HCA SIgned LSJ P03 36C242-25-AP-2193.pdf

Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPG Part 808.405-6 Limiting Sources Page 1 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C242-25-AP-2193

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C242-25-AP-2193

(1) Contracting Activity: Department of Veterans Affairs, Network/Program Contracting Office VISN 2, located at Appletree Business Park, 2875 Union Road, Suite 3500, Cheektowaga, NY 14227.

Customer Locations:

Buffalo VA Medical Center 3495 Bailey Ave Buffalo, NY 14215

Canandaigua VA Medical Center 400 Fort Hill Ave Canandaigua, NY 14424

Syracuse VA Medical Center 800 Irving Ave Syracuse, NY 13210

In support of VISN 2 VA Health Care Systems 528-25-3-4712-0112 Buffalo 528-25-3-6803-0031 Finger Lakes 528-25-3-7823-0056 Syracuse

(2) Description of Action: This acquisition is conducted under the authority of the Multiple Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C.501). This is a request for the approval of a sole source task order under FSS contract GS-35F-0462X for CensiTrac Censis Cloud currently in use in the VISN 2 Medical Centers. This procurement shall be conducted in accordance with FAR Part 8.405-6(a)(1)(B). The purpose of this service is for a Comprehensive Surgical Inventory Management System for Sterile Processing Services. This will be a firm-fixed price task order under GS-35F-0462X. The anticipated period of performance is June 1, 2025 to May 31, 2026 with a provision of four (4) option years.

Order against: FSS Contract Number: GS-35F-0462X

Name of Proposed Contractor: Censis Technologies, Inc.

Street Address: 4031 Aspen Grove Dr. STE 350 City, State, Zip: Franklin, TN 37064 Phone: 615-468-8029 https://www.acquisition.gov/far/part-8#FAR_8_405_6

VHAPG Part 808.405-6 Limiting Sources Page 2 of 5 Revision: 01 Effective Date: 09/01/2024

(3) Description of Supplies or Services:

The estimated value of the proposed action is:

Base $209,362.40 Total Contract Value $1,046,812.00.

Base: June 1, 2025 - May 31, 2026 $209,362.40 Option Year 1: June 1, 2026 – May 31, 2027 $209,362.40 Option Year 2: June 1, 2027 – May 31, 2028 $209,362.40 Option Year 3: June 1, 2028 – May 31, 2029 $209,362.40 Option Year 4: June 1, 2029 – May 31, 2030 $209,362.40

Total estimated cost: $1,046,812.00

The requested service for Censis CensiTrac Surgical Instrument Tracking System includes:

1. Annual Subscription for CensiTrac Tracking System

2. Telephone Support

3. Software Upgrades

4. Cloud Storage

The contractor will provide the subscription license agreement in accordance with the standards specified in accordance with the Original Equipment Manufacturer (OEM) Specifications.

(4) Identify the Authority and Supporting Rationale :

Order Against FSS: Authority of the Multiple Award Schedule Program, Title III of the Federal Property and Administrative Services Act of 1949 (41 USC 251, et seq.); Title 40 USC 501, Services for Executive Agencies; and Section 803 of the National Defense Authorization Act of 2002 (PL 107-107) and implemented by FAR 8.405-6. Mark the applicable exception:

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized; (FAR 8.405-6(a)(1)(i)(B)); The Censis Technologies, Inc. 4031 Aspen grove Dr., STE 350, Franklin, TN 37067 a large business. Censis Technologies, Inc. has proprietary Trade Secret products and services are registered with the United States Patent and Trade Office. FITARA approval was received. ARM Number 193830.

The contractor will provide the subscription license agreement in accordance with the standards specified in accordance with the Original Equipment Manufacturer (OEM) Specifications.

https://www.acquisition.gov/far/part-8#FAR_8_405_6 https://www.acquisition.gov/far/part-8#FAR_8_405_6 https://www.acquisition.gov/far/part-8#FAR_8_405_6

VHAPG Part 808.405-6 Limiting Sources Page 3 of 5

CensiTrac automated instrument inventory system and reporting tools shall identify trends of deficiency for the Sterile Processing Department at the above listed Veteran Affairs Medical Centers. Additionally, the services will be able to have technology back up to the cloud for contingency planning. Technology must remain patched and operated in accordance with Federal and Department security policies and guidelines in order to mitigate known and future security vulnerabilities.

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination:

The pricing offered is equivalent to that in the GSA contract. Pricing is equal to what is paid by other government agencies and is based on the facilities and not the size of the facility or number of users.

A email was sent to the vendor requesting if any additional discounts are available on May 16, 2025.

The Contracting Officer has concluded that the order represents the best value (as defined in FAR 2.101) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the government’s needs.

(6) Describe the Market Research Conducted:

Market research was performed using the following technique methods to identify potential sources:

A search of (SBA) Dynamic Small Business Search (DSBS) SDVOSB/VOSB utilizing NAICS code 541519 and CensiTrac resulted in one vendor Censis Technologies, Inc. This does not satisfy the rule of two for SDVOSB/ VOSB set-aside in accordance with 38 U.S.C. 8127(d). An email dated 4/22/2025 questioning the SDVOSB status the vendor stated they are considered a Large Business.

The Contract Specialist concluded from the results of the market research that there were insufficient SDVOSBs or VOSBs with both interest and capability to meet the VA Rule of Two, IAW VAAR 819.70.

Therefore, a set aside for VOSB providers or SDVOSB providers is not a viable strategy for this procurement.

VHAPG Part 808.405-6 Limiting Sources Page 4 of 5

A search of The General Services Administration (GSA) using GS-35F-0462X revealed the vendor is Censis Technologies, Inc.

A letter of Sole Source for CensiTrac was received dated February 13, 2025. Vendor states they are considered a Large Business.

A Notice of Intent to Sole Source 36C24225Q0525 was posted on SAM.gov April 7, 2025 to April 17, 2025. No responses were received.

(7) Any Other Facts Supporting the Justification:

This requirement was procured in the same manner for the same locations under GS-35F-0462X 36C24220F0233. The current contract in place will expire 5/31/2025.

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

In situations involving specialized equipment, it is difficult to remove barriers to competition because the Original Equipment Manufacturer (OEM) is the only qualified company capable to provide parts, maintenance and software updates of its own equipment. This is especially true where proprietary software and licenses are only available from the OEM. Unless the manufacturer chooses to license its software and authorize local service providers to maintain their equipment, the only alternative would be to replace the existing equipment with another system. At this time, the VA Medical Centers are satisfied with the quality and operation of the equipment. The VISN 2 Medical Centers do not have a sufficient budget to replace the existing equipment thus the reason to have proper maintenance and software updates through the life span of the equipment. Considerations for new equipment will be made when the existing equipment reaches the end of its life cycle span.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Joseph Patience Date Administrative Officer HTM Finger Lakes VAMC

VHAPG Part 808.405-6 Limiting Sources Page 5 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C242-25-AP-2193

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

5/19/2025

Kimberly Wiatrowski Date Contracting Specialist VHA RPO-E/ Network Contracting Office (NCO) 2

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Janine Childs Date Supervisory Contract Specialist Services Team 2 Branch Chief VHA RPO-E/ Network Contracting Office (NCO) 2

HIGHER LEVEL APPROVAL (Required for orders over $750,000):

c. VHA RPO HCA Review and Approval (over $750,000 to $75 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Gerald Jacobs Date Executive Director Regional Procurement Office East https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx