P03. Justification and Approval (Fully Signed).pdf

VHAPG Part 808.405 6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT

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

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405 6

Acquisition Plan Action ID: 36C263 22 AP 1983

(1) Contracting Activity: Department of Veterans Affairs, Network 23 Contracting Office (NCO

23) located at 2501 W 22nd Street, Sioux Falls, SD 57105 in support of VA VISN 23 Biomedical Engineering, located at 2805 Dodd Road, Suite 250, Eagan, MN 55121. The IFCAP PR 2237# for this procurement is 499 22 3 6765 0045.

(2) Description of Action: The proposed action is for a firm fixed price contract to be issued under the National Aeronautics and Space Administration (NASA) Solutions for Enterprise Wide Procurement (SEWP) Government Wide Acquisition Contract for Hyland Acuo VNA Software and ModLink service and support. This action will be a new base plus three option period contract.

Order against: NASA SEWP Contract Number: NNG15SD19B

Name of Proposed Contractor: Alvarez, LLC Street Address: 161 Fort Evans Rd NE Ste 335 City, State, Zip: Leesburg, VA 20176 3375 Phone: 571 386 0117

(3) Description of Supplies or Services:

The estimated value of the proposed action is: $683,364.30

This procurement is for a new, NASA SEWP contract with Alvarez, LLC for Hyland Acuo VNA Software and ModLink service and support. This procurement is comprised of 17 unique components that encompass the VNA and ModLink systems. Acuo VNA software is an image management system that consolidates imaging information throughout an enterprise into a single repository that communicates with core information technology systems, such as the electronic medical record (EMR). ModLink is a software solution that transfers structured report measurements directly into voice recognition systems. ModLink auto populates reports, saving valuable radiologist dictation time and reducing potential human error.

This procurement will be structured as base year contract with three (3) option years available to exercise at the discretion of the government. The estimated value of the proposed action is:

Base Year: $158,548.60 Option Year 1: $166,476.01

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

Option Year 2: $174,799.84 Option Year 3: $183,539.85 Total Contract Value: $683,364.30

(4) Identify the Authority and Supporting Rationale.

FAR 8.405 6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405 6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized:

This procurement is comprised of 17 unique components that encompass the Acuo VNA and Modlink systems. Acuo VNA software and ModLink are both proprietary systems manufactured by Hyland Software, Inc. Hyland Software, Inc., the Original Equipment Manufacturer (OEM), has indicated Alvarez, LLC is the only authorized service provider on SEWP for the required services to maintain these unique and highly specialized systems for VISN 23 on SEWP is Alvarez, LLC. Additionally, an intent to sole source notice was posted to Contract Opportunities on 07/21/2022, and no responses to that notice were received.

FAR 8.405 6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405 6(b): Items peculiar to one manufacturer: See checked block FAR

8.405 6(a)(1)(B) above for the answer that also addresses “Items peculiar to one manufacturer”

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination:

GWACs are a priority contracting vehicle, and SEWP pricing has already been determined to be fair and reasonable, and the required services are available on SEWP. Alvarez, LLC is the sole authorized service provider on SEWP for the required services.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

Hyland Software, Inc., the Original Equipment Manufacturer (OEM), has indicated Alvarez, LLC is the only authorized service provider on SEWP for the required services to maintain these unique and highly specialized systems for VISN 23 on SEWP is Alvarez, LLC. Additionally, an Intent to Sole Source (Notice ID# 36C26322Q0789) with Alvarez, LLC on SAM’s Contract Opportunities was posted on 7/21/2022. At the response deadline of 7/28/2022, no responses to the Intent to Sole Source were received by any contractor.

(7) Any Other Facts Supporting the Justification: None; see responses to all other questions.

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

Unfortunately, the barriers to competition cannot be overcome for the service of equipment as the OEM restricts who is authorized to provide the maintenance for it. Other non authorized providers would use gray market items and reverse engineering to service the equipment, which would likely compromise the integrity of the equipment. Allowing any company, other than the OEM designated authorized provider, to service the equipment would be a risk to the VA and patient safety.

The VA will continue to conduct market research to identify alternative sources that could be considered for future acquisitions. The VA will monitor and access the market in the future. If the system is at the end of its lifecycle, a competition procurement will be issued.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

________ 8/8/2022

SIGNATURE DATE

VISN 23 BioMedical Engineering_ _________

NAME/TITLE

Effective Date: 02/01/2022

SERVICE LINE/SECTION

COLEMAN

MCCARTHY

Digitally signed by COLEMAN

MCCARTHY

Date: 2022.08.08 09:38:42 -05'00'

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

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

8/9/2022_

CONTRACTING OFFICER/DESIGNEE’S SIGNATURE DATE

Angela Stewart/Contracting Officer NCO 23 Services Branch

NAME AND TITLE FACILITY/NCO/PCO

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K):

I certify the justification meets requirements for other than full and open competition.

8/10/2022

SIGNATURE DATE

Travis Johnson/NCO 23 Services Branch Chief

NAMENCO/NCO/DUTY TITLE

Angela M.

Stewart 1710067

Digitally signed by Angela M.

Stewart 1710067 Date: 2022.08.09 21:07:03 -05'00'