SPECIAL NOTICE
Q -- Home Oxygen - VISN 16 for the following medical centers only: Biloxi, Jackson, Little Rock, Fayetteville, Houston, New Orleans
- Notice Date
- 7/30/2021 7:42:56 AM
- Notice Type
- Justification
- NAICS
- 532283
— Home Health Equipment Rental
- Contracting Office
- 256-NETWORK CONTRACT OFFICE 16 (36C256) RIDGELAND MS 39157 USA
- ZIP Code
- 39157
- Solicitation Number
- 36C25621D0078
- Archive Date
- 08/09/2021
- Point of Contact
- Laurie Morris, Contract Specialist, Phone: 601-206-7056
- E-Mail Address
-
laurie.morris@va.gov
(laurie.morris@va.gov)
- Award Number
- 36C25621D0078
- Award Date
- 07/30/2021
- Awardee
- ROTECH HEALTHCARE INC. ORLANDO 32811
- Award Amount
- 14507725.72000000
- Description
- OFOC SOP Revision 11 Original Date: 03/22/11 Revision 11 Date: 02/11/2021 Page 2 of 5 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT) Acquisition Plan Action ID: 36C256-21-AP-3866 Contracting Activity: Department of Veterans Affairs, NCO-16, 715 S. Pear Orchard Rd. Ridgeland, MS Nature and/or Description of the Action Being Processed: The VISN 16 Prosthetics and Sensory Aids Service has requested that an additional interim contract for the continuity and consistency of the home oxygen service for Veterans be approved for other than full and open competition. Contract 36C265-18- D-0129 for VISN 16 was awarded effective September 27, 2018 to start performance on October 1, 2018. On October 3, 2018 notice of a timely protest was received. Due to this protest, several interim contracts were awarded to continue services from the current contractor Rotech Healthcare, Inc., 3600 Vineland Road, Ste 114, Orlando, FL 32811. During this time several re-evaluations and legal reviews/comments occurred. In January 2021, the contracting office was moving forward with a reevaluation of the offers to establish a new baseline for discussions. During an IPT meeting, the VPR informed the team that the CRT/RRT services other than initial setups must be removed from this contract as they can no longer be paid with Prosthetics dollars. This change would result in a significant change to the Government's need which has resulted in a significant change in the evaluation factors in the solicitation. The Contracting Officer is working with the Office of General Counsel to obtain legal concurrence on the outstanding protest concerns and issues to include canceling the protested solicitation and issuing a new solicitation. An additional interim contract is needed for one year with a period of performance from August 1, 2021 through July 31, 2022. This time is needed to form an Integrated Product Team {IPT}, receive legal and technical reviews, issue a new solicitation and award a new contract. Description of Supplies/Services Required to Meet the Agency s Needs: The VISN 16 Prosthetics and Sensory Aids Service interim contract will encompass the rental of home oxygen equipment, to include but not limited to, compressor, portable oxygen machines, tanks, racks, and liquid oxygen systems. This contact will include the delivery, set-up, and resupply of oxygen as necessary to meet the medical needs and prescriptions for our veterans. The services include delivery, repair, and pick- up of equipment, resupply of expendable supplies (nasal cannulas, hoses, etc.) and medical grade oxygen, and quarterly checks from a Certified Respiratory Therapist or a Registered Respiratory Therapist. An interim contract to continue home oxygen service for the Veterans serviced by Medical Centers in Houston, New Orleans, Biloxi, Fayetteville, Jackson, and Little Rock is therefore necessary with the current contractor, Rotech Healthcare, Inc. This contract will cover approximately 7,602 veterans. The new contract type will be firm-fixed-price. The estimated cost for the one-year interim contract is $14,507,796.00 based on the estimated quantities needed and the current pricing. The Contracting Officer will enter into negotiations if necessary to achieve a fair and reasonable price. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(1), as implemented by FAR 6.302-2. (X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1; ( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2; ( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3; ( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5; ( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6; ( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7; Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The incumbent is the only company that can reasonably act in sufficient time and with reasonable cost to continue this service for the estimated twelve months that are needed for this contract. The typical transition period for the approximately 7,602 patients per month covered under this contract is 90 days. The needed coverage here is 455 days, which