36C79119Q0005-000.docx

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >$150K

FedBizOpps Justification and Approval Notice

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* = Required Field FedBizOpps Justification and Approval Notice Rev. March 2010 J Widex Hearing Aid P&A Sole Source 80401-5621 36C79119Q0005 N 811219 Department of Veterans Affairs Commodities & Services Acquisition Svc (003B6E) 555 Corporate Circle Golden CO 80401-5621 Joseph.kohles@va.gov

FAR 6.302-1

36C79119Q0005 N/A 6,200,541.83 12-06-2018

WIDEX USA, INC.

185 COMMERCE DR

HAUPPAUGE

NY

11788 Joseph.kohles@va.gov Joseph Kohles

NOTICE OF INTENT TO SOLICIT FROM A SINGLE SOURCE

The Department of Veterans Affairs, (VA) Denver Logistics Center, (DLC) and the Commodities and Services Acquisition Service (CSAS) intend to negotiate with Widex USA. Incorporated, under the authority of FAR Subpart 13.5 soliciting from a single source, to purchase the following: Widex brand hearing aid repair service, parts, and accessories.

The NAICS Code is 811219 - Other Electronic and Precision Equipment Repair and Maintenance with a Size Standard of $20.5 Million. CSAS anticipates negotiating and awarding a firm-fixed-price indefinite delivery indefinite quantity (IDIQ) contract with a 6-month base, four 12-month option years, and a 6-month extension for this requirement.

Widex USA Inc. is the only known manufacturer of this product and has the ability to provide proprietary repairs, parts, and accessories needed to support Widex hearing aids see OEM Justification letter.

Interested parties that believe they could satisfy the requirements listed above for VA may clearly and unambiguously identify their capability to do so in writing on or before the response date for this notice.

This is not a request for competitive offers, or quotes, and a solicitation will not be issued. Responsible sources may submit a quotation in writing, oral communications are not acceptable, and all responses must show clear and convincing evidence that competition of this requirement would be advantageous to the Government. The VA will NOT be responsible for any costs incurred by interested parties in responding to this announcement.

All respondents shall be registered in the System for Award Management (SAM), have a valid Unique Entity Identifier, Cage Code, and Tax Identification Number.

Information submitted in response to this notice will be used solely to determine whether competitive procedures could be used for this acquisition. A determination by the Government not to compete this acquisition based upon responses to this notice is solely within the discretion of the Government. If competitive procedures are not used, it is estimated that an award will be issued on or about December 4, 2018. Any questions regarding this notice must be submitted in writing via email to Joseph Kohles. All responses to this notice of intent must be submitted so that they are received at Joseph.Kohles@va.gov no later than December 5, 2018 at 11:00 am MST.

DEPARTMENT OF VETERANS AFFAIRS

Sole Source Justification for Simplified Acquisition for Certain Commercial Items

Acquisition Plan Action ID: 36C791-19-AP-0002 .

1. Department of Veterans Affairs Commodities & Services Acquisition Service:

Under Federal Acquisition Regulation (FAR) the Department of Veterans Affairs Commodities & Services Acquisition Service (CSAS), Golden, CO intends to enter a Sole Source contract with Widex USA, Inc. for proprietary repairs, parts, and accessories needed to support Widex hearing aids that have been distributed to Veterans over the last three years as part of the VA Hearing Aid and Wireless Systems contract.

Organizational Activity - Department of Veterans Affairs, National Audiology and Speech Pathology Service, Washington, DC

2. Nature and/or Description of the Action Being Approved:

This procurement is for hearing aid repairs, parts and accessories. Widex is the Original Equipment Manufacturer (OEM) for their hearing aid devices. These hearing aid devices have been purchased through the VA for the past three years, accordingly there is a continued need for hearing aid repair once the manufacturing warranty expires. These services are critical to the care of our Veteran patients. These Hearing Aids are manufactured by Widex USA Inc and include proprietary parts, firmware and software. These components and software are critical in maintaining the integrity of the product. The OEM replacement parts and/or components are readily available which ensures that devices are returned to their original manufacturer’s specifications whenever these replacements are necessary. Due to the circumstances describe below, the VA is requesting Hearing Aid Services to be acquired using noncompetitive procurement in support of Widex hearing aids that have been distributed to Veterans over the last three years as part of the VA Hearing Aid and Wireless Systems contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The procurement is for proprietary parts, firmware and software from Widex USA, Inc. This service contract is needed due to the many Veterans that have already been provided Widex hearing aids over the past three years as part of the VA Hearing aid and wireless device contract. The inability to have the OEM provide repairs, parts, and accessories will lead to undue burden on the Veterans and VA audiology clinics who will have to dispose of the Widex hearing aids that are currently out in circulation within VA and repeat audiometric testing and hearing aid fittings to fit all the Veterans with a different brand of hearing aid for which we have a repairs, parts, and accessories contract. This is particularly a problem given the high demand for audiology services in VA and the constant push to improve timeliness and increase access for Veterans. The estimated value of this procurement is calculated at approximately $6,200,541.83 for a 6-month base, four 12-month option years, and 1 6-month extension. Approval of a sole source contract with Widex USA, Inc. for proprietary repairs, parts, and accessories is the one only responsible source and no other vendor can provide the supplies or services that will satisfy the Government’s needs.

4. Statutory Authority Permitting Other than Full and Open Competition:

The statutory authority permitting other than full and open competition is 41 U.S. Code § 1901 and FAR 13.501.

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

Widex hearing aids were purchased through the VA for the past three years. Widex is the Original Equipment Manufacturer (OEM) for their hearing aids, which have proprietary parts and accessories which must be purchased for ongoing maintenance and repair, and to ensure that the repaired devices can be returned to their original manufacturer’s specifications. Widex’s proprietary firmware and software are necessary to program their highly specialized devices when adjustments to current or warranty replacements are needed. Widex, like all OEMs, owns internal quality control data logs of recurrent repair issues and serial number history for specific models which would identify problems and shorten repair times.

Accordingly, Widex USA Inc. is the only firm capable of providing the supplies and services described in Section III above without the Veteran’s Health Administration Audiology and Speech Pathology Service experiencing unacceptable delays in fulfilling its requirements.

VA has a compelling need to establish a new agreement with Widex USA, Inc. immediately. Many Veterans that have already been provided Widex hearing aids over the past three years as part of the VA Hearing aid and wireless device contract. The inability to have the OEM provide repairs, parts, and accessories will lead to undue burden on the Veterans and VA audiology clinics who will have to dispose of the Widex hearing aids that are currently out in circulation within VA and repeat audiometric testing and hearing aid fittings to fit all the Veterans with a different brand of hearing aid for which we have a repairs, parts, and accessories contract. This is particularly a problem given the high demand for audiology services in VA and the constant push to improve timeliness and increase access for Veterans. There is also an additional unnecessary cost to VA if they are having to replace the Widex devices because they cannot obtain repairs, parts, and accessories for existing devices. Therefore, there is compelling urgency to enter into a sole source agreement with Widex USA, Inc. for these proprietary repairs, parts, and accessories.

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

A public notice of intent to sole source will be publicized on Federal Business Opportunities. (FBO) Information received will be considered solely for determining whether to conduct a competitive procurement.

Market Research was conducted in accordance with Federal Acquisition Regulation (FAR) Part 10, Market Research; VAAR 810.002 Market Research Procedures. Searches were conducted on various platforms including Vendor Information Pages (VIP), General Services Administration (GSA), Small Business Administration (SBA) Dynamic Small Business Database, FBO, and Email to Current Contract Holders. Results from this market research has shown that the only responsible source for proprietary repairs, parts, and accessories of Widex USA, Inc. devices is the OEM; Widex USA, Inc.

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

Widex has been under VA contract for the last three years, the pricing schedule that will be provided by Widex shall be compared to these prices as well as industry standard pricing and compiled historical pricing from data already obtained by VA. This method of price comparison will enable the Contracting Officer to adequately determine that the price will be fair and reasonable. Along with this method an Independent Government Cost Estimate (IGCE) has been created for the Widex pricing to be compared against.

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

Proprietary parts and accessories are not available from any other source than the OEM Widex USA, Inc. Veterans who have Widex hearing aids would have no other service available to repair their Widex hearing aids.

9. Requirements Certification: I certify that the requirements outlined in this justification, are accurate and complete to the best of my knowledge and belief.

National Director, Audiology and Speech Pathology Service

10. 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.

Contracting Officer Commodities & Services Acquisition Service

b. Head of the Procuring Activity, or a Designee: I certify the justification meets requirements for other than full and open competition.

ADAS for National Healthcare Acquisitions Office of Acquisition & Logistics (OAL)

OFOC SOP Revision 06 Original Date: 03/22/11 Revision 06 Date: 08/30/2017