UNITED PARCEL SERVICE CO.

DEPARTMENT OF VETERANS AFFAIRS Justification and Approval For Exception to Fair Opportunity Memo Acquisition Plan Action ID:

36C245-26-AP-0329 Contracting Activity: Department of Veterans Affairs, VISN 5, Washington DC VA Medical Center located at 50 Irving Street, NW Washington DC 20422. 2237 for this package: 688-26-1-050-0002.

Description of Action: The proposed sole source task order against Indefinite Delivery Contract HTC71123DC025 is for a one-year firm-fixed price (FFP) effort for mail and package delivery by United Parcel Service, 316 Pennsylvania Ave Suite 300, Washington DC 20003-1173.

Description of Supplies or Services: Daily pickup of packages from the outpatient pharmacy, excluding weekends and federal holidays. Delivery as overnight, ground, next-day, or other time frames as designated by the shipping label. The service must be compatible with existing automation, Script-Pro, and UPS WorldShip software. The total estimated value of the proposed action is $370,000.00.

Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section 41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR)

16.505(b)(2)(i): ()

FAR 16.505(b)(2)(i)(A): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays. (X)

FAR 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized. ()

FAR 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order. ()

FAR 16.505(b)(2)(i)(D): It is necessary to place an order to satisfy a minimum guarantee. ()

FAR 16.505(b)(2)(i)(E): For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source . The statutory authority permitting an exception to fair opportunity for this action is 38 U.S.C. 8127(c), known as the Veterans First Contracting Program which provides the authority to directly contract with a Service-Disabled Veteran-Owned Small Business (SDVOSB) or a Veteran-Owned Small Business (VOSB).

Rationale Supporting Use of Authority Cited Above: The service must be compatible with existing automation, Script-Pro, and UPS WorldShip software. If this is a Brand Name Justification: N/A.

Efforts to Obtain Competition: United Parcel Service Co. (UPS), Federal Express Corp (FedEx) and Polar Air Cargo Worldwide Inc. were awarded four-year base Indefinite Delivery/Indefinite Quantity, fixed-price Next Generation Delivery Service-2 (NGDS-2) contract under solicitation HTC711-22-R-C003. Polar Air Cargo Worldwide Inc. is for International only. The task order could be competed between UPS and FedEx, however, for this task order, service must be compatible with existing automation, Script-Pro, and UPS WorldShip software. In accordance with 16.505(b)(2)(i)(B), UPS is the only one is able to perform the service.

8. Actions to Increase Competition: The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

8. Market Research: Both Federal Express and UPS both hold National mandatory contracts (NGDS). However, FedEx would not be able to meet the needs of this facility listed above because it needs to be compatible with existing automation, Script-Pro, and UPS WorldShip software.

9. Other Facts:

N/A 10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Ivan Cephas Date Pharmacy Service Chief Washington DC VAMC 11. Determination that Anticipated Cost is Fair and Reasonable: A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable: This was competed under solicitation HTC711-22-R-C003. 12. Contracting Officer's Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Dan Feng Lu Contracting Officer / NCO5 13. Approvals in accordance with VHAPG Part 816.505 Indefinite Delivery Contracts: Ordering. 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.

Evelyn Mount Branch Chief / NCO5