Description
DEPARTMENT OF VETERANS AFFAIRS Justification and Approval For Other Than Full and Open Competition 1. Contracting Activity: Louis A. Johnson VA Healthcare System, Clarksburg, WV 2. Nature and/or Description of the Action Being Processed: Procurement of a service and software support with Nuance Communications for the Nuance Power Scribe Voice Recognition System. The proposed contract will be for six (6) months with one (1) option period and one (1) extension of six (6) months. 3. Description of Supplies/Services Required to Meet the Agency's Needs: The Contractor will provide software support, upgrades and updates for the Power Scribe Voice Recognition System. In addition, the Contractor will provide troubleshooting, diagnostic and repair services both onsite and remotely. This system is used by radiologists and radiology residents for dictation of reports. This system is a critical component in the recording of patient health information. 4. Statutory Authority Permitting Other than Full and Open Competition: Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1 5. Demonstration that the Contractor's Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Nuance is the manufacturer of the Power Scribe system and does not recognize or certify third-party support. The software to be covered by this contract is proprietary to Nuance. Nuance does not recognize or certify third-party support. Therefore, Nuance is the only responsible source to satisfy agency requirements. 6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The barrier to competition is Nuance's dominant position in the North American voice recognition market. As this article http://www.nytimes.com/2012/04/01/technology/nuance-communications-wants-a-world-of-voice-recognition.html?pagewanted=all&_r=0 states, Nuance has successfully acquired more than 40 companies in the field. Overcoming barriers to competition would require re-procurement of an entire voice recognition system. Therefore, Nuance is the sole, responsible source with no alternatives that can satisfy agency requirements. 7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: A similar contract was awarded by the VA Medical Center in Walla Walla, Washington on March 31, 2010, to Nuance Communications. The contract award number was VA687-C05107. The contracted price for this procurement was $45,000 per year for the life of the contract. This is comparable with the quoted price for this procurement of $28,763.78 for a six month term. 8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was performed by searching GSA Advantage and Google. It was quickly determined that no alternatives currently exist due to the proprietary nature of the Nuance Power Scribe software. No existing contracts that include software support for the Powerscribe system were identified. Also, a search of the FBO website was conducted. There were many notices of VHA VISNs and other agencies purchasing this maintenance and they were all issued under the authority of FAR Part 6.302-1. 9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Only alternative to Nuance Power Scribe is to replace the existing dictation system with competing company raising the initial purchase cost significantly, however, as this technology is data driven all systems are proprietary in nature and follow on support and license would result in sole source procurement. 10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None. 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: No actions are planned. 12. 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 and belief. April 24, 2013 Yvonne Freedman Date Administrative Officer, Diagnostic Service Louis A. Johnson VA Healthcare System 13. Approvals in accordance with FAR 6.304 a. Contracting Officer's Certification: (required) I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. _____________________________ ________________________ Name Date Title Facility b. NCM/PCM: I certify that the foregoing justification meets the requirements for other than full and open competition. _____________________________ ________________________ Name Date Title VISN/PCA X