Attachment 36C25921Q0296 2021-02-04T08 14 26 Philips MRI SW upgrade Justification.pdf

VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 3 Original Date: 08/30/17 Revision 02 Date: 08/04/2020

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN

ACCORDANCE WITH FAR 13.5

2021-02-04T08:14:26 Acquisition Plan Action ID: 36C259-21-AP-0519

1. Contracting Activity: Organizational Activity:

Department of Veterans Affairs Department of Veterans Affairs Network Contracting Office 19 (NCO 19) Rocky Mountain Regional Medical Center 6162 South Willow Drive, Suite 300 1700 Wheeling St.

Greenwood Village, CO 80111 Aurora, CO 80045

2237: 554-21-1-071-0009

2. Nature and/or Description of the Action Being Processed: The Rocky Mountain Regional Medical Center and Colorado Springs Community Care Clinic requires a Firm-Fixed-Price Contract for a brand name only requirement for Magnetic Resonance Imaging (MRI) Software Upgrades for installation on Philips manufactured equipment.

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

Equipment Serial Numbers for the MRI equipment in which the software will be installed are as follows:

o Serial Number: 70062 o Serial Number: 84077 o Serial Number: 71675

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 – brand name

( ) 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):

PM Part 813.5 SAP for Certain Commercial Items Page 2 of 3

Revision 02 Date: 08/04/2020

The Eastern Colorado Healthcare System currently has 3 Philips MRIs; 2 at Rocky Mountain Regional and 1 at Colorado Springs Community Care Clinic. The Philips MRI software upgrade product is the only product that will meet the needs of the VA. The software is proprietary to Philips; therefore, no other manufacturer’s product will meet the requirement for the upgrade to the Philips product.

In addition, the software is required to be installed on existing Philips’ equipment with the following serial numbers and with the associated equipment replacement costs if the equipment cannot be upgraded:

For equipment Serial Number: 70062, the cost to replace the equipment is $2.2M.

For equipment Serial Number: 84077, the cost to replace the equipment is $2.8M.

For equipment Serial Number: 71675, the cost to replace the equipment is $2.1M.

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

The solicitation will be posted on Contract Opportunities as Service-Disabled Veteran-Owned Small Business (SDVOSB) set-aside, including the Brand Name justification, allowing for all SDVOSB authorized distributors of the Philips software product to submit quotes.

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

The solicitation will be posted on Contract Opportunities as SDVOSB set-aside, including the Brand Name justification, allowing for all SDVOSB authorized distributors of the Philips software product to submit quotes, which will allow price competition and comparison with the Philip’s price for the determination of fair and reasonableness.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted, and the results include the following. A search of www.vip.vetbiz.va.gov, using NAICS 334519, found 171 SDVOSBs; a search including “MRI” related requirements found 32 SDVOSBs; and a search including “Philips” products found 8 SDVOSBs. Through pre-solicitation exchanges, there are at least 2 SDVOSBs authorized to distribute the Philips products and they are Alliant Healthcare and Four Points Technology. In addition, Philips North America, LLC, the large business manufacturer, offers the product per NAC VA797H-17-D-0022. The NAICS 334510 is included on the Non-Manufacturer Rule Class Waiver List, including Product Service Code 6525, making it possible to proceed as a SDVOSB set-aside.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The software is proprietary to Philips; therefore, no other manufacturer’s product will meet the requirement for the upgrade related to the Philips MRIs.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Pre-solicitation exchanges resulted in market research information received, in writing, from Four Points Technology (SDVOSB), Alliant Healthcare (SDVOSB), and Philips (Large Business Manufacturer).

http://www.vip.vetbiz.va.gov/

PM Part 813.5 SAP for Certain Commercial Items Page 3 of 3

Revision 02 Date: 08/04/2020

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: When there is a requirement for purchasing new MRI equipment, there may be an opportunity to compete the requirement for consideration of other manufacturer’s products.

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.

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP.

http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx