Attachment 1 FAR 13.5 Sole Source Justification - Over SAT_Redacted.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 2 of 4

Acquisition Plan Action ID: 36C242-22-AP-1964

Contractor shall be an authorized service provider for Stryker Corporation’s “Acute Care” product line, the equipment used at the Buffalo/Batavia VAMCs. Inspections shall satisfy the annual requirement by the Joint Commission on Accreditation of Healthcare Organizations (JAHCO).

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 ( ) 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): Due to patents and copyrights, only authorized service providers are authorized to service Stryker Corporation’s “Acute Care” line of hospital beds and stretchers. Stryker Corporation confirms it is the only authorized service provider for this requirement.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A VIP search using NAICs code 811219 and keyword “Stryker” identified one (1) vendor (Emeritus Clinical Solutions, INC.) who could possibly fulfill this procurement. Emeritus verified interest in this procurement, however Emeritus is not an authorized service provider on Stryker’s “Acute Care” product line, the equipment used at the Buffalo/Batavia VAMC.

A GSA eLibrary search using keywords “Stryker” identified multiple schedules from Stryker Corporation, however after discussing with Stryker representative and reviewing contract line items, a task-order would not be appropriate for this service.

A search of SBA QMR tool using NAICs code 811219 and keyword “Stryker” identified three (3) SDVOSB vendors (Solmar Solutions, INC., Progressive X-Ray, INC., and OT Training Solutions, LLC.)

and three (3) WOSB vendors (Solmar Solutions, INC., Agathos Laboratories, INC., and WBW Surgical Supply, INC.). All of these vendors are not authorized service providers on Stryker’s “Acute Care” product line, the equipment used at the Buffalo/Batavia VAMC.

A search of Google.com identified two (2) vendors (Stryker Corporation and Emeritus Clinical Solutions, INC.). Emeritus has been addressed in the first paragraph above, and Stryker’s website has been reviewed. Stryker’s “acute care” line of products, the equipment covered in this service, are

Effective Date: 02/01/2022 Page 3 of 4 serviced using proprietary diagnostics/tools, and entails patents and copyrights for the tooling involved.

An intent to sole source notice (36C24222Q0757) was posted on SAM.gov from 5/20/2022 through 5/27/2022 in which one (1) response was received from Stryker Corporation.

Stryker Corporation provided a sole source memorandum, dated 1/1/2022, pertaining to the patents and copyrights of the “Acute Care Parts and Service”. Stryker’s medical division is the sole source distribution and manufacturer of parts for Stryker’s Acute Care products. Stryker’s ProCare service division are the only authorized service providers for Acute Care products, due to requiring proprietary tools and diagnostics.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Price reasonableness was determined by comparing the vendors quoted annual price to the previous procurement (36C24219P1395: POP 7/11/2019 to 7/10/2024). 36C24219P1395 had an annual (Final Option Year) price of for pieces of equipment. This equated to an average unit price of $ . The annual cost quoted by Styker Corporation for the replacement service agreement is $ for pieces of equipment, which equates to an average unit price of $ . A decrease in the average unit price of

Individual line item pricing was also reviewed to further evaluate price reasonableness. The comparison of equipment found in both the quote and current procurement identified that the quoted annual price is on average $ ( ) less than current annual pricing. The lower quoted unit prices are result of volume discount pricing provided by Stryker Corporation, as a result the quoted pricing is determined to be fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: See section 6.

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

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

A. Emeritus Clinical Solutions, INC. (SDVOSB), 17 Indian Trail, Rockwall, TX 75087 B. Stryker Corporation (LB), 1901 Romence Road Parkway, Portage, MI 49002

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: None, as the reason for this sole-source are patents and copyrights associated with Stryker Corporation’s “Acute Care” line of hospital equipment.

Effective Date: 02/01/2022 Page 4 of 4

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, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Robert Snyder Jr. Date Maintenance Mechanic/COR Buffalo VA Medical Center

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.

Michael Spivack Date Contracting Officer, Services Team 1 RPO East, NCO 2 Contracting Office

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.

Cheryl Brimmer Date Branch Chief, Services Team 1

RPO East, NCO 2 Contracting Office

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Joseph P. Maletta Executive Director, RPO East Date VHA Head of Contracting Activity (HCA)