36F79719D0257-009.pdf

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

VHAPM Part 808.405-6 Limiting Sources Page 1 of 4 Original Date: 08/30/2017 Revision 01 Eff Date: 04/23/2018

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C260-20-AP-1194

1. Contracting Activity: Department of Veterans Affairs, Regional Procurement Office West, Network Contracting Office 20 on behalf of VISN 20, Various VA Medical Centers. 2237: 101-20- 2-6010-0025

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). This is a VISN 20 requirement for the procurement of MGC Diagnostic’s Pulmonary Function Testing (PFT) equipment/ software upgrades for the Cerner Electronic Health Records Management (EHRM) interface development and implementation.

Order against: FSS Contract Number: 36F79719D0257

Name of Proposed Contractor: MGC Diagnostics

Street Address: 350 Oak Grove PKWY

City, State, Zip: Saint Paul, MN 55127

Phone: 651-766-3427

3. Description of Supplies or Services:

The estimated value of the proposed action is $ 1,077,845.28

VISN 20 is actively implementing the Cerner EHRM system and must ensure that all technology in use at all facilities is compatible. The VISN on track to go live with phased Cerner EHRM implementation on March 30, 2020. All eight locations, listed below, have MGC PFT equipment and Breeze Suite software currently installed and this requirement is to upgrade installed equipment and create an interface program to connect the Breeze Suite software with Cerner EHRM. MGC Diagnostics will provide on-site and remote support to install a new PFT upgrade, re-configure existing Breeze Suite test systems, install, configure and test upgrades and to allow connection to Cerner EHRM, and train end users and Biomed staff on the new hardware and interface. The affected VISN 20 locations and breakdown of costs are as follows:

VAMC Description Cost

VA Puget Sound Healthcare System (Seattle and American

EMR Cutover/8 Hrs Professional Service/ One-year networking and

$30,195.00 https://www.gpo.gov/fdsys/pkg/USCODE-2009-title41/pdf/USCODE-2009-title41-chap4-subchapIV-sec251.pdf https://www.gpo.gov/fdsys/pkg/USCODE-2011-title40/pdf/USCODE-2011-title40-subtitleI-chap5-subchapI-sec501.pdf

VHAPM Part 808.405-6 Limiting Sources Page 2 of 4 Original Date: 08/30/2017 Revision 01 Eff Date: 04/23/2018

Lake VAMCs). Support

Seattle VA Medical Center Upgrades to Platinum Elite/Breeze Suite/Ultima Cardio with Installation and Training

$233,555.67

American Lake VA Medical Center

Upgrades to Platinum Elite PTAs/Breeze Suite/Installation and Training

$80,856.02

White City Upgrades to Platinum Elite/Breeze Suite/HL7 Interface/Training and one-year support

$126,696.06

Boise VA Medical Center Upgrades to Platinum Elite/Breeze Suite/HL7 Interface/EMR Cutover/Ultima Cardio with Installation and Training and one-year support

$316,272.41

Roseburg VA Medical Center Upgrades to Platinum Elite/Breeze Suite/HL7 Interface/Training and one-year support

$126,647.06

Eugene Upgrades to Platinum Elite/Breeze Suite/HL7 Interface/Training and one-year support

$87,394.02

Portland VA Medical Center Upgrades to Breeze Suite/HL7 Interface/EMR Cutover/Training and one-year support

$40,647.04

Walla Walla Upgrades to Breeze Suite/HL7 Interface/EMR Cutover/Training and one-year support

$35,582.00

4. identify the authority and supporting rationale (see FAR 8.405-6(a)(1)(i)(B), and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

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;

MGC Diagnostic’s equipment and software are proprietary and is only available for purchase direct from MGC Diagnostics (They do not use distributors domestically). Their equipment will only operate with their proprietary Breeze Suite software. MGC’s Breeze Connect HL7 Interface will interface the Cerner EHRM program to their equipment. This interface will not function to interface competitor’s equipment to a specific facility’s Cerner EHRM system.

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:

MGC Diagnostics is the small business manufacturer and they are the only company authorized to provide the upgrades to their PFT equipment and Breeze Suite software. Prior purchases, similar to this requirement (PFT equipment and service), have been accomplished through a sole source contract: 36C26020F0108 for $136,629.06 for the PFT system, training and HL7 https://www.acquisition.gov/sites/default/files/current/far/html/Subpart%208_4.html#wp1091891

VHAPM Part 808.405-6 Limiting Sources Page 3 of 4 Original Date: 08/30/2017 Revision 01 Eff Date: 04/23/2018 interface for the same schedule pricing as for this requirement (priced listed is for one VA Medical Center). The Government’s technical experts have determined that only MGC can meet all of VA’s needs.

The NAC competed the overarching FSS contract, therefore competition and subsequent award presumes best value at a fair and reasonable cost. In addition, MGC is providing an 11% discount from schedule pricing and over $5,800.00 in trade-in rebates. As a result, the Contracting Officer has determined that the anticipated cost will be fair and reasonable and represents the overall best value to the Government.

6. Describe the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted:

No additional market research needed as this requirement can only be provided by the equipment manufacturer.

7. Any other facts supporting the justification: No additional facts are needed to support this decision.

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:

If the VISN or facility determines that a new system is required, then the market will be surveyed to determine if there are any other sources who could fulfill the requirement.

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.)

Daisha King Biomedical Engineer VISN 20 Healthcare Technology Management (HTM)

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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.

Robert Hamilton Contracting Officer Network Contracting Office 20 (NCO 20)

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

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

S. Dale Allen Director of Contracting Network Contracting Office 20 (NCO 20)

RPO JA Tracker#: 2020-02-06T13:04:48

HIGHER LEVEL APPROVAL (Required for orders over $700,000):

c. VHA SAO HCA REVIEW AND APPROVAL (over $700,000 to $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Curtis M. Jordan Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA) https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx