JandA_13.5_36C255-24-AP-0180_Fully Signed.pdf

36C255-24-AP-0180 Varian TrueBeam Radiotherapy Service VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items

Request for Sole Source Justification >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C255-24-AP-0180

1. Contracting Activity:

Department of Veterans Affairs (VA), Veterans Integrated and Service Network (VISN) 15, Network Contracting Office (NCO) 15. In support of the following VA Facility: John Cochran Veterans Affairs Medical Center, 915 North Grand Blvd., St. Louis, MO 63106. 2237# 657-24-2-1110-0019.

2. Nature and/or Description of the Action Being Processed:

The proposed sole source requirement is for maintenance services to the Varian TrueBeam- H194504, for a Firm-Fixed Price sole source contract to Varian Medical Systems, Inc., 3100 Hansen Way, Palo Alto, CA 94304-1030. The service is to ensure the continuous reliability of the Varian TrueBeam-H194504, equipment and ancillary equipment.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The Contractor shall provide full maintenance on site, to include all software updates, labor, tools, test equipment and other incidentals necessary to maintain the Varian TrueBeam-H194504, equipment and ancillary equipment.

The contract is anticipated for a 12-month Base Period plus four, 12-month, Option Periods with an estimated total value of $1,444,756.00. The Base Period is estimated at a value of $280,411.00.

4. Statutory Authority Permitting Restricted 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) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Brief Description of Service* Period of

Performance Estimated

Amount

Equipment Service Base Period 02/22/2024-02/21/2025 $ 280,411.00

Equipment Service Option Period 1 02/22/2025-02/21/2026 $ 284,618.00

Equipment Service Option Period 2 02/22/2026-02/21/2027 $ 288,887.00

Equipment Service Option Period 3 02/22/2027-02/21/2028 $ 293,221.00

Equipment Service Option Period 4 02/22/2028-02/21/2029 $ 297,619.00

TOTAL IGCE $ 1,444,756.00

Request for Sole Source Justification >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 2 of 4

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

This requirement is for the maintenance services of the Varian TrueBeam-H194504, highly specialized ancillary equipment that is currently installed and in use and has a life span of 10 years, in which this equipment is only in its fourth year. This equipment provides a radiotherapy system designed to treat a broad range of cancer cases by delivering precise dosages of medication. The equipment is solely maintained by the manufacturer, a large business, which uses proprietary software and original equipment manufacturer hardware, Varian Medical Systems, Inc. Due to the proprietary nature, and as stated in the Sole Source Letter and E-mail from Varian Medical Systems, Inc., Varian Medical Systems technicians are certified to perform these services with unlimited access to proprietary diagnostic software and parts.

The repercussions of purchasing a whole new system will cause delays in providing Veterans with the needed medical care for cancer and will cost the Government an estimated $3.6 million to which the funds have not been budgeted vs. the maintence over 5 years for a total value of $1.4 million.

The following is for information purposes only: The Varian TrueBeam-H194504 was acquired by the St. Louis VAMC, March 5, 2020. The device is approaching its fourth year. Devices with an acquisition management criticality score of 10 typically have a life expectancy of 10 years.

Therefore, the Varian TrueBeam-H194504 is expected to reach its end of life, March 5, 2030. The asset value of the Varian TrueBeam-H194504 is $3,607,660.00.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

A Sources Sought Notice was issued, November 14, 2023. There were only two responses and both were from vendors that are not authorized to work on Varian Medical Service, Inc.

equipment per Varian Medical Systems’ E-mail to the CO. Varian Medical Systems, Inc. also responded to the Sources Sought Notice and they sent their “Sole Source Letter”.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

A fair and reasonable price determination will be made by comparison to the Independent Government Cost Estimate that was formulated by using market research of historical pricing from same/similar scope contracts and market price lists.

Certified cost and pricing data is not required under this requirement as the items being procured will be under a Firm-Fixed-Price contract and there is historical data available to determine a fair and reasonable pricing.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted

In accordance with VETs First, the SBA VERTCERT website was searched using the words, “Varian” and there were no results. A search using the NAICS 811210 produced a list of 169 vendors but none of them are authorized vendors to perform maintenance services on Varian Medical Systems, Inc. equipment. Based on the limitations of VetCert and to capture an overall snapshot of small business availability, SBA's DSBS tool was also searched using NAICS 811210 narrowed down to Kansas and Missouri using keywords "radiotherapy system maintenance". This resulted in "0" small businesses to include SDVOSBs and VOSBs.

Request for Sole Source Justification >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 3 of 4

As indicated above, in Section 6, a Source Sought was posted to www.SAM.gov to determine if there were any other vendors the could meet the Government’s need. Varian Medical Systems, Inc., the manufacturer of TrueBeam-H194504, equipment and ancillary equipment, is the only vendor that can provide the required services and they have stated in their Sole Source Letter, and an E-mail sent to the CO, they do not authorize 3rd party service providers in the commercial marketplace. A NAC contract, 36H79719D0014, was found; however, it will expire August 2024 and is no longer viable. A search for SAC and GSA did not find any other viable contracts that can provide this service requirement.

Based on the analysis of the market research and historical data, the Contracting Officer does not have an expectation that two or more SBA VETCERT Veteran-Owned small business concerns will submit offers.

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:

• A&B Technical, LLC, 794 Barkley Crest Circle, Auburn, AL 36830-2170

• The Remi Group, 6325 Ardrey kell Road, Suite 200, Charlotte, NC 28277

• Varian Medical Systems, Inc., 3100 Hansen Way, Palo Alto, CA 94304.

