Description
VHAPM Part 816.5 Indefinite-Delivery Contracts Attachment 1: Request for Exception to Fair Opportunity Memo Format VHAPM Part 816.5 Indefinite-Delivery Contracts Original Date: 08/30/2017 Date: 03/11/2019 Rev 02 Page 1 of 3 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval For Exception to Fair Opportunity Memo Acquisition Plan Action ID: 36C260-20-AP-4626 Contracting Activity: Department of Veterans Affairs, Regional Procurement Office West, Network Contracting Office 20 on behalf of Seattle VA Medical Center. Justification for Other Than Full and Open Competition. 2237: 663-21-1-213-0004. Description of Action: The proposed sole source, base plus four option year, task order against Defense Logistics Agency (DLA) IDIQ High Tech Medical Equipment (HTME) contract SPE2D1-17-D- 0023 is for maintenance of the Siemens equipment that need inspection, support, repair and software updates. Description of Supplies or Services: The proposed action shall provide maintenance and repair services, parts and labor, system updates and technical telephone support for the Siemens Intevo, Artis Zee, and AXIOM imaging equipment: Estimated cost: Base - $618,340.54; $3,423,401.32 w/all options (52.217-8/9) Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section 41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) Subpart 16.505 Subpart 16.505(b)(2)(i): (X) FAR Subpart 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized. Rationale Supporting Use of Authority Cited Above: This is essential for continued operability of all identified equipment during this critical time. The software, updates, diagnosis and repair services are proprietary to Siemens. This service is provided by Siemens under DLA IDIQ Contract SPE2D1-17- D-0023. Furthermore, the Contractor has supplied a notice of proprietary rights for the software, licensing, and parts for the equipment as the original equipment manufacturer (OEM). This prevents other possible contractors from accessing the diagnostic software, possessing necessary tooling and providing OEM parts to the Government. Efforts to Obtain Competition: Market research was conducted, details of which are in the market research section of this document. This effort did not yield any additional sources that can meet the Government s requirements. There is no competition anticipated for this acquisition. In accordance with 16.505(a)(4)(iii)(B), the justification will be made publicly available. Actions to Increase Competition: In situations involving complex medical equipment, it is difficult to remove barriers to competition because the OEM is the only qualified company capable to provide the repair and maintenance of its own highly specialized medical equipment. This is especially true where proprietary software, specific diagnostics tools, and specialized electronics are used to maintain the HTME equipment in accordance with OEM specifications. Market Research: Market research was conducted to include searches of GSA, VetBiz, SBA and the VA NAC High Tech Medical Equipment website to determine if there were any other vendors capable of providing service and/or maintenance on the Siemens Imaging equipment. This effort identified this requirement as a commercial service available through a Joint DLA and VA IDIQ Contract SPE2D1-17-D-0023. Furthermore, a review of all NAC HTME contract holders did not yield additional sources that can meet the Governments requirement. In addition, Siemens Medical Solutions do not have authorized agents and retains full proprietary rights to the service which is common within the industry. There is no anticipated competition for this acquisition and the justification will be made publicly available. Other Facts: There are no other facts necessary to support this justification. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief. Madison M. Digitally signed by Madison M. Pallante 1571906 Pallante 1571906 Date: 2020.09.16 13:27:42 -07'00' Madison Pallante Biomedical Engineer Seattle VA Medical Center Determination that Anticipated Cost is Fair and Reasonable: The price is determined to be fair and reasonable based on Siemens service price book offering special negotiated terms to include up to a 49% discount. In addition, when compared to the following historical purchase, the current pricing is only 4% higher: 36C26019F0486 Awarded: 07/29/2019 - $2,359.880.76 (Base plus 4 pricing). For similar equipment/software preventive maintenance and repair program. Contracting Officer's Certification: I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. Robert W. Hamilton Digitally signed by Robert W. 902204 Hamilton 902204 Date: 2020.09.16 13:47:04 -07'00' Robert Hamilton Contracting Officer Network Contracting Office 20 (NCO 20) RPO West JA Tracker# 2020-09-15T09:09:30 Approvals in accordance with VHAPM Part 816.505 Indefinite Delivery Contracts: Ordering. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition. Stephen D. Allen Digitally signed by Stephen D. Allen 1565216 1565216 Date: 2020.09.18 15:30:22 -07'00' S. Dale Allen Director of Contracting Network Contracting Office 20 (NCO 20) HIGHER LEVEL APPROVAL (Required for orders over $700,000): VHA RPO WEST HCA REVIEW AND APPROVAL (over $700,000 to $13.5 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for other than full and open competition. Jordan, Curtis M. Digitally signed by Jordan, Curtis M. (RPO) (RPO) Date: 2020.09.23 12:26:11 -06'00' Curtis M. Jordan Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA)