Laundry Services-Northern California Health Care System

Effective Date: 11/15/24 Page 1 of 9 REVISION: 01 Acquisition ID#: 36C261-25-AP-0888 DEPARTMENT OF VETERANS AFFAIRS SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5 Acquisition Plan Action ID: 36C261-25-AP-0888 Contracting Activity: Department of Veterans Affairs, Veterans Health Administration, Regional Procurement Office West (RPOW), Network Contracting Office (NCO) 21 on behalf of Northern California Health Care System (NCHCS) Veteran Integrated Service Network (VISN) 21. Purchase Request# 612-25-2-6149-0019. Nature and/or Description of the Action Being Processed: This procurement is for Laundry Services in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2. The action is being review and approved will be a new firm fixed price sole source contract to Emerald Textile Services, a Large Business. Description of Supplies/Services Required to Meet the Agency s Needs: The Northern California Health Care System, requires pick-up and delivery laudering services for all linen and textile for all medical centers, clinics, outpatient clinics, wards, research departments and for all NCHCS needs. The period of performance will be July 01, 2025 June 30, 2026. The estimated contract value is including options is $897,283.95. Statutory Authority Permitting Restricted Competition:  FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement.  Competition is restricted on this procurement for the reason below:         ( x )  Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements         (  )  Unusual and Compelling Urgency         (  )  Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services         (  )  International Agreement         (  )  Authorized or Required by Statute         (  )  National Security         (  )  Public Interest Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Department of Veterans Affairs, VHA, Network Contracting Office (NCO) 21 intends to negotiate/award a short-term sole-source contract to Emerald Textile Services, a large business, providing satisfactory services for the NCHCS. This procurement will allow time for the restructuring of the current services to a lease requirement. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Notice of Intent 36C26125Q0417 posted to Contract Opportunities on 3/25/2025 4/02/2025, informing industry of the Govenments intent to sole sources this requirement to the incumbent, Emerald Textile Services. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Contract 36C26122D0038-36C26125N0206 awarded to Emerald Textile Services, in the amount of $494,471.19 with a period of performance of 1/01/2024 6/30/2025. In comparison to the same services this procurement is 27% less for over the same timeframe. Based on this comparison the Contracting Officer has determine the price to be fair and reasonable. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the intent to soles source short-term firm fixed award to the incumbent Emerald Textile Services, as a logical follow on, in order to allow for the planned restructuring of the requirement to a leasing agreement. Any Other Facts Supporting the Use of Other than Full and Open Competition: The Northen California Health Care System, plans to transition the current laundering procedures into a lease agreement. This short-term sole source acquisiton will allow time for this transition. 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: As indicated above the NCHCS plans to restructer the current laundering services requirement to a lease agreement. A competive solicitation is expected to be released in Fiscal Year 2026 , and should allow full and open 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 belief. _____________________________ Jose Saldana Chief, Environmental Management Service Northern California Health Care System 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. _____________________________ James Postell Contracting Officer Network Contracting Office (NCO) 21 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. _____________________________ Jason T. Hill Branch Chief, Services II Network Contracting Office (NCO) 21