JA FAR Part 6 SDVOSB Sole Source OR 2050 Equipment (Redacted)_Redacted.pdf

DEPARTMENT OF VETERANS AFFAIRS

Office of Procurement, Acquisition and Logistics (OPAL)

Strategic Acquisition Center (SAC) 10300 Spotsylvania Ave Suite 400

Fredericksburg, VA 22408

Justification and Approval for Other than Full and Open Competition

6.302-5 -- Authorized or required by statute

1. Identification of the agency and the contracting activity.

This Justification and Approval (J&A) for Other Than Full and Open Competition is executed by the Strategic Acquisition Center (SAC), on behalf of the Department of Veterans Affairs (VA), Office of Healthcare Innovation and Learning (OHIL), Office of Advanced Manufacturing (OAM).

2. Nature and/or description of the action being approved.

This activity proposes to negotiate a non-competitive award (sole-source) with Red Duke Strategies (UEI: FAXCFVRLN839), a Service-Disabled Veteran-Owned Small Business, for the procurement of equipment needed to create OR2050. The equipment consists of additional enhancements for incorporating mixed reality, OR-adjacent biofabrication, robotics, and/or digital solutions such as sensors, artificial intelligence workflows, and 5G into the OR space.

Additionally, this serves as the requesting authority to procure for Brand Name only products; see Attachment 1 for a list of Brand Name items to be procured. No other products currently exist within the market that allows OAM to meet the current need of advanced imaging into the surgical suite with additional enhancements for incorporating mixed reality, OR-adjacent biofabrication, robotics, and/or digital solutions such as sensors, artificial intelligence workflows and 5G into the OR space.

3. A description of the supplies or services required to meet the agency’s needs (including the estimated value).

This contract aims to secure the equipment needed to create OR2050. OR2050 is based on a hybrid OR, which brings advanced imaging into the surgical suite, but with additional enhancements for incorporating mixed reality, OR-adjacent biofabrication, robotics, and/or digital solutions such as sensors, artificial intelligence workflows and 5G into the OR space. The OR 2050 equipment will be fully functional, enabling extremely realistic surgical procedures in an OR environment where disruptive device development can be tested in a “fail fast, fail safe” environment. OR 2050 will be configurable to existing VA hospital OR footprints, allowing for strategic workflow processes for OR improvements for emerging technology integration into the surgical suite. It will also be part of a digital twin project, which will further amplify lessons learned and insights from this unique asset. A Traditional Hybrid OR is around 900-1300 sq ft. However, the OR2050 will incorporate future technologies and prototype workflows, so the size of this space is likely to be around 1500 sq ft. This is to allow for flexibility and future considerations as the medical device landscape changes.

Justification and Approval for Other than Full and Open Competition 6.302-5 -- Authorized or required by statute

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if not, which exception under 5.202 applies.

The contracting officer has determined that a SDVOSB sole source award to Red Duke Strategies, LLC is in the best interest of the government. IAW VAAR § 819.7007(b) and (c), the determination whether to make a sole source award is a business decision wholly within the discretion of the contracting officer and a determination that only one SDVOSB concern is available to meet the requirement is not required.

A notice will be publicized as required by Subpart 5.2.

7. A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

No award shall be made until the Contracting Officer determines the cost to the Government to be fair and reasonable. This determination will be based on a comparison of current contract pricing, past proposal submissions (if available), other information made available, and an Independent Government Cost Estimate.

8. A description of the market research conducted (see Part 10) and the results or a statement of the reason market research was not conducted.

Market research was conducted, and Red Duke Strategies, LLC has been determined to be a responsible source with respect to performance. They are registered and certified in VetBiz.gov as a SDVOSB with the NAICS code for this requirement which in accordance with Public Law 109-461 Section 502(c) meets the requirements of this statute to sole source to a SDVOSB. In addition, their current services meet and exceeds government requirements and government reviewed their VIP verification verifying that they are an SDVOSB.

9. Any other facts supporting the use of other than full and open competition.

In accordance with Public Law 109-461, codified at 38 USC § 8127, in order to increase contracting opportunities for small business concerns owned and controlled by veterans and small business concerns owned and controlled by veterans with service-connected disabilities, contracting officers of the VA are given specific statutory authority to award a contract to a small business concern owned and controlled by veterans using procedures other than competitive procedures (i.e. a “sole source” contract). The contracting officer may do so in accordance with VAAR 819.7007.