NNG15SD00B-013.pdf

VHAPM Part 816.5—Indefinite-Delivery Contracts Attachment 1: Request for Exception to Fair Opportunity Memo Format

VHAPM Part 816.5—Indefinite-Delivery Contracts Original Date: 08/30/2017 Date: 10/30/2018 Rev 01

DEPARTMENT OF VETERANS AFFAIRS

JUSTIFICATION

FOR

EXCEPTION TO FAIR OPPORTUNITY MEMO

Acquisition Plan Action ID: 36C263-19-AP-1080

1. Contracting Activity: Department of Veterans Affairs, NCO 23, Fargo, 2237: 618-19-2-

6065-0030

2. Description of Action: A Firm-Fixed-Price Task Order off the Solutions for Enterprise-Wide

Procurement (SEWP) Government-wide Acquisition Contract (GWAC) is the anticipated contract action.

3. Description of Supplies or Services: Veterans Integrated Services Network 23 requires a contract for proprietary licenses and warranties for all licenses in support of the radiology Visage viewing solution. This new task order is required to provide proprietary licenses and warranties for all licenses in support of the Visage viewing solution in VISN 23 facilities for an estimated value of $5,489,441.06, consisting of a Base Period, plus four (4) 1-year options. The viewing component software application is made by Visage. Visage uses a sole source partner, Blue Tech Inc. This contracting action addresses the ongoing proprietary licensure and software support for the Visage viewing application for a base plus four option years. The licensure cost is dependent upon the volume of images viewed with the application and that is increasing for VISN 23 because imaging has become integral to so many medical specialties. Our current volume of images is approaching 525,000 images per year, and the Government expects this to grow over the term of this contract. Therefore, options are included in the quote to address growth although the Government does not know in advance what the “right” future volume will be.

Coverage Period Base Period 2/1/2019 – 1/31/2020

Option Period 1 2/1/2020 – 1/31/2021 Option Period 2 2/1/2021 – 1/31/2022 Option Period 3 2/1/2022 – 1/31/2023 Option Period 4 2/1/2023 – 1/31/2024

VHAPM Part 816.5—Indefinite-Delivery Contracts

4. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section 41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) Subpart 16.505 Subpart 16.505(b)(2)(i):

( ) FAR Subpart 16.505(b)(2)(i)(A): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

(X) FAR Subpart 16.505(b)(2)(i)(B): Only one awardee can provide the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

( ) FAR Subpart 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

( ) FAR Subpart 16.505(b)(2)(i)(D): It is necessary to place an order to satisfy a minimum guarantee.

( ) FAR Subpart 16.505(b)(2)(i)(E): For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source”. The statutory authority permitting an exception to fair opportunity for this action is 38 U.S.C. 8127(c), known as the Veterans First Contracting Program which provides the authority to directly contract with a Service-Disabled Veteran-Owned Small Business (SDVOSB) or a Veteran-Owned Small Business (VOSB).

( ) FAR Subpart 16.505(b)(2)(i)(F) In accordance with section 1331 of Public Law 111-240 (15 U.S.C. 644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns identified in 19.000(a)(3). When setting aside orders for small business concerns, the specific small business program eligibility requirements identified in part 19 apply.

5. Rationale Supporting Use of Authority Cited Above : A patent, copyright or proprietary data limits competition. The proprietary data is: a proprietary software license and warranty on that license. Blue Tech, Inc is the only certified partner of Visage Imaging (Pro Medicus owns Visage), that is authorized to provide license and warranties on Visage Imaging's proprietary assets.

6. Efforts to Obtain Competition: Market research was conducted by the contract specialist for any alternative providers through searches in FPDS, GSA E-Library, NASA SEWP, and VIP, with zero results found.

7. Actions to Increase Competition: When the current Imaging System is due for replacement, it will be procured using full and open competition.

VHAPM Part 816.5—Indefinite-Delivery Contracts

8. Market Research: Visage Imaging, the manufacturer of the software was contacted as part of market research for this requirement. Visage Imaging referred VISN 23 to their sole source partner, Blue Tech, Inc. Queries were made of the VIP database using NAICS 334111 & keywords “Visage” and “Pro Medicus”, which returned 0 SDVOSB/VOSBs; of GSA eLibrary using keywords “Visage Imaging” and “Pro Medicus” which returned no matches;

SEWP using keywords “Pro Medicus”, resulting in 1 vendor, Blue Tech, a HubZone, SB, WOSB authorized reseller; and FPDS using keyword “Visage”, showing 2 awards in the last 3 years for this type of requirement, both to Blue Tech. Therefore, the VA “Rule of Two” has been fully researched, and cannot be satisfied.

Based on the above information Blue Tech Inc represents the best value to the VA for this requirement.

9. Other Facts: Visage Imaging has provided evidence of their partnership authorizing Blue Tech Inc to provide the required supplies and services.

10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Caroline Campbell Date VISN 23 Chief Biomedical Engineer Healthcare Technology

11. Determination that Anticipated Cost is Fair and Reasonable: SEWP Contracts are FAR Part 12 Commercial Contracts. Additional price analysis was done in accordance with the following:

The price design for SEWP is a proposed discount off the offeror’s commercial list price. Price analysis was conducted in accordance with FAR 15.305(a)(1), to ensure that a ‘fair and reasonable’ price is paid by the Government.

12. Contracting Officer's Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Darryl W. Moon Date Contracting Officer NCO 23 Fargo

Caroline A.

Campbell 594046

Digitally signed by Caroline A. Campbell 594046 Date: 2019.01.18 14:39:55 -06'00'

DARRYL W MOON

324732

Digitally signed by DARRYL W

MOON 324732

Date: 2019.01.22 06:40:54 -06'00'

VHAPM Part 816.5—Indefinite-Delivery Contracts

13. Approvals in accordance with VHAPM Part 806.3 Other Than Full and Open Competition

SOP.

a. One Level Above the Contracting Officer (Required over $250K but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Adam Barnes Date Branch Chief, NCO 23

Daryl A. Berg Date Director of Contracting, NCO 23

HIGHER LEVEL APPROVAL (Required for orders over $700,000):

b. VHA SAO HCA REVIEW AND APPROVAL (over $700,000 to $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for other than full and open competition.

Terry L. Spitzmiller Date Acting Executive Director, SAO Central Region

1/22/2019

Adam J. Barnes 1038906 Digitally signed by Adam J. Barnes 1038906 Date: 2019.01.22 09:08:53 -06'00'

BENEDICT A.

SEITZ 253829

Digitally signed by

BENEDICT A. SEITZ 253829

Date: 2019.01.22 13:14:56 -06'00'

01/23/2019

TERRY L.

SPITZMILLER 394683

Digitally signed by TERRY L.

SPITZMILLER 394683

Date: 2019.01.23 11:48:15 -06'00'