Promote Competition among SDVOSB and VOSB firms

7) To promote competition among SDVOSB and VOSB firms:

a) Contracting officers shall obtain competition to the maximum extent practicable when contracting with SDVOSBs and VOSBs. While contracting officers may use other than full and open competition when awarding to SDVOSB and VOSB firms under 38 U.S.C. 8127(c), the focus should be on competing requirements among SDVOSBs and VOSBs to achieve a fair and reasonable price. For all requirements in excess of the simplified acquisition threshold, VA contracting officers shall consider using the competitive set-aside procedures in VAAR 819.7005 or 819.7006, as appropriate, if the market research required by VAAR Part 810 shows a reasonable expectation that offers will be received from two or more eligible firms and award will be made at a fair and reasonable price that offers the best value to the United States. Partial set-asides should be considered where appropriate.

b) Contracting officers may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000, as appropriate, subject to the review and approval of the designated procurement official outlined in FAR 6.304. The justification must comply with the format requirements at FAR 6.303-2. Specific attention should be given to the requirements outlined in FAR 6.303-2 subparagraphs (b)(5), (b)(6), (b)(7), (b)(8), (b)(10) and (b)(11) to maximize efforts to increase competition. The justification shall include: Page 11 Subj: VA PPM 2016-05, Implementation of the Veterans First Contracting Program as a Result of the U.S. Supreme Court Decision

(i) the number of SDVOSBs and VOSBs reviewed;

(ii) documentation of the basis of price reasonableness;

(iii) an explanation for finding the non-competitive procurement is in the best interest of the government; and

(iv) an explanation for selection of the contractor, which will allow the approving official to make a reasonable determination regarding whether a non-competitive procurement is appropriate.

b. Compliance with Other Statutory Mandates VA has a continuing requirement to comply with all statutory mandates. When a contracting officer is required by law to obtain goods and services from a specific source, the contracting officer shall carry out that mandate. These include supplies and services listed on the Procurement List issued by the Committee for Purchase from People Who Are Blind or Severely Disabled. Follow the procedures at FAR 8.705 for procuring listed items from the designated central non-profit agencies or the affiliated AbilityOne non-profits. To add new requirements to the Procurement List contracting officers shall comply with the requirements of Information Letter 001AL-10- 06, “New Guidelines for Placing Items and Services on the AbilityOne Procurement List”. Contracting officers should refer to VAAR 808.603 for information on acquisitions from Federal Prison Industries (FPI).

9. Questions or Concerns: Please direct questions regarding this PPM to the Office of Acquisition and Logistics (003A), Procurement Policy and Warrant Management Service (003A2A), via email at VA.Procurement.Policy@va.gov or (202) 632-5288. /s/ Sheila P. Darrell Attachments 1. Class Deviation—VFCP 2016, dated July 25, 2016 2. Decision Tree Tool Distribution: Under Secretaries for Health, Benefits, and Memorial Affairs; Chief Facilities Management Officer, Office of Facilities Management; Head Contracting Activities, Directors, VHA Service Area Offices; Directors and Network Contract Managers, Veterans Integrated Service Networks; Directors, VA Medical Center Activities, Domiciliary, Outpatient Clinics, Medical and Regional Office Centers, and Regional Offices; Directors, Denver Acquisition and Logistics Center, Corporate Franchise Datacenter, Records Management Center, VBA Benefits Delivery Centers, and VA Health Administration Center; and the Executive Director and Chief Operating Officer, VA National Acquisition Center, National Cemetery Administration