JA - Draeger ARK System Maintenance.pdf

VHAPM Part 808.405-6 Limiting Sources Page 1 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C255-20-AP-0682

(1) Contracting Activity:

Contracting Agency: Network Contracting Office 15 Organizational Activity: Department of Veterans Affairs, VISN 15 VA Medical Centers Purchase Request: 657-20-3-6710-0113 The base period total for this service is $368,731.49 and $2,590,848.29 for a base plus four

(4) option years.

(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 limited sources justification is to acquire a service contract which provides hardware and software support for the Draeger Medical Innovian Anesthesia Recording Keeper (ARK) System for VISN 15. The Innovian ARK System, consisting of workstations and servers, is installed in all areas of VISN 15 in which anesthesia is provided as well as all locations such as a Post Anesthesia Care Unit (PACU) where patients recover after treatments with anesthesia. The system allows VA providers to electronically chart anesthesia and post-anesthesia care for veterans in lieu of paper charting.

A firm fixed price contract is contemplated to replace contract 36C255-20-C-0009, which expires August 4, 2020. The new contract will have a 3-month base period from August 5, 2020 through November 4, 2020 and include four (4) 1-year option periods that run from November 5, 2020 through November 4, 2024. Included in the base period pricing, Draeger shall provide an upgrade to their existing servers located in the St Louis and Kansas City VAMCs. The upgrade, required every 5-years, will include the latest software needed to run the existing Innovian ARK system and testing to ensure the upgrade works as intended.

The base period for this procurement is only 3-months long, since FY 2020 funding has already paid for 9-months of service via the current contract. This will allow the annual service costs to be consistent over the life of the contract.

Order against: FSS Contract Number: 36F79718D0369

Name of Proposed Contractor: Draeger, Inc.

Street Address: 3135 Quarry Road

City, State, Zip: Telford, PA 18969

VHAPM Part 808.405-6 Limiting Sources Page 2 of 5

Revision 02 Eff Date: 02/21/2020

Phone: 262-689-4588

(3) Description of Supplies or Services:

The hardware for the Innovian ARK System consists of servers and workstations which are specifically designed to maximize the advantages of the Innovian ARK software. The software applications that make up the system provides data collection, access and reporting, building of specific environments, auto-triggers, database queries, real-time access to information in the Pre Op, Intra Op, Post Op and moderate sedation areas, remote and single sign-on access, inbound and outbound Health Level Seven (HL7) interfaces to VistA, inbound data from medical devices, an upload capability to VistA Imaging and data extracts. Innovian ARK provides a real-time bi-directional interface with the Veterans Health Information Systems and Technology Architecture (VistA) and allows the creation and storage of a completed Portable Document Format (PDF) file that is accessible in VistA/CPRS.

Draeger will provide all hardware and software maintenance services for the Draeger Medical Innovian Anesthesia Recording Keeper (ARK) System for VISN 15. This maintenance and support shall include all scheduled preventive maintenance, unscheduled repairs/corrective maintenance, server and workstation updates and replacements, technical support described in the SOW. Draeger shall ensure that the ARK operates in an efficient manner as intended. Draeger shall maintain Innovian ARK hardware and software currently licensed in the ARK systems located in VISN 15.

The total estimated value of the acquisition is $2,590,848.29 and the estimated periods of performance are:

Base Period: August 5, 2020 through November 4, 2020, $368,731.49 Option Year 1: November 5, 2020 - November 4, 2021, $555,529.20 Option Year 2: November 5, 2021 - November 4, 2022, $555,529.20 Option Year 3: November 5, 2022 - November 4, 2023, $555,529.20 Option Year 4: November 5, 2023 - November 4, 2024, $555,529.20

Note: The last day to place orders under VA FSS contract 36F79718D0369 is 04/14/2023. So, unless it gets extended, Option Year 4 of this task order will not be exercised.

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

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.

