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VHAPM Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT VHAPM Part 808.405-6 Limiting Sources Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020 Page 1 of 3 LIMITED SOURCES JUSTIFICATION ORDER >SAT FAR PART 8.405-6 Acquisition Plan Action ID: 36C260-20-AP-2747 Contracting Activity: Department of Veterans Affairs, Regional Procurement Office West, Network Contracting Office 20 on behalf of Portland VA Medical Center. Justification for Other Than Full and Open Competition. 2237: 648-20-3-105-0054. Description of Action: This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). This is a proposed sole source task order against VA NAC/DOD HTME Imaging IDIQ contract VA797H17D0022 for a base plus one option year firm-fixed price order for full-service protection plan for Portland VA Medical Center Philips IQON Spectral CT. . Order against: FSS Contract Number: VA797H-17-D-0022 Name of Proposed Contractor: Philips Medical Systems North America Street Address: 22100 Bothell Everett Hwy City, State, Zip: Bothell, WA 98021-8431 Phone: 541-968-1747 Description of Supplies or Services: The estimated value of the proposed action is $ 611,119.88 This requirement is to provide preventative maintenance, unscheduled services/repairs, software and hardware technical support for Portland VA Medical Center s Philips IQON Spectral CT Imaging equipment. Specific elements include: Priority scheduling for service calls and access to spare parts inventory. Priority Remote Service response (requires connection to Philips Remote Services network). All labor and travel during standard hours of coverage - Mon-Fri 8am - 9pm, excluding holidays. One-hour initial response with four-hour on-site response. All spare and strategic parts that fail during normal use. (If Applicable: X-Ray Tubes, Image Intensifiers, Detectors, PMT, MMP Package, Surface Coil) Parts Delivery Earliest Next Day Lifecycle Catalogue discount of 20% excluding UPS. Equipment Planned Maintenance services per Philips manufacturer specifications performed during standard hours of coverage. Proprietary operating system software enhancements without hardware changes (excludes software upgrades). Unlimited Technical Services (24x7) & Clinical Applications Telephone Support (Mon-Fri 8am - 9pm) Remote Service Support (includes Remote Desktop). Remote Proactive Monitoring (requires connection to Philips Remote Services network). PSI, Customer Loyalty Meeting (Annually). The cost is: Base - $207,039.96; OY 1 - $207,039.96; OY 2 - $207,039.96. Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor s unique qualifications to provide the required supply or service. FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized; Philips Healthcare is the only source for this service. No other vendor can perform maintenance/repairs on Philips imaging equipment. Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination: Portland VA Medical Center owns the CT, and the technology involved to maintain and support the systems must be performed by Philips Healthcare. The hardware configuration, software utilized, and components are a defined 510K FDA medical device. The entire system is proprietary to Philips. Other major OEMS (GE, Toshiba, Siemens, etc.) do not have access to this system due to its proprietary nature. There are no alternative sources capable of proving the specific services identified in Section 3 above. The VHA NAC has awarded contracts to each of the major imaging equipment OEMs, to include the required preventative maintenance and repair services. Acq History: 36C25020F0733 Awarded 05-01-2020 - $433,999.44. For a similar Philips imaging machine but for multiple pieces of equipment. The individual price with tube coverage is $192,468.00 which compares to the $207,039.96 for this order. The NAC competed the overarching FSS contract, therefore competition and subsequent award presumes best value at a fair and reasonable cost. Lastly, IAW FAR 8.405-4 Price Reductions, additional discounts were sought, but none were provided. As a result of the information listed above, the Contracting Officer has determined that the anticipated cost will be fair and reasonable and represents the overall best value to the Government. Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted. Since this service is proprietary to the manufacturer, market research was limited to verifying the proprietary nature and price reasonableness of the requirement. Any Other Facts Supporting the Justification: No additional facts are needed to support this decision. A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made: The CO will continue to monitor for approved third party vendors and to inquire Philips has entered into a mentor protégé agreement with any small business. 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4. GORDON P Digitally signed by GORDON P HOSODA 583943 Gordon Hosoda HOSODA 583943 Date: 2020.05.12 12:57:46 -07'00' Chief, Biomedical Engineering VA Portland Heath Care System Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: This part if filled out by Contracting Staff as part of the Justification Contracting Officer s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. Robert W. Hamilton 902204 Robert Hamilton Contracting Officer Digitally signed by Robert W. Hamilton 902204 Date: 2020.05.12 12:53:43 -07'00' Network Contracting Office 20 (NCO 20) One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition. Michael J. Allred 1779380 Mike Allred Chief, Supply Branch II Digitally signed by Michael J. Allred 1779380 Date: 2020.05.12 13:05:03 -07'00' Network Contracting Office 20 (NCO 20)