Attachment 1 FAR 13.5 Sole Source Justification GE.pdfsigned.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 1 of 3

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C242-23-AP-1619

1. Contracting Activity: Department of Veterans Affairs, VISN 2, Syracuse Medical Center

800 Irving Avenue, Syracuse, NY 13210 528-23-4-7803-0411

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

This request is for other than full and open competition for the procurement of software support upgrades and maintenance of the MUSE. This request is to purchase software service agreement and software upgrade for the MUSE Cardiology Information System Server for VISN 2 located in the Syracuse VA Medical Center BLD 1 Basement, SL06 for a base year with provision of four (4) option years. Version upgrade from V9 to NX, technical and clinical support, and training for the system is included in this service package. GE Healthcare is the only authorized distributor of the unit and services. The maintenance and proprietary software updates shall be preformed on the equipment by trained and certified technicians to maintain the medical equipment IAW current Orginal Equipment Manafacture (OEM) manufacturer specifications and operating conditions.

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

The Syracuse VA Medical Center 800 Irving Avenue, Syracuse, NY 13210 has a requirement for a service contract to includes MUSE software releases made available by GE Healthcare. These releases include: (i) major enhancement releases which consist of new functional capabilities and major changes or upgrades to the MUSE software architecture or file structure; (ii) minor enhancement releases consisting of error corrections or revisions to existing major enhancement releases; (iii) maintenance releases with a collection of error corrections or software performances adjustments.

During the service term, the VA MUSE system will remain within one major enhancement of the most current MUSE software release.

For each software release, the vendor will provide project management installation support, which may include identifying scope of the project, work estimates, creating a project schedule, regular reporting on progress, facilitation of project completion, and addressing any necessary modifications to the project.

4. 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:

( x ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency

Effective Date: 02/01/2022 Page 2 of 3

( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services

( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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

All equipment, parts, service, and software for the MUSE System are proprietary and manufactured and distributed solely by GE Medical Systems Information Technology. There are no other sources that can service the current system. GE Healthcare is the sole distributor authorized and licensed to sell the MUSE software to VA Medical Centers.

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

Market research preformed with a Notice of Intent to Sole Source posted on SAM.gov May 22, 2023 to May 29, 2023, no responses received. A memo from GE Healthcare was received that state they are the sole provider authorized distributor licensed and authorized by GE Healthcare to service the MUSE System.

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

The anticipated cost to the government is considered fair and reasonable as the price is the same to private customers as well as the VA. The anticipated price to the government is $654,695.00 for a base with a provision of four (4) option years for software and maintenance support.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted:

See item 5 above.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

The main barrier to competition is the necessity to go through the Original Equipment Manafacturer (OEM) to maintain all software updates and licensing IAW OEM specifications. Additionally GE Healthcare holds the copyrights to their proprietary software which prevents other companies from servicing the GE Healthcare equipment.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

During the Market Research no additional vendors were found. See item 5 above.

11. 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:

In this situation, it is difficult to remove barriers to competition because the OEM and their licensed distributor are the qualified vendors to preform software updates and licensing of its own specialized equipment. This is especially true where proprietary software are used IAW with OEM specifications.

12. 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, Effective Date: 02/01/2022 Page 3 of 3 which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Name: Cemre Sahinci Date Title: Biomedical Engineer Facility: Syracuse VAMC

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.

Name: Kimberly Wiatrowski Date Title: Contracting Officer Facility: RPO East NCO2

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Name: Joseph Cellinio Date Title: Branch Chief, Services Team 1

Facility: RPO East NCO2 https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx