FAR 13.5 Sole Source Justification - SAT-$7.5M_Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Request for Sole Source Justification under FAR13.5

Effective Date: 11/15/24 Page 2 of 5

REVISION: 01

Acquisition ID#: 36C25526AP0624 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

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

The identified home sleep apnea equipment must seamlessly integrate with Somnoware software to ensure continuity and accuracy in the diagnosis, monitoring, and management of sleep apnea patients. This specific equipment is uniquely suited for the following reasons:

A. Software Compatibility: The equipment is uniquely designed to be fully compatible with Somnoware software. This compatibility ensures seamless data transfer, real-time monitoring, and comprehensive analysis within the existing Somnoware ecosystem, which is critical for maintaining the accuracy and integrity of patient records.

B. Data Integration: The device facilitates direct integration of patient data into the Somnoware platform, allowing for efficient data management, interpretation, and reporting without the need for manual data entry or secondary interfaces. This eliminates potential errors and enhances workflow efficiency for healthcare providers.

C. Technological Superiority: The equipment employs advanced algorithms and proprietary technology that align specifically with the analytical frameworks utilized by Somnoware. This ensures that all diagnostic metrics, such as apnea-hypopnea index (AHI), oxygen desaturation events, and sleep architecture, are accurately captured and interpreted.

D. Enhanced Patient Care: By using equipment that is compatible with the existing Somnoware software, healthcare providers can offer a higher standard of care through streamlined processes, quicker turnaround times for diagnostic results, and improved patient compliance and monitoring.

E. Cost Prohibitive Replacement: Replacing Somnoware software and any compatible equipment at John J. Pershing VA Medical Center would be cost prohibitive. This would involve significant expenses related to new software acquisition, equipment procurement, staff retraining, and system integration, thereby placing a substantial financial burden on the institution.

F. Vendor Support and Maintenance: The sole source vendor provides dedicated technical support and maintenance services that are tailored to ensure optimal performance of the equipment when used in conjunction with Somnoware software. This includes software updates, troubleshooting, and direct access to specialized support teams familiar with both the equipment and Somnoware.

In summary, the unique compatibility and integration features of this home sleep apnea equipment with Somnoware software justify its selection as a sole source procurement. This alignment ensures optimal functionality, accuracy, and efficiency in the clinical management of sleep apnea patients, VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Request for Sole Source Justification FAR13.5

Effective Date: 11/15/24 Page 3 of 5

REVISION: 01

Acquisition ID#: 36C25526AP0624 minimizes financial strain associated with software replacement, and supports the goal of delivering high-quality healthcare services.

Compatibility with Somnoware software is essential to the Government’s requirements, thereby precluding consideration of a product manufactured by another company.

Accordingly, compatibility with Somnoware software is necessary, as described in Section III above, without the Veteran’s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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

Market Research was conducted by the Program Office. Using this Market Research, the Program Office determined that compatibility with Somnoware is essential in providing sleep apnea testing.

The Contracting Officer also conducted Market Research. Sources Sought were conducted on GSA and sam.gov. Both were posted from 11/18/2025 through 11/25/2025. Both included the Statement of Work. Three Small Businesses and four SDVOSBs responded to the sam.gov Sources Sought 36C25526Q0083. GSA RFI 1787167 was posted to Schedule GSIIA A-50H and was sent to 17 contractors. There were no responses to the GSA Sources Sought.

Before the exercise of each option of this proposed contract, research will be conducted to determine if use of Somnoware software is still necessary.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer has determined the anticipated cost is fair and reasonable by comparison to the Independent Government Cost Estimate (IGCE). The IGCE was formulated using Market Research of current price lists and historical pricing. Before each option is exercised, the contractor will be asked if a discounted price is available. Market Research will also be conducted, before the exercise of each option, to determine if the price remains fair and reasonable.

There are no requirements for certified cost or pricing data, technical evaluations, and audits (FAR 6.303-2(b)(7)) as this is a commercial requirement.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market Research was conducted and resulted in finding four SDVOSBs that could potentially be able to fill this requirement, meeting the VA Rule of Two. This is documented in the Market Research report.

There will be evaluation of offered products to find if they meet the Buy American Act.

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: N/A