0025 - LSJ - Swetel.pdf

Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPG Part 808.405-6 Limiting Sources Page 1 of 6 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C250-25-AP-1984

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C250-25-AP-1984

(1) Contracting Activity: Department of Veterans Affairs, VISN 10 Contracting Office, Dayton VA

Medical Center, 4200 W. Third Street, Dayton, Ohio 45428.

• Using Activity: Dayton VA Medical Center – Engineering

• Contracting Activity: Network Contract Office (NCO 10)

• Funding Document ID: 552-25-3-6104-0025

(2) 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 follow-on contract to replace the current that expires April 30, 2025. This will be a firm fixed price contract with a first-year support, maintenance and calibration agreement that will include supplying and installing all new equipment to the newest version (GEN 4). It will also include 4 option years for support, maintenance, and calibration.

The estimated total value of the proposed action is $494,975.25 for the base year with 4 option years available. This amount covers both the supply buy and the maintenance and support agreement.

Order against: FSS Contract Number: GS-07F-003IT

Name of Proposed Contractor: EOI Inc dba Medical Resources

Street Address: 8377 Green Meadows Dr N.

City, State, Zip: Lewis Center, OH, 43035-9506

Phone: 740-201-3300

(3) Description of Supplies or Services:

The estimated value of the proposed action is $494,975.25.

Supplies purchased will upgrade hardware to the new GEN 4 equipment and are detailed in the first table below. Services will encompass support and maintenance for the entire system as well as recalibration probe exchange service, detailed in the second table below.

https://www.acquisition.gov/far/part-8#FAR_8_405_6 http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 https://www.gpo.gov/fdsys/pkg/USCODE-2011-title40/pdf/USCODE-2011-title40-subtitleI-chap5-subchapI-sec501.pdf

VHAPG Part 808.405-6 Limiting Sources Page 2 of 6 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C250-25-AP-1984

First Year equipment and maintenance costs:

Item# Description Qty Price Total

TEMP105 Ether Base

$1,089.00 $20,691.00

TEMP101 Repeater for Temperature Transmitter

$742.50 $45,292.50

TEMP121 Sensor with Snap Calibration Probe (-40 to 50 degrees C)

$445.50 $83,754.00

TEMP124 Sensor with 4" Metal Probe

$519.75 $37,941.75

TEMP127 Dual Temp Probe Sensor

$705.50 $2,116.50

TEMP135 Sensor with Thermocouple Probe

$519.75 $5,197.50

TEMP140

Semi-Annual Recalibration Service for External Temperature Only Sensors

$45.00 $2,160.00

TEMP125 Sensor with a Temperature and Humidity Probe

$594.00 $42,768.00

TEMP141 Semi-Annual Recalibration Service for Temperature/Humidity Sensors

$85.00 $595.00

TEMP128 Differential Air Pressure Sensor

$742.50 $1,485.00

TEMP129 CO2 Sensor

$3,852.00 $3,852.00

TEMP145 Recalibration Documentation Service – Import certs to ViewPoint

$4.00 $1,616.00

TEMP125 Sensor with a Temperature and Humidity Probe (Med Rooms)

$594.00 $36,828.00

TEMPTRAIN Recalibration Labor Services including (2) site visits to each location

$807.50 $9,690.00

$ 293,987.25

Option Year each (2-4) annual support, maintenance, and recalibration agreement:

Item# Description Qty Price Total

TEMP150

Annual Support and Maintenance agreement - Covers entire system (priced based on number of hardware components in use)

$60.00 $27,420.00

TEMP140

Annual Recalibration Service for External Temperature Only

$45.00 $2,655.00

TEMP140

Semi-Annual Recalibration Service for External Temperature Only

$45.00 $4,320.00

TEMP141 Annual Recalibration Service for Temperature/Humidity Sensors

$85.00 $85.00

TEMP141

Semi-Annual Recalibration Service for Temperature/Humidity

$85.00 $6,460.00

TEMP142 Recalibration for CO2 Sensors

$300.00 $300.00

TEMP145 Recalibration Documentation Service – Import certs to ViewPoint

$4.00 $932.00

TEMPTRAIN

Recalibration Labor Services including (2) site visits to each location

$807.50 $8,075.00

$ 50,247.00 per OY

VHAPG Part 808.405-6 Limiting Sources Page 3 of 6 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C250-25-AP-1984

(4) 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)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

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;

The CheckPoint/ViewPoint temperature monitoring system is a proprietary solution manufactured solely by Mesa Labs. EOI Inc dba Medical Resources (EOI Inc) is the exclusive distributor for this system and its components to the Veterans Affairs Healthcare facilities. The Dayton VAMC currently utilizes this system for critical temperature monitoring of refrigerators and freezers storing patient supplements, medications, and laboratory specimens.

