JA - FAR 13.5 - Over SAT - 36C257-24-AP-1572 - Redacted.pdf

JOFOC: FY24-NCO 17-1004

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

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C257-24-AP-1572

1. Agency: Department of Veterans Affairs (VA)

Contracting Activity: Network Contracting Office 17 (NCO-17) 5441 Babcock Rd., Ste. 302 San Antonio, TX 78240

Purchase Request #: 671-24-2-096-0026

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

NCO-17 intends to award a new firm-fixed price contract as sole source to Healthcare Control Systems, Inc. (HCS) for a software license to be utilized by the South Texas Veterans Health Care System (STVHCS). The proposed contract will have a one-year base period and four one-year option periods.

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

ORControl™ software license and support. ORControl™ is a real-time workflow solution designed to automate and coordinate all hospital-wide procedures. ORControl™ uses RTLS (real time locating systems) to automate the manual process of updating patient and case statuses. Its interface allows view of the status of rooms, procedures, patients, schedules, and critical equipment.

Estimated value, to include all options: $REDACTED Base period: 8/22/2024 – 8/21/2025 Option dates: Option I: 8/22/2025 – 8/21/2026, Option II: 8/22/2026 – 8/21/2027, Option III:

8/22/2027 – 8/21/2028, Option IV: 8/22/2028 – 8/21/2029

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):

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

The requested software is proprietary to Healthcare Control Systems, Inc.

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

A special notice, notice of intent to award a sole source procurement, was posted to the System for Award Management (SAM), Contract Opportunities, under RFI 36C25724Q0334 on 2/5/2024. The notice stated that all responsible sources could submit a capability statement, proposal, or quotation, which shall be considered by the agency. There was no response to the notice. The notice archived in SAM on 2/29/2024.

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

The contracting officer has determined that the anticipated proposed prices will be fair and reasonable. The contracting officer will compare the proposed prices with those found reasonable in the current contract to determine price fair and reasonable.

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

Market Research Was Not Conducted:

A search of the mandatory source for procurements of services, Ability One, revealed that they do not offer the requested software services. A search in GSA Advantage revealed that there are 1,097 contractors that offer software licenses under the MAS schedule, category: 511210. A search in the SBA’s Veteran Small Business Certification (VetCert) identified that there are 4,274 certified veteran-owned small businesses that utilize NAICS code 541519 as a capability. A search in the SBA’s Dynamic Small Business Search tool revealed that there are 26,505 small business vendors that utilize NAICS code 541519 as a capability. A search in NASA’s SEWP GWAC revealed that no contractors offer Healthcare Control Systems products or services.

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

The requested software license is currently being utilized by the STVHCS under order 36C25721P1217; period of performance: 8/23/2021 – 8/22/2024. The performance of the software is considered critical to the success of the STVHCS surgical service staff. HCS provided a letter stating that they are the exclusive manufacturer and distributor of the ORControl™ system for the purposes of licensing. Accordingly, Healthcare Control Systems, Inc. is the only firm capable of providing the services described in paragraph 3 above without the Veteran’s Health Administration experiencing duplication of cost that could not be expected to be recovered through competition.

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

None

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:

Market research will be performed prior to exercising options and on subsequent procurements to see if there have been any changes in the marketplace.

Effective Date: 02/01/2022 Page 3 of 4

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.

//SIGNED// _ _ .

REDACTED Date: 05/21/2024 Approving Official Surgical Service South Texas Veterans Health Care System

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.

//SIGNED// __ .

Contracting Officer

b. One Level Above the Contracting Officer: I certify the justification meets requirements for other than full and open competition.

//SIGNED // .

Branch Chief, PAS Network Contracting Office 17

Director of Contracting: I certify the justification meets the requirements for other than full and open competition.

//SIGNED// _ .

REDACTED Date: 05/22/2024 Director of Contracting Network Contracting Office 17 https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

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

c. VHA RPO HCA 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 approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

//SIGNED// ___ .

REDACTED Date: 05/23/2024 Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA)