N--Emergency Repair of PET/CT

DEPARTMENT OF VETERANS AFFAIRS Justification and Approval For Other Than Full and Open Competition 1. Contracting Activity: Department of Veterans Affairs, VISN 8, 548 Medical Center West Palm Beach 2. Nature and/or Description of the Action Being Processed: Siemens Med Lab Supply is the only vendor able to repair and bring to manufacturers specifications this Siemens Biograph6 PET/CT because of the proprietary software it runs. This is a patient care issue. Currently there is a backlog of patients for cancer screening on this machine. This is an urgent matter as patients will have to be sent out for an extremely expensive procedure. Med Lab Supply is the official representative for Siemens Medical in South Florida and the only vendor able to bring this room to manufacturer specifications. Estimated Cost is $100,770.00. 3. Description of Supplies/Services Required to Meet the Agency's Needs: One x-ray tube and calibration to manufacturer's specifications for the Siemens PET/CT mobile unit EE#34555. 4. Statutory Authority Permitting Other than Full and Open Competition: ( ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1; (x) (2) Unusual and Compelling Urgency per FAR 6.302-2; ( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3; ( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5; ( ) (6) National Security per FAR 6.302-6; ( ) (7) Public Interest per FAR 6.302-7; 5. Demonstration that the Contractor's Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): In accordance with FAR 6.302-2 unusual and compelling urgency, currently WPB only has one PET/CT and it is used for cancer diagnosis, this system is completely off-line resulting in a patient backlog. Prolonging the downtime of this machine is greatly affecting patient care. Current backlog is 3 weeks' worth of scheduled patients at 6 patients a day totaling (90 Patients). Current market estimate for fee basing a patient for a PET/CT scan is around $3000 per patient scan. The resulting cost would be at least 60x$3000=$270,000. Delay in award would result in serious financial injury to the Government. Offers were not requested from potential sources as is practical as there is only one responsible source and no other supplies or services will satisfy agency requirements. Siemens Med Lab Supply is the OEM of this equipment. The component to be replaced is a part of a larger system that utilizes proprietary software to calibrate. Med Lab Supply is the official representative for Siemens Medical in South Florida; which guarantees compatible parts, and ensures the warranty stays valid and compliant with FDA approval. 6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Siemens Med Lab Supply is the OEM of this equipment, component to be replaced is a part of a larger system that utilizes proprietary software to calibrate. No other sources are available at this time. 7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: This amount was determined to be fair and reasonable based on a comparison to a prior order of similar and like items which were considered to be fair and reasonable by another Contracting Officer: Order was awarded in July 2009 this item was previously on schedule through NAC. Prices were also compared to an order of similar and like items that was purchased on October 2010. Further price reasonableness was determined by using search engine medical equipment market value calculator which found the Siemens PET/CT tube average cost at $99,000.00. 8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted Searched for other authorized (Siemens) vendors for this repair. None found. 9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Manufacturer's specifications are needed, proprietary software calibration is mandatory and no other vendor is authorized by Siemens. 10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None Found 11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required: Will continue to look for a vendor who can repair these camera to manufacturers specifications.