P03 Hill-Rom Bed Service Contract for Memphis FAR 13.5 SSJ -BC Signed.pdf

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C249-26-AP-0029

Effective Date: 11/15/24 | REVISION: 01 Page 1 of 4 Acquisition ID#: 36C249-26-AP-0029

1. Contracting Activity: Department of Veterans Affairs (VA), Veterans Integrated Service Networks

(VISN) 09, Network Contracting Office (NCO) 9 located at 1639 Medical Center Parkway Murfreesboro, TN 37129 in the interest of Memphis VA Medical Center (VAMC) located at 1030 Jefferson Ave, Memphis TN 38104 2237#: 614-26-1-5069-0008

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

This procurement is for a complete service contract covering 118 Centrella Hill-Rom beds Model P7900B, 11 Compella Hill-Rom Model P7800 beds and 16 Progressa Hill-Rom beds Model P7500 beds to include repairs, maintenance, and services, 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.

The Memphis VAMC has 118 Centrella Hill-Rom beds model P7900B, 11 Compella Hill-Rom Model P7800 beds and 16 Progressa Hill-Rom beds Model P7500 beds in March 2019. Memphis VAMC requires that the 118 Centrella beds, 11 Compella Bariatric Beds and 16 Progressa ICU beds are under a complete service contract to include repairs, maintenance, and services.

The contemplated award is a firm-fixed price Requirements contract, five one-year ordering periods.

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

The estimated total for this Requirements contract is: $487,513.00 The estimated period of performance is:

Ordering Period 1 from October 01, 2025, to September 30, 2026 Ordering Period 2 from October 01, 2026, to September 30, 2027 Ordering Period 3 from October 01, 2027, to September 30, 2028 Ordering Period 4 from October 01, 2028, to September 30, 2029 Ordering Period 5 from October 01, 2029, to September 30, 2030

All equipment shall be maintained in proper operating condition as specified by the manufacturer and by Original Equipment Manufacturer (OEM) trained certified technicians. Vendor must have manufacturer certification to service and maintain the devices and have access to OEM parts, manuals, and schematics to perform the service.

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:

Effective Date: 11/15/24 | REVISION: 01 Page 2 of 4

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

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

Hill-Rom is the manufacturer of all Hill-Rom products and Original Equipment Manufacturer (OEM) parts. Hill-Rom is currently the contractor of Memphis VAMC’s current full service maintence and repair contract. Hill-Rom is highly specialized to provide repairs and thorough inspections in a timely manner and provide documentation of inspections, maintenance and repairs on the 145 Hill-Rom beds at the Memphis VA Medical Center.

Hospital beds are essential to direct patient care. Hill-Rom specializes in the maintenance, repairs, inspections and also provides OEM parts for their products. Hill-Rom provided a proprietary letter outlining they do not provide training to third party providers unless contractually obligated to do so, such as Bio-Med Departments of Federal Agencies.

To ensure FDA Regulatory compliance (21 CFR 820, 21 CFR 807, 21 CFR 803, 21 CFR 7, 21 CFR 806), this service contract requirement must be sole sourced to the OEM. Third party provider’s are not required to follow the same FDA regulations and reporting that OEMs are required to follow, which could result in patient harm. Furthermore, Hill-Rom’s sole provider letter indicates they do not provide training to third party providers, only to Bio-Med departments of federal agencies.

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

A sources sought notice under solicitation identifier: 36C24925Q0420 was posted for ten days, from 8/08/2025 to 8/18/2025. This sources sought notice yielded seven responses from varying socioeconomic business classifications expressing interest to perform the requirement. However, to ensure FDA Regulatory compliance (21 CFR 820, 21 CFR 807, 21 CFR 803, 21 CFR 7, 21 CFR 806), this service contract requirement must be sole sourced to the OEM.

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

Prices will be determined as fair and reasonable prior to award in accordance with FAR 13.106-3(a)(2).

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

Market Research Was Not Conducted:

Market research was conducted including queries in the Small Business Administration’s (SBA) Dynamic Small Business Search (DSBS) for Service Disabled Veteran Owned Small Businesses (SDVOSB) and Veteran Owned Small Businesses (VOSB), Federal Procurement Database System (FPDS), Contractor Performance Assessment Reporting System (CPARS), General Services Administration’s (GSA) Advantage, and VA’s National Strategic Source Listing (NSSL) Medical Supplies Program Office (MSPO).

Effective Date: 11/15/24 | REVISION: 01 Page 3 of 4

Market research found that the FAR Rule of Two and VA Rule of Two are not met. Buy American Act (BAA) and Trade Agreements Act (TAA) do not apply to this service contract. Hill-Rom provided a proprietary letter indicating they are the only source capable of performing effective service and maintenance of their patient beds. Market research indicates the manufacturer, Hill-Rom, is the sole source capable of providing a Hill-Rom Patient Bed Service/Maintenance Agreement.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

Hill-Rom provided a proprietary letter outlining they do not provide training to third party providers unless contractually obligated to do so, such as Bio-Med Departments of Federal Agencies and that Hill-Rom furnishes OEM parts through their service programs.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

1. Hill-Rom Inc.

2. Bio-Tech Lab Services, LLC

3. Emeritus Clinical Solutions

4. The Remi Group, LLC

5. LE3, LLC

6. Agiliti Health, Inc.

7. AL-Qabida Company

8. EMSAR

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 in the marketplace that would enable future actions to be competed.

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.

Stephen T. Nichols Electrician Memphis VAMC

Effective Date: 11/15/24 | REVISION: 01 Page 4 of 4

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.

Contracting Officer NCO 9, Logistics & Prosthetics

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.

Branch Chief NCO 9, Logistics and Prosthetics https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx