J and A.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 09 Page 1 of 5 Original Date: 03/22/11 Revision 09 Date: 04/17/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

For Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C256-20-AP-2492

1. Contracting Activity: Department of Veterans Affairs

Network Contracting Office (NCO) 16 Michael E. DeBakey VA Medical Center (MEDVAMC) 2002 Holcombe Boulevard Houston, TX 77030

PR#: 580-20-3-255-0932

2. Nature and/or Description of the Action Being Processed: This procurement is conducted under FAR 13.5, Simplified Procedures for Certain Commercial Items. The MEDVAMC has a recurring requirement for maintenance and support for the government owned Data Innovation Instrument Manager. Data Innovation LLC, is the original equipment manufacturer (OEM) to provide maintenance and support for high availability production license, test license and end user connection for the government owned Instrument Manager equipment. This requirement will be awarded as a new contract action utilizing a Firm-Fixed Price type contract

3. Description of Supplies/Services Required to Meet the : Government requires continuous maintenance and support for the government owned Data Innovation Instrument Manager licenses and software. OEM maintenance and support will ensure government equipment possess the capability to integrate, optimize and standardize the MEDVAMC lab. OEM maintenance and support for the government own equipment will optimize patient care through transformative laboratory enterprise management solutions to include the connectivity, quality, productivity, analytics intelligence, performance and reliability.

Data Innovations LLC as the OEM will furnish all labor, testing, software, licenses, transportation, firmware, installation, management, supervision, and trained/certified Field Service Engineers (FSE) required to perform maintenance and support for government Data Innovation Instrument Manager.

Software and Licenses is proprietary to Data Innovation LLC, as they are the sole source capable to provide the maintenance and support for government Data Innovation Instrument Manager equipment software and licenses.

The Period of Performance (POP) for this requirement is estimated to be a Base Period of July 1, 2020 through June 30, 2021 ($72,057.30), plus 4 (four) 1 (one) year option periods, to be exercised at the gove $398,162.21.

OFOC SOP Revision 09 Page 2 of 5 Original Date: 03/22/11 Revision 09 Date: 04/17/2020

4. Statutory Authority Permitting Other than Full and Open Competition: The authority 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2). No responsive sources from the Notice of Intent posted via Contracting Oppurtunites illustrating there interest.

5. Demonstration that the C Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Data Innovation LLC, is the OEM of the government owned equipment. OEM possess the proprietary software and licenses for the continuous maintentance and support required for the government owned equipment to sustain operation without delays. Failure to use OEM maintenance and support for the licenses and software could result in a significant risk to patients, whereby negatively impacting patient care and potentially leading to catastrophic conditions.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Contracting Officer (CO), as identified in paragraph 8 below, conducted Market Research to determine the availability of sources for the proposed requirement. The results of the Market Research illustrated that Data Innovation LLC (OEM), is the only source for the government requirement and there were no other interested or capable contractors within the commercial marketplace interested to requirement.

Further efforts were made with communication via email to the OEM to identify authorized contractors to provide maintenance and support for the government requirement. OEM identified only one authorized contractor Four Points Technology. However, the authorize contractor is only an authorized reseller. OEM would still be performing 100% of the maintenance and support services as stated in section 8 of this document.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The maintenance and support for licenses and software being procured, possesses similar services searched and viewed on the Federal Procurement Data System- Next Generation (FPDS-NG). Similar base year and option year contracts awarded by other agencies includ but not limited to:

Contract Number Description of Service Agency Award

Amount

HT001516F0170

Data Innovation Instrument(DII) Management and Software License, Technical Support and Maintenance Services

DEFENSE HEALTH

AGENCY (DHA)

$447,227.12

NNG15SD22B-

36C25619N1137

SOFTWARE SUPPORT 256-NETWORK

CONTRACT OFC 16

$57,455.66

VA25917P7104 Data Innovation upgrades 259-NETWORK

CONTRACT OFC19

$54,122.58

VA24816P0051 Lab Instrument Manager Support, Service

248-NETWORK

CONTRACT OFFIC

$84,321.69

OFOC SOP Revision 09 Page 3 of 5 Original Date: 03/22/11 Revision 09 Date: 04/17/2020

VA69D16F2184

GS35F4070D

Tech support and maintenance to Data Innovation system and License.

69D-NETWORK

CONTRACT OFC 12

$451,964.18

FPDS-NG is a valuable tool in assessing previous prices paid to determine fair and reasonableness. This external application is maintained by the Global Computer Enterprises that collects contract data from all Services and Agencies in the Government for reporting purposes.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted : Contracting Officer posted 36C25620Q0651 Notice of Intent to Sole Source to Contracting Opportunities on May 28, 2020. Notice of Intent was seeking interested parties with the capability to meet the government requirement. The OEM was the only interested party for the government requirement.

Additionally, market research included sending Notice of Intent to various SDVOSB and VOSB from the VETBIZ query. No responses received from additional market research.

Market research concluded the rule of two cannot be met.

Contracting Officer further sent an email to Data Innovation LLC (OEM) to clarify and validated the authorized contractors to provide maintenance and support for the government requirement. OEM confirmed and validated the Contracting Officer questions below:

#1 Can you validate/clarify authorized vendors with Data Innovation to provide Software Maintenance as a service for Maintenance and Support for the following:

a. Maintenance & Support: High Availability Production License

b. Maintenance & Support: Test License

c. Maintenance & Support: End User Connection

OEM Response: Four Points Technology is the only 3rd party reseller Data Innovations is working with at this time. They are a Veteran Small Owned Business and operate as a reseller only, Data Innovations provides all the Support services. Maintenance and Support services are required to be purchased annually (on a continuous basis) for each Instrument Manager license VA Houston owns in order to keep the licenses active.

#2 Is the software/licensing proprietary to Data Innovation in providing Maintenance and Support for the Instrument Manager for the following:

a. Maintenance & Support: High Availability Production License

b. Maintenance & Support: Test License

c. Maintenance & Support: End User Connection

OEM Response: Yes, Data Innovations is the Sole Source Vendor for Instrument Manager.

Our Sole Source Letters are attached.

OFOC SOP Revision 09 Page 4 of 5 Original Date: 03/22/11 Revision 09 Date: 04/17/2020

#3. Requesting clarification/validation due similar requirement was procured with Four Points Technology (contractor) for the following requirement below.

a. Manager Core Software IM-B02, IM-SM-01, & IM-E01 (of IM Interface Connection, IM Manager Core Software, End User Software Connection and Specimen Management).

OEM Response: VA Houston previously purchased their Maintenance & Support services through Four Points last year. Our VA customers do have the option to purchase direct through Data Innovations or they may go through Four Points as some sites prefer contracting with a Veteran Small Owned Business. Either way, the Maintenance and Support services are the exact same and provided direct by Data Innovations.

b. Was the following subcontracted to Data Innovation?

OEM Response: Yes, we are the actual vendor and Four Points is a reseller.

c. What percentage of work was performed by Data Innovation?

OEM Response: Data Innovations provides 100% of the Support services. Four Points is a reseller only.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: No other facts to be presented, Data Innovation is the OEM and capable of meeting government requirement. As stated in section 8 of this document, the OEM will be performing all maintenance and support services and a pass through for this requirement to the 3rd party reseller is not in the best interest of the government. The government will continue to maintain communication with OEM to ascertain any changes from current status.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: As detailed in Paragraph 8 above, no other source provided interest from the Notice of Intent posted via the Contracting Opportunities. OEM is the only source that express interest.

Data Innovations 802-658-2850 120 Kimball Ave, S. Burlington VT 05403

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: The Government will continue to conduct Market Research to ascertain whether there are any changes in the cosmmercial marketplace which would enable future actions to be competed. Market Research wil for possible competition. Based on the current requirement for the government, the Contracting Officer recommends to solicit and award a base year with four (4) one year option periods to Data Innovation LLC.