Draeger’s Innovian ARK software was chosen as the Anesthesia Recording Keeper (ARK) System for VISN 15 in FY13. Draeger, Inc. was awarded a contract (VA255-13-D-0001) after a

VHAPM Part 808.405-6 Limiting Sources Page 3 of 5

Revision 02 Eff Date: 02/21/2020 lengthy and competitive acquisition process. The requested Innovian ARK software maintenance plan is specifically provided by Draeger and is their intellectual property. As such, Draeger does not allow 3rd party institutions to provide service to their Innovian ARK software as it would violate their proprietary software platform. Draeger’s Innovian ARK technical experts are trained by Draeger to troubleshoot issues and to maintain the Innovian ARK system at a guaranteed 98.9% uptime. Draeger does not train other parties to maintain their system, so there are no other vendors available to provide this service as mentioned in their company letter dated June 3, 2020, subject: Proprietary Innovian ARK Software, Hardware, Mounting Carts, and Interfaces Maintenance.

(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 for this acquisition has been verified, LIN by LIN, in accordance with VA FSS contract 36F79718D0369, to be accurate. As a result, it represents the best value and results in the lowest overall cost to meet the Government’s needs.

Furthermore, replacing this system would lead to substantial duplication of costs to the government that would not be expected to be recovered through competition. Also, unacceptable delays in fulfilling this requirement would occur as well as taking additional time to train providers on a new system.

The Contracting Officer will determine the price offered by Draeger to be fair and reasonable prior to award in accordance with FAR 8.405-2(d).

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

Market research, in accordance with FAR Part 10 and VAAR Part 810, was conducted by synopsis of the proposed acquisition and conducting research through VIP, Small Business Dynamic Search, GSA Advantage, FPDS, beta.sam.gov (Contract Opportunities), and Google.

A Search using NAICS 811219 and keyword “Innovian” were used to search the below listed sites to identify potential vendors.

VIP yielded zero (0) results.

SBA yielded zero (0) results.

GSA yielded one (1) vendor, Draeger, Inc., the current contractor.

FPDS yielded one (1) vendor, Draeger, Inc., the current contractor.

Beta.sam.gov yielded one (1) vendor, Draeger, Inc., the current contractor.

Google yielded one (1) vendor, Draeger, Inc., the current contractor.

Also, a Letter of Intent to Award to Draeger, Inc., 36C25520Q0227, was placed on the Contract Opportunities site at beta.sam.gov from 02/24/2020 through 03/04/2020, which resulted in zero (0) responses.

The results determined that only one manufacturer, Draeger, Inc. can provide the requested service. They are the manufacturer and sole proprietor of this hardware and

VHAPM Part 808.405-6 Limiting Sources Page 4 of 5

Revision 02 Eff Date: 02/21/2020 software. They only train and certify internal technicians to support and maintain their software. Draeger, Inc. does not license outside technicians to perform maintenance and support on their products.

(7) Any Other Facts Supporting the Justification:

None.

(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:

Prior to exercising each option period, market research will be conducted to determine if there are other sources that exist who are capable of satisfying the agency’s requirements.

On an ongoing basis, strategic market research will be conducted by the customer to identify the capabilities of the marketplace and tactical market research will be done before developing new requirements documents to meet the agency’s needs.

(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.

Kindall Druker, MS Date Biomedical Engineering Project Manager VA Heartland Network (VISN 15)

(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.

Bruce Kidder Date Contracting Officer Network Contracting Office 15 (NCO 15)

07/09/2020

07/09/2020

Kindall L.

Druker 550065

Digitally signed by Kindall L.

Druker 550065 Date: 2020.07.09 10:42:28 -05'00'

Bruce L. Kidder 1121930

Digitally signed by Bruce L.

Kidder 1121930 Date: 2020.07.09 11:10:26 -05'00'

VHAPM Part 808.405-6 Limiting Sources Page 5 of 5

Revision 02 Eff Date: 02/21/2020

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

John W. Pratt Date Branch Chief, General Services II Network Contracting Office 15 (NCO 15)

c. VISN 15 NCO Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval ($700K to $68 million) for other than full and open competition.

Scott Fiscus Date Director of Contracting Network Contracting Office 15 (NCO 15)

HIGHER LEVEL APPROVAL (Required for orders over $700,000):

d. VHA RPO HCA Review and Approval (over $700,000 to $68 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.

Terry L. Spitzmiller Date Executive Director Regional Procurement Office Central (VHA)

07/09/2020 John W Pratt 1625439

Digitally signed by John W Pratt 1625439 Date: 2020.07.09 14:47:38 -05'00'

SCOTT R

FISCUS 381888

Digitally signed by SCOTT R

FISCUS 381888

Date: 2020.07.15 14:42:34 -05'00' 07/15/2020

07/16/2020

TERRY L.

SPITZMILLER

394683

Digitally signed by TERRY

L. SPITZMILLER 394683

Date: 2020.07.16 16:50:28 -05'00'

Attachment 2: Market Research Report Template

VHAPM Part 810 Market Research SOP Page 1 of 11 Revision: 04, Effective Date: 06/18/20

Title of Program/Project/Requirement: Maintenance Services for the Draeger Innovian Anesthesia Recording Keeper (ARK) System

PART I – Project Manager/COR

I. Authority.

Market research is required in accordance with:

FAR 7.102, Acquisition Planning Policy FAR 7.103(u)(1) and (2), Agency-Head Responsibilities FAR 10.001, Market Research Policy and VAAR 810.001-70 (Class Deviation) VAAR 813.003-70(c), Policy (Class Deviation) FAR 19.202-2, Locating Small Business Sources and VAAR 819.202 (Class Deviation)

II. Procurement Information.

A. Procurement History.

These software/hardware support services were originally provided to VISN 15 by Draeger, Inc. through contract VA255-13-D-0001, with a period of performance (POP) of 03/01/2013 through 11/04/2017. The next contract was VA119-16-A-0100 3625518N0172, which ran from 11/05/2017 through 11/04/2019. Finally, contract 36C25520C0009 was put in place with a POP of 11/05/2019 through 08/04/2020.

B. Procurement Background.

Name Title Office Telephone E-mail Address

Kindall Druker

Biomedical Engineering Project Manager

VA Heartland Network (VISN 15)

314-858-0257 Kindall.Druker@va.gov

Type of acquisition (service or supply): Maintenance Services for the Draeger Innovian Anesthesia Recording Keeper (ARK) System Expected dollar value of requirement: $2,590,848.29 Suggested NAICS code(s):

Time frame in which the market research was conducted: June 8, 2020 through June 12, 2020

VHAPM Part 810 Market Research SOP Page 2 of 11 Revision: 04, Effective Date: 06/18/20

III. Initial Requirements.

Describe the Government’s requirement in terms of:

Functions to be performed: A full-service agreement is required to continue these critical Draeger software and equipment maintenance services.

Services or Performance required and/or Essential physical characteristics: The hardware and software applications that make up the Innovian Anesthesia Recording Keeper (ARK) System provide data collection, access and reporting, building of specific environments, auto-triggers, database query, real-time access to information in the Pre Op, Intra Op, Post Op and moderate sedation areas, remote and single sign-on access, inbound and outbound Health Level Seven (HL7) interfaces to VistA, inbound data from medical devices, record upload to VistA Imaging and data extracts.

Innovian ARK replaced paper records used in the VISN 15 care areas.

Certified Nurse Anesthetists, Anesthesiologists and other clinical staff use the Innovian ARK to manage the surgical/anesthesia patient information.

Innovian ARK provides a real-time bi-directional interface with the Veterans Health Information Systems and Technology Architecture (VistA) and allows the creation and storage of a completed Portable Document Format (PDF) file that is accessible.

Describe schedule requirements, e.g., performance periods and/or delivery due dates: The total estimated value of the acquisition is $2,590,848.29 and the estimated periods of performance are:

Base Year: August 5, 2020 through November 4, 2020, $368,731.49 Option Year 1: November 5, 2020 - November 4, 2021, $555,529.20 Option Year 2: November 5, 2021 - November 4, 2022, $555,529.20 Option Year 3: November 5, 2022 - November 4, 2023, $555,529.20 Option Year 4: November 5, 2023 - November 4, 2024, $555,529.20

IV. Participants in Market Research.

Describe the involvement of the individual Acquisition Team members and any other participants in the market research effort.

NAME TITLE OFFICE TELEPHONE E-MAIL ADDRESS

MARKET

RESEARCH

ROLE

Kindall Druker

Program Official

VA

Heartland Network

(VISN 15)

314-858-0257 Kindall.Druker@va.gov Initial

VHAPM Part 810 Market Research SOP Page 3 of 11 Revision: 04, Effective Date: 06/18/20

NAME TITLE OFFICE TELEPHONE E-MAIL ADDRESS

MARKET

RESEARCH

ROLE

Bruce Kidder

Contracting Officer (CO) NCO 15 913-946-1957 Bruce.kidder@va.gov Conduct

Kindall Druker

Contracting Officer’s

Representative

(COR)

VA

Heartland Network

(VISN 15)

314-858-0257 Kindall.Druker@va.gov Initial

David Mugan

Small Business Liaison

NCO 15 913-946-1147 David.Mugan@va.gov Concur

V. Market Research Techniques and Sources

A. Market Research Techniques: Describe techniques and sources used during market research. The following table may help structure and summarize the techniques used in the market research effort.

Chec k X IF

USED

SOURCES USED IN MARKET

RESEARCH DETAILS OF RESEARCH/COMMENTS

RESEARCH SOURCES

(INCLUDE REFERENCES TO ATTACHMENTS TO

REPORT) (e.g., List of Journals and Literature Reviewed included as Attachment 4 to this report)

X Acquisition history reviewed These software/hardware support services were originally provided to VISN 15 by Draeger, Inc.

through contract VA255-13-D-0001, with a period of performance (POP) of 03/01/2013 through 11/04/2017. The next contract was VA119-16-A- 0100 3625518N0172, which ran from 11/05/2017 through 11/04/2019. Finally, contract 36C25520C0009 was put in place with a POP of 11/05/2019 through 08/04/2020.

X Other recent market research reviewed

Queried the following Government-wide database of contracts and other procurement instruments intended for use by multiple agencies and other Government and commercial databases that provide information relevant to agency acquisitions: https://web.sba.gov/pro-net/search/dsp_dsbs.cfm, https://www.gsaelibrary.gsa.gov/ElibMain/home.

do, https://www.fpds.gov, https://beta.sam.gov/, VHAPM Part 810 Market Research SOP Page 4 of 11 Revision: 04, Effective Date: 06/18/20 and https://www.google.com/ and found a VA FSS contract 36F79718D0369 with Draeger where these services can be ordered.

X VA Vendor Information Pages

(VIP)

https://www.vip.vetbiz.va.go v/ (including any information supporting price reasonableness)

A Search using NAICS 19 and keyword “Innovian” was used to search the VIP site to identify potential SDVOSB and VOSB vendors. VIP yielded zero (0) results.

Interviewed knowledgeable individuals in industry/Government Participated/Attended Tradeshows and Industry Conferences

Professional Journals, Catalog and/or Product Literature reviewed

Participated in Small Business Vendor Outreach Sessions

B. Market Research Sources. In accordance with FAR part 10 and VAAR part 810, market research has been conducted for this acquisition. The following additional collaborative Contracting Officer-led techniques were used: A Letter of Intent to Award to Draeger, Inc., 36C25520Q0227, was placed on the Contract Opportunities site at beta.sam.gov from 02/24/2020 through 03/04/2020, which resulted in zero (0) responses.

Insert X if Checked

VETERANS FIRST CONTRACTING PROGRAM

(VAAR subpart 819.70)

REFERENCES/SOURCES CHECKED

(IDENTIFYING VIP VERIFIED SDVOSBs/VOSBs)

Details of Research/Comments (Include References to Report Attachments)

X VA Office of Small and Disadvantaged Business Utilization (OSDBU), Center for Verification and Evaluation (CVE) Vendor Information Pages (VIP) Database found at https://www.vip.vetbiz.va.gov/

A Search using NAICS 19 and keyword

“Innovian” was used to search the VIP site to identify potential vendors. VIP yielded zero (0) results.

VHAPM Part 810 Market Research SOP Page 5 of 11 Revision: 04, Effective Date: 06/18/20

System for Award Management (SAM) search for entity records at:

https://www.sam.gov/SAM/pages/public/index.jsf

MARKET RESEARCH FOR SERVICES

1. Services that are on the Procurement List maintained by the Committee for Purchase from People who are Blind or Severely Disabled (Ability One) (See FAR subpart 8.7)

2. Services: Federal Prison Industries (See FAR subpart 8.6) http://www.unicor.gov/ (Except if two or more SDVOSB or VOSB are identified, see

VAAR 808.603)

X 3. Also see--VA Federal Supply Schedules (FSS) in FSC Group 62I.

A Search using NAICS 19 and keyword

“Innovian” was used to search the GSA eLibrary site to identify potential vendors. GSA identified one (1) vendor, Draeger Inc.

under VA FSS Contract:

36F79718D0369 that can provide these services.

4. And see--mandatory sources reviewed, if applicable, for:

4a. Public Utility Services (see FAR part 41);

4b. Printing & Related Supplies (see FAR subpart 8.8);

4c. Leased Motor Vehicles (see FAR subpart 8.11);

4c. Helium (see FAR subpart 8.5)

5. Services: Commercial sources (includes educational and non-profit institutions) in the open market.

VHAPM Part 810 Market Research SOP Page 6 of 11 Revision: 04, Effective Date: 06/18/20

VETERANS FIRST CONTRACTING PROGRAM

(VAAR subpart 819.70)—REFERENCES/SOURCES

CHECKED

X Sources Sought Notices: Requests for Information (RFI) https://beta.sam.gov/

A Letter of Intent to Award to Draeger, Inc., 36C25520Q0227, was placed on the Contract Opportunities site at beta.sam.gov from 02/24/2020 through 03/04/2020, which resulted in zero (0) responses.

X Beta SAM search at: https://beta.sam.gov A Search using NAICS 19 and keyword

“Innovian” was used to search the Beta.sam.gov site to identify potential vendors. Beta.sam.gov yielded one (1) vendor, Draeger, Inc., the current contractor.

OTHER REFERENCES/SOURCES CHECKED

(Other ways to conduct or confirm market research)

X Sources Sought Notices: Requests for Information (RFI) https://beta.sam.gov/

A Letter of Intent to Award to Draeger, Inc., 36C25520Q0227, was placed on the Contract Opportunities site at beta.sam.gov from 02/24/2020 through 03/04/2020, which resulted in zero (0) responses.

VHAPM Part 810 Market Research SOP Page 7 of 11 Revision: 04, Effective Date: 06/18/20

Pre-solicitation and/or Pre-Proposal Conferences

X Existing intra-/inter-agency contract vehicles, e.g.

Interagency Contract Directory (ICD) at:

https://www.contractdirectory.gov/contractdirectory

Draeger, Inc. currently does have a contract vehicle which provides these services under VA FSS Contract:

36F79718D0369

System for Award Management (SAM) search for entity records at:

https://www.sam.gov/SAM/pages/public/index.jsf

X SBA Dynamic Small Business Database at:

http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

A Search using NAICS 19 and keyword

“Innovian” was used to search the DSBS site to identify potential vendors. DSBS yielded zero (0) results.

Department of Labor (DOL) Service Contract Labor Standards (Service Contract Act (SCA)) and Wage Rate Requirements (Davis-Bacon Act (DBA)) wage determination information online at:

http://www.wdol.gov/ (SERVICES ONLY)

X FPDS Database at:

https://www.fpds.gov/fpdsng_cms/index.php/en/

A Search using NAICS 19 and keyword

“Innovian” was used to search the FPDS site to identify potential vendors. FPDS yielded one (1) vendor, Draeger, Inc., the current contractor.

