2021-08-25T12 11 21 36C259-21-AP-3687 FAR13.5_JA_OVER_SAT 9-1-21 for Posting.pdf

VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 4 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C259-21-AP-3687 Tracker#: 2021-08-25T12:11:21

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 19, VISN

19, 6162 S. Willow Drive, Suite 300, Greenwood Village, CO 80111.

Organizational Activity: Rocky Mountain Regional VA Medical Center (RMRMC), 1700 N. Wheeling Street, Aurora, CO 80045.

2237: 554-21-4-023-0394

2. Nature and/or Description of the Action Being Processed:

This procurement is for the renewal of software licenses and maintenance support, including upgrades, specifically, Data Innovations (DI) Instrument Manager (IM) Services, Instrument Manager (IM)Training, IM Rules Writing Training, EP Evaluator Subscription (single + 2 computers), IM Maintenance and Support, and IM Test Environment in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

This procurement is for a new firm-fixed-price contract with a base year and four (4) option years for the Data Innovations services.

The estimated Period of Performance is as follows:

Base Year: 9/30/21 to 9/29/22 Option Year 1: 9/30/22 to 8/29/23 Option Year 2: 9/30/23 to 8/29/24 Option Year 3: 9/30/24 to 8/29/25 Option Year 4: 9/30/25 to 8/29/26

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Revision 03 Date: 02/11/2021

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The procurement is a follow-on contract to Contract VA259-16-F-3563, which expires on 8/31/21, to provide annual software maintenance and support for Bio-Rad QC modules, Enhanced Rules Plug-In and Moving Averages for Lab instruments that interface with CPRS at the RMRMC. This will allow the Lab to accomplish its mission objective of backing up and storing essential data from lab equipment into patient records in CPRS. Equipment is located in the Pathology and Laboratory Medicine Service. This supports the mission of the VA to provide timely, accurate and appropriate laboratory services in support of patient care by allowing data transmission from instrumentation directly into the patient laboratory information database. This is essential for reduction of clerical errors and delayed test result availability to clinicians that could endanger patient safety.

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

This is a follow-on effort to continue the licenses and maintenance for Data Innovations software products, Instrument Manager and EP Evaluator. The software is proprietary to Data Innovations.

The Data Innovations system has been upgraded and it impacts how they currently manage support contracts going forward. Data Innovations provided a letter, dated August 9, 2021, stating that Data Innovations is the manufacturer and sole provider for the technical maintenance and support for its software products. Data Innovations owns the intellectual property rights and does not support third parties. This has changed as the current contract for the Data Innovations licenses and maintenance was processed in FY16 through Four Points Technologies, LLC (a SDVOSB). The Contract VA259-16-F-3563 with Four Points expires on 8/31/21. Data Innovations explained that in 2020 the products became open market. The products had previously been available per a NASA SEWP Contract in which Four Points Technologies, LLC was a SEWP contract holder and was authorized at that time by Data Innovations to offer the services to the VA. The procurement in FY16 was competed through NASA SEWP with the Data Innovations products selected at that time.

It is neither feasible nor cost effective to change the current software.

If the software were to be replaced, prices for similar VA laboratory equipment software packages

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Revision 03 Date: 02/11/2021 were reviewed per information found on www.fpds.gov. The software package prices ranged from $102,643.00 to $135,442.00, which would be the software purchases only and not including any setup and the support services required. The base year for this contract to continue licenses and maintenance is $67,307.82. The system must be maintained to accommodate critical recordkeeping in CPRS. If the licensing and maintenance does not continue, there is potential harm to the Government, which includes the loss of essential patient data and the compromising of patient records which would harm patients through delayed or inappropriate treatment. This software, the Data Innovations Instrument Manager software, supports Lab equipment that interfaces with VISTA/CPRS records; and has the ability to migrate from VistA to Cerner. Data Innovations is the manufacturer that provides the software, setup, and support services. This is the only solution which can meet the VA’s requirement.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

An Intent to Sole Source Notice will be posted on Contract Opportunities, BETA.SAM.gov, including this Sole Source Justification, as this requirement is open market. Data Innovations has previously authorized a SDVOSB, Four Points Technology, LLC, for its products; however, it no longer supports third parties for the licensing and maintenance.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable:

The anticipated cost can be determined fair and reasonable based on comparison of the proposed price with prices found reasonable on previous purchases and based on current price lists.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted:

A VIP search found 0 SDVOSBs/VOSBs which offer Data Innovations services. A search of GSA eLibrary found Data Innovations; however, the products for this requirement are open market. A search of dsbs.sba.gov found Data Innovations, a small business. Searching www.FPDS.gov found VA contracts issued to Data Innovations and Four Points for the required product. However, as previously explained, in FY16, the requirement was competed per NASA SEWP; and the awardee, Four Points, was a contract holder and authorized by Data Innovations. This requirement is no longer available per SEWP; and Data Innovations has provided a letter, dated August 9, 2021, stating that it no longer supports third parties for the licensing and maintenance. Data Innovations is a small business.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Data Innovations has proprietary rights to the software.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Data Innovations, 463 Mountain View Drive, Colchester, VT 05446 http://www.fpds.gov/ http://www.fpds.gov/

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Revision 03 Date: 02/11/2021

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:

The Government will continue to conduct market research to ascertain if there are changes related to the availability of other products to meet the VA’s requirement.

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.

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

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