36C10G20D0002-029.pdf

procedures as items under the initial proposal evaluation. Approval of addition requests shall be implemented by issuance of a contract modification.

Deletions: At any time during the contract performance, the Government may elect to delete any item(s) at no cost to the Government. Also, at any point during contract performance the Contractor may submit a request to delete items from the contract based on the items being obsolete, unavailable, out of production or superseded. All deletions from the contract shall be at no cost to the Government.

This Independent Government Cost Estimate (IGCE) was derived from spend data from previous procurement history over a 5-year period from 2013 - 2017. The quantity and price for each HCPCS code was averaged using a weighted average with more weight being place on 2017 data. The data was extrapolated based on dental implants ordered at all VA medical facilities. A 2.5% escalation rate was applied to each contract year following the first ordering period. The escalation rate is based on the medical care commodity Bureau of Labor Statistics 10 year average from 2007-2017. Additionally, the final amount was increased by 30% to account for a number of factors including: new products being added the contract based on technological advances and expanded product lines, increase in the veteran population, and increase in spend for a Sole Source National Prosthetics contract.

Based on this data, the IGCE for this effort is $32,593,864.20 for the five year ordering period. NOTE: The HCPCS represent a broad range of supply line items associated with each code.

4. Statutory Authority: The statutory authority permitting other than full and open competition is 38 U.S.C. § 8123 and 41 U.S.C. § 3304(a)(5), as implemented by 48 Code of Federal Regulation (C.F.R.), Federal Acquisition Regulation (FAR)§ 6.302-5(a)(2)(i), Veterans Affairs Acquisition Regulation (VAAR) § 806.302-5(b)(1), and 41 U.S.C. 253(c)(5) Authorized by Statute. In accordance with 38 U.S.C. § 8123, the Secretary may procure prosthetic appliances and necessary services required in the fitting, supplying, and training and use of prosthetic appliances by purchase, manufacture, contract, or in such other manner as the Secretary may determine to be proper, without regard to any other provision of law".

5. Rationale Supporting Use of Authority Cited Above: The cited authority ensures the nationwide availability and consistency of dental implants so that clinicians have the flexibility, upon consultation with patients, to order appropriate implants with minimal interruption to the provision of individualized patient care. A specific implant determination is based upon the clinician assessments of the individual patient's medical needs and anatomy.

As a result of the consultation between the clinician and patient, a determination is made as to the type and brand of implant required for favorable medical outcome of the patient. Clinicians also consider the patient