justification sets forth the facts and requests approval to enter into a new sole source contract (no options) on the basis of other than full and open competition with Donovan Marine, Small Business. Critical Personal Protective Equipment (PPE) is needed for active construction and lease personnel, namely protective masks in response to the COVID-19 Pandemic. Description of Supplies or Services Required to Meet the Agency s Needs (including the estimated value): The contractor shall provide 46,000 disposable surgical masks and hand sanitizer for active construction and lease personnel throughout the Office of Construction and Facilities Management project locations. The estimated dollar amount of this requirement is $70,000. Authority Permitting Other than Full and Open Competition: The statutory authority permitting other than full and open competition is 41 U.S.C. - 3304(a)(2) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-2 entitled, Unusual and Compelling Urgency. Rationale for the Use of the Authority Cited Above (applicability of authority): On March 13, 2020, the President declared the COVID-19 pandemic a national emergency. As a result of the COVID-19 pandemic and the declared national emergency, the supply chain has been overburdened to the point that there are now significant PPE shortages, and with increasing supply allocations being implemented, it has greatly reduced the availability of PPE items. As this major disaster is a world-wide pandemic, all available PPE supplies are in high demand and the market for these supplies is highly volatile. As a result, contracts must be issued with unusual and compelling urgency because of the current market conditions; while there are several vendors that stock the items that have now become critical and scarce most vendors are out of stock, or unable to keep stock, which is driving limited competition and urgent procurements. The rational under the current declared national emergency and marketplace conditions, an unusual and compelling urgency exists which justifies precluding full and open competition for the execution of contracts for PPE. Failure to execute this action could seriously jeopardize the VA major mission of Veterans healthcare and safety along with backup for the private healthcare system around the country; and therefore, the Federal Government would be seriously injured unless VA limits competition in accordance with this justification. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Due to the unprecedented and unforeseen circumstances that have arisen from the COVID-19 pandemic, it is not practical to seek full and open competition for PPE items at this time, as increased global demand on the worldwide supply chain has resulted in global shortages. The Government continues to solicit and seek sources from as many sources as possible for this vital PPE using GSA schedules, VetBiz, conducting Internet searches, and making and receiving phone calls to/from vendors. A notice (synopsis) will not be publicized as required by FAR Subpart 5.2 under the allowed exception specified in FAR Subpart 5.202(a)(2). In accordance with FAR Subpart 5.202(a)(2), the proposed contract is made under the conditions described in 6.302 and the Government would be seriously injured if the agency complied with the time period specified in 5.203. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The current market price for disposable masks is roughly $1.25 per mask, depending on the type and volume procured. The per unit cost for this contract is below the average at $1.15. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted to determine the suitability of commercial items and it has been determined that the Government s needs maybe met by a type of item customarily available in the commercial marketplace that would meet the definition of a commercial item(s) in accordance with FAR Subparts 2.101 and 10.002. Further market research continues daily as requirements for PPE steadily increase. This market research includes searching GSA Schedules, utilizing VetBiz, conducting Internet searches, and making and receiving phone calls to/from vendors. Any Other Facts Supporting the Use of Other than Full and Open Competition: Given that VA Medical Centers and other select federal facilities are designated FEMA facilities with significant contingency and emergency response roles, the failure to rapidly acquire PPE would not only negatively impact healthcare delivery to our nation s Veterans and their dependents, but also potentially have a direct negative impact on the greater public. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Donovan Marine Inc 6316 Humphreys Harahan, LA 70123 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: The current market conditions are themselves a barrier to competition. While there are many vendors that sell the items on the VA critical PPE list, most are out of stock. VA will continue to monitor the current market conditions to determine the best method of procurement. PROGRAM MANAGER & CONTRACTING OFFICER CERTIFICATION The requirements being procured are- in support of the national emergency (COVID19 pandemic), are for medical or surgical PPE items, the contract is firm-fixed price, price is fair and reasonable, the period of performance will not exceed 90 days, the total contract value does not exceed $100M, the proposed contract action is made under the conditions described in 6.302, and the Government would be seriously injured if the agency complied with the time period specified in 5.203. The data supporting this memorandum and certification is complete and accurate. _____________________________________ ________________ Mollie West Date PMO COVID-19 CONTRACTING OFFICER CERTIFICATION Justifications shall be approved in accordance with the approving officials and thresholds specified in FAR 6.304 Approval of the justification- (a) Except for paragraph (b) of this section, the justification for other than full and open competition shall be approved in writing (1) For a proposed contract not exceeding $750,000, the contracting officer s certification required by 6.303-2(b)(12) will serve as approval unless a higher approving level is established in agency procedures. I hereby certify that this justification is accurate and complete to the best of my knowledge and belief. _____________________________________ ________________ Rusty Stevenson Date Contracting Officer CONCURRENCE: Not Required Below $750,000