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This sole source justification document from the Department of Veterans Affairs outlines the requirement for continued software maintenance and support services from Utech Products, Inc. for the agency's existing EndoSoft endoscopy viewing solution. The base year value is $207,633.83 with a single one-year option period valued at $218,015.52, totaling $425,649.35. An intent to sole source was posted on February 9, 2023 with a response deadline of February 16, receiving only one response from the OEM, Utech Products. Market research found the software to be proprietary to Utech Products as the only authorized service provider. The period of performance is the base year plus a one-year option to ensure continuity of services until the system reaches end of life anticipated within one to two years, at which time a new competitive procurement may be issued.

The justification provides documentation for applying FAR Part 13.5 simplified procedures for commercial items to restrict competition due to the proprietary nature of the EndoSoft software and Utech Products as the sole provider of maintenance and support services as required to meet the needs of the Department of Veterans Affairs.

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

OFOC SOP Revision 10 Page 1 of 4 Original Date: 03/22/11 Revision 10 Date: 09/10/2020

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C263-23-AP-1447

Contracting Activity: Department of Veterans Affairs, Network Contracting Office , 2501 W.

22nd Street, Sioux Falls, SD 57105

• Fargo, 2101 North Elm St., Fargo, ND 58102

• St. Cloud, 4801 Veterans Drive, St. Cloud, MN 56303

• Central Iowa, 3600 30th St., Des Moines, IA 50310

• Iowa City, 601 Hwy 6 West, Iowa City, IA 52246

• Nebraska Western Iowa, 4101 Woolworth Ave., Omaha, NE 68105

• Sioux Falls, 2501 W. 22nd St., Sioux Falls, SD 57117

• Black Hills, 113 Comanche Rd., Fort Meade, SD 57741

Nature and/or Description of the Action Being Processed:

This procurement is for EndoSoft endoscopy viewing solution software maintenance and support in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquistion Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format f FAR 6.303-2.

Description of Supplies/Services Required to Meet the Agency’s Needs: This procurement is a new requirement for continuing support and maintenance of existing EndoSoft endoscopy viewing software with Utech Products, Inc. The proposed action is to provide technical support and annual maintenance for software systems at seven locations within the VISN 23 network.

Base Year: $207,633.83 Option Period 1: $218,015.52 Total contract value estimate: $425,649.35

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:

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

The EndoSoft endoscopy viewing solution software

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

An Intent to Sole Source (Notice ID#36C26323Q0335) with Utech Products, Inc. was posted on SAM’s Contract Opportunities on 02/09/2023.

At the response deadline of 02/16/2023, the only response was from the OEM, Utech Products, Inc.

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

Prior contract 36C26322C0062 for Endosoft Software support and maintenance was awarded to Utech Products, Inc. on 05/01/2022 for VISN 23. The current quoted cost was compared to the prior, awarded procurement to determine price fair and reasonable (awarded on 5/1/2023 for $197,746.50 for a one-year period of performance).

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

OFOC OP Revision 10 Original Date: 03/22/11 Revision 10 Date: 09/10/2020

OFOC SOP Revision 10 Page 3 of 4 Original Date: 03/22/11 Revision 10 Date: 09/10/2020

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:

he EndoSoft endoscopy viewing software is proprietary to Utech Products, Inc. This requirement is not available to be competed, as the OEM is the only authorized service provider.

The VA will consider new and advanced developments in the future for new requirements if they meet the Government’s needs.

The equipment is expected to be replaced with new equipment, to meet new VA requirements, within the next one to two years. For efficiency, this procurement will have a period of performance of a base plus one one-year option. The VA will monitor and access the market in the future. If the system is at the end of its lifecycle, a competitive requirement will be issued.

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.

Katherine Vink Date Program Manager VISN 23 Biomedical Engineering

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Angela Stewart Date Contracting Officer Supply/Services Team 3

Digitally signed by

KATHERINE VINK

Date: 2023.03.01 10:43:10 -06'00'

ANGELA STEWART

Digitally signed by

ANGELA STEWART

Date: 2023.03.07 12:29:03 -06'00'

OFOC SOP Revision 10 Page 4 of 4 Original Date: 03/22/11 Revision 10 Date: 09/10/2020

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

Travis Johnson Date NCO 23, Branch Chief Supply/Services Team 3

TRAVIS

JOHNSON

Digitally signed by TRAVIS

JOHNSON

Date: 2023.03.22 10:05:18 -05'00'

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