JandA for Sole Source.pdf

36C255-24-AP-0446 Hologic X-Ray Mammography Equipment Maintenance Services Request for Exception to Fair Opportunity Memo

Effective Date: 03/15/2023 Revision: 02

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID: 36C255-24-AP-0446

1. Contracting Activity: Department of Veterans Affairs (VA), Veterans Integrated Service Network

(VISN) 15, Network Contracting Office (NCO) 15, 3450 S. 4th Street Trafficway, Leavenworth, KS 66048. In support of Harry S. Truman Veterans Affairs Medical Center (VAMC), 800 Hospital Dr., Columbia, MO 65201.

Purchase Request Number: 589-24-1-5686-0092

2. Description of Action: The proposed sole source Task Order against the HTME FSS Contract # SPE2D117D0027 (expires April 2027) is for a 12-month Base Period and two, 12-month, Option Periods, Firm-Fixed-Price effort for maintenance services (both preventive and repair to include software upgrades) of the current Hologic X-Ray Mammography equipment. Hologic, Inc. is the original equipment manufacturer (OEM), 250 Campus Dr., Marlborough, MA 01752.

3. Description of Supplies or Services: The proposed action is to provide full scheduled and unscheduled maintenance and repair (includes all software upgrades) to the highly technical medical Hologic X-Ray Mammography equipment.

The total estimated value of the proposed action is $290,037.03 (inclusive of options).

4. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section 41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) 16.505(b)(2)(i):

( ) FAR 16.505(b)(2)(i)(A): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

(X) FAR 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

( ) FAR 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

( ) FAR 16.505(b)(2)(i)(D): It is necessary to place an order to satisfy a minimum guarantee.

Effective Date: 03/15/2023 Revision: 02

( ) FAR 16.505(b)(2)(i)(E): For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source. The statutory authority permitting an exception to fair opportunity for this action is 38 U.S.C. 8127(c), known as the Veterans First Contracting Program which provides the authority to directly contract with a Service-Disabled Veteran-Owned Small Business (SDVOSB) or a Veteran-Owned Small Business

(VOSB).

5. Rationale Supporting Use of Authority Cited Above: The requirement is for the maintenance services of the recently purchased, highly technical medical Hologic X-Ray Mammography equipment, is currently installed and in use and in its first year of a 10-year life span. The equipment is solely maintained by the OEM, a large business, which uses proprietary software and OEM hardware. Due to the proprietary nature of the equipment, and as stated in the OEM s sole source letter, only Hologic trained technicians are certified to perform these services. If another vendor is selected and performs maintenance on this equipment this action would void the warranty. The repercussions of purchasing a whole new system will cause delays in providing Veterans with the needed medical care and will cost the Government an estimated $3.6 million to which the funds have not been budgeted vs. the maintenance over 2 years for a total value of $290,037.03.

6. Efforts to Obtain Competition: A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. Market research was conducted, details of which are in the Market Research section of this document. A Sources Sought Notice was issued, March 7, 2024 to www.SAM.gov . There was one response; however, that vendor is not authorized to work on Hologic, Inc. equipment per an E-mail to the CO. Hologic, Inc. also responded to an inquiry the CO made and Hologic sent a

The Sources Sought Notice did not yield any additional sources that can meet the Government s requirements. There is no competition anticipated for this acquisition. In accordance with FAR 5.301 and 16.505(b)(2), this action will be synopsized at award on the www.sam.gov website and the justification will be made publicly available.

7. Actions to Increase Competition: Describe actions taken, or that will be taken, to remove or overcome any barriers to competition before initiating any subsequent acquisitions for the supplies, or services required, including challenges to restrictive data markings, data rights, preparation of a performance-based work statement, and etc.

The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

8. Market Research: Provide a description of the market research conducted among the contract holders and the results. If market research was not conducted, the reasons it was not conducted should be stated. When citing FAR 16.505(b)(2(i)(b) or FAR 16.505(b)(2)(i)(e), the only possible way

Effective Date: 03/15/2023 Revision: 02 to state in paragraph 5 of the J&A that there is only one contractor who can f needs is to conduct market research, and it should be summarized here.

In accordance with VETs First, the SBA VERTCERT website was searched using the NAICS 811210 produced a list of 248 vendors but none of them are authorized vendors to perform maintenance services on Hologic, Inc. equipment. Based on the limitations of VetCert and to capture an overall snapshot of small business availability, SBA's DSBS tool was also searched using NAICS 811210 narrowed down to Kansas and Missouri using keywords X-ray Equipment Maintenance . This resulted in 0 small business to include SDVOSBs and VOSBs. As indicated above, in Section 6, a Sources Sought was posted to www.sam.gov to determine if there were any other vendors that could meet the Government s need. Hologic, Inc., the OEM of the X-Ray Mammography equipment is the only vendor that can provide the required services and they have stated in their Sole Source Letter, and an E-mail sent to the CO, they do not authorize 3rd party service providers in the commercial marketplace. An HTME FSS contract, SPE2D117D0027, has been identified to write a Task Order for these services.

Based on the analysis of the market research and historical data, the Contracting Officer does not have an expectation that two or more SBA VETCERT Veteran Owned small business concerns will submit offers.

9. Other Facts: None

10. Technical and Requirements Certification: FAR 16.505(b)(2)(ii)(B)(9), I certify that any supporting data that is my responsibility and which forms a basis for the justification is complete and accurate to the best of my knowledge and belief.

Name: Michael Peoples Facility: Healthcare Technology Management (HTM), Harry S. Truman VAMC

11. Determination that Anticipated Cost is Fair and Reasonable: A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The items that are being requested are on Hologic /IQ contract. Therefore, expected costs for the items on this contract have been determined to be fair and reasonable.

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

Teresa Cabanting Contracting Officer Network 15 Contracting Office (NCO) 15

Effective Date: 03/15/2023 Revision: 02

13. Approvals in accordance with VHAPG Part 816.505 Indefinite Delivery Contracts: Ordering.

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

Heather Harrison Branch Chief

Network 15 Contracting Office (NCO) 15