Q301--Reference Laboratory Testing Marion VA Medical Center Interim Task Order

VHAPG Part 808.405-6 Limiting Sources Effective Date: 02/01/2022 DEPARTMENT OF VETERANS AFFAIRS FAR 8 Justification for Limiting Sources (LSJ) Orders Over the Simplified Acquisition Threshold (>SAT) Acquisition Plan Action ID: 36C250-23-AP-3786 Contracting Activity: Department of Veterans Affairs, Veterans Integrated Service Network (VISN) 10, Station 610, The Marion VA Medical Center located at 1700 East 38th Street, Marion, IN 46953, has submitted a request to Network Contracting Office (NCO) 10, located at 8888 Keystone Crossing, Suite 1100, Indianapolis, IN 46240 a limited source procurement with ARUP Laboratories (ARUP) through PR-IFCAP 610-23-3-087-0042. Description of Action: This acquisition is conducted under the authority of the Multiple-Award Schedule (MAS) Program (41 U.S.C. 152(3) and 40 U.S.C. 501). ARUP is the current contractor being used for reference laboratory testing for the Marion VAMC. Order against: FSS Contract Number: 36F79720D0079 with current expiration date

of 3/31/2025 and an ultimate completion date of 3/31/2030 which includes any remaining options. Name of Proposed Contractor: ARUP Laboratories (ARUP) Street Address: 500 Chipeta Way City, State, Zip: Salt Lake City, UT 84108 Phone: 800-583-2787 Description of Supplies or Services: The estimated value of the proposed action is $276,505.95. ARUP is the current contractor being used for reference laboratory testing for the Marion VAMC through task order 36C25022F0211 which expires on 5/31/2023. This procurement will be for a period of one year from 06/01/2023 5/31/2024. Testing will be for the patients of the participating facility. The tests provided for the facility shall be varied and based on the facility needs and the testing orders placed by the clinicians. These laboratory tests are not performed in-house for various reasons such as low testing volume or specialized equipment requirements that are not available at the facility. There are currently 1,785 different tests requested to be on the task order with a combined total of 7,455 tests. Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor s unique qualifications to provide the required supply or service. FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays: FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized; The medical center is currently utilizing ARUP through task order 36C25022F0201 which expires on 5/31/2023. While there are two other FSS companies that could provide this testing, switching companies at this juncture would not be in the best interest of the government, as it would take just as long to bring on a new temporary laboratory contractor to provide services for this proposed action as it would for the long-term Blanket Purchase Agreement (BPA) that will be competed, awarded, and implemented under FAR 8.405-3 procedures amongst the reference laboratory FSS contract holders. It will take approximately 3-12 months to code and implement an award to a new contractor. However, ARUP is already established and has the test list already built in the VA system. When laboratory services are obtained, the list of tests need to be entered into the IT systems for the tests to correlate with the VAMC and the contractor. It takes several months to build, test, and ensure there are no issues requesting tests. It is required that the medical center has continuity of services for reference laboratory testing. Not having these services could be detrimental to providing patient care. Continuing with a new one-year task order with the current contractor will ensure no interruption of testing while the new long-term FSS BPA is being planned, solicited, awarded, and implemented. FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow- on to an original Federal Supply Schedule (FSS) order provided that the original order was placed in accordance with the applicable FSS ordering procedures. The original order must not have been previously issued under sole source or limited source procedures. FAR 8.405-6(b): Items peculiar to one manufacturer: A patent, copyright, or proprietary data limits competition. The proprietary data is: These are direct replacements parts/components for existing equipment. The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing. Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination: The Contracting Officer (CO) believes awarding this task order to the current contractor represents the best value to the government as the current contractor (1) is uniquely positioned, due to the existing infrastructure and established processes, to continue to provide the required services with no possibility of delay and/or interruption in services, and (2) is the only company that can commence providing services under a new task order by 6/1/2023. Prices were determined to be fair and reasonable by the National Acquisition Center (NAC) CO at the time the FSS contracts were awarded. In accordance with FAR 8.405-4, the CO will seek additional price reductions. Describe the Market Research Conducted: A search was conducted in the Small Business Administration (SBA) VetCert database using North American Industry Classification System (NAICS) code 621511, which yielded 221 results. A search was conducted in the SBA Dynamic Small Business Search (DSBS) database for eligible Service-Disabled Veteran Owned Small Business and Veteran Owned Small Business (SD/VOSB) concerns using NAICS code 621511 and keywords Reference Laboratory Testing and services. There were zero (0) results. While market research found 221 results through a search of the SBA VetCert database using NAICS code 621511, and 0 results through the search of the SBA DSBS database using NAICS code 621511 for SD/VOSB concerns using keywords Reference Laboratory Testing , and services; none can provide immediate services as needed. The VA and SBA Rules of Two are not met. A search was conducted in the SBA DSBS database for eligible Small Business (SB) concerns using NAICS code 621511 and keywords Reference Laboratory Testing and services. There were zero (0) results. A search was conducted in the General Services Administration (GSA) e-Library for laboratory testing services. FSS Schedule 621 II was located. This schedule contains categories 621-200 through 621-212. The VAMC requires a contractor that can provide testing within all categories 621-200 to 621- 212. A review by the CO located 3 large businesses that have the capability to provide testing in all required categories: ARUP, Contract 36F79720D0079, with a current expiration date of 3/31/2025. Laboratory Corporation of America (LabCorp), Contract V797D-50532, with a current expiration date of 12/31/2026. Quest Diagnostics (Quest), Contract V797D-70090, with a current expiration date of 3/31/2027. Any Other Facts Supporting the Justification: Establishing a short-term task order with ARUP will allow the Marion VMAC and associated Marion clinics the ability to seamlessly transition to the new electronic health record (EHR) system under the Electronic Health Record Modernization (EHRM) initiative without any interruptions in patient care. When laboratory services are obtained, a new list of tests needs to be entered into the IT systems for the tests to correlate with the VAMCs and the reference laboratory contractor. It takes several months to build, test, and ensure there are no issues requesting tests. As the EHRM contractor will have to build these tests into the new EHR system, and the roll out of each site is different, it has been determined that the Marion VAMC needs to be transitioned under EHRM prior to implementing the new long-term BPA to avoid the risk of interruptions in patient care. Having the Marion VAMC transitioned under EHRM before the new long-term BPA is implemented will provide a shorter implementation period as all major laboratories will have been built into the new EHR system. Concerning the new long-term FSS VISN BPA, VA Lab Managers for the multiple VISN 10 sites are working together to develop a procurement package that encompasses the needs for each facility that includes the latest advancements in the current commercial markets. The new FSS BPA will result in a BPA with a base year plus four, one-year options with an estimated cost of approximately $24 million. It is estimated that a year will be needed for continued services while the new long-term BPA is being planned, solicited, awarded, and implemented. A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made: Market research and acquisition planning will be conducted to ensure that the new, long-term BPA is established under competitive procedures in accordance with FA R8.405-3. 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4. Rebecca K. Digitally signed by Rebecca K. McGauley 3508767 McGauley 3508767 Date: 2023.05.22 07:46:21 -04'00' Rebecca McGauley Laboratory Manager Marion VA Medical Center Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: Contracting Officer s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. Sally L. Leitch Digitally signed by Sally L. 131687 Leitch 131687 Date: 2023.05.24 10:53:58 -04'00' Sally L. Leitch Contracting Officer Network Contracting Office (NCO) 10 Services Team 3 One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition. Toni D. Waggoner- Waggoner-Boykin 393105 Digitally signed by Toni D. Boykin 393105 Date: 2023.05.24 11:38:34 -04'00' Toni Waggoner-Boykin, Branch Chief Services Team 3 Network Contracting Office (NCO) 10