D_F FAR 13.5 Brand Name Justification-signed.pdf

Draeger Equipment Maintenance – VISN 23 - 36C263-24-AP-0407

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: 36C263-24-AP-0407

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 23 (NCO23), 2501 W

22nd Street, Sioux Falls, SD 57105

Organizational Activity: VISN 23 Medical Centers. 2237 #499-24-2-6765-0027.

2. Nature and/or Description of the Action Being Processed: This is a firm-fixed price brand name only service contract with a base plus 2 option years to provide maintenance services and support for Draeger

Anesthesia Equipment. Procurement is a brand-name only service contract that will be solicitated as an unrestricted procurement.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Provide maintenance services and support for Draeger Anesthesia Equipment. Draeger Anesthesia Equipment is used for surgical procedures to ensure painfree procedures. These systems need maintenance and service to ensure that the systems are operating to manufacturers specification. This will ensure the safe operation of the equipment in order to maintain a safe surgical environment. This will maintain the safe delivery of medical procedures to the veterans served by VISN 23.

The estimate for the first year is $121,278.02 with a total value of $371,669.74.

Period of Performance: 02/10/01/2024 to 01/31/2025

Option Year 1: 02/10/01/2025 to 01/31/2026

Option Year 2: 02/10/01/2026 to 01/31/2027

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): Anesthesia Equipment are high tech medical equipment that take trained professional and specialized equipment to maintain. Draeger Anesthesia Equipment has proprietary hardware and software that can only be obtained through the original equipment manufacturer or an authorized service provider. Draeger Inc or an authorized service providor are the only source for obtaining full service maintenance contracts with access to Draeger ServiceConnect which provided proprietary technical information to our Biomedical Technicians as part of the contract. Based on the market search L1

Enterprises, Inc. and Draeger Inc are the only companies that are allowed to perform post-warranty service on

Draeger equipment.

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

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A source(s) sought notice 36C26324Q0100 was posted to the Contract Opportunities on www.SAM.gov on October 26, 2023. At the closing of the source(s) sought on November 3, 2023, received one response from qualified SDVOSBs or VOSBs were received. L1 is the only SDVOSB authorized service provider for post-warranty support for Draeger.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated cost will be considered fair and reasonable by analyzing the final contract price against the

Independent Government Cost Estimate and in comparison to similar contracts published to the Federal

Procurement Data System.

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

Research Was Not Conducted:

• A search on OSDBU’s VIP database using NAICS code 811210 and a keyword of “Draeger” yielded zero and using NAICS code 811219 and a keyword of “Draeger” yielded zero results of small businesses that are veteran owned and verified.

• Medical Equipment Maintenance Services are not on the AbilityOne Procurement List.

• A search of the GSA eLibrary for Draeger found Draeger Medical Equipment Maintenance Services is available on GSA’s eLibrary Database Schedule 65 II A, Category A-44 – Anesthesia Equipment, NAC

Contract 36F79718D0369. However this contract ends on March 10, 2023.

• A search on SBA’s DSBS using NAICS code 811210 and a keyword of “Draeger” yielded zero and NAICS code 811219 and a keyword of “Draeger” yielded zero result of small businesses.

• A source(s) sought notice 36C26324Q0100 was posted to the Contract Opportunities on www.SAM.gov on

October 26, 2023. . At the closing of the source(s) sought on November 3, 2023, received one response from qualified SDVOSBs or VOSBs were received. L1 is the only SDVOSB authorized service provider for post-warranty support for Draeger.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Market research will be conducted for future acquisitions to determine if market conditions have changed that would allow for competition.

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

Affairs did not receive any communication from companies interested in offering these services.

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.

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.

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

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.

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.

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