36C77018Q0512-000.docx

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Xerox Maintenance Service, Charleston CMOP
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36C77018Q0512
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VHAPM Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >$150K FedBizOpps Fair Opportunity/Limited Sources Justification Notice

CLASSIFICATION CODE

SUBJECT

CONTRACTING OFFICE'S

ZIP-CODE

SOLICITATION NUMBER

BASE NOTICE TYPE

ARCHIVE

DAYS AFTER THE POSTING DATE

RECOVERY ACT FUNDS

NAICS CODE

SET-ASIDE

CONTRACTING OFFICE

ADDRESS

DESCRIPTION

See Attachment

POINT OF CONTACT

(POC Information Automatically Filled from User Profile Unless Entered)

FAIR OPPORTUNITY

JUSTIFICATION AUTHORITY

AWARD NUMBER

ORDER NUMBER

MODIFICATION NUMBER

AWARD DATE (MM-DD-YYYY)

AWARDEE NAME

AWARDEE ADDRESS LINE 1

AWARDEE ADDRESS LINE 2

AWARDEE ADDRESS LINE 3

AWARDEE ADDRESS LINE 4

AWARDEE CITY

AWARDEE STATE

AWARDEE ZIP CODE

AGENCY'S URL

URL DESCRIPTION

AGENCY CONTACT'S EMAIL

ADDRESS

EMAIL DESCRIPTION

AWARD INFORMATION

ADDITIONAL INFORMATION

GENERAL INFORMATION

* = Required Field FedBizOpps Fair Opportunity/Limited Sources Justification Notice Rev. March 2011 J Xerox Maintenance Service, Charleston CMOP 66048-5581 36C77018Q0512 N 811212 Department of Veterans Affairs National CMOP 3450 S. 4th St. Trafficway Leavenworth KS 66048-5581 36C77018A0012 36C77018N1228 05-15-2018

XEROX CORPORATION

8260 WILLOW OAKS CORPORATE DR 6TH FL

FAIRFAX

VA

22031

LIMITED SOURCES JUSTIFICATION

ORDER >$150,000

FAR PART 8.405-6

Acquisition Plan Action ID: VA770-18-AP-0247

1. Contracting Activity: Department of Veterans Affairs, VISN 15, Charleston Consolidated Mail Outpatient Pharmacy (CMOP) 2237: 766-18-2-401-0244

2. Description of Action: This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 251 and 40 U.S.C. 501).

Order against: ☒ FSS Contract Number: GS-25F-0062L

Name of Proposed Contractor:
Xerox Corporation
Street Address:
8260 Willow Oaks Corporate Dr, Ste 6T
City, State, Zip:
Fairfax, VA 22031-4513
Phone:
215-446-4874

3. Description of Supplies or Services:

The estimated value of the proposed action is $ 447,621.00 Charleston CMOP is requesting a emergency maintenance service agreement, to include supplies (no paper) for four (4) new Xerox D125 printers with high capacity feeders and two (2) Xerox Free Flow Print Servers. The contracting action will be a follow-on to the current GSA contract for the replacement of four aging machines. These printers support the automated packaging system (Sprint) in use at the Charleston VA CMOP, which prints patient medication information and medical guides for each prescription.

4. IDENTIFY THE AUTHORITY AND SUPPORTING RATIONALE (see 8.405-6(a)(1)(i)(A), (B), and (C) or 8.405-6(b)), AND IF APPLICABLE, A DEMONSTRATION OF THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS TO PROVIDE THE REQUIRED SUPPLY OR SERVICE.

☒ An urgent and compelling need exists, and following the ordering procedures would result in unacceptable delays.

The printer equipment located at the Charleston CMOP is currently without maintenance service and must shut down operations until it is operational. Without the maintenance necessary to the keep the equipment operational, the CMOP will not be able to deliver medications to Veterans, causing serious harm.

☒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 — specific characteristics of the material or service that limit the availability to a sole source (unique features, function of the item, etc.). Describe in detail why only this suggested source can furnish the requirements to the exclusion of other sources.
The servicing of D125 printer is proprietary to Xerox certified technicians. Xerox equipment and software are under warranty and proprietary. Xerox parts and authorized, factory-trained technicians are mandated at risk of voiding the warranty.
☐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.
☒Items peculiar to one manufacturer:
☒A patent, copyright, or proprietary data limits competition.
The servicing of D125 printer is proprietary to Xerox certified technicians. Xerox equipment are under warranty and maintenance service is proprietary. Xerox parts and authorized, certified technicians are mandated or risk voiding the warranty.
☒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.
The capsule dispensing system designed for the Charleston CMOP was designed specifically to use Xerox D125 printers and flow free servers to produce patient medication information (PMI) and medical guides for Veteran patients.

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:

Pricing will include the maximum volume band for prints, which will offset the cost of over prints as much as possible. The replaced D125 equipment collectively printed approximately 30 million impressions of the past year. The Xerox service package includes unlimited repairs, and will replace machines placed under warranty. This equipment sustains heavy usage, and demands frequent maintenance. Without repairs and replacement parts, it will not function and CMOP operations will become seriously impaired, directly affecting patient healthcare.

6. DESCRIBE THE MARKET RESEARCH CONDUCTED AMONG SCHEDULE HOLDERS AND THE RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED:

A Request for Information (RFI) was posted on FedBidOpps, but only three responses were received. One SDVOSB and the Xerox Corporation, a large corporation, responded. A second SDVOSB was identified through the acquisition of the D125 equipment; the SDVOSB included a quote for maintenance service through Xerox, but the service quote was severed from the equipment purchase without consideration. This SDVOSB is not an authorized Xerox distributor, nor has capabilities to perform that services itself, requiring it outsource maintenance requirements to directly to Xerox. The SDVOSB responding to the RFI called back to explain that while it has certified technicians, none are authorized for the D125, and cannot fulfill the contract.

7. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

The D125 printer is a high volume, highspeed printer that produces 125 pages per minutes, which is necessary to keep up with the Charleston CMOP’s daily output of over 100,000 prescriptions. The Charleston CMOP rotates the four printers to avoid exceeding their recommended monthly volume, but frequent repairs are required to sustain their operations. The contractor of the previous contract noted that the Charleston CMOP has the highest volume of usage in North America.
Additionally, there is not an abundance of Xerox certified technicians for this equipment, particularly in the Charleston area. Technicians must come in from as far as Columbia, South Carolina, to repair this equipment.

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:

Due to the capsule dispensing equipment design and Xerox proprietary restrictions, there are no reasonable means to remove restriction considerations for this type of acquisition without an unreasonable cost to the government. The TAC equipment is designed to work with Xerox machines, and Xerox asserts proprietary restrictions to the use of only Xerox-certified technicians.

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. (This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)

/s/_____________________________________ 5/9/2018 Richard Wheat, Title Charleston CMOP

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.

/s/________________________________________________
BONNIE JORANKODATE

Contracting Officer National CMOP Contracting

b. One Level Above the Contracting Officer (Required over$150K but not exceeding $700K):

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

/s/__________________________________________________________________________
SignatureDATE

PENNY J. CAPPS

Supervising Contract Specialist

Page 1 of

Page 1 of VHAPM Part 808.405-6 Limiting Sources Original Date: 08/30/2017

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