X1DB--INTENT TO SOLE SOURCE OHIO LEASE Intent to Sole Source Massillon CBOC Lease

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >SAT DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT) Acquisition Plan Action ID: ____ 36C250-20-AP-0489_ Contracting Activity: Department of Veterans Affairs, Network Contracting Office 10, 3140 Governor s Place Blvd., Suite 110, Kettering, Ohio 45409, on behalf of the Louis Stokes VA Medical Center located at 10701 East Boulevard, Cleveland, Ohio. 44106-1702. Nature and/or Description of the Action Being Processed: The Louis Stokes VA Medical Center is seeking 19,500 Net Usable Square Feet (NUSF) to yield 25,350 Rentable Square Feet (RSF) of existing medical ready clinical space at 845 8th Street N.E., Massillon, Ohio under lease number 36C25020L0015 for exemption to competition based on Only One Responsible Source and No Other Service Will Satisfy Agency Requirements per FAR 6.302-1 and as described in GSAR 570.402 for Veterans Affairs. There is currently no existing lease. Approval is requested to negotiate a new lease with the City of MASSILLON without full and open competition for reducing the workload on Wade Park campus by 200 patient visits daily, cost avoidance of $500k to $750k annually in Beneficiary Travel, and reduction in outsourced Care in the Community cost of $4 to $5 million annually. In accordance with GSAR 570.106(a) from November 7, 2019 to December 6, 2019 in order to advertise this requirement and determine if there were any interested offerors the proposed acquisition was publicized on the Government Point of Entry (Federal Business Opportunities, http://www.fbo.gov). Only one acceptable location within the delineated area responded to the publicized proposed acquisition. There are no other Offerors who can provide the medical space required within the delineated area. Only one acceptable location is available. Description of Supplies/Services Required to Meet the Agency s Needs: The Department of Veterans Affairs seeks a new Lease. The Louis Stokes VA Medical Center is seeking 19,500 Net Usable Square Feet (NUSF) of medical space at the former Affinity Medical Center, 845 8th Street NE., Massillon, Ohio. This lease acquisition requires three years firm term and two years soft term. The delineated area is North: Route 687/ High Mill Ave / Forty Corners Rd / Orrville St; East: - Perry Drive / Brunnerdale Ave; South: Route 30; West: Route 93. Sources Sought Notice was submitted through FBO on November 7th, 2019 with an expiration of December 6th, 2019. Only one response was received from the Sources Sought Notice. The Louis Stokes VA Medical Center submitted a Lease Procurement Request Package on November 6, 2019 for 19,500 NUSF/ABOA to yield 25,350 rentable square feet of clinical medical space to satisfy the Veterans Affairs mission requirements. Statutory Authority Permitting Other than Full and Open Competition: (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; 41 U.S.C. 3304(a)(1): Only one responsible source and no other supplies or services will satisfy agency requirements. 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 Northeast Ohio Healthcare System (VANEOHS) proposes under an Access Expansion Plan (AEP) to close the gap in access to Specialty Care services in the southern part of the catchment area by utilizing 25,350 Rentable Square Feet (RSF) of existing medical-ready space in the former Affinity Medical Center hospital in Massillon, Ohio. This project will improve Veteran experience, increase access, deliver operational benefits, and is aligned with SECVA priorities. The project has broad based support from local administrative and clinical stakeholders, from VISN 10 leadership, and from key Congressional stakeholders in the Ohio delegation. The proposed lease agreement with the City of Massillon to occupy some of the space in this medical facility will provide much needed specialty care access within a 60-minute drive time for 61,000 Veterans, including 26,000 who would otherwise need to drive more than 60 minutes to receive VA provided specialty care. The location of the facility offered by the City of Massillon is unique in that it will reduce the workload on the Wade Park campus by 200 patient visits daily, cost avoidance of $500k to $750k annually in Beneficiary Travel, and reduction in outsourced Care in the Community cost of $4 to $5 million annually. The VA Engineering department has inspected the space, which was built in 2016, and has determined that it can be used to satisfy VA mission requirements, with only minor improvements and no significant renovations. Based on the market research performed, only the facility owned by the City of Massillon is capable of meeting the Lease requirement in Massillon, Ohio. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: On January 24, 2020 a market survey was conducted by the VA s Lease Integrated Product Team. Only one site was surveyed due to receiving only one response from the Sources Sought Notice and Market research utilizing LoopNet showed that there were no other suitable locations for a lease approximately 19,500 NUSF within the delineated area. No other locations were identified within the delineated area or in the City of Massillon of medical space greater than 3,000 Square Feet. Under the authority of 10 USC 2304(c)(1) , Only one responsible source , 845 8th Street N.E., Massillon, OH. is the only known space available. In accordance with the VA s Rule of Two, the Veteran Information Pages website was queried for any SDVOSB or VOSB s capable of performing but no Veteran owned businesses were identified. Therefore, the VA s Rule of Two cannot be met. The market research efforts used to ensure that offers are solicited from as many potential sources as practicable including using the VIP website to identify any SDVOSB or VOSB s, LoopNet to identify any locations and potential offerors as well as placing a Sources Sought Notice advertisement on the Government Point of Entry as required by GSAR 570.106(a). These efforts confirm that the local real estate market does not have any other property available to meet VAMC s requirement. The LCS received only one expressions of interest identified below: Name of Offeror Name and Address of Building City of Massillon Formerly the Affinity Medical Center, 845 8th Street NE., Massillon, OH. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: J&As for Real Property Procurements, this information may include information provided by historical data, such as previously awarded leases, existing leases, competition and real estate appraisals. The following information is provided as an example of information to satisfy the determination that the anticipated costs to the Government will be fair and reasonable. In accordance with Federal Acquisition Regulation (FAR 6.303-2(b)(7)), the Lease Contracting Officer (LCO) hereby certifies that anticipated costs to the Government will be evaluated for the entire requirement and will be considered fair and reasonable and provide the basis for this determination. The steps that will be taken to ensure the final contract price will be fair and reasonable are also described here. In accordance with Federal Acquisition Regulation (FAR) 6.303-2(b)(7), the LCO determines by certifying this document that the anticipated cost to the Government will be fair and reasonable to yield 19,500 NUSF for the entire requirement is based on the market survey conducted through LoopNet and determined to be fair and reasonable. Recent market surveys conducted on LoopNet by LCO in Massillon, Ohio showed the rental rate within the delineated area ranges from $9 to $11 per NUSF/ABOA with much smaller square footage availability. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: J&As for Real Property Procurements, include the following information in accordance with Draft VA Handbook 7815 and GSAM Part 570: One offer received from the Sources Sought Notice, an advertisement conforming to GSAM 570.402-2 posted on the Federal Business Opportunities (FBO) Web Site on November 7th, 2019 with an expiration date of December 6th, 2019. The Lease Contracting Officer was not able to identify any potential acceptable locations through the advertisement or the market survey, other than location 845 8th Street NE., Massillon, Ohio. Only the City of Massillon responded to the Sources Sought Notice. In addition, Market Research was conducted through LoopNet and VIP. The Market Research results revealed the VA s rule of two cannot be met. No other facility within the delineated area in Massillon, Ohio has any SF that exceeds 3,000. There are no other Offerors who can provide the medical space required within the delineated area. Any Other Facts Supporting the Use of Other than Full and Open Competition: The key drivers of the need for expanded Specialty Care access for the southern portion of the VANEOHS catchment area are improved Veteran experience, more efficient operations, and right-sized VA infrastructure for future Veteran demand. This project improves patient experience for Veterans by eliminating 55,000 Veteran s trips to the Cleveland Wade Park campus, bringing 2,000 outsourced visits back in-house for better care coordination, and reducing the number of Veterans with more than 60 minutes drive time for specialty care by 50%. Operational benefits include reducing the workload on Wade Park campus by 200 patient visits daily, cost avoidance of $500k to $750k annually in Beneficiary Travel, and reduction in outsourced Care in the Community cost of $4 to $5 million annually. This project helps prepare for demographic trends by right-sizing infrastructure for future Veteran healthcare needs. VA SCIP identifies infrastructure gaps in the ability to meet the forecasted demand for healthcare services. This project reduces the specialty care space gap by 20,000 square feet, reduces outpatient specialty care utilization gap by an estimated 55,000 encounters annually, and cuts the parking gap by 1,500 spaces. The time window to pursue this option for VA is limited. The City of Massillon has ongoing carrying costs to maintain the facility in a move in ready condition. The City has stated that due to financial constraints, they cannot continue to sustain maintenance and carry costs. Without a VA lease, the City of Massillon will have to end the support of this infrastructure and accept an alternate offer from a real estate developer who intends to demolish the facility. Due to the importance of the site to the community, the city would prefer not to demolish the building, but they have indicated that as a small city with limited resources, they cannot continue to fund these carrying costs. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Name of Offeror Name and Address of Building City of Massillon Formerly the Affinity Medical Center, 845 8th Street NE., Massillon, OH. 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: As described elsewhere, the largest barriers to competition in this particular instance is the size of the space required and the availability of space in the commercial market to meet that need. The only potential action that could be utilized to remove competition barriers include expanding the delineated area out of the City of Massillon or decreasing the size the requirement.