36F79719D0097 36C25020F0774_1.docx

VHAPM Part 808.405-6 Limiting Sources Attachment 2: Limited Source Justification >SAT Contract Opportunity Award Notice

PRODUCT SERVICE CODE

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DAYS AFTER THE AWARD DATE

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* = Required Field Contract Opportunity Award Notice ScrubEx Automated Scrub Dispensers_Collectors COVID-19 Support NAC Contract 36F79719D0097 48105 36C25020F0774 N 339113 Department of Veterans Affairs Ann Arbor Healthcare System Network Contracting Office 10 2215 Fuller Road Ann Arbor MI 48105 john.mccallum3@va.gov 36C25020F0774 $331,377.93 05-22-2020

L1 ENTERPRISES INCORPORATED

800190782

618 W PATRICK ST

FREDERICK

MD

21701 http://vaww.ann-arbor.med.va.gov:1030/ VA Ann Arbor Healthcare System john.mccallum3@va.gov John McCallum, Contracting Officer

LIMITED SOURCE JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C250-20-AP-2951

(1) Contracting Activity: Network Contracting Office (NCO) 10, 24 Frank Lloyd Wright Dr., Lobby M, Suite M2200, Ann Arbor, MI 48105

Organizational Activity: Department of Veterans Affairs, VISN 10, VA Ann Arbor Healthcare System, 2215 Fuller Rd, Ann Arbor, MI 48105

2237: 506-20-3-1565-0905

(2) Description of Action: This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). Request for replacement of outdated automated scrub dispensing equipment that no longer accepts new user data. This equipment is vital to issuing scrubs to users throughout the day while ensuring accountability of a scarce resource.

Order against: |X| FSS Contract Number: 36F79719D0097

(3) Description of Supplies/Services Required to Meet the Agency’s Needs: The ScrubEx Automated scrub dispensing and receiving machines are needed by the VA Ann Arbor Healthcare Systems Laundry operation inside the Housekeeping department. These machines work in concert with existing fleet as well as each other and limit users to one scrub set at a time. The required machines work with the current tracking software which allows use of the current user database.

The dispensers and receivers are strategically placed throughout the hospital to ensure just-in-time (JIT) delivery to authorized users near SPS, Surgery and locker rooms. They increase capacity and upgrade the delivery mechanisms. This saves the VA time and money integrating new machines into the current infrastructure, compared to the replacement of the whole system. Those additional costs would include; machines, software, training, transfer of data and repair cost until a new system is implemented.

Estimated Value of Supplies/Services: The estimated value of the proposed action is $311,000.00

(4) Identify the Authority and Supporting Rationale below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service:

|_| 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;

|_| 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.

|X| FAR 8.405-6(b): Items peculiar to one manufacturer:

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

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

|X| 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: Prices are published FSS prices. All FSS contracts are competed under full and open competition and pricing is therefore considered fair and reasonable. Furthermore, the anticipated cost of $311,000.00 is considered fair and reasonable based upon the infrequent previous purchases of similar items as published using FPDS-NG.

VA25516F1612 – $251,043.00 – 02/01/2016

VA26312F2072 – $378,488.00 – 09/13/2012

VA640A10507 – $318,919.00 – 08/03/2011

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted: Queried VIP database using NAICS 339113, keywords “ScrubEx” and found one (1) SDVOSB vendor only; L1 Enterprises Incorporated. Determined that the “VA Rule of Two” cannot be satisfied. Queried SAM and verified L1 Enterprises Incorporated is registered with the Federal Government and has no active exclusions attached to their current registration. Searched FPDS-NG and found several FSS sole-source awards to L1 Enterprises Incorporated from the VA. Searched the SBA’s DSBS to determine the business size of L1 Enterprises Incorporated and determined using NAICS code 339113, are considered a Small Business.

Queried National Acquisition Center’s MedSurg CCST database and found the published FSS price list for 36F79719D0097 and downloaded it for fair and reasonable pricing documentation. Then compared the published price list with the Service Market Research quote received from the manufacturer, Innovative Product Achievement, LLC. and found in the data available, that L1 Enterprises Incorporated published prices were lower than the manufacturer’s quote. For the two machines we required, the prices were $149.08 and $255.90 less each using the FSS contract with the SDVOSB vendor, L1 Enterprises Incorporated. It was then determined this should be a FSS Sole-Source acquisition to the single authorized SDVOSB vendor, L1 Enterprises Incorporated as there is no reasonable expectation meeting the “VA Rule of Two.”

(7) Any Other Facts Supporting the Justification: Veterans Affairs Acquisition Regulation (VAAR), 819.7004 – Contracting Order of Priority: In determining the acquisition strategy applicable to an acquisition, the contracting officer shall (FAR 2.101 – “Shall” means the imperative.) consider, in the following order of priority, contracting preferences that ensure contracts will be awarded: (a) To SDVOSBs; (b) To VOSB, including but not limited to SDVOSBs; (c) Pursuant to— (1) Section 8(a) of the Small Business Act (15 U.S.C. 637(a)); or (2) The Historically-Underutilized Business Zone (HUBZone) Program (15 U.S.C. 657a); and (d) Pursuant to any other small business contracting preference.

Considering the U.S. Supreme Court’s decision in Kingdomware Technologies, Inc., v. United States, 2016 (Kingdomware), Public Law, P.L. 109-461 The Vets First Contracting Program, and VAAR 819.7004 it is recommended to solicit directly to the lone SDVOSB with an FSS contract, L1 Enterprises Incorporated.

(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: It is to the Governments advantage that these systems be evaluated intermittently during the product lifecycle. It’s recommended that the end-users continue to monitor GSA Advantage! to stay abreast of newly awarded contracts for similar items that would make sense to review in the future to determine if the VA’s needs can be better met by another product and vendor as we move forward. This continuous monitoring of the marketplace will allow the VA to become more agile and shift direction quickly.

(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.

VHAPM Part 808.405-6 Limiting Sources Page 4 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020