36C25219Q0303-002.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification for Single Source Awards IAW FAR 13.106-1 For

Over Micro-Purchase Threshold but Not Exceeding the SAT ($250K)

Acquisition Plan Action ID: 36C252-19-AP-1173

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 VA Hospital 2500 Overlook Terrace Avenue Madison, WI 53705

Identify purchase request number: 607-19-2-969-0040

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

The William S. Middleton VA Hospital in Madison, WI has a Brand Name Only requirement for an upgrade from their current PIIC system to a PIIC iX operating system for monitoring equipment used throughout the hospital. This equipment will be used in multiple areas: 4A, 4B, 7B, Telemetry station, 6A, PACU and Prep Recovery. Both medical and surgical patients are treated in these areas.

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

The current monitoring equipment in use at the Madison VA, outside of the ICU, are configured with Philip’s PIIC Classic operating system. This system is no longer supported and the monitoring equipment cannot receive updates until the system is upgraded. The staff of nurses and doctors at the facility are already familiar with the current monitoring system. Updating the system to the upgraded PIIC iX system maintains compatibility so there is no disruption in patient care. Cost wise, it would be far more expensive for the government to replace all the Philips monitoring equipment and purchase a new operating system, than to just upgrade the current operating system which is already compatible with the current Philips equipment. The Madison VA hospital recently procured new patient monitoring equipment and a new patient monitoring system. For this one system in the Emergency Department, the cost was $497,745.16. For this procurement, it is estimated to cost almost $3,000,000 for all new monitoring equipment and a new monitoring system in the six departments needing the upgrade. Therefore, updating the operating system for the equipment in place is the most cost-effective solution. Philips Healthcare is the only manufacturer for the PIIC https://www.acquisition.gov/?q=/browse/far/13 system. Philip Healthcare’s PIIC iX system is found to be the only compatible source to meet the entire needs of the requirement.

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

A FPDS-NG query was performed on Tuesday, January 22nd, 2019. The keyword “PIIC” along with additional filtering of “Department of Veteran Affairs” revealed that the Department of Veteran Affairs has purchased similar equipment in the past. Purchase Order for to the SDVOSB company . FPDS also revealed a similar equipment purchase under Purchase Order for to the SDVOSB company . Both FPDS order descriptions say “PIIC iX system upgrade,” which closely matches the current facility’s need.

A GSA Advantage query performed on Tuesday, January 22nd, 2019, using keyword “PIIC” gave many results, but none of the results matched or were similar to meeting the needs of the facility. A search was done using the item number “866389”, which gave a few results, but none of the results matched or were similar to meeting the needs of the facility. A final search was done using the keyword, “PIIC iX,” which gave similar products. None of the results were exact matches, however several similar Philips products presented themselves. Two SDVOSB companies on GSA provide the similar products, , and . It is anticipated that these SDVOSB companies are authorized dealers and would submit quotes for this procurement.

A National Acquisition Center (NAC) MedSurg Catalog search performed on Tuesday, January 22nd, 2019, using keyword “PIIC” gave many results. Several similar Philips products presented themselves, with two SDVOSB companies providing the similar products:

and . It is anticipated that these SDVOSB companies are authorized dealers and would submit quotes for this procurement. A search was done using the item number “866389”, which gave no results. A final search was done using the keyword, “PIIC iX,” which gave similar product results. None of the results were exact matches, however several similar Philips products presented themselves. Three SDVOSB companies on the NAC provide the similar products, , , and . It is anticipated that these SDVOSB companies are authorized dealers and would submit quotes for this procurement.

The NAICS code for this requirement is 334118 (Computer Terminal and Other Computer Peripheral Equipment Manufacturing) and the small business size standard is 1000 employees.

The Federal Supply Code (FSC) is 7021 (ADP Central Processing Unit-Digital). A PIIC iX, model number 866389, is known to meet the facility’s needs.

Market research indicates there is a reasonable expectation that at least two SDVOSBs are capable of fulfilling the minimum requirements of the VA at a fair and reasonable price in the open market;

therefore, this procurement will be set-aside 100% for SDVOSBs IAW VAAR 819.7005, and competition will be solicited IAW the procedures set forth in FAR 13.106-1.

5. Contracting Officer's Certification:

Purchase is approved in accordance with VAAR 819.7005. 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