Awarding this contract to any other firm would:

• Compromise system integrity as the CheckPoint system is the first wireless monitoring solution accepted by FDA and USDA Laboratories, ensuring compliance with regulatory requirements.

• Disrupt continuity: the existing system is integrated with the facility’s infrastructure and staff workflows so changing providers would require significant retraining and potential downtime, potentially impacting patient care.

• Void warranties: current equipment and subsequent upgraded equipment purchased on this contract would be invalidated if serviced by unauthorized third parties.

• Incur additional cost as replacing the entire system would result in substantial expenses for new hardware, software, and installation.

• Risk patient safety as any interruption in continuous temperature monitoring could jeopardize the quality and safety of stored medical items.

Therefore, EOI Inc. is the only source capable of providing the required ongoing support and maintenance for the CheckPoint Temperature Monitoring System at the Dayton VAMC without causing significant disruption, additional costs, and potential risks to patient care.

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

VHAPG Part 808.405-6 Limiting Sources Page 4 of 6 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C250-25-AP-1984

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) 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:

This order represents the best value to the government consistent with FAR 8.404(d) because the CheckPoint Wireless Temperature Monitoring System is a proprietary solution that offers unique benefits critical for the VA Medical Center's operations. As the first wireless system accepted by FDA and USDA Laboratories, it ensures regulatory compliance and patient safety through automated monitoring and immediate alerts. The system's seamless integration with existing infrastructure, coupled with its comprehensive features for temperature monitoring across various medical storage units, maximizes staff productivity and minimizes product loss.

Additionally, the system's compatibility with future upgrades and its security features compliant with FDA CFR 21 Part 11 provide long-term value and protect the government's investment. These factors, combined with the exclusive distribution arrangement with EOI Inc, make this order the most advantageous to the government, considering price and non-price factors such as quality, reliability, and performance.

There is an active MAS contract with the GSA, GS-07F-003IT, which contracting intends to utilize for this award due to it already being determined to be Fair and Reasonable and the best value to the government.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

• A VetCert query returned a mix of 668 SDVOSB and VOSB concerns.

o None were EOI Inc dba Medical Resources (EOI) who is the proprietary OEM vendor’s exclusive distributor for this requirement.

• Contractdirectory.gov query using NAICS 339112 and “Temperature monitoring” returned 0 results.

• GSA eLibrary Search for NAICS 339112 returned 0 results.

o A review of Vendor’s GSA contract SIN 339113LAB found 7 vendor results with the keyword “temperature monitoring”.

▪ 3 SDBOSB, 0 VOSB, 2 WOSB, 1 8(a), 2 HUBzone

• SBA DSBS search NAICS 339112 and keyword “Temperature Monitoring” returned 2 results:

o EOI INC, the anticipated vendor of award and a self-certified WOSB o Cool Runnings North America INC, a SB specializing in refrigeration and cold storage solutions. This vendor is not relevant to this requirement’s needs.

• Review of other NCO-10 VAMC locations (Chillicothe, Cincinnati, and Columbus) for sole source documentation and adherence to current GSA MAS contract.

VHAPG Part 808.405-6 Limiting Sources Page 5 of 6 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C250-25-AP-1984

This ViewPoint/CheckPoint Temperature Monitoring product and service is confirmed to be proprietary to Mesa Labs who has designated exclusive distributorship to EOI Inc dba Medical Resources for the VA.

As this product/service is proprietary, the VA Rule of Two cannot be met.

(7) Any Other Facts Supporting the Justification:

Upon receipt of this procurement request it was decided that the best NAICS code to utilize for this type of service 339112, which falls under “Surgical and Medical Instrument Manufacturing” as the majority of the funds allocated (59%) are to purchase the GEN 4 equipment upgrade. Approximately 40% of allocated funds are for service. Under this NAICs code, the SBA size standard is 1,000 employees.

(8) 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:

Additional market research will be performed for any follow-on contract to determine if the marketplace has changed and new vendors are available to use.

(9) 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. (This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)

SIGNATURE DATE

Stephen D. Brandenburg HVAC Supervisor M&O

NAME TITLE SERVICE LINE/SECTION

Dayton VAMC

FACILITY

2/7/2025

VHAPG Part 808.405-6 Limiting Sources Page 6 of 6 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C250-25-AP-1984

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

CONTRACTING OFFICER/DESIGNEE’S SIGNATURE DATE

Josh Kovar Contracting Officer NCO-10

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K):

I certify the justification meets requirements for other than full and open competition.

SIGNATURE DATE

John “Mike” Ryan NCO 10 Services Team #1 Branch Chief https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx