D.1 Attachment 1 FAR 13-brand name only justification Redacted.pdf

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

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: VA-24-00069129

1. Contracting Activity:

a. Department of Veterans Affairs - Network Contracting Office 23

b. VISN 23 Patient Monitoring Upgrades – Black Hills, Fargo, Sioux Falls VA Healthcare System

c. 2237: 499-24-3-6720-0036

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

a. This is a Brand Name only justification and approval for the procurement of Philips Healthcare physiological monitoring equipment required to upgrade existing physiological monitoring systems at the Black Hills, Fargo, Sioux Falls VA Healthcare Systems. VA will award one fixed price contract for this requirement.

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

a. The estimated value of the proposed action is $

b. The purpose of this requirement is to upgrade the physiological monitoring systems at the

Black Hills and Sioux Falls VA Healthcare System in order to bring the computer hardware up to a supported windows operating system (Windows 10, Windows Server 2019) and to update the software on the monitoring system to the latest revision (REV 4) due to unserviceability and expansion with the current software revision. Black Hills, Sioux Falls, and Fargo will also receive upgrades to their hospital bedside monitors to a supported software version. Selected vendor will also supply some replacement monitors and components. All sites have some aging or unsupported beside monitors and modules that need to be replaced and/or upgraded(but not the entire fleet).

c. Period of Performance for the contract will be 180 days beyond the award of the contract.

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

Effective Date: 02/01/2022 Page 2 of 4

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 only requirement. Philips is the only company that can provide proper software upgrades that will be compatible with the current patient monitoring system in the facilities. Philips software is proprietary and can only be sold by them or through their authorized vendor partners.

The hardware components of the procurement can only be purchased from Philips because they need to integrate these components into the existing system. No other manufacturer besides Philips could provide these items to ensure compatibility with the rest of the system.

The only way to open competition up to multiple manufacturers would be a full system replacement which could cost $5,000,000 or more additional funds for Black Hills, Sioux Falls, and Fargo.

Only portions of this system are being upgraded/refreshed as part of this procurement. By upgrading existing system, VA is saving approximately $3,500,000 between the 3 facilities, which is the difference in what it would cost to completely replace all 3 systems versus performing this upgrade. A full replacement would require a new network infrastructure (cabling, switches, access points, routers), servers, complete replacement of the bedside monitors and telemetry system and extensive training for the clinical stakeholders, informatics team, and biomedical engineering team.

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

a. Market research was conducted. Please see attached market research form.

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

Reasonable:

These items are COTS items commonly procured for use at VA medical centers. Pricing will be determined fair and reasonable based on competition in accordance with FAR 13.106-3 (a)(1). If only 1 offer is received pricing will be determined fair and reasonable based on Comparison of Proposed Prices with Prices Found Reasonable on Previous Purchases FAR 13.106-3 (a)(2)(ii).

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

Market Research Was Not Conducted:

a. Market research was conducted. Please see attached market research form.

b. Four Points technology expressed interest in this procurement (SDVOSB)

i. Point of Contact: Victoria Jones

ii. Phone: 703-657-6111

iii. Email: Vjones@4points.com

c. Philips Healthcare expressed interest in this procurement

i. Point of Contact: Lindy Hill

ii. Phone: 605-359-5614

iii. Email: Lindy.Hill@philips.com

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

a. All facts supporting the use of other than full and open competition have been provided.

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

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.

Michael Casper Date NCO 23 Services Branch Chief

5/10/2024MICHAEL CASPER

Digitally signed by MICHAEL

CASPER

Date: 2024.05.10 09:00:12 -05'00'