Y1DA--EHRM Infrastructure Upgrades West Campus – North Chicago - Construction
Justification from the Department of Veterans Affairs.
| Solicitation number | 36C77623C0089 |
|---|---|
| Agency | Department of Veterans Affairs |
| Office | Pcac (36C776) |
| Notice type | Justification |
| Set-aside | None |
| Trade (NAICS) | Commercial and Institutional Building Construction (236220) |
| Product or service code | Y1DA |
| Posted | Oct 13, 2026 |
| Response deadline | Not stated |
Official notice and attachments
Description
Page 1 of 5 Department of MEMORANDUM Veterans Affairs Date: 2 October 2026 From: Contracting Officers Representative Subj: Contract: 36C77621C0096 EHRM Infrastructure Upgrades Construction - Captain James A. Lovell FHCC West Campus Justification and Approval Out-of-Scope Modification Other Than Full and Open Competition (FAR 6.302) Thru: Contracting Officer To: Contract File Contracting Activity: U.S. Department of Veterans Affairs, Veterans Health Administration (VHA), Program Contracting Activity Central (PCAC), 6100 Oak Tree Boulevard, Suite 490, Independence, OH 44131.
Nature and/or Description of the Action Being Processed: The contracting activity plans to award an out-of-scope bi-lateral modification to existing firm-fixed price contract number 36C77623C0089 for the subject contract in accordance with VAAR 819.7004, 819.7005 and 819.7008 as interpreted by GAO Decision RCG of North Carolina, B-419691 which states: There is nothing in section 8127 of the Veterans Benefits Act that requires a contracting officer to make award to an SDVOSB on a competitive basis, rather than on a sole-source basis, where the same objective (i.e., award to an SDVOSB) will be met in either instance The original contract award was competed among VHA Program Contracting Activity Central (PCAC) SDVOSBs and awarded in the original amount of $42,597,900.00 to Povolny Group.
Description of Supplies/Services Required to Meet the Agency s Needs: The requirement is to extend the VA.gov network from the in-campus Captain James A. Lovell FHCC West Campus to the on-site Fisher House. This effort will: Eliminate the current recurring $500 monthly fee associated with the GSU circuit network; Improve network performance by providing scalable connectivity of up to 10 Gbps or greater; and Extend the existing guest wireless network from the National Campus Hub (NCH) to the Fisher House facility.
No DOT permits are required for this work. Estimated initial costs for directional boring and fiber-optic penetration to the nearest existing fiber connection point are approximately $203,160.74. This one-time investment is expected to eliminate recurring circuit costs and improve service reliability, resulting in a positive return on investment and net savings to the Government over the life of the contract.
Statutory Authority Permitting Other than Full and Open Competition: 41 USC § 3304(a)(5), 38 U.S. Code § 8127 and VAAR 806.302-570 provides the express authority to use other than competitive procedures for sole source awards to verified veteran-owned small businesses. COs may use the non-competitive (sole source) procedures authorized by VAAR 819.7008 or 819.7009 for actions not to exceed $5,000,000.
As prescribed in VAAR 806.302-570(a), full and open competition need not be provided for when awarding a sole source contract to a verified SDVOSB in accordance with 819.7008, as authorized. Further, a determination that only one SDVOSB can meet the requirement is not required. Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The incumbent contractor holds the existing contract for EHRM infrastructure upgrades at the Captain James A. Lovell FHCC West Campus and possesses current, site-specific knowledge of the campus's existing fiber routes, telecommunications closets, and network architecture.
This familiarity was gained through performance of the underlying contract and cannot be readily replicated by a new contractor without incurring duplicative site assessment, design, and mobilization costs. Because the Fisher House network extension is directly connected to, and dependent upon, the same backbone infrastructure the incumbent is already upgrading under the base contract, performing this work under a separate, competitively awarded contract would require a new contractor to remobilize to the site, independently verify as-built conditions already documented by the incumbent, and coordinate cutover activities with the incumbent's ongoing work.
This would introduce schedule conflicts, increase the risk of service disruption to existing operational systems, and duplicate design and mobilization costs already sunk into the current effort. The incumbent is a verified SDVOSB with demonstrated technical capability to perform this work as an extension of its current scope, without disrupting infrastructure upgrades already underway or in place.
Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Because this action is proposed as a sole-source modification to an existing SDVOSB contract under the authority of VAAR 819.7008(b), a separate competitive solicitation for additional sources was not conducted for this specific increment of work. The Contracting Officer's determination to pursue a sole-source award rests on the following considerations: The base contract was itself competed among SDVOSB concerns in accordance with the rule of two, satisfying the statutory objective of directing the requirement to the SDVOSB community; Awarding the additional work as a separate, competed contract would require a new contractor to remobilize to an active construction site, duplicating site investigation and coordination work already performed by the incumbent; and The added cost and schedule risk associated with re-competing a comparatively small increment of work, and remobilizing a new contractor would outweigh any benefit gained from further competition, consistent with the GAO's recognition in B-419691 that a sole-source SDVOSB award meets the same statutory objective as a competitive one.
In accordance with VAAR 819.7008(b), the decision to make a sole-source award to a verified SDVOSB is a business decision within the discretion of the Contracting Officer. The Contracting Officer has determined that the incumbent is a qualified, responsible SDVOSB capable of
The description continues in the official notice.
About the buyer
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