X Google Database at:

https://www.google.com/

A Search using NAICS 19 and keyword

“Innovian” was used to search the Google site to identify potential vendors. Google yielded one (1) vendor, Draeger Images, Inc., the current contractor.

VHAPM Part 810 Market Research SOP Page 8 of 11 Revision: 04, Effective Date: 06/18/20

VI. Identify Product/Services and Sources Able to Meet the Requirement

Innovian ARK is a Draeger Inc. proprietary system and as such, no other vendors have the necessary training or access to provide service to VISN 15 for their Innovian ARK system. Their company Information is:

Draeger, Inc.

3135 Quarry Road Telford, PA 18969 POC: Stan Dziewa, 262-689-4588, Stan.Dziewa@draeger.com Web Site: www.draeger.com

There past performance ranges from Satisfactory to Exceptional, with no marginal or unsatisfactory CPARS Assessments.

To ensure that additional sources were located, a Letter of Intent to Award to Draeger, Inc., 36C25520Q0227, was placed on the Contract Opportunities site at beta.sam.gov from 02/24/2020 through 03/04/2020, which resulted in zero (0) responses.

VII. Description of the Commercial Marketplace and Prevalent Business Practices This is a sole-source acquisition where only one source is capable of providing the required service, and that’s Draeger, Inc. They are the manufacturer and sole proprietor of this software and equipment. They only train and certify internal technicians to support their products. Draeger, Inc. does not license outside technicians to support their software and hardware.

VIII. Pricing and Market Issues The market price is $368,731.49 for the base period and $2,590,848.29 for the base period plus four (4) option years. This price is based on VA FSS contract 36F79718D0369 which has already been determined to be fair and reasonable.

IX. Other Considerations None

X. Market Analysis Summary The market research results determined that only one manufacturer, Draeger, Inc. can provide the requested service. They are the manufacturer and sole proprietor of this hardware and software. They only train and certify internal technicians to support and maintain their software. Draeger, Inc. does not license outside technicians to perform maintenance and support on their products.

XI. Determination: That Draeger, Inc. be awarded a contract consisting of a Base Period and four (4) 1-year Option Years at the total contract price of $2,590,848.29.

VHAPM Part 810 Market Research SOP Page 9 of 11 Revision: 04, Effective Date: 06/18/20

Name: ___________________________________ Date: __________________ Project Manager/COR

PART II – Contracting Officer Responsibilities:

I. Background. The codes identified below will be used when advertising this requirement, if applicable.

Title: Maintenance services for the Draeger Innovian Anesthesia Recording Keeper (ARK) System Product or Service Code: J070 North American Industry Classification System (NAICS): 19 Estimated Contract Value (including options): $2,590,848.29 Procurement History. See Part I, Paragraph II.A. above.

II. Market Research

1. Techniques Used in Conducting Market Research: Checked the Government-wide database of contracts and other procurement instruments intended for use by multiple agencies and other Government and commercial databases that provide information relevant to agency acquisitions: https://web.sba.gov/pro-net/search/dsp_dsbs.cfm, https://www.gsaelibrary.gsa.gov/ElibMain/home.do, https://www.fpds.gov, https://beta.sam.gov/, and https://www.google.com/. Also, checked VIP, SBA, GSA, FPDS and Beta.sam.gov.

2. Results of Market Research: Market Research Findings: Market Research was conducted through VIP, the Small Business Dynamic Search, GSA eLibrary, FPDS, beta.sam.gov (Contract Opportunities), and Google. A Search using NAICS 19 and keyword “Innovian” was used to search the below listed sites to identify potential vendors.

VIP yielded zero (0) results.

SBA yielded zero (0) results.

GSA yielded zero (1) vendor, Draeger, Inc., the current contractor .

FPDS yielded one (1) vendor, Draeger, Inc., the current contractor.

