36C25022Q0019_3.docx

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 5: Request for Sole Source Justification Format >SAT

GENERAL INFORMATION

Network 10 Contracting Office LTC Charles S. Kettles VA Medical Center 2215 Fuller Road Ann Arbor, MI 48105

POINT OF CONTACT*

Contracting Officer Kelly Poole kelly.poole@va.gov 734-222-6177

ADDITIONAL INFORMATION

AGENCY’S URL

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AGENCY CONTACT’S EMAIL ADDRESS

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Special Notice Special Notice

DESCRIPTION

Special Notice

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C250-21-AP-5586

1. Contracting Activity: Department of Veterans Affairs, VISN 10, LTC Charles S. Kettles Medical Center, 2215 Fuller Road, Ann Arbor, MI 48105. The 2237 number is 506-22-1-1527-0027.

2. Nature and/or Description of the Action Being Processed: This is a request for a new firm-fixed price contract to Varian Medical Systems (3100 Hansen Way, Palo Alto, CA 94304; 800-544-7450). FAR 13.5 Simplified Procedures for Certain Commercial Items: 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.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Varian Medical Systems will provide emergency and non-emergency service repairs/replacement to the TrueBeam (SN: H192036 and H191314) and sub-equipment, attachments, and Aria/Eclipse software (as specified in Maintenance Agreement). The referenced maintenance agreement is for the Varian Premier Assurance Essentials Maintenance Plan which carries a 97% up-time guarantee, mandatory upgrades coverage, firmware and software upgrades coverage, comprehensive parts coverage, and discounted labor rates. It is a full-service coverage plan. TrueBeam is a linear accelerator system used to provide treatment to cancer patients in radiation. A base (March 15, 2022 - March 14, 2023) plus four option year contract is being requested. Total for the base plus four option years is estimated at $3,634,110.00.

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

(X) 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): Varian Medical Systems is the original equipment manufacturer (OEM). Only Varian Medical Systems can safely and properly perform the required maintenance and repairs to this equipment and still maintain the OEM warranty. Additionally, Varian Medical Systems has a VA national agreement to access VA servers via VPN communication which means they are able to log into VA systems remotely and resolve software issues as well as provide software upgrades and system diagnostics. Varian is the only party permitted by the VA to transfer sensitive information through the SmartConnect secure, encrypted connection required under the Statement of Work. This information includes Protected Health Information (PHI), which must be controlled and safeguarded in accordance with the applicable laws and guidance governing PHI. In addition, the software and hardware components make the system impossible to work on without manufacturer training and service keys. Accordingly, Varian Medical Systems is the only firm capable of providing the services described in Section 3 above without the Veteran’s Health Administration experiencing a substantial duplication of cost that could not be expected to be recovered through competition.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A sources sought announcement was issued on Beta.SAM.gov (36C25022Q0019), and three entities responded. However, none of these businesses provided evidence that they have been authorized to perform the work. There are two linear accelerators at the LTC Charles S. Kettles VA Medical Center, and continuing to work with Varian Medical Systems will allow for more prompt service when either accelerator is down and emergency service is needed.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated cost to the Government will be determined to be fair and reasonable through comparison with the previous contract with Varian Medical Systems for identical services. VA250-17-C-0045 listed a price of $58,204.49/month for the preventative maintenance of two TrueBeam linear accelerators and the accompanying Aria/Eclipse software. An RFQ will be sent to Varian Medical Systems for their completion, and the Contracting Officer will compare the breakdown of expenditures in the RFQ response to the previous contract to ensure fair and reasonable pricing. In addition, the Contracting Officer will utilize any other price analysis techniques identified in FAR 13.106-3(a)(2), as necessary, to determine a fair and reasonable price.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The Contracting Officer (CO) searched the internet for applicable contracts or an open market competitor that could provide the services required and was unable to locate one. Additionally, an initial screening of potential offerors was conducted by publication of a sources-sought synopsis in Beta.SAM.gov (issued on September 20, 2021; 36C25022Q0019). Three entities replied, but none were able to provide evidence that they have been authorized to perform the work. Furthermore, a query of the Vendor Information Pages (VI) was conducted using NAICS code 811219 alone and 340 SDVOSBs/VOSBs resulted. A subsequent search using NAICS code 811219 and keyword “Varian Medical Systems” returned one result, but this entity does not have proprietary rights to perform the work either. The VA Rule of Two cannot be met, as Varian is the only responsible source capable of performing the requirement.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Varian Medical Systems does not allow third parties to work on their systems, and it seems these entities would act as middle parties to ensure the work is completed.

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 VA will research the market prior to any purchases for these services to determine if there are any other sources with the capabilities to meet the Government’s requirements. However, until such time as the equipment reaches the end of its useful life or the Government decides to replace the equipment, there do not appear to be any actions which the Government can take to overcome any barriers to competition.

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.

Signatures on file OFOC SOP Revision 11 Page 4 of 4 Original Date: 03/22/11 Revision 11 Date: 02/11/2021