Loren Data's SAM Daily™

FBO DAILY ISSUE OF JUNE 24, 2010 FBO #3134
AWARD

68 -- Medical Grade Liquid Bulk Oxygen

Notice Date

6/22/2010
 

Notice Type

Award Notice
 

NAICS

325120 — Industrial Gas Manufacturing
 

Contracting Office

Department of Veterans Affairs;VA Boston Healthcare System;Contracting Officer (90C);940 Belmont Street;Brockton MA 02301
 

ZIP Code

02301
 

Solicitation Number

VA24110RQ0341
 

Archive Date

6/12/2010
 

Point of Contact

Cheri K. Wicks
 

Small Business Set-Aside

N/A
 

Award Number

VA241-P-1877
 

Award Date

5/28/2010
 

Awardee

AIR PRODUCTS AND CHEMICALS, INC.;7201 HAMILTON BLVD;ALLENTOWN;PA;181951526
 

Award Amount

$34,512.16
 

Description

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION Identification Number (purchase request/solicitation number) VA-241-10-RQ-0341 1.Identification of the agency, contracting activity, and specific identification of the document as a justification for other than full and open competition. The U. S. Department of Veterans Affairs, Veterans Health Administration, VISN 1 Consolidated Contracting Activity proposes to enter into a contract on a basis of other than full and open competition. 2.The nature and/or description of the action being approved, i.e., sole source, limited competition, establishment of a new source, etc. The current provider of this commodity and service is Air Products and Chemicals, Inc under contract V797P-9151. This action is a new contract for the continued acquisition of medical grade liquid bulk oxygen. This is a sole source action to the incumbent. A firm-fixed price contract is contemplated. The period of performance is anticipated to be a base of six months with two six-month option periods. An unusual and compelling urgency has occurred due to the expiration of a National Acquisition Center Contract (NAC) on May 31, 2010; no extensions are possible. 3.A description of the supplies or services required to meet the agency's needs. This requirement is to provide the three locations of the VA Boston Healthcare System (VABHS) with medical-grade liquid bulk oxygen as well as the tank rental and back-up systems. The anticipated cost is approximately $35,000 for the base period. The acquisition of these supplies and services will allow the hospitals to continue to treat Veteran patients without interruption. 4.The statutory authority permitting other than full and open competition. The statutory authority permitting other than full and open competition is 41 U.S.C.253(c)(1) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-2 entitled, "Unusual and Compelling Urgency." 5.A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority. Provide an explanation of the contractor's unique qualifications or the nature of the acquisition that requires the use of the statutory authority cited. This is the most important part of the JOFOC because it demonstrates that the prospective contractor has unique qualifications and/or specialized capabilities or expertise that is not prevalent in the marketplace. Also, provide an explanation of what unique qualifications and special capabilities the contractor possesses. Unique qualifications and expertise is defined as knowledge that is currently very limited within the marketplace; or there is only one company or individual that has the expertise to provide the product or perform the required services. Contracting without providing for full and open competition is not justified based on the following circumstances: (1) lack of advance planning by the requiring activity, or (2) issues concerning funding availability, and/or (3) the expiration of funds. In those instances where a compelling and unusual urgency exception is cited, provide a discussion of the nature of the urgency. Provide supporting rationale and a concise description of the extent, nature, and impact of the potential harm to the Government. The use of the unusual and compelling urgency alone does not justify a sole source procurement. Agencies must request offers from as many potential sources as is practicable under the circumstances. Describe efforts made to achieve these ends. Air Products and Chemicals, Inc. is uniquely qualified to provide these services to VABHS based upon the following: a. They have been providing this supply and service for the previous five years under the expiring NAC contract. The Contracting Officer's Technical Representative has certified the continuing need for this supply and service. The main holding tanks and back-up tanks are owned by the vendor and VA pays a rental fee for these tanks; maintenance of the tanks is included. Past performance has been acceptable. b. They have already installed the tanks and the back-up system at each of the locations; no demolition, new construction, and installation of tanks is necessary. Under the previous solicitation (issued 5 years ago) a 60-day ramp-up period was allow to the installation of vendor-owned tanks. There are approximately 100-150 patients on oxygen per day. Any disruption in the provision of oxygen would have a negative impact on the quality and continuum of care. The extent and nature of the potential harm to the government if the incumbent contractor is not used would be disruption of service, lack of supplies for medically necessary treatment, poor quality of care, and potentially, death. 6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable. Include whether or not a FedBizOps announcement was made and what response, if any, was received, or include the exception under FAR 5.202 if not synopsizing. Describe whether any additional or similar requirements are anticipated in the future (this may not be included as an addendum, but must be in the body of the JOFOC). A combined synopsis and solicitation was posted on FedBizOpps on April 30, 2010. The incumbent and another supplier are the two vendor responses received to date. This notification provided a description of the type of contract and estimated quantities. The Program Manager (PM) and contracting office to shall ensure that offerors are solicited from as many potential sources as possible for the award of the long-term (five years), VISN wide contract that will be in process as this emergency requirement is met. 7. The anticipated dollar value of the proposed acquisition, including options if applicable, and a determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable. The Contracting Officer determines that the anticipated price(s) will be fair and reasonable based on comparison of prices paid under previously awarded contracts and established catalog and price lists. The anticipated price is approximately $90,000 for the base and first option period (12 total months of service). In the unlikely event the second option period is exercised (an additional six months) the price could be approximately $144,000. 8. A description of the market research conducted and the results. Market research has been conducted. Medical-grade liquid bulk oxygen is a commercial item within the meaning provided at FAR 2.101, Definitions. Namely, this commodity is customarily used by, and sold to, the general public in hospitals and medical settings. A search on VetBiz using the NAICS code of 325120 resulted in four possible sources: Eagle Medical Corp, LLC, Advanced Specialty Gases, Care First Medical Inc. and Goldline USA. There was one possible GSA vendor: Matheson Tri-Gas, Inc. The NAC had identified at least 16 sources under IFB -797-NC-04-0026 and made 16 separate awards to these vendors for use nationally. The contract numbers were V797P-9149 through V797P-9164 consecutively. The current provider of this commodity and service is Air Products and Chemicals, Inc under contract V797P-9151. 9. Any other facts supporting the use of other than full and open competition. In December of 2009, VISN 1 Consolidated Contracting Activity was advised that the NAC contract for medical-grade liquid bulk oxygen was expiring on May 31, 2010. Contact was made with the NAC contacting officer to verify that an extension was not possible. VISN 1 was advised to have technical experts review the technical data, specifications, and other elements of the statement of work (SOW). This individual or group could not be identified in sufficient time to review and revise the SOW for inclusion in a competitive solicitation. This requirement cannot be modified to enhance competition since there can be no interruption in service; continued service by the incumbent is necessary to avoid a possible 60-day ramp-up time for the incumbent's tanks to be removed and a new vendor to install their own tanks. The VABHS, Boston Campus alone has a daily need for the equivalent of approximately 140 individual cylinders of medical-grade liquid bulk oxygen. This daily need as well as the back-up quantity is provided by the three separate bulk oxygen tanks located at Buildings 3, 4 and 8. This is the requirement to care for and provide treatment for 20-25 patients per day. The three separate bulk oxygen tanks support clinics, labs, long-term care, acute care, and end of life care. The single bulk tank at West Roxbury medical center services the Ventilator Patient and Acute Care Wards. The single bulk tank at Jamaica Plain provides oxygen for the daily specialty clinics as well as the day surgery units. The volume of oxygen required to operate each of the three VAMC's could not be met by purchase and delivery of individual cylinders. The quantity is too great, hence the need for bulk supplies and a back-up system; oxygen is supplied via pipes and gas lines to individual patient beds/rooms. Additionally, there is a cost avoidance factor in acquiring bulk oxygen; there is insufficient staff to transport and change-out individual tanks. Additional respiratory therapist would have to be recruited, hired, and trained if bulk oxygen were not available. Wheeling individual cylinders around also presents a safety hazard that is avoided with a bulk supply system. Additionally, maintaining a bulk oxygen supply and a back-up system is a Joint Commission requirement and is necessary for facility emergency plans. 10. A listing of any sources that expressed a written interest in the acquisition. A combined synopsis solicitation was issued in the FBO on April 30, 2010 stating that this was a sole source acquisition but interested parties could email the contracting officer. In addition to the incumbent, one additional party expressed their interest. 11. A statement of any actions the agency may take to remove or overcome any barriers to competition, if subsequent acquisitions are anticipated. A full and open competition will be initiated after the emergency, interim contract is awarded and the technical experts complete their review and revision of the SOW. All possible actions will be taken to remove or overcome any barriers to competition before initiating any subsequent acquisitions for the supplies, or services required. The date when the competitive procurement will occur is estimated to be in August of 2010. The follow-on long term contract will include a ramp-up time of 60 days to allow for a new vendor to install their own tanks. Certification The information contained in this justification for other than full and open competition is certified accurate and complete to the best of my knowledge and belief. Acquisition Initiator: I certify that the facts and representations under my cognizance, which are included in this justification and which form a basis for this justification, are complete and accurate. ______________________________________ __________ Signature Date Bernard F. Kelley, Chief, Respiratory Therapy Contracting Officer: I certify that this justification is accurate and complete to the best of my knowledge and belief. Since this effort exceeds $100K, but does not exceed $550K, this certification serves as APPROVAL. ______________________________________ __________ Signature Date Cheri K. Wicks Contracting Officer
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/spg/VA/BoVAMC/VAMCCO80220/Awards/VA241-P-1877.html)
 

Record

SN02184362-W 20100624/100622235147-da16f4aa361fba7aed188e714bfbb10d (fbodaily.com)
 

Source

FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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