Beta.sam.gov yielded one (1) vendor, Draeger, Inc., the current contractor.

Google yielded one (1) vendor, Draeger Images, Inc., the current contractor

A Letter of Intent to Award to Draeger, Inc., 36C25520Q0227, was placed on the Contract Opportunities site at beta.sam.gov from 02/24/2020 through 03/04/2020, which resulted in zero (0) responses.

The results determined that only one manufacturer, Draeger, Inc. can provide the requested service. Draeger, Inc. is the manufacturer and sole proprietor of their

Kindall L. Druker 550065

Digitally signed by Kindall L.

Druker 550065 Date: 2020.07.07 13:44:39 -05'00' 07/07/2020

VHAPM Part 810 Market Research SOP Page 10 of 11 Revision: 04, Effective Date: 06/18/20 software and equipment. They only train and certify internal technicians to support their products. Draeger, Inc. does not license outside technicians to support their software and hardware.

III. Consideration of Small Business Opportunities All acquisitions for supplies and services with an anticipated value above the micro-purchase and the simplified acquisition threshold (SAT) thresholds (see FAR 2.1-1 definitions) are reserved exclusively for small businesses and shall be set aside. FAR 19.502-2(a). If the anticipated acquisition value exceeds the SAT, the requirement must be set aside for Small Businesses if (1) there is a reasonable expectation of receipt of offers from two or more responsible Small Businesses, and (2) award will be made at a fair market price. FAR 19.502-2(b).

The VA’s contracting order of priority is set forth in VAAR 819.7004: Contracting officers shall consider, in the following order of priority, contracting preferences that ensure contracts will be awarded:

- To SDVOSBs

- To VOSB, including but not limited to SDVOSBs,

- To small business concerns using the priorities and preferences in 819.203-70 and

VAAR subpart 819.70— Note: The Small Business Jobs Act of 2010 created parity among small business socioeconomic contracting programs. As a result of this amendment to the Small Business Act, there is no order of precedence among the 8(a), HUBZone, SDVOSB or WOSB programs in FAR (see 819.203).

38 U.S.C. 8127 (i) Priority for Contracting Preferences. Provides that preferences for awarding contracts to small business concerns shall be applied in the following order of priority: (1) SDVSOBs, followed by (2) VOSBs, including SDVOSBs, then (3) 8(a) and HUBZone firms and (4) any other small business. The order of priority was established in 2006 by Public Law 109-461, as per the policy in the Small Business Act at that time. Since then, as a result of legislative amendments to the Small Business Act, the FAR has been amended to create a woman-owned small business set-aside and to provide parity among the various small business socio-economic programs. Therefore, VA has adopted the current parity policy in FAR 19.203 for procurements involving other than SDVOSBs/VOSBs.

Based on the above Market Research, there is NOT a reasonable expectation of receiving offers from at least two or more responsible SDVOSB, VOSB or Small Business concerns for this acquisition.

Name: _______________________________ Date: __________________ Contracting Officer

Bruce L. Kidder 1121930

Digitally signed by Bruce L. Kidder 1121930 Date: 2020.07.07 14:33:14 -05'00' 07/07/2020

VHAPM Part 810 Market Research SOP Page 11 of 11 Revision: 04, Effective Date: 06/18/20

Conclusions and Recommendations

Query of the Vendor Information Pages (VIP) Database at https://www.vip.vetbiz.va.gov/ resulted in:

There is a total of 0 small business concerns in each of the below listed individual socio-economic groups in NAICS 19 that have the necessary technical capability to perform:

SDVOSB

VOSB

B. Query of the SBA Dynamic Small Business Search (DSBS) tool at http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm), resulted in:

There is a total of 0 small business concerns in each of the below listed individual socio-economic groups that have the necessary technical capability to perform:

SDVOSB

VOSB

Woman-Owned Small Business (WOSB) 8(a) HUBZone

SB

C. For acquisitions above the SAT, describe considerations for a set-aside or sole source award under the following small business program set-asides:

SDVOSB

VOSB

WOSB

8(a) HUBZone

There are no considerations for small business set-asides, since this is a sole-source acquisition where no other supplies or services will satisfy other than those provided by Draeger, Inc.

