Q--HOME OXYGEN SERVICES REQUIREMENT

DEPARTMENT OF VETERANS AFFAIRS Justification and Approval For Other Than Full and Open Competition 1. Contracting Activity: Department of Veterans Affairs, NCO 4, Louis A. Johnson VA Medical Center 2. Nature and/or Description of the Action Being Processed: This is a request for other than full and open competition for the procurement of Home Oxygen Services from the incumbent to cover the time January 1, 2013 through May 31, 2013. Columbia Ancillary Services, Inc. is the incumbent of an expired contract. This requirement is procured under NIACS 532291 with a new size standard of $30,000,000. The procurement process was previously interrupted by a protest ruling. The Government initiated a new procurement process and it has been interrupted by three additional protests. A ruling on the most recent protest by the Court of Federal Claims has not been rendered to date and there is no projected date. This interim contract will provide Home Oxygen Services during the gap between the expired contract and the new contract to be awarded after protest ruling. 3. Description of Supplies/Services Required to Meet the Agency's Needs: The contractor will provide Home Oxygen Services and related supplies for Veterans and Beneficiaries of the Louis A. Johnson Healthcare System. The VAMC currently serves an estimated 1500 patients covering parts of northern West Virginia, southeast Ohio and southwest Pennsylvania. Required services include storage, delivery, set-up, adjustment, patient/caregiver instructions and recovery of equipment. Contractors shall have applicable expertise in government acquisition and program management disciplines. This contract covers January 1, 2013 through May 31, 2013. The length of service is the estimated procurement lead time that would be required to finalize the acquisition process once a protest decision is rendered. 4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §253(c), as implemented by FAR 6.302. (X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1; (X) (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; 5. Validity of Use (applicability of authority): Only one responsible Source and No Other Supplies or Services Will Satisfy the Agency Requirement: The incumbent is currently performing this complex requirement at a satisfactory level. A change in vendor would require finding a vendor that is capable of servicing approximately 1500 veterans across a diverse geographical area. None of our known interested vendors currently service this area. The Vendor would need to be established locally before the start of the period of performance as to meet the response time indicated in the statement of work. A vendor must also have ample rental equipment and supplies available to provide the required services and supplies to patients. Based on past experience and input from colleagues throughout the VISN, the Chief of Prosthetics estimates it would take approximately 45-60 days after the period of performance begins to fully and safely switch contractors. For this requirement, a disruption in services is not an acceptable solution. Unusual and Compelling Urgency: We have received a total of five protest regarding this requirement. Two against the previous solicitation, in which a ruling caused the Government to cancel that solicitation and reissue, and three against this solicitation. We are awaiting a ruling on the most recent protest to the Court of Federal Claims. This solicitation is extended indefinitely. It is imperative that our patients have home oxygen services that are uninterrupted. Our contract has expired which has made it necessary to put in place an interim contract. A protest decision is imminent and could be rendered any day. In September, the Contracting Officer through the DOJ Attorney recently petitioned the court and explained the need for a timely decision. We had anticipated a decision would be rendered before the last interim contract expired but it was not. We are unable to plan and advertise a long term contract because the Government is staying while we await a decision. This has put the Government in a situation where we must have services for the veteran, but are unable to competitively award such service creating an environment where there is only one responsible source and an urgent and compelling need. This option represents the best value for the government and provides for continuity of care for our veterans. The incumbent is honoring prices from the last contract to bridge the gap between the expired contract and the new award. There will be no cumbersome process for exit and entrance between vendors. The incumbent is already set up to provide this service in the geographical area and they are proven capable and responsible. Their staff is familiar with our patients and our processes. For a five month contract sole sourcing our requirement to the incumbent is the only viable option available to the Government. 6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Changing vendors for a 5-month period while the contract requirement is being solicited is not an option based on the complexity of this requirement. There is approximately 1500 veterans serviced by this contract. The vast geographical areas serviced by this contract make it difficult and expensive to have the equipment switched out. The contractor is responsible for providing all the equipment and supplies that are necessary to service this contract. The award of a contract for a base plus four option years is anticipated within 90 days after the protest is ruled on and the solicitation can be closed. The Contracting Officer made an effort to petition the court to deliver a timely decision in September 2012. The Contracting Officer has made multiple attempts to award a competitive contract, but due to multiple protests and a delay in the court ruling in the most recent protest, the Contracting Officer has been unsuccessful in awarding a competitive acquisition. 7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated price to the Government is $ 497,740. This option represents the best value for the government. The incumbent is honoring prices from the last contract to bridge the gap between the expired contract and the new award. This price has already been proven fair and reasonable five years ago when the last contract was awarded and again each time an interim contract was put in place. Based on proposals received on the first solicitation (that was rescinded due to a sustained protest, the price is fair and reasonable) the price is considered fair and reasonable. Based on comparisons to prices of other VA contracts, the prices is fair and reasonable (FAR 15.404-1). The incumbent is already set up to provide this service and they are proven capable and responsible. 8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The Government is awarding this contract to the incumbent to bridge the gap between the expired contract and the award of the contract currently under solicitation. Market research was completed for the solicitation currently under protest. Based on that market research the long term procurement was designated as 100% HubZone set-aside. Market Research was conducted by advertising a sources sought notice through FedBizOpps under NAICS Code 532291. One SDVOSB/HubZone, two Small Businesses/HubZone and one Large Businesses responded who were considered capable. 9. Any Other Facts Supporting the Use of Other than Full and Open Competition: 10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No one has expressed in writing that they are interested in performing this interim contract or any of the others. For the long term contract, One SDVOSB/HubZone, two Small Businesses/HubZone and one Large Businesses responded to the sources sought. 11. 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: Procurement will be competitively acquired as a 100% HubZone set-aside once there is a protest ruling. The interim contract is sole sourced to a small business.