-16082.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification for Sole Source Award IAW VAAR 819.7007 For Over Micro-Purchase Threshold but Not Exceeding the SAT ($250K)

1. Contracting Activity:

Department of Veterans Affairs Great Lakes Acquisition Center, NCO-12 115 South 84th Street, Suite 101 Milwaukee, WI 53214-1476

Department of Veterans Affairs William S. Middleton Memorial Veterans Hospital 2500 Overlook Terrace, Madison, WI 53705

2. Brief Description of Supplies/ Services required and the intended use/Estimated Amount:

The William S. Middleton Memorial Veterans Hospital in Madison, WI has a Brand Name Only request for a Prostate Ultrasound System. This procurement is intended to be used for prostate biopsy procedures and robotic partial nephrectomy procedures. This ultrasound machine is designed to deliver the high-resolution images that are critical for both procedures. This equipment will be used in operating rooms, and in the Urology Clinic in room 6A.

3. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S.

Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or ( ) 819.7008 Sole source awards to a verified veteran-owned small business

4. Unique characteristics that limit availability to only one source, with the reason no other supplies or services can be used:

38 U.S.C. 8127 provides the authority to sole source to SDVOSB. This purchase is for BK Medical equipment. BK Medical has stated via email they have only one SDVOSB (Four Points Technology, LLC) authorized to distribute their equipment. Because BK Medical stated Four Points Technology, LLC. is their sole SDVOSB distributor, they were the only SDVOSB reviewed.

BK Medical is the only manufacturer to offer an ultrasound system with prostate tri-plane technology. It allows for side fire and end fire biopsies with one probe. The 9026 transducer is a convex array that allows for larger field of view to help visualize organs. It also has dual function imaging (transverse and sagittal), which can be viewed simultaneously live. Having this particular ultrasound system will save the Operating Room from borrowing an ultrasound machine and probe for the robotic partial nephrectomy from our partners at the UW Madison Hospital. This is done as a courtesy and is not always guaranteed. The urology clinic trialed two other vendors, GE and Hitachi, and the surgeons felt that the other systems did not compare to BK Medical’s ultrasound system.

The surgeons did not like the drop-down system for the Operating Room on the GE system. They found it cumbersome and added to the procedure time. The surgeons also did not like the Hitachi side fire configuration because it was the opposite configuration compared to the prior system and the system that is in use at the UW Madison Hospital. Because of this, they had difficulty performing procedures with the side fire probe. The UW Madison Hospital and the Madison VA Hospital have a long-standing agreement of sharing products when possible. In the event of emergencies, the two hospitals will loan products to each other. In the past, the urology clinic has borrowed UW Madison Hospital’s BK5000 ultrasound system, however the loan of products is not always guaranteed. Since the UW Madison Hospital currently uses the BK5000 Ultrasound System in their hospital, purchasing the same system for the VA hospital ensures continuity and standardization for the VA surgeons. This standardization, in turn, creates safer procedural and operating rooms when surgeons are already familiar with the products. The purchase of the BK5000 ultrasound system for the VA hospital also ensures the continued ability for sharing equipment between the hospitals in the event of failures. BK Medical’s ultrasound system was found to be the only compatible source to meet the entire needs of the requirement.

5. Description of market research conducted and results or statement why it was not conducted:

A FPDS-NG query was performed on Wednesday, January 9th, 2019. The keyword “BK Ultrasound” along with additional filtering of “NAICS code 334510” and “Department of Veteran Affairs” revealed that the Department of Veteran Affairs has purchased similar equipment in the past. Purchase Order VA797R16J0229 for $565,749 to the Small Business company BK Medical Systems, Inc.

A GSA Advantage query performed on Monday, January 7th, 2019, using keyword “BK Ultrasound” gave many results, with none meeting the needs of the facility. A search was done using model number “BK5000-RAS”, no matches resulted. No vendors presented themselves on GSA capable of meeting the needs of the facility.

A National Acquisition Center (NAC) MedSurg Catalog search performed on Monday, January 7th, 2019, using keyword “BK Ultrasound” gave many results, with none meeting the needs of the facility. A search was done using model number “BK5000-RAS”, many results were given but none of them matched the needs of the facility. No vendors presented themselves on the NAC capable of meeting the needs of the facility.

On Tuesday, January 15th, 2019 the contracting officer reached out to the BK Medical area representative requesting information about authorized distributors. The area representative stated via email they have only one SDVOSB (Four Points Technology, LLC) authorized to distribute their equipment. The SDVOSB Four Points Technology LLC supplied a letter confirming they are the only authorized distributor of BK Medical Systems, Inc. products to the Department of Veterans Affairs.

The NAICS code for this requirement is 334510 (Electromedical and Electrotherapeutic Apparatus Manufacturing) and the small business size standard is 1250 employees. The Federal Supply Code (FSC) is 6525 (Imaging Equipment and Supplies: Medical, Dental, Veterinary). A prostate ultrasound system, model number BK5000-RAS, is known to meet the facility’s needs.

Market research indicates there is only one SDVOSB company capable of meeting the minimum needs of the facility. There are no VOSB companies capable of meeting the minimum needs of the facility. Therefore, this procurement will be sole-sourced IAW VAAR 819.7007. Per the Madison VA hospital’s request, this procurement will be fulfilled as Brand Name Only.

6. Contracting Officer's Certification:

Purchase is approved in accordance with VAAR 819.7007. I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Prepared by Stephanie Sack Contract Specialist NCO-12 stephanie e sack 435532

Digitally signed by stephanie e sack 435532 Date: 2019.01.30 08:26:48 -06'00'