W--ALVAMC SPS Facility/Equipment Rental Base Yr. 03-01-2017-02-28-2018 PO 655C73066

Page 4 of 4 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>$150K) Acquisition Plan Action ID: VA250-17-AP-0329 Contracting Activity: Department of Veterans Affairs, Network Contracting Office 10, procuring on behalf of the Aleda E. Lutz VA Medical Center in Saginaw, Michigan. Nature and/or Description of the Action Being Processed: This sole source action is for a new firm-fixed price contract for equipment sterilization services. FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for equipment sterilization services at the Mackinaw Surgery Center, located in Saginaw Michigan. This is in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2. Description of Supplies/Services Required to Meet the Agency s Needs: The contractor will be providing off-site sterilization due to a construction project that shut down the Sterile Processing Service s at the Aleda E. Lutz VAMC. All contractor provided facility space and equipment shall comply with, and adhere to the following standards: (1) Association for the Advancement of Medical Instrumentation (AAMI) ST79: Comprehensive guide to steam sterilization and sterility in health care facilities; (2) Association for the Advancement of Medical Instrumentation (AAMI) TIR34: Water for the reprocessing of medical devices; (3) Association for the Advancement of Medical Instrumentation (AAMI) TIR30: A compendium of processes, materials, test methods, and acceptance criteria for cleaning reusable medical devices; (4) International Association of Healthcare Central Service Material Management, Central Service Technical Manual, Seventh Edition, 2007. The period of performance will be March 1, 2017 through February 28, 2018 with two six month option periods. VA staff shall operate in the contracted space for a continuous 8 hour time frame between the hours of noon to midnight, Monday through Friday. Total hours per week shall not exceed 40 hours. Schedule of Services CLIN Description Quantity Unit Unit Price Extended Price 001 Facility and Equipment Use for Sterilization of VA Equipment. Period of performance is 2080 Hours 142.27 $295,930.00 002 Option to Extend Six Months of Services. Period of Performance is 1040 Hours 142.27 $147,960.80 003 Option to Extend Six Months of Services. Period of Performance is 1040 Hours 142.27 $147,960.80 004 Mandatory monthly Air flow testing for base year and two 6 month option periods 24 MO. 500.00 $12,000.00 Total Price for all Services: $ 603,851.60 Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(1), as implemented by FAR 6.302-1. (X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1; ( ) (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; FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2). Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The VA requires use of a facility and equipment to sterilize a large volume of VA surgical equipment for the Aleda E. Lutz VA Medical Center. The Mackinaw Surgery Center is credentialed by CMS & HFAP/ AOA - Healthcare Facility Accreditation Program and is the only contractor within commuting distance from the medical center that can provide the necessary space and equipment. The Mackinaw Surgery Center is capable of providing one large pre-vacuum Steam Sterilizer. Automatic washer impingement washers that combine water temperature, special detergent and spray force action to remove soil from devices with pre-set cycles (i.e. instrument cycle). Eye Wash Station in decon. Stainless steel sinks with faucets and water supply in decon. Handwashing sinks or if no sink, hand gel stations that are available in prep and decon. The contractor performs weekly quality testing on the washer(s) which monitor the efficacy of the ultrasound and washer (checking the cavitation and removal of bio-burden). Mackinaw Surgery Center is the only responsible source within a 50 mile radius of Aleda E. Lutz VAMC that is interested in providing sterilization services under this contract. Without these services, the current staff would have to drive two hours one-way to Battle Creek VAMC to use their facilities. This would negatively impact operations and potentially patient care. Accordingly, Mackinaw Surgery Center is the only firm capable of providing the supplies and services described in Section III above without the Veteran s Health Administration experiencing unacceptable delays in fulfilling its requirements Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Sources Sought Notice VA250-17-N-0161 was published via FedBizOpps on December 14, 2016. The notice sought responsible sources for off-site facility and equipment for sterilization of medical equipment for the Aleda E. Lutz VAMC. A copy of the performance work statement (PWS) was attached to the sources sought notice. The noticed closed on December 21, 2016 with zero responses received. The current vendor (Mackinaw Surgical Center) contacted the contracting office via email stating an interest in continuing sterilization services for Aleda E. Lutz VAMC. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The awarded cost for these services is determined to be fair and reasonable based on the following: the pricing is similar to pricing previously found fair and reasonable under contract VA251-15-C-0167 [see FAR 13.106.3 (a)(2)(ii)], and the pricing is in-line with the government s Independent Government Cost Estimate [see FAR 13.106.3 (a)(2)(vi)]. Other than certified cost and pricing data will be utilized if required. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research indicated other facilities within a 40 mile radius of Aleda E. Lutz VAMC that provide sterilization services. Those facilities consisted of; Covenant Hospital in Saginaw, MI., St. Mary s Hospital in Saginaw, MI. and Caro Community Hospital in Caro, MI. After contacting these facilities via phone call, it was discovered that they do not provide sterilization services to outside facilities and were not interested in providing services to the VA. A previous procurement for these services was conducted in April 2015, and a solicitation was published on an unrestricted basis. Only one offer, from the Mackinaw Surgery Center, was received. Based on all market research conducted, there are no additional sources available for the required services. Any Other Facts Supporting the Use of Other than Full and Open Competition: None Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: The only source that expressed interest in this acquisition was the Mackinaw Surgery Center, located in Saginaw Michigan. 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: No action can be taken to remove barriers to competition; there is no available competition at this time. However, the government will continue to perform strategic market research during contract performance and tactical market research during any future procurement to identify any additional sources for these services. 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. _____________________________ ________________________ Kelly Myers Date Chief, Sterile Processing Services (SPS) Aleda E. Lutz VAMC Approvals Contracting Officer: I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. _____________________________ ________________________ Robert Kay Date Contracting Officer Network Contracting Office 10 Director of Contracting /Designee: I certify the justification meets requirements for other than full and open competition. _____________________________ ________________________ Jonathan Latson Date Branch Chief, Healthcare Services Network Contracting Office 10