BN JA - Pegasus Rack System REDACTED.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 4 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

Acquisition Plan Action ID: 36C244-22-AP-1548

1. Contracting Activity: Department of Veterans Affairs, VISN 04, Wilkes-Barre VA Medical Center, 1111 East End Blvd, Wilkes-Barre, PA 18702, PR #693-22-1-421-0002

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

The Wilkes-Barre VA Medical Center has a brand name only requirement for a custom Pegasus Rack System for the Ground Floor Sterile Storage Supply Room. The system will be installed to work in conjunction with existing Pegasus racks of the same brand and style.

The estimated value of the proposed action is $ XXXXXXXX.

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

An additional Pegasus Rack System is needed to accommodate existing sterile storage supplies and to provide for additional capacity for future needs. The facility currently does not have enough shelving and storage space, and is storing products in plastic storage bins. A new, larger Sterile Storage Supply Room was also recently created and will be stocked with existing and new shelving to accommodate needed supplies. Pegasus is the current brand in use throughout the facility.

Maintaining the existing brand ensures continuity for the staff currently trained on this system and ensures a smoothly functioning, organized supply chain process. Pegasus Medical brand is the only known manufacturer that customizes the racks, baskets and trays to meet the needs of the facility’s clinical equipment based upon their operational requirements. Pegasus is also the only company found who offers full, turn-key installation without using facility resources.

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

PM Part 813.5 SAP for Certain Commercial Items Page 2 of 4 Original Date: 08/30/17 Revision 02 Date: 08/04/2020

( ) 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):

This is a brand name justification in support Items Peculiar to One Manufacturer, in order to provide compatibility with existing shelving throughout the hospital. The Wilkes-Barre Medical Center has maintained Pegasus Medical Concepts product for all Sterile Supply Storage rooms within the facility since 2012. The existing Pegasus Rack System shelving / carts have a purchase value of $292,755.00.

These storage shelves are utilized as the platform for the Medical Surgical Supply Chain throughout the entire hospital. Purchasing the Pegasus brand will maintain consistency with existing product as well as provide a cohesive and familiar system for the users. The following cost savings opportunities and efficiencies are expected with the limitation of brands for this acquisition:

By adding to an existing inventory of modular components, the facility will experience a reduction in the time and effort required to plan, coordinate, and accomplish required rack reconfigurations, to include labeling, resulting in an overall cost savings to the Government with respect to labor required to make the needed changes.

The design of the required furniture is modular and easily reconfigurable. The Pegasus Medical manufactured goods are directly compatible and interoperable with the existing furniture and functionality currently utilized at Wilkes-Barre VAMC. The interoperability allows for potential reconfigurations in the future, as staffing needs or location needs within the Medical Center may change, without having to purchase new items. Furthermore, this allows for uninterrupted provider operations directly related to Veteran patient care. The Government’s requirement could potentially be met with a number of disparate modular storage systems; however, utilizing multiple systems would adversely affect VAMC operations and impact the overall quality of Veteran patient care. Therefore, no other modular storage system components can meet Wilkes-Barre VAMC’s current infrastructure.

Failure to acquire the components mentioned above would disrupt facility-wide continuity in the Medical / Surgical Supply Chain.

The purchase of Brand Name Pegasus Medical healthcare furniture (customizable racks, baskets and trays compatible with the existing modular storage system) ensures adherence to VA-directed guidance of the PACT Space Module Design Guide.

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

Requests for information from the Region 1 IDIQ Contract Holders indicated that this brand is not available against any of the VHA National Mandtory Furniture IDIQ contracts. Several of the IDIQ

PM Part 813.5 SAP for Certain Commercial Items Page 3 of 4 Original Date: 08/30/17 Revision 02 Date: 08/04/2020 vendor did indicate they would be able to supply the items open market. Based on this research, competition will be sought in the open market to the maximum extent practicable, but within the limitations of the brand name only requirement.

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

The cost of this acquisition is anticipated to be fair and reasonable based upon expected and adequate price competition as evidenced by multiple responses received.

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

The Government reviewed the VHA Mandatory IDIQ Furniture IDIQ contracts to determine if any of the nine IDIQ holders could supply the particular Pegasus items required. Three of the vendors responded that the items were unavailable against the IDIQ contracts, but could be supplied via an open market award. One vendor offers Pegasus shelving but not the shelving required to maintain compatibility with existing WBVAMC supply systems. A waiver was requested and approved for a procurement off contract. The Contracting Officer posted a Sources Sought notice via beta.sam.gov and received two responses, one from Pegasus Medical Concepts, the SB manufacturer, and one from Cuna Supply, an SDVOSB and Pegasus Medical’s only authorized distributor.

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

None

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

Cuna Supply, Pegasus Medical, SDV Office Systems

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:

Should circumstances change in the future, and additional brands be considered for future medical supply storage, competition will be sought to the maximum extent practicable.

PM Part 813.5 SAP for Certain Commercial Items Page 4 of 4 Original Date: 08/30/17 Revision 02 Date: 08/04/2020

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.

Date

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.

Date

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Date

Orlando j.

Mirarchi

Orlando Mirarchi, Jr., Supervisory General Engineer

JENNIFER A.

CUTSHALL

Jennifer A. Cutshall, Contracting Officer, Commodities 3

DANIEL P

________SHEA _________________

Daniel P. Shea, Branch Chief, Commodities 3