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:

There will be continued surveillance to monitor Varian Medical Systems should they decide in the future to authorize 3rd party vendors to perform their services. Until the manufacturer allows small businesses to train for the maintenance of the equipment, the only other alternative would be to replace the current equipment at all VISN 15 sites, which currently has not been budgeted.

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.

36C255-24-AP-0180 Varian TrueBeam Radiotherapy Maintenance Service Market Research Report

Effective Date: 03/01/2022 Page 1 of 11

Title of Requirement: 36C255-24-AP-0180 Varian TrueBeam Radiotherapy Maintenance Service

PART I

I. Authority.

Market research is required in accordance with:

FAR 7.102, Acquisition Planning Policy FAR 7.103(u)(1) and (2), Agency-Head Responsibilities FAR 10.001, Market Research Policy and VAAR 810.001-70 (Class Deviation) VAAR 813.003-70(c), Policy (Class Deviation) FAR 19.202-2, Locating Small Business Sources and VAAR 819.202 (Class

Deviation) FAR 25, Foreign Acquisition

II. Procurement Information.

A. Procurement History.

1. Was the requirement previously procured? No.

2. Is this a bundled (FAR 2.101) requirement? No.

3. Are there any applicable Organizational Conflicts of Interest? None known

B. Procurement Background.

Name Title Office Telephone E-mail Address

Adrain Andrews Biomedical Engineer Biomedical Engineering 314-824-4109 adrain.andrews@va.gov

Type of acquisition: Service Expected dollar value of requirement: $1,444,756.00 Suggested 2017 NAICS code(s): 811210 Time frame in which the market research was conducted: Between

10/01/2023 and 01/24/2024

III. Initial Requirements

The Contractor shall provide full maintenance on site, to include all software updates, labor, travel expenses, tools, test equipment and other incidentals

Effective Date: 03/01/2022 Page 2 of 11 necessary to maintain the Varian Medical Systems, TrueBeam-H194504, equipment and ancillary equipment.

Describe schedule requirements, e.g., performance periods and/or delivery due dates.

The contract is anticipated for a 12-month Base Period plus four, 12-month, Option Periods with an estimated total value of $1,444,756.00. The Base Period is estimated at a value of $280,411.00.

Discuss any cost effectiveness issues associated with the requirements:

None identified at this time.

IV. Participants in Market Research

Acquisition Team members and any other participants in the market research effort:

Teresa Cabanting Contracting Officer NCO 15 913-946-1976 teresa.cabanting@va.gov David Mugan SBA Liaison NCO 15 913-946-1147 david.mugan@va.gov

V. Market Research Techniques and Sources

A. Market Research Techniques Describe techniques and sources used during market research. The following table may help structure and summarize the techniques used in the market research effort.

Check X

IF USED

SOURCES USED IN MARKET RESEARCH

DETAILS OF

RESEARCH/COMMENTS

RESEARCH SOURCES

(INCLUDE REFERENCES TO

ATTACHMENTS TO REPORT)

(e.g., List of Journals and Literature Reviewed included

Brief Description of Service* Period of

Performance Estimated

Amount

Equipment Service Base Period 02/22/2024-02/21/2025 $ 280,411.00

Equipment Service Option Period 1 02/22/2025-02/21/2026 $ 284,618.00

Equipment Service Option Period 2 02/22/2026-02/21/2027 $ 288,887.00

Equipment Service Option Period 3 02/22/2027-02/21/2028 $ 293,221.00

Effective Date: 03/01/2022 Page 3 of 11 as Attachment 4 to this report)

Acquisition history reviewed Other recent market research reviewed

X SBA VETCERT data base:

https://veterans.certify.sba.gov

Veteran owned vendors were not found that can provide this service.

Interviewed knowledgeable individuals in industry/Government

Participated/Attended Tradeshows and Industry Conferences

Professional Journals, Catalog and/or Product Literature reviewed

Participated in Small Business Vendor Outreach Sessions

B. Market Research Sources. In accordance with FAR part 10 and VAAR part

810, market research has been conducted for this acquisition. The following additional collaborative Contracting Officer-led techniques were used:

SOURCES REVIEWED

(IAW FAR 8.002, VAAR 808.002, FAR 8.003, FAR 8.004, and

VAAR 808.004-70)

MARKET RESEARCH FOR SUPPLIES

Insert

X if Check ed

Details of Research/Com ments (Include N/A if not applicable)

MANDATORY GOVERNMENT SOURCES

IN PRIORITY ORDER

See VAAR 808.002 for further guidance on other mandatory

Government sources

(Include References to

Report Attachments)

1. VA Inventories including the VA supply stock program (41 CFR 101-26.704) and VA excess.

2. Excess from other agencies (See FAR subpart 8.1)

3. Federal Prison Industries* (FPI) (See VAAR

808.603 Purchase Priorities)

4. Supplies from Ability One - (VA AbilityOne Procurement List for Supplies/Services) (FAR 8.002)

Effective Date: 03/01/2022 Page 4 of 11

5. Wholesale Supply Sources (GSA website:

https://www.gsaglobalsupply.gsa.gov/advantage/main/start_p age.do?store=FSS)

Insert X if Checked

VETERANS FIRST CONTRACTING PROGRAM

(VAAR subpart 819.70)

REFERENCES/SOURCES CHECKED

(IDENTIFYING VIP VERIFIED SDVOSBs/VOSBs)

Details of Research/Comments (Include References to Report Attachments)

X VA Office of Small and Disadvantaged Business Utilization (OSDBU), Center for Verification and Evaluation (CVE), SBA VETCERT data base:

https://veterans.certify.sba.gov

Veteran owned vendors were not found that can provide this service.

System for Award Management (SAM) search for entity records at: SAM.gov | Search if Part of Research

PRIORITY CONSIDERATION OF

VA EXISTING CONTRACTS

X 1. See VA PPM (2016-05)(Revised AUG 2019) - Implementation of the Veterans First Contracting Program (VIEWS 01368239) concerning consideration of existing VA contracts and VA strategic sourcing regarding supplies in FSC Groups 65 and 66.

36H79719D0014 was found; however, it expires August 2024 and is not viable for another task order to be placed.

Additionally, there are no other contracts available.

X 2. Other VA Existing Contracts (non-mandatory but their potential availability, scope, contract type, etc., should be documented in the market research report)

None found.

Research

CONSIDERATION OF NON-VA EXISTING

CONTRACTS

Federal Strategic Sourcing Initiatives or OMB

Category Management contracts/sources

(Non-Mandatory except where OMB or Agency policy states otherwise)

X 1. Non-VA Contracts:

(Includes NASA-SEWP and BPAs under FSS Strategic Sourcing Initiative (FSSI) non-

Effective Date: 03/01/2022 Page 5 of 11 mandatory Federal Supply Schedules (other than for FSC Group 65 and 66) (FAR 8.004(a)(1) and VAAR 808.004-70).

X 2. Non-mandatory Federal Supply Schedules (non VA) (See FAR 8.004(a)(1) and VAAR 808.004-70, Use of non-mandatory sources by VA (Class Deviation).

None found.

Use of Other Sources Commercial sources (includes educational and non-profit institutions) in the open market. This is permissible IAW FAR 8.004 and VAAR 808.004-70.

Research

Sources for services to consider, as applicable and as required

Details of Research/Comments (Include References to Report Attachments)

MARKET RESEARCH FOR SERVICES

X 1. Services that are on the Procurement List maintained by the Committee for Purchase from People who are Blind or Severely Disabled (AbilityOne) (See FAR subpart 8.7) See VAAR 808.002, Priorities for use of mandatory Government sources, paragraph (a)(2) pertaining to Services.

None found.

X 2. Services: Federal Prison Industries (See FAR subpart 8.6) UNICOR Home Page (Except if two or more SDVOSB or VOSB are identified, see

VAAR 808.603)

None found.

X 3. Also see--VA Federal Supply Schedules (FSS) in FSC Group 62I.

36H79719D0014 was found; however, it expires August 2024 and is not viable for another task order to be placed.

Additionally, there are no other contracts available.

X 4. And see--mandatory sources reviewed, if applicable, for:

4a. Public Utility Services (see FAR part 41);

4b. Printing & Related Supplies (see FAR subpart 8.8);

4c. Leased Motor Vehicles (see FAR subpart 8.11);

4c. Helium (see FAR subpart 8.5)

None found.

X 5. Services: Commercial sources (includes educational and non-profit institutions) in the open market.

Effective Date: 03/01/2022 Page 6 of 11

VETERANS FIRST CONTRACTING PROGRAM

(VAAR subpart 819.70) REFERENCES/SOURCES

CHECKED

X Sources Sought Notices: Requests for Information (RFI) SAM.gov | Contract Opportunities

SS posted 11/14/2023 produced two interested vendors but neither are authorized to perform services on Varian Medical Systems, Inc. equipment (see Section VI below)

System for Award Management (SAM) search for entity records at: SAM.gov | Home

OTHER REFERENCES/SOURCES CHECKED

(Other ways to conduct or confirm market research)

X Sources Sought Notices: Requests for Information (RFI) SAM.gov | Contract Opportunities

SS posted 11/14/2023 produced two interested vendors but neither are authorized to perform services on Varian Medical Systems, Inc. equipment (see Section VI below)

Pre-solicitation and/or Pre-Proposal Conferences Existing intra-/inter-agency contract vehicles, e.g.

Interagency Contract Directory (ICD) at:

https://www.contractdirectory.gov/contractdirectory System for Award Management (SAM) search for entity records at: SAM.gov | Search SBA Dynamic Small Business Database at: SBA - Dynamic Small Business Search Department of Labor (DoL) Service Contract Labor Standards (Service Contract Act (SCA)) and Wage Rate Requirements (Davis-Bacon Act (DBA)) wage determination information online at: SAM.gov | Wage Determinations (SERVICES ONLY)

VI. Identify Product/Services and Sources Able to Meet the Requirement o Product/Service, include any brand name product information:

The Contractor shall provide full maintenance both remotely and on site, to include all software updates, labor, travel expenses, tools, test equipment and other incidentals necessary to maintain the Varian Medical Systems, TrueBeam-H194504, equipment and ancillary equipment.

NAICS 811210 using key words "radiotherapy equipment services" = 0 results in KS & MO

Effective Date: 03/01/2022 Page 7 of 11 o Company information (e.g., name, POCs, address, telephone number, e-mail address, website): Varian Medical Systems, Inc., see table below for vendor information.

o Company characteristics, past performance, and business size category: Varian Medical Systems, Inc., a Large Business category under NAICS 811210, SBA Size Standard $34M. Varian Medical Systems, Inc., is the only vendor that can perform maintenance on the Varian Medical Systems, TrueBeam-H194504 equipment and ancillary equipment. Varian Medical Systems, Inc. has a satisfactory or better past performance on previous contracts in CPARS.

o If sole source, describe efforts to locate additional sources: Varian Medical Systems, Inc., is the only responsible vendor that can provide the required maintenance services. NAC contract 36H79719D0014 was found;

however, it expires August 2024 and is not viable for another task order to be placed. A search for SAC and GSA did not produce any other contract vehicles that can provide these services. A Sources Sought was posted to www.sam.gov to try to find any other sources that could provide the required maintenance services. The following are the respondents:

Varian Medical Systems, Inc., responded, and they provided a letter to explain why they are the only source that can provide this requirement.

