36C25818Q9494-0001001.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 08 Page 1 of 7 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C258‐18‐AP‐0237

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 22‐Gilbert (NCO

22‐G). This procurement is to support the hospitals and clinics operated by the Southern Arizona VA Health Care System (SAVAHCS), New Mexico VA Health Care System (NMVAHCS), Phoenix VA Health Care System (PVAHCS) and Northern Arizona VA Health Care System (NAVAHCS).

The planned contract type is an Indefinite‐Delivery, Requirements Contract (IDC‐Requirements) as described in Federal Acquisition Regulation (FAR) Subpart 16.503(a).

Funding documents in the form of VA 2237s have been provided by those stations wishing to place a Delivery Order against the proposed contract at the time of award and are listed below. NAVAHCS does not have a current requirement for any of the equipment that will be procured using the proposed contract vehicle but is being included in the contract in anticipation of future needs.

The 2237s supporting the proposed contract are:

501‐18‐3‐119‐0132 (NMVAHCS)

644‐18‐3‐201‐0736 (PVAHCS)

678‐18‐3‐071‐0268 (SAVAHCS)

NAVAHCS will provide a funded 2237 at a future date when the have a need to purchase equipment against this contract vehicle.

2. Nature and/or Description of the Action Being Processed: The purpose of this acquisition is to provide a contract vehicle that will allow SAVAHCS, NMVAHCS, PVAHCS and NAVACHS to purchase new and replacement Welch‐Allyn vital sign monitoring equipment and accessories. The proposed contract is intended to address both the current and anticipated future needs of these facilities.

The awarded contract will be a new firm fixed‐price IDC‐Requirements contract, as described in FAR Subpart 16.503(a). The awarded contract will have a 1‐year base period of performance that is anticipated to begin on or around September 1, 2018 with four (4) 1‐year option periods. The Contracting Officer has determined that the inclusion of option solicitation provisions and contract clauses as described in FAR Subpart 17.2 is in the Government’s interest and will allow for additional purchases by the facility as needed.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for vital sign monitoring equipment and accessories which are commercial items as defined in FAR Subpart 2.101.

In accordance with FAR Subpart 13.5(a), simplified acquisition procedures are authorized for the acquisition of supplies in amounts greater than the simplified acquisition threshold but not

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Revision 08 Date: 04/18/2018 exceeding $7 million based on the Contracting Officer’s reasonable expectation supported by market research indicating that offers received will include only commercial items.

As outlined in FAR Subpart 13.501(a) Special documentation requirements, sole source acquisitions (including brand name acquisitions) are exempt from the requirements of FAR Part 6, but still require a justification using the format found at FAR Subpart 6.303‐2.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The vital sign monitoring equipment and accessories identified below reflect the current needs of SAVAHCS, NMVAHCS and PVAHCS and will be purchased using a Delivery Order once this contract is established. The total estimated value of the initial Delivery Order is $2,783,619.00. In accordance with FAR Subpart 16.503(a)(1) and 16.503(a)(2), the Contracting Officer estimates that approximately $2.5 million will comprise the initial purchase against the contract, with an estimated $3.5 million total expenditures over the life of the contract, including options. The maximum dollar amount of the contract will be set at $5,000,000.00.

The items and quantities identified below are the specific equipment and accessories that will be acquired on the initial Delivery Order that will be placed against the awarded IDC‐Requirements contract. The estimated delivery date for all items below is on or before September 30, 2018.

Description of Equipment or Accessory Quantity Facility Welch Allyn Device Connectivity License 350 PVHACS Connex Premium Service Support Agreement; Hardware Support (ifapplicable); Software Updates/Upgrades; Corepoint license and support(if applicable); Onsite Services; 7x24x365 telephone and remotediagnosis technical support; Direct access to the Partners in CareSupport Center.

1 PVHACS

Welch Allyn Connex 6800 Vital Signs Monitor with Masimo SpO2, SureTempPlus Thermometry, SureBP Non‐invasive Blood Pressure, Pulse Rate, MAP,Custom Scoring, Nurse Call, Four USB Ports for Accessories, Internal 802.11a/b/g Wireless Radio; 100‐240 V, 50‐60 Hz AC, IEC Plug Type B

350 PVHACS

Welch Allyn Accessory Cable Management Mobile Stand for Connex VitalSigns Monitor 6000 Series; with Storage Bin 350 PVHACS

Welch Allyn Connex Spot Monitor with SureBP Non‐invasive Blood Pressure,Masimo SpO2, SureTemp Plus Thermometer 25 PVHACS

