0111 - Sole Source Justification - Kemper - updated FS.pdf

Attachment 1: Request for Sole Source Justification Format >SAT Louis Stokes Cleveland VAMC Varian TrueBeam Maintenance Agreement

VHAPG Part 806.3 OFOC Page 1 of 4 Revision: 03 Effective Date: 04/15/24 Acquisition ID#: 36C250-25-AP-2272

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C250-25-AP-2272

1. Contracting Activity: Department of Veterans Affairs, VISN 10, Louis Stokes Cleveland Medical Center, Network Contracting Office (NCO) 10.

2237: 541-25-3-575-0111

2. Nature and/or Description of the Action Being Processed: This is a request for a new firm-fixed price contract with Varian Medical Systems, Inc. (3100 Hansen Way, Palo Alto, CA 94304; 800-544-7450). The contract will be for a Varian TrueBeam Service Agreement, which is a standard maintenance agreement through Varian Medical Systems, Inc. for all preventative maintenance, parts, labor, upgrades, for the hardware of the TrueBeam radiotherapy system.

3. Description of Supplies/Services Required to Meet the Agency�s Needs: Maintenance Agreement for the TrueBeam radiotherapy system serving the Louis Stokes Cleveland VA Medical Center Radiation Oncology Service. The system is used for patient to treat cancer using highly precise, targeted radiation. The contractor will provide maintenance to include maintenance, parts, updates, upgrades, on-site technical support, and regular quality assurance testing.

TrueBeam � H193051 - Essentials - Service Contract - $1,177,112.00 (base plus three (3) options) RPM - H50A268 - Essentials - Service Contract - $19,444.00 (base plus three (3) options) RPM - H501942 - Essentials - Service Contract - $19,444.00 (base plus three (3) options)

Total aggregate cost of base plus three (3) option years is $1,216,000.00 ($304,000.00 per year). Period of performance will be 06/03/2025 � 06/02/2029.

4. Statutory Authority Permitting Other than Full and Open 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) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

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, Inc., is the only firm in existence capable of providing the hardware and service support implementation described in Section III above without the Veterans Health Administration experiencing substantial duplication of cost that could not be expected to be recovered

VHAPG Part 806.3 OFOC Page 2 of 4 Revision: 03 Effective Date: 04/15/24 Acquisition ID#: 36C250-25-AP-2272 through competition. There would be unacceptable delays in fulfilling this requirement though a different source.

This is the only vendor found through market research that offers this solution. Varian Medical Systems, Inc., has the proprietary software and hardware currently in use with which this implementation must interface. Varian Medical Systems, Inc., has provided an endorsed proprietary letter on company letter head demonstrating there are no other qualified businesses capable of working on their equipment. It is imperative to keep the system functioning at its best in order to provide Radiation Oncology services to our veteran patients, and at this time it can only be achieved through Varian Medical Systems, Inc., full implementation solution.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A sources sought notice (36C25025Q0294) was issued to SAM.gov on Feb 12, 2024, and closed on Feb 19, 2025. The sources sought notice received zero responses. The sources sought notice requested information from the industry that could assist in developing acquisition approach, statement of work/statement of objectives and performance specifications. It was stated the sources sought notice was for market research to make appropriate acquisition decisions and to gain knowledge of potential socioeconomic/small business concerns. A brief description of the government�s needs regarding the TrueBeam system was provided.

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 contracts with Varian Medical Systems, Inc., for identical services. An RFQ will be sent to Varian Medical Systems, Inc., for their completion, and the Contracting Officer will compare the breakdown of expenditures in the RFQ response to the previous contract, 36C25021C0142, 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, a sources-sought was publicized on SAM.gov (issued on Feb 12, 2025; 36C25025Q0294) and zero entities replied. Furthermore, a query of the Veteran Small Business Certification (VetCert) was conducted using NAICS code 811210 finding 318 SD/VOSB concerns. An additional VetCert query using business name �Varian Medical Systems� returned zero results. A subsequent search through DSBS using NAICS code 811210 and keyword �Varian Medical Systems� returned zero results. The VA/SBA Rule of Two cannot be met. A discussion with the Varian Medical Systems Inc.

found there are no available GSA, FSS, or National contracts that can be used with this procurement. A quote was obtained by the COR and provided in the Acquisition Package. An endorsed sole source statement on Varian Medical Systems Inc. company letterhead was provided. Varian Medical Systems, Inc., is the only responsible source capable of performing the requirement.

In accordance with FAR 25, the BAA was not considered applicable to this procurement because it pertains to services being performed domestically within the United States and the vendor is not a prohibited source.

As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition, and soliciting inquiries from interested parties.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The contract is unrelated to information technology and the stipulations and oversight mechanisms mandated by FITARA are not applicable.

Product Service Code (PSC) identified for this requirement is J065.

VHAPG Part 806.3 OFOC Page 3 of 4 Revision: 03 Effective Date: 04/15/24 Acquisition ID#: 36C250-25-AP-2272

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

Varian Medical Systems, Inc., (Large Business) 3100 Hansen Way Palo Alto, CA 94304 423-255-6685

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.

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.

Laura Willett Date Management and Program Analyst (Biomedical) Louis Stokes Cleveland VAMC

VHAPG Part 806.3 OFOC Page 4 of 4 Revision: 03 Effective Date: 04/15/24 Acquisition ID#: 36C250-25-AP-2272

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

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

Chad Kemper Date Contracting Officer Network Contracting Office (NCO) 10

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.

Date

Date

Date

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition.

Daryl A. Berg Date Executive Director, RPO Central Head of Contracting Activity

Kelly Poole Branch Chief, Services Team 2 Network Contracting Office (NCO) 10

Waggoner-Boykin

Division Chief, and Services Network Contracting Office (NCO) 10

Marie L. Smith Director of Contracting Network Contracting Office (NCO) 10