(see sole source letter attached from Varian Medical Systems, Inc.)

There were two more responses to the Sources Sought. A&B Technical, LLC and The Remi Group. Per the E-mail response from the OEM, Varian Medical Systems, Inc., neither of them are certified to perform services on the TrueBeam-H194504. (see also attached E-mail from Varian Medical Systems, Inc.)

Business Category Name of Potential Source(s)/Other POC Information

VIP verified Service-Disabled, Veteran- Owned (SDVOSB)

A&B Technical, LLC 794 Barkley Crest Cir.

Auburn, AL 36830

UEI: PNK4FMD419R5

The Remi Group 6325 Ardrey Kell Road Suite 200 Charlotte, NC 28277

UEI: X458FNVQ1YX9

VIP verified Veteran-Owned Small Business (VOSB) Woman-Owned Small Business (WOSB) Economically Disadvantaged Woman- Owned Small Business (EDWOSB) HUBZone Small Business Section 8(a) small business

Effective Date: 03/01/2022 Page 8 of 11

Small/disadvantaged business (SDB) Small business

Large Business

Varian Medical Systems, Inc.

3100 Hansen Way Palo Alto, CA 94304 POC: Ramya Ramachandran Phone: 650.424.5114 E-mail: dan.callahan@varian.com

VII. Description of the Commercial Marketplace and Prevalent Business Practices

Describe the marketplace: The vendor Varian Medical Systems, Inc., used to be a Small Business and has graduated to the Large Business category. Varian Medical Systems, Inc., does not have 3rd party authorized vendors trained to work on this equipment, and will not authorize or train any other vendor to provide maintenance on this equipment. Varian Medical Systems, Inc., service and support training, procedures and documentation are proprietary to, and the intellectual property of, Varian Medical Systems, Inc.

Identify availability of commercial or non-developmental items that satisfy requirements (value or shortcomings of each) and sub-components: N/A

State Nonmanufacturer Rule (NMR) Findings (if the acquisition is for manufactured products or other supplies) (See the Nonmanufacturer Rule Decision Tree to assist with this determination): N/A as this is a service to maintain existing equipment.

Identify standard/customary terms and conditions and industry business practices that differ from the standard Government practices (include information on payment, freight delivery, acceptance, and warranties): N/A

Discuss if contract financing is applicable. If so, ensure compliance with FAR 32.202-3, Conducting Market Research About Financing Terms: N/A

Discuss any regulations unique to the requirement, if known: None Known.

VIII. Pricing and Market Issues

Identify price sources (e.g., market price, catalog, GSA, etc.), price ranges, and price variations: Pricing provided by Varian Medical Systems, Inc. and same/similar scope pricing found on the Federal Procurement Data Systems

(FPDS).

Describe market trends for product or service, e.g., technical, business, and pricing. The current estimated pricing is a total value of $1,444,756.00, for a 12-month Base Period and four, 12-month, Option Periods. The Base Period is $280,411.00. Contracts found on FPDS show other vendors with same/similar Radiotherapy Equipment Maintenance: Accuray Inc. brand product, pricing for one Period of Performance of maintenance services was $275,000.00. Elekta, Inc. is another vendor, large Foreign-Owned business and sole sourced, with pricing for one Period of Performance for maintenance services at $393,336.81.

Effective Date: 03/01/2022 Page 9 of 11

IX. Other Considerations

Identify other considerations gathered from market research, e.g., opportunities for small business participation: There are no other opportunities as Varian Medical Systems, Inc., has stated in their Sole Source Letter that they will not train any 3rd party vendor to provide maintenance on this equipment.

Discuss qualifying factors, including such issues as past performance, references, product testing or evaluation, customer satisfaction, warranties, and quality problems: There have been no performance issues, or otherwise, presented about Varian Medical Systems, Inc.

Describe consideration of green (sustainable products and services https://sftool.gov/greenprocurement and http://www.gsa.gov/portal/content/105365). Include discussion of energy efficiency standards of market products, if applicable: N/A

Discuss consideration to Buy American Statute. Does Buy American, Trade Agreement or an Exception to Buy American apply (FAR Part 25).

Are there domestic end products available for this acquisition? N/A, Varian Medical Systems, Inc. is a U.S. owned/operated business, and this requirement is for maintenance services performed in the U.S.

FITARA does not apply as this is under PSC J065.

X. Market Analysis Summary

Provide market research conclusions and recommendations: In conclusion Varian Medical Systems, Inc., is the only vendor capable and responsible to provide maintenance on the TrueBeam- H194504 equipment and ancillary equipment. This will be a sole source contract awarded to Varian Medical Systems, Inc.

commercial item/service, if market research so warrants: Varian Medical Systems, Inc., is the only vendor that can provide the required maintenance services.

Document cannot be satisfied with a commercial item/service: N/A

Provide supporting documents, as appropriate: See attached Varian Medical

XI. DETERMINATION: Based on the above market research it is determined that Varian Medical Systems, Inc. is the only vendor capable of providing the requirement.

No two or more SDVOSB, VOSB, or other SB vendors found capable of providing these services.

PART II TO BE COMPLETED BY CONTRACTING OFFICER

Effective Date: 03/01/2022 Page 10 of 11

Contracting Officer Responsibilities:

I. Background. See information above in Part I of this document.

In accordance with FAR 7.102, contracting officers and acquisition planners are required to perform acquisition planning and conduct market research. The following information is a summary of the acquisition planning: In submitting this request for procurement, the customer considered available sources within the agency, any government furnished information/property, and security considerations IAW VA Directive/Handbook 6500. The contract type for this procurement is (Firm-Fixed Price Type) and the milestone schedule will be accomplished and documented in the Electronic Contract Management System (eCMS).

See information above in Part I of this document.

II. Market Research

1. Techniques Used in Conducting Market Research:

2. Results of Market Research:

III. Consideration of Small Business Opportunities

Guidance: All acquisitions for supplies and services with an anticipated value above the micro-purchase up to and including the simplified acquisition threshold (SAT); these thresholds (see FAR 2.1-1 definitions) are reserved exclusively for small businesses and shall be set aside (FAR 19.502-2(a)). If the anticipated acquisition value exceeds the SAT, the requirement must be set aside for Small Businesses if (1) there is a reasonable expectation of receipt of offers from two or more responsible Small Businesses, and (2) award will be made at a fair market price (FAR 19.502-2(b)).

VAAR 819.7004: Contracting officers shall consider, in the following order of priority, contracting preferences that ensure contracts will be awarded

- To SDVOSBs

- To VOSB, including but not limited to SDVOSBs,

- To small business concerns using the priorities and preferences in 819.203-

70 and VAAR subpart 819.70

Effective Date: 03/01/2022 Page 11 of 11

Note: The Small Business Jobs Act of 2010 created parity among small business socioeconomic contracting programs. As a result of this amendment to the Small Business Act, there is no order of precedence among the 8(a), HUBZone, SDVOSB or WOSB programs in FAR (see 819.203).

38 U.S.C. 8127 (i) Priority for Contracting Preferences. Provides those preferences for awarding contracts to small business concerns shall be applied in the following order of priority: (1) SDVSOBs, followed by (2) VOSBs, including SDVOSBs, then (3) 8(a) and HUBZone firms and (4) any other small business. The order of priority was established in 2006 by Public Law 109-461, as per the policy in the Small Business Act at that time.

Since then, as a result of legislative amendments to the Small Business Act, the FAR has been amended to create a woman-owned small business set-aside and to provide parity among the various small business socio-economic programs. Therefore, VA has adopted the current parity policy in FAR 19.203 for procurements involving other than SDVOSBs/VOSBs.

Based on above Market Research, identify each Small Business (including its eligibility for specific socioeconomic category status) capable of performing or providing the requirement. Discuss and explain the potential for Small Business participation in this acquisition. See information above in Part I of this document.

IV. Conclusions and Recommendations

The vendor, Varian Medical Systems, Inc., is a Large Business concern and is the only vendor that can provide the maintenance services as described in the market research provided above in Part I of this document.

IV. PROPOSED PROCUREMENT METHOD

Based on the market research conducted, no two or more SBA VETCERT verified and capable SDVOSBs or VOSBs were identified and appeared capable of performing the requirement. In addition, no small business in any of the other targeted socio-economic groups appeared to qualify for a set-aside or sole source procurement. Therefore, it is anticipated that this will be a sole source contract awarded to Varian Medical Systems, Inc., for this requirement in accordance with FAR Part 6.302-1 and FAR Part 13. This market research information is not more than 12 months old.

Name: ________________________________ Teresa Cabanting

Contracting Officer

Cabanting, Teresa M.

From: Callahan, Dan <dan.callahan@varian.com> Sent: Thursday, January 25, 2024 2:59 PM To: Cabanting, Teresa M.

Cc: Callahan, Dan Subject: [EXTERNAL] RE: TrueBeam Radiotherapy Equipment Maintenance Services Attachments: Safe Attachments Scan In Progress

Hey Teresa, These vendors would NOT be authorized or able to do the following items that are contained in the statement of work:

a. Proprietary operating system software enhancements without hardware changes (excludes software upgrades)

b. Unlimited Technical Services (24x7) & Clinical Applications Telephone Support (Mon-Fri 8am

- 5pm)

c. Remote Service Support (includes Remote Desktop)

d. Remote Proactive Monitoring

For these reasons and others, Varian has been awarded VA service contracts via Sole Source for almost all contracts over the past year.

- There’s only two Varian machines left in the VA fleet covered by a 3rd party and we expect to get those machines back under Varian service contract in March 2024.

Does this answer your question fully? Thank you.

Respectfully, Dan Callahan Sr Manager, Strategic Service and Operations

Varian, a Siemens Healthineers company Palo Alto, CA United States dan.callahan@varian.com M +814.722.6817 varian.com

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From: Cabanting, Teresa M. <Teresa.Cabanting@va.gov> Sent: Thursday, January 25, 2024 3:18 PM To: Callahan, Dan <dan.callahan@varian.com> Subject: RE: TrueBeam Radiotherapy Equipment Maintenance Services

Yes Sir it has been a minute.

I do have more questions. Please see the attached and I need to know per the attached, do the vendors listed have the authorization to perform the services:

A&B Technical, LLC, 794 Barkley Crest Circle, Auburn, AL 36830-2170

The Remi Group, 6325 Ardrey Kell Road, Suite 200, Charlotte, NC 28277

I have to know about these specific vendors because if they are authorized to perform the services listed on the attached, then I have to post a solicitation. If they are not authorized then I have to Sole Source to Varian.

v/r, Teresa Cabanting

From: Callahan, Dan <dan.callahan@varian.com> Sent: Thursday, January 25, 2024 2:13 PM To: Cabanting, Teresa M. <Teresa.Cabanting@va.gov> Cc: Callahan, Dan <dan.callahan@varian.com> Subject: [EXTERNAL] RE: TrueBeam Radiotherapy Equipment Maintenance Services

Good Afternoon Teresa, Long time. Hope you are well.

There are 3rd party providers that can service our equipment; HOWEVER, Varian as the OEM is the only vendor that can comply with the Government T&Cs of the contract.

- For example, only Varian can perform hardware, software and firmware upgrades to our equipment.

o These 3rd parties can’t and all government contracts I’ve signed off on have this requirement.

- Varian’s service and support training, procedures and documentation are proprietary to and the intellectual property of Varian.

o Varian, as the OEM, does not train 3rd party service providers in the commercial market place.

o Varian, as the OEM, does not sanction non-Varian training centers to provide technical maintenance training for Varian products.

o Only Varian service and support technicians can directly escalate to Varian Product Specialists, Product

Support Engineering and Engineering for service issues and product repairs.

- SmartConnect is Varian’s proprietary remote support and diagnostic service tool technology used by Varian support personnel.

o SmartConnect meets all cyber-security and PHI requirements and is fully vetted & approved through the MOU/ISA between the VA and Varian.

o Other vendors will not be able to provide this type of remote access and analytics that Varian provides to our customers while under Varian service contract.

- Varian, as the OEM, ensures the exclusive use of qualified Varian parts to ensure proper design, pre-testing, and integration with all system components.

- Varian has numerous parts depots across North America enabling the service organization to receive replacement parts on site via NFO (next flight out) or overnight delivery for emergency or “system down” situations.

Let me know if you have any further questions and thanks for reaching out.

Have a great day.

Respectfully, Dan Callahan Sr Manager, Strategic Service and Operations

Varian, a Siemens Healthineers company Palo Alto, CA United States dan.callahan@varian.com M +814.722.6817 varian.com

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T h e l i n k e d

*I’m located in the Eastern Time Zone*

This message may contain information that is confidential or otherwise protected from disclosure. If you are not the intended recipient, you are hereby notified that any use, disclosure, dissemination, distribution, or copying of this message, or any attachments, is strictly prohibited. If you have received this message in error, please advise the sender by reply e-mail, and delete the message and any attachments. Thank you.

From: Cabanting, Teresa M. <Teresa.Cabanting@va.gov> Sent: Thursday, January 25, 2024 2:59 PM To: Callahan, Dan <dan.callahan@varian.com> Subject: TrueBeam Radiotherapy Equipment Maintenance Services Importance: High

Good afternoon Dan, I received another request for a Varian requirement.

What I need to know is, do the following have Varian Medical Systems authorization to perform maintenance services on the TrueBeam Radiotherapy equipment located at the John Cochran VAMC in St. Louis, MO:

A&B Technical, LLC, 794 Barkley Crest Circle, Auburn, AL 36830-2170

The Remi Group, 6325 Ardrey Kell Road, Suite 200, Charlotte, NC 28277

These vendors sent me a response to my Sources Sought (which I have to post per my leadership no matter what) and stated they can provide these services.

Thank you in advance for your time and help.

v/r, Teresa Cabanting Contract Specialist Network 15 Contracting Office (NCO 15) 3450 S. 4th Street Trafficway Leavenworth, KS 66048 Phone: (913) 946-1976 E-mail: teresa.cabanting@va.gov NCO15EmergencyContracting@va.gov

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“INTEGRITY, COMMITMENT, ADVOCACY, RESPECT, AND EXCELLENCE – these are VA Core Values.” As our client, please take a few moments and let us know how we did by completing the attached Survey.

This email, and any attachment thereto, is intended only for use by the addressee(s) named herein and may contain legally privileged and/or confidential information. If you are not the intended recipient of this e-mail you are hereby notified that any dissemination, distribution or copying of this e-mail, and any attachments thereto, is strictly prohibited.

If you have received this e-mail in error, please immediately notify me by telephone or e-mail so that appropriate corrective action may be taken.

Effective Date: 03/01/2022 Page 1 of 12

Title of Requirement: 36C255-24-AP-0180 Varian TrueBeam Radiotherapy Maintenance Service

PART I

I. Authority.

Market research is required in accordance with:

FAR 7.102, Acquisition Planning Policy FAR 7.103(u)(1) and (2), Agency-Head Responsibilities FAR 10.001, Market Research Policy and VAAR 810.001-70 (Class Deviation) VAAR 813.003-70(c), Policy (Class Deviation) FAR 19.202-2, Locating Small Business Sources and VAAR 819.202 (Class

Deviation) FAR 25, Foreign Acquisition

II. Procurement Information.

A. Procurement History.

1. Was the requirement previously procured? No.

2. Is this a bundled (FAR 2.101) requirement? No.

3. Are there any applicable Organizational Conflicts of Interest? None known

B. Procurement Background.

Type of acquisition: Service Expected dollar value of requirement: $1,444,756.00 Suggested 2017 NAICS code(s): 811210 Time frame in which the market research was conducted: Between

10/01/2023 and 01/24/2024

III. Initial Requirements

The Contractor shall provide full maintenance on site, to include all software updates, labor, travel expenses, tools, test equipment and other incidentals

Effective Date: 03/01/2022 Page 2 of 12 necessary to maintain the Varian Medical Systems, TrueBeam-H194504, equipment and ancillary equipment.

Describe schedule requirements, e.g., performance periods and/or delivery due dates.

The contract is anticipated for a 12-month Base Period plus four, 12-month, Option Periods with an estimated total value of $1,444,756.00. The Base Period is estimated at a value of $280,411.00.

Discuss any cost effectiveness issues associated with the requirements:

None identified at this time.

IV. Participants in Market Research

Acquisition Team members and any other participants in the market research effort:

Teresa Cabanting Contracting Officer NCO 15 913-946-1976 teresa.cabanting@va.gov David Mugan SBA Liaison NCO 15 913-946-1147 david.mugan@va.gov

V. Market Research Techniques and Sources

A. Market Research Techniques Describe techniques and sources used during market research. The following table may help structure and summarize the techniques used in the market research effort.