CSM Desk Stand 25 PVHACS Barcode Scanner with Holder 350 PVHACS Welch Allyn Delivery Assist 375 PVHACS Five Day Clinical Pkg, One Year Term 1 PVHACS Pelican 1520NF,WL/NF,BLACK 25 PVHACS Welch Allyn Connex 6800 Vital Signs Monitor with Nellcor SpO2, SureBP Non‐invasive Blood Pressure, Pulse Rate, MAP, Custom Scoring, Nurse Call, Four USB Ports for Accessories, Internal 802.11 a/b/g Wireless Radio; 100‐ 240 V, 50‐60 Hz AC, IEC Plug Type‐B

29 SAVAHCS

Welch Allyn Device Connectivity License 29 SAVAHCS Barcode Scanner with Holder 29 SAVAHCS

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106900 Connex Server Application Software ‐ includes 2 thumb drives, one Production, one Test, with included software app, installer and Proview ‐ includes one ADT & one ORU production license, one ADT & one ORU test license ‐ includes 5 connectivity device test licenses ‐ includes Connex CS 1.8x DFU

1 NMVAHCS

Welch Allyn Device Connectivity License 385 NMVAHCS

CONNEX PHYSICAL SERVER FOR VA MS R2 2012 2 NMVAHCS

SQL Enterprise 2012 1 NMVAHCS Installation 1 NMVAHCS Connex CS Premium Service Support Agreement; Hardware Support (ifapplicable); Software Updates/Upgrades; Corepoint license and support(if applicable); Connex Dashboard; Onsite Services; 7x24x365 telephone and remotediagnosis technical support; Direct access to the Partners in CareSupport Center. Technical and clinical training.

1 NMVAHCS

HS‐1M 2D Barcode Scanner with Coiled USB Cord; High Performance 385 NMVAHCS Welch Allyn 6700 Vital Signs Monitor with Nellcor SpO2, SureTemp Plus Thermometry, SureBP Non‐invasive Blood Pressure, Pulse Rate, MAP, Custom Scoring, Nurse Call, Four USB Ports for Accessories, Radio Ready;

100‐240 V, 50‐60 Hz AC, IEC Plug Type‐B

NMVAHCS

Welch Allyn Connex 6800 Vital Signs Monitor with Nellcor SpO2, SureTempPlus Thermometry, SureBP Non‐invasive Blood Pressure, Pulse Rate, MAP,Custom Scoring, Nurse Call, Four USB Ports for Accessories, Internal 802.11a/b/g Wireless Radio; 100‐240 V, 50‐60 Hz AC, IEC Plug Type‐ B

150 NMVAHCS

Welch Allyn Connex 6800 Vital Signs Monitor with Nellcor SpO2, Covidien Capnography, SureTempPlus Thermometry, SureBP Non‐invasive Blood Pressure, Pulse Rate, MAP,Custom Scoring, Nurse Call, Four USB Ports for Accessories, Internal 802.11a/b/g Wireless Radio; 100‐240 V, 50‐60 Hz AC, IEC Plug Type‐B

50 NMVAHCS

Welch Allyn Mounting Plate Accessory for Accessory Cable Management Mobile Stand; Extended Housing (For CVSM Monitors with ETCO2 or EarlySense

50 NMVAHCS

Welch Allyn Accessory Cable Management Mobile Stand for Connex VitalSigns Monitor 6000 Series; with Storage Bin 200 NMVAHCS

GCX Wall Mount Kit for Welch Allyn Vital Signs Monitors 185 NMVAHCS Welch Allyn Delivery Assist 385 NMVAHCS

4. Statutory Authority Permitting Other than Full and Open Competition: 41 U.S.C. §3304(a)(1), as implemented by FAR 6.302‐1.

(x) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302‐1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302‐2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302‐3;

( ) (4) International Agreement per FAR 6.302‐4

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( ) (5) Authorized or Required by Statute FAR 6.302‐5;

( ) (6) National Security per FAR 6.302‐6;

( ) (7) Public Interest per FAR 6.302‐7;

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is restricted to the specific Welch Allyn items identified in the solicitation. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901. The authority for restricting competition is implemented by FAR Subpart 13.106‐1(b)(2) which states that the requirements at FAR 13.501(a) apply to sole source (including brand‐name) acquisitions of commercial items conducted pursuant to FAR Subpart 13.5.

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): It is the Contracting Officer’s detemination that proving full and open competition for vital sign monitoring equipment and accessories is not in the best interest of the Government. All of the VISN‐22 facilities identified in this document currently use Welch‐Allyn vital sign monitoring equipment and accessories. If another brand of equipment is selected it would require the removal of all Welch Allyn vital sign monitoring equipment, accessories and disposable items from these facilities, as is not technically feasible to integegrate multiple brands of vital sign monitoring equipment in a working hospital or clinic.

Removal of existing equipment in order to replace it with a different brand would result in a significant additional cost to the government, as a large portion of the existing equipment is still fully functional and used daily in clinical operations and is not being augmented or replaced under the proposed contract. In addition, clinical staff at these facilities have been fully trained in the proper use of the existing Welch Allyn equipment. Any attempt to integrate multiple brands of vital sign monitoring equipment or replacement of the existing Welch Allyn equipment would require a significant additional investment in training the clinical staff across VISN‐22 facilities.

There is also a high potential for Veteran care and safety to be negatively impacted if the Government elects to switch to a different brand of vital sign monitoring equipment. Negative impacts to patient care must be avoided, as the goal of any medical system is to provide the highest possible standard of care to the patients they serve.

The restriction of competition to Welch Allyn vital sign monitoring equipment and accessories is essential to the Government’s requirements, thereby precluding consideration of products manufactured by another company. Accordingly, Welch Allyn is the only firm capable of providing the equipment and accessories described in Section 3 (above) without the Veterans Health Administration experiencing substantial duplication of cost and increased risk to the patient population served by these facilities.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: As prescribed in 38 U.S.C. 8127(d), this acquisition will be set‐aside for Service Disabled Veteran Owned Small Businesses (SDOVSBs) who are authorized distributors of Welch Allyn vital sign monitoring equipment and accessories, as the Contracting Officer has a reasonable expectation that two or more small business concerns owned and controlled by veterans will submit offers and that the award can be made at a fair and reasonable price that offers best value to the

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Government. According to the market research conducted by the Contracting Officer, there are a number of SDVOSB companies who are authorized distributors of Welch Allyn vital sign monitoring equipment and accessories. These companies have all been verified by the VA Center for Veterans Enterprise (CVE) as legitimate SDVOSBs. Setting aside this acquisition as described above will ensure that offers are solicited from as many potential sources as deemed practicable.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Welch Allyn vital sign monitoring equipment is commercially available and pricing data is readily available. A majority of this equipment is available on various Federal Supply Schedule (FSS) contracts as well as on GSA Advantage. While this procurement will be conducted as an open market SDVOSB set‐aside, the availability of the commercial pricing data from these various sources will ensure that the price paid for the equipment will be fair and reasonable and will represent the best value to the Government.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted: In accordance with FAR Part 10, Market Research was conducted by the Contracting Officer to arrive at the most suitable approach to acquiring this equipment. All Market Research was conducted to ensure compliance with the Class Deviation – Implementation of the Veterans First Contracting Program as a Result of the U.S. Supreme Court Decision (Class Deviation – Veterans First Contracting Program (VFCP 2016), VHA Procurement Manual (VHAPM Part 810.001), and VA Procurement Policy Manual (PPM) 2016‐05, which states that the Department of Veterans Affairs is required to apply the VA Rule of Two to all contracting determinations.

9. Describe results of Market Research Conducted pursuant to FAR Part 10: The Contracting Officer determined that there are 161 SDVOSB companies that have been verified by CVE under North American Industry Classification System (NAICS) code 334510 – Electromedical and Electrotherapeutic Apparatus Manufacturing. Further research showed that of these 161 SDVOSB companies, at least five (5) of these SDVOSBs are authorized distributors of Welch Allyn vital sign monitoring equipment and accessories. Based on this research, the Contracting Officer has determined that setting aside the acquisition for SDVOSBs is the appropriate acquisition strategy for this procurement.

10. Any Other Facts Supporting the Use of Other than Full and Open Competition: There are no additional facts supporting the use of Other than Full and Open Competition. The Contracting Officer has determined that a procurement set‐aside for verified SDVOSB distributed of Welch Allyn vital sign monitoring equipment and accessories is in the best interest of the Government.

11. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: The following sources expressed interest, in writing in the acquisition:

Claflin Medical Equipment DBE CBE Corp.

Electra‐Med Corporation 4 Points Technology The Janz Corporation

On behalf of

Samuel E.

Dustin 198350

Digitally signed by Samuel E. Dustin 198350 Date: 2018.07.11 12:25:41 -07'00'

Daniel C.

Thiel 123011

Digitally signed by Daniel C. Thiel 123011 Date: 2018.07.11 12:54:04 -07'00'

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c. VHA SAO 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 $68 million) or approve ($700K to $68 million) for other than full and open competition.

Curtis M. Jordan Acting Executive Director, SAO West Date Head of Contracting Activity (HCA)