IV. PROPOSED PROCUREMENT METHOD

Based on the market research conducted, no two or more VIP verified and capable SDVOSBs or VOSBs were identified and appeared capable of performing the requirement. In addition, no small business in any of the other targeted socio-economic groups appeared to qualify for a set-aside or sole source procurement. Therefore, it is determined that only Draeger, Inc. will be awarded this requirement. This market research information is not more than 12-months old.

Name: ________________________________ Date: __________________ Contracting Officer

Bruce L. Kidder 1121930

Digitally signed by Bruce L.

Kidder 1121930 Date: 2020.07.07 14:33:51 -05'00' 07/07/2020

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Business Name Doing Business As DUNS NAICS 811219 Keywords - Separate keywords with blank spaces Innovian

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811219 Innovian

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For Official Use Only

Item # Description/Part Number* Qty Price Extended Amount

SUBTOTAL (Products) -$

Estimated Amount

368,731.49$

555,529.20$

555,529.20$

555,529.20$

555,529.20$

SUBTOTAL (Services) 2,590,848.29$

2,590,848.29$

Phone: 314-858-0257 Date: 01/08/2020

Kindall Druker Email: Kindall.Druker@va.gov

Informal Vendor Quotes Prior Bills of Material Prior Monthly Vouchers Catalog Pricing Other (Please Explain ):

INDEPENDENT GOVERNMENT COST ESTIMATE (IGCE)

*Check block(s) below that describe the basis for the

IGCE:

Past Contract Pricing GSA Federal Supply Schedule Published Prices Government Wide Acquisition Contract (GWAC)

Option Year 1: 11/05/2020 through 11/04/2021

Option Year 2: 11/05/2021 through 11/04/2022

Option Year 3: 11/05/2022 through 11/04/2023

Brief Description of Service*

Base Year

Period of Performance

TOTAL IGCE

Products (including software, licenses)

Engineering Estimates

Services

08/05/2020 through 11/04/2020

Option Year 4: 11/05/2023 through 11/04/2024

For Official Use Only

Draeger, Inc.

Draeger, Inc 3135 Quarry Road Telford, PA 18969

USA

Tel +1 215 723 5935 www.draeger.com

Subject: Proprietary ARK (Innovian Anesthesia) Software, Hardware, Mounting Carts, and Interfaces Maintenance

Dear Mr. Kidder, June 3, 2020

This letter will serve as notification that Draeger, Inc. is the sole proprietor of the Innovian Anesthesia Record Keeping System which is known as ARK (Anesthesia Recording Keeper) that is installed in all affected Veterens Hospitals in VISN 15. Draeger is the only company that has access to the software code necessary to provide Draeger supported ARK hardware and software maintenance, additional licenses, dual and single arm mobile sedation carts designed to support the Philips patient monitor, and its components, as well as the Draeger Innovian ARK MDS7 and newer Venus 193 computers.

Draeger is the only provider of ongoing support for this hardware and software. Likewise Draeger, Inc. develops and supports all the interfaces to medical devices and electronic medical records. Therefore Draeger is the only source of the Draeger ARK supplies and maintenance to enable data to flow from the medical devices used in VISN 15 to the ARK (Innovian). No other company has the rights or expertise to develop these interfaces, to perform the same services, or to provide additional licenses for expansion to additional clinical locations.

Kind regards, Tom Caltabiano Tom Caltabiano Field Director, Government Sales CC Stan Dziewa Western Government IT and Periop Sales Specialist

Mr. Bruce Kidder Contract Specialist General Services VISN 15 Team 2 Leavenworth, KS 66048

Our reference

Tom Caltabiano Field Director Government Sales Tel

+1-215-660-2221 Fax

+1-215-721-5808 E-mail

Tom.Caltabiano@draeger.com