IF USED

SOURCES USED IN MARKET RESEARCH

DETAILS OF

RESEARCH/COMMENTS

RESEARCH SOURCES

(INCLUDE REFERENCES TO

ATTACHMENTS TO REPORT)

(e.g., List of Journals and Literature Reviewed included

Brief Description of Service* Period of

Performance Estimated

Amount

Equipment Service Base Period 02/22/2024-02/21/2025 $ 280,411.00

Equipment Service Option Period 1 02/22/2025-02/21/2026 $ 284,618.00

Equipment Service Option Period 2 02/22/2026-02/21/2027 $ 288,887.00

Equipment Service Option Period 3 02/22/2027-02/21/2028 $ 293,221.00

Effective Date: 03/01/2022 Page 3 of 12 as Attachment 4 to this report)

Acquisition history reviewed Other recent market research reviewed

X SBA VETCERT data base:

https://veterans.certify.sba.gov

Veteran owned vendors were not found that can provide this service.

Interviewed knowledgeable individuals in industry/Government

Participated/Attended Tradeshows and Industry Conferences

Professional Journals, Catalog and/or Product Literature reviewed

Participated in Small Business Vendor Outreach Sessions

B. Market Research Sources. In accordance with FAR part 10 and VAAR part

810, market research has been conducted for this acquisition. The following additional collaborative Contracting Officer-led techniques were used:

SOURCES REVIEWED

(IAW FAR 8.002, VAAR 808.002, FAR 8.003, FAR 8.004, and

VAAR 808.004-70)

MARKET RESEARCH FOR SUPPLIES

Insert

X if Check ed

Details of Research/Com ments (Include N/A if not applicable)

MANDATORY GOVERNMENT SOURCES

IN PRIORITY ORDER

(Include References to

Report Attachments)

1. VA Inventories including the VA supply stock program (41 CFR 101-26.704) and VA excess.

2. Excess from other agencies (See FAR subpart 8.1)

3. Federal Prison Industries* (FPI) (See VAAR

808.603 Purchase Priorities)

4. Supplies from Ability One - (VA AbilityOne Procurement List for Supplies/Services) (FAR 8.002)

Effective Date: 03/01/2022 Page 4 of 12

5. Wholesale Supply Sources (GSA website:

https://www.gsaglobalsupply.gsa.gov/advantage/main/start_p age.do?store=FSS)

Insert X if Checked

(VAAR subpart 819.70)

REFERENCES/SOURCES CHECKED

(IDENTIFYING VIP VERIFIED SDVOSBs/VOSBs)

Details of Research/Comments (Include References to Report Attachments)

X VA Office of Small and Disadvantaged Business Utilization (OSDBU), Center for Verification and Evaluation (CVE), SBA VETCERT data base:

https://veterans.certify.sba.gov

Veteran owned vendors were not found that can provide this service.

Research

PRIORITY CONSIDERATION OF

VA EXISTING CONTRACTS

X 1. See VA PPM (2016-05)(Revised AUG 2019) - Implementation of the Veterans First Contracting Program (VIEWS 01368239) concerning consideration of existing VA contracts and VA strategic sourcing regarding supplies in FSC Groups 65 and 66.

36H79719D0014 was found; however, it expires August 2024 and is not viable for another task order to be placed.

Additionally, there are no other contracts available.

X 2. Other VA Existing Contracts (non-mandatory but their potential availability, scope, contract type, etc., should be documented in the market research report)

Research

CONSIDERATION OF NON-VA EXISTING

CONTRACTS

Federal Strategic Sourcing Initiatives or OMB

Category Management contracts/sources

(Non-Mandatory except where OMB or Agency policy states otherwise)

X 1. Non-VA Contracts:

(Includes NASA-SEWP and BPAs under FSS Strategic Sourcing Initiative (FSSI) non-

Effective Date: 03/01/2022 Page 5 of 12 mandatory Federal Supply Schedules (other than for FSC Group 65 and 66) (FAR 8.004(a)(1) and VAAR 808.004-70).

X 2. Non-mandatory Federal Supply Schedules (non VA) (See FAR 8.004(a)(1) and VAAR 808.004-70, Use of non-mandatory sources by VA (Class Deviation).

None found.

Use of Other Sources Commercial sources (includes educational and non-profit institutions) in the open market. This is permissible IAW FAR 8.004 and VAAR 808.004-70.

Research

Sources for services to consider, as applicable and as required

Details of Research/Comments (Include References to Report Attachments)

MARKET RESEARCH FOR SERVICES

X 1. Services that are on the Procurement List maintained by the Committee for Purchase from People who are Blind or Severely Disabled (AbilityOne) (See FAR subpart 8.7) See VAAR 808.002, Priorities for use of mandatory Government sources, paragraph (a)(2) pertaining to Services.

None found.

X 2. Services: Federal Prison Industries (See FAR subpart 8.6) UNICOR Home Page (Except if two or more SDVOSB or VOSB are identified, see

VAAR 808.603)

None found.

X 3. Also see--VA Federal Supply Schedules (FSS) in FSC Group 62I.

36H79719D0014 was found; however, it expires August 2024 and is not viable for another task order to be placed.

Additionally, there are no other contracts available.

X 4. And see--mandatory sources reviewed, if applicable, for:

4a. Public Utility Services (see FAR part 41);

4b. Printing & Related Supplies (see FAR subpart 8.8);

4c. Leased Motor Vehicles (see FAR subpart 8.11);

4c. Helium (see FAR subpart 8.5)

None found.

X 5. Services: Commercial sources (includes educational and non-profit institutions) in the open market.

