36C25019C0171-002.pdf

OFOC SOP Revision 08 Page 1 of 3 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C250-19-AP-3054

1. Contracting Activity: Department of Veterans Affairs, VISN 10, Ann Arbor VA Medical Center located at 2215 Fuller Road in Ann Arbor, MI 48105. 2237: 506-19-3-1527-0070.

2. Nature and/or Description of the Action Being Processed: The contractor shall provide Preventive Maintenance and Unlimited Emergency Repairs on Government owned Canon Medical Systems Devices. The VA Ann Arbor Healthcare system requires a comprehensive maintenance and repair agreement for the Canon Medical Systems Diagnostic Imaging Systems and Vitrea Workstation.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for Preventive Maintenance and Unlimited Emergency Repairs on Government owned Canon Medical Systems Devices in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Canon is the only vendor able to monitor, troubleshoot, and resolve issues for the Aquilion CT scanner remotely through the Canon-VA VPN. This capability significantly reduces the downtime of the device. As the manufacturer of the equipment, they also have the knowledge and capabilities that best support the proprietary hardware and software. Canon is also the only company capable of providing updates to the Vitrea workstation applications.

4. Statutory Authority Permitting Other than Full and Open Competition:

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2).

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Market research indicates that Canon is the sole provider for Preventive Maintenance and Unlimited Emergency Repairs on Government owned Canon Medical Systems Devices. Canon is the only vendor that can remotely

OFOC SOP Revision 08 Page 2 of 3

Revision 08 Date: 04/18/2018 connect to the Aquilion CT Scanner and the only vendor that can provide updates to the Vitrea Workstation. An email from Dave Barnes confirmed that Canon does not authorize 3rd party vendors for sales and services. This email has been uploaded to the briefcase. I contacted Vital Imaging and they confirmed that Vital Imaging is owned by Canon and they do not authorize any 3rd party vendors for servicing.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: An Intent to Sole Source was posted to FBO on 05/01/2019. The post stated that the Department of Veterans Affairs, Ann Arbor VA Medical Center, is soliciting and intends to award a Contract for Preventive Maintenance and Unlimited Emergency Repairs on Government owned Canon Medical Systems Devices for the Ann Arbor VA Medical Center located at 2215 Fuller Road, Ann Arbor, MI 48105. NAICS Code 811219, size standard $6.5 million. The Government intends, in accordance with FAR 6.302.1 (only one responsible source and no other supplies or services will satisfy agency requirements), to negotiate on a sole source basis with Canon Medical Systems USA, INC. for this service to provide all labor, supervision, and equipment necessary to provide Preventive Maintenance and Unlimited Emergency Repairs on Government owned Canon Medical Systems Devices. No solicitation package is available. A determination not to compete is solely within the discretion of the Government. Any response to this notice must show clear and convincing evidence that competition would be advantageous to the Government. Responses must be received NLT Noon EST 05/15/2019. No telephonic inquiries shall be accepted. All responses must be e-mailed to the contracting specialist; Wendy.Stewart@va.gov. No responses were received as a result of the post.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contract Specialist will conduct price analysis of the quote and previous awards similar in scope and value to determine Fair and Reasonable and will verify contractor responsibility.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Canon is the Original Equipment manufacturer. As described in Section 6 above, market research, in accordance with FAR part 10, was conducted by synopsis of intent to sole source advising industry of the pending acquisition and providing time for interested parties to submit reason for not to sole source. The following market research was also conducted: VetBiz searches were conducted: NAICS Code 811219 with 236 SDVOSB/VOSB found and NAICS Code 811219 and Keyword Canon with 1 SDVOSB found. A VetBiz search for Canon confirmed that Canon in not a SDVOSB/VOSB. Canon is the only vendor that can remotely connect to the Aquilion CT Scanner and the only vendor that can provide updates to the Vitrea Workstation.

Dave Barnes, CHTM, Midwest Zone Area Service Manager for Canon Medical Systems USA, INC.

confirmed that Canon does not have authorized 3rd party vendors for sales and service. Vital Imaging, which is owned by Canon, does not have authorized dealers for servicing Canon products.

A GSA inquiry was conducted with no results for emergency and preventive maintenance services. A Notice to Sole Source was posted to FBO with no response. A search of SAM verified that Canon is registered.

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

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

Systems USA, INC. located at 2441 Michelle Drive in Tustin, CA 92780 was sought and provided interest.

mailto:Wendy.Stewart@va.gov

OFOC SOP Revision 08 Page 3 of 3

Revision 08 Date: 04/18/2018

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 for the Preventive Maintenance and Unlimited Emergency Repairs on Government owned Canon Medical Systems Devices as long as it is in lifecycle use for the Ann Arbor VA Medical Center.

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.

_____________________________ _May 28, 2019__________ Timothy Morgan Date Biomedical Engineer

VHA

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.

Christopher Gundy Date Contracting Officer

NCO 10

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Andrew Craig Date Supervisory Contract Specialist Branch Chief, Services Team #4

NCO 10

http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx