§ 807.304-72 - Requirement for second commercial sources for A-76 solicitations.

(a) Pub. L. 100-322 established a requirement that for A-76 cost comparisons conducted at health-care facilities, a contract can only be awarded if the A-76 solicitation results in responsive bids/offers from at least “two responsible, financially autonomous bidders (offerors).” Consequently, A-76 solicitations for functions at VA health-care facilities will contain the provision specified in 852.207-71.

(b) The general policy of VA, except as identified in paragraph (a) of this section, is to proceed with A-76 cost comparison if one or more responsive and responsible bidder/offerors respond to an A-76 solicitation. However, if justified and approved in accordance with this section, an A-76 solicitation may require that two responsive and responsible bidders/offerors respond to the solicitation and will use the appropriate provision specified in 852.207-71. If the requirement for two bidders is approved and used, the cost comparison process will be terminated and the solicitation cancelled unless two bids/offers are received.

(c) The justification for use of a second commercial source requirement shall address each of the following criteria:

(1) Criticality of the activity under study to the mission of the facility and the degree of adverse impact on facility from disruption in services.

(2) Amount of resources needed (facility and capital investment, time frame, and costs attributed to obtaining adequate staff) to convert the service back to in-house operation.

(3) The availability and feasibility of obtaining the service from other VA facilities or other Government facilities.

(4) Evaluation of anticipated bidder's/offeror's essential qualification characteristics.

(5) Availability of other commercial sources in close geographic proximity to the facility.

(d) Requests to use the provisions specified in 852.207-71 will be prepared by the director (or head of the requesting element for activities consisting of less than 10 FTEE) of the facility in which the commercial activity presently exists. The request will, at a minimum, address the criteria in paragraph (b) of this section and will be forwarded for approval as follows:

(1) For A-76 solicitations comparing in-house activities consisting of less than 10 FTEE, approval is delegated to the facility director.

(2) For A-76 solicitations comparing in-house activities consisting of 10 FTEE or more, approval will be made by the respective administration head or staff office director, or their designee.

(e) A copy of each approval granted pursuant to paragraphs (c) and (d) of this section will be forwarded to Director, Office of Program Analysis and Evaluation (07), through the respective adminisration head or staff office director, within five working days of such approval.