Effective Date: 03/01/2022 Page 6 of 12

(VAAR subpart 819.70) REFERENCES/SOURCES

CHECKED

X Sources Sought Notices: Requests for Information (RFI) SAM.gov | Contract Opportunities

SS posted 11/14/2023 produced two interested vendors but neither are authorized to perform services on Varian Medical Systems, Inc.

equipment (see Section VI below) entity records at: SAM.gov | Home

OTHER REFERENCES/SOURCES CHECKED

(Other ways to conduct or confirm market research)

X Sources Sought Notices: Requests for Information (RFI) SAM.gov | Contract Opportunities

SS posted 11/14/2023 produced two interested vendors but neither are authorized to perform services on Varian Medical Systems, Inc.

equipment (see Section VI below)

Pre-solicitation and/or Pre-Proposal Conferences Existing intra-/inter-agency contract vehicles, e.g.

Interagency Contract Directory (ICD) at:

https://www.contractdirectory.gov/contractdirectory

SBA Dynamic Small Business Database at: SBA - Dynamic Small Business Search

Department of Labor (DoL) Service Contract Labor Standards (Service Contract Act (SCA)) and Wage Rate Requirements (Davis-Bacon Act (DBA)) wage determination information online at: SAM.gov | Wage Determinations (SERVICES ONLY)

Effective Date: 03/01/2022 Page 7 of 12

VI. Identify Product/Services and Sources Able to Meet the Requirement o Product/Service, include any brand name product information:

The Contractor shall provide full maintenance both remotely and on site, to include all software updates, labor, travel expenses, tools, test equipment and other incidentals necessary to maintain the Varian Medical Systems, TrueBeam-H194504, equipment and ancillary equipment.

o Company information (e.g., name, POCs, address, telephone number, e-mail address, website): Varian Medical Systems, Inc., see table below for vendor information.

o Company characteristics, past performance, and business size category: Varian Medical Systems, Inc., a Large Business category under NAICS 811210, SBA Size Standard $34M. Varian Medical Systems, Inc., is the only vendor that can perform maintenance on the Varian Medical Systems, TrueBeam-H194504 equipment and ancillary equipment. Varian Medical Systems, Inc. has a satisfactory or better past performance on previous contracts in CPARS.

o If sole source, describe efforts to locate additional sources: Varian Medical Systems, Inc., is the only responsible vendor that can provide the required maintenance services. A search for NAC, SAC and GSA did not produce any other contract vehicles that can provide these services.

A Sources Sought was posted to www.sam.gov to try to find any other sources that could provide the required maintenance services.

Varian Medical Systems, Inc., responded, and they provided a letter to explain why they are the only source that can provide this requirement.

(see sole source letter attached from Varian Medical Systems, Inc.)

There were two more responses to the Sources Sought. A&B

Technical, LLC and The Remi Group. Per the E-mail response from the OEM, Varian Medical Systems, Inc., neither of them are certified to perform services on the TrueBeam-H194504. (see also attached E-mail from Varian Medical Systems, Inc.)

Business Category Name of Potential Source(s)/Other POC

Information

VIP verified Service-Disabled, Veteran- Owned (SDVOSB)

A&B Technical, LLC 794 Barkley Crest Cir.

Auburn, AL 36830

UEI: PNK4FMD419R5

The Remi Group 6325 Ardrey Kell Road Suite 200 Charlotte, NC 28277

UEI: X458FNVQ1YX9

Effective Date: 03/01/2022 Page 8 of 12

VIP verified Veteran-Owned Small Business (VOSB)

Woman-Owned Small Business (WOSB) Economically Disadvantaged Woman- Owned Small Business (EDWOSB)

HUBZone Small Business Section 8(a) small business Small/disadvantaged business (SDB) Small business

Large Business

Varian Medical Systems, Inc.

3100 Hansen Way Palo Alto, CA 94304 POC: Ramya Ramachandran Phone: 650.424.5114 E-mail: ramya.ramachandran@varian.com

VII. Description of the Commercial Marketplace and Prevalent Business Practices

Describe the marketplace: The vendor Varian Medical Systems, Inc., used to be a Small Business and has graduated to the Large Business category. Varian Medical Systems, Inc., does not have 3rd party authorized vendors trained to work on this equipment, and will not authorize or train any other vendor to provide maintenance on this equipment. Varian Medical Systems, Inc., service and support training, procedures and documentation are proprietary to, and the intellectual property of, Varian Medical Systems, Inc.

Identify availability of commercial or non-developmental items that satisfy requirements (value or shortcomings of each) and sub-components: N/A

State Nonmanufacturer Rule (NMR) Findings (if the acquisition is for manufactured products or other supplies) (See the Nonmanufacturer Rule Decision Tree to assist with this determination): N/A as this is a service to maintain existing equipment.

Identify standard/customary terms and conditions and industry business practices that differ from the standard Government practices (include information on payment, freight delivery, acceptance, and warranties): N/A

Discuss if contract financing is applicable. If so, ensure compliance with FAR 32.202-3, Conducting Market Research About Financing Terms: N/A

Discuss any regulations unique to the requirement, if known: None Known.

VIII. Pricing and Market Issues

Identify price sources (e.g., market price, catalog, GSA, etc.), price ranges, and price variations: Pricing provided by Varian Medical Systems, Inc. and same/similar scope pricing found on the Federal Procurement Data Systems

(FPDS).

Effective Date: 03/01/2022 Page 9 of 12

Describe market trends for product or service, e.g., technical, business, and pricing. The current estimated pricing is a total value of $1,444,756.00, for a 12-month Base Period and four, 12-month, Option Periods. The Base Period is $280,411.00. Contracts found on FPDS show other vendors with same/similar Radiotherapy Equipment Maintenance: Accuray Inc. brand product, pricing for one Period of Performance of maintenance services was $275,000.00. Elekta, Inc.