will allow for full transition to occur. Any company, other than the incumbent, would be exposed to a large initial cost for equipment and would only have twelve months over which to recoup the investment and a reasonable profit. This would cause all companies, other than the incumbent, to have to charge a significantly higher price than the incumbent. This would not be in the best interest of the Government or the American taxpayers. The incumbent already has equipment and personnel in place to provide this service for the additional time. Therefore, no additional resources are necessary for the incumbent to continue performance. This puts the incumbent in a unique position to be able to provide this service in a manner that no other competitor could. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Under these circumstances, an offer will only be sought from the incumbent. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer has determined the pricing of the interim contract to be fair and reasonable based on the prices and rates that are currently in effect under the existing contract and historical home oxygen pricing. Should negotiations be necessary, the Contracting Officer will conduct those with the information gained from a review of the new award, and current prices and rates as below. CLINS Biloxi Current Price/rate Fayetteville Current Price/rate Houston Current Price/rate Jackson Current Price/rate Little Rock Current Price/rate New Orleans Current Price/rate 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 include an examination of the acquisition history for previous contracts, review of the previous competitive contract awarded in VISN 16, and receiving market information from the COR and Network Prosthetic Representative. Under these circumstances stated above and due to time constraints, an offer will only be sought from the incumbent. However, the previous contract which has been protested for Home Oxygen services across VISN 16 was competed as an SDVOSB set-aside after appropriate market research. Any Other Facts Supporting the Use of Other than Full and Open Competition: In addition to the budgetary arguments above, and the inability of any contractor to successfully compete a transition of service in time, there is one other consideration. It would be inconvenient and possibly dangerous to conduct two transfers of this service in less than one year. To transfer this service, a new contractor must place equipment in the Veteran s home and the old equipment must be picked up by the outgoing contractor. There is no guarantee that the equipment used will be the same as the prior contractor, and therefore the Veteran or his or her caregiver must learn the new equipment and its use. If more than one transition should occur in short span, it could increase the possibility of accidental misuse of the equipment resulting in injury or death. While the risk of occurrence is low, the consequences if it occurs could be catastrophic. Therefore, the overall risk in transitioning services more than once in a year must be rated no less than moderate and possibly high. Therefore, for this reason as well, it is in the best interest of the Veterans, and therefore the Government, to continue with the incumbent. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None 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 protested contract 36C256-18-D-0129 was competed as an SDVOSB and awarded on September 27, 2018. The Government continues to work through the corrective actions to overcome barriers to competition. 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 DAVIS 399224 belief. KATY A. Digitally signed by KATY A. DAVIS 399224 Date: 2021.07.02 14:47:11 -05'00' Katy A. Davis Date Network Prosthetic Program Manager VISN 16 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. Benjamin J. Digitally signed by Benjamin J. Dufour 987184 Dufour 987184 Date: 2021.07.19 09:34:58 -05'00' Benjamin DuFour Contracting Officer NCO 16 Date 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. ANDREW J. Digitally signed by ANDREW J. RAIBER 292563 RAIBER 292563 Date: 2021.07.08 10:45:13 -05'00' Andrew J. Raiber Division Chief NCO 16, Division II Date NCO 16 Director of Contracting Review and Approval: I certify the justification meets requirements for other than full and open competition. AARON Digitally signed by AARON VILLALPANDO 178014 VILLALPANDO 178014 Date: 2021.07.19 12:41:03 -05'00' Aaron Villalpando Date Director of Contracting Network Contracting Office 16 VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition. TERRY Digitally signed by TERRY SPITZMILLER SPITZMILLER Date: 2021.07.21 11:40:02 -05'00' Terry L. Spitzmiller Executive Director, VHA Regional Procurement Office Central 07/21/2021 Date
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