GSAR 538.7104-3 Sole Source Justification Page 1 of 7 Acquisition ID#: 36C259-26-AP-2214

LIMITED SOURCE JUSTIFICATION

ORDER >SAT

GSAR 538.7104-3 Sole Source Justification

Acquisition Plan Action ID: 36C259-26-AP-2214 JOFOC Tracking Number: FY26 - RPOW Activations - 2074

(1) Contracting Activity: Department of Veterans Affairs, Regional Procurement Office West (RPOW) in support of Oklahoma City VA Health Care System (OKC VA HCS). 2237 #: 635-26-4- 1515-0195

(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 Sole Source justification is for completion of the existing Philips patient monitoring systems needed for the new Operating Room suites and Surgical Intensive Critical Care Units (OR/SICU) due to be completed January 2027. This new requirement needs to match the current existing Philips equipment.

This justification is for the sole source procurement of brand-name only supplies to be procured from the only Service Disabled Veteran Owned Small Business (SDVOSB), The Maclean Group, with a National Acquisition Center (NAC) contract. See NAC contract below.

The FSS contract available for use:

Order against: FSS Contract Number: 36F79723D0201

Name of Proposed Contractor: The Maclean Group LLC Street Address: 2233 Watt Ave., Ste. 296 City, State, Zip: Sacramento, CA 95825 Phone: 800-683-4923

(3) Description of Supplies or Services: The estimated value of the proposed action is

All hardware, software, and network infrastructure MUST BE compatible with the criteria outlined below and with the recently acquired Philips wireless, smart-hopping, network infrastructure, hardware, and software. One seamless, compatible system across all areas of the hospital is desired.

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The equipment for Physiological Patient Monitoring Systems includes 157 line items made up of hardware, software, and network infrastructure required to complete the activation of the new

OR/SICU.

(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.

Order Against FSS: Authority of the Multiple Award Schedule Program, Title III of the Federal Property and Administrative Services Act of 1949 (41 USC 251, et seq.); Title 40 USC 501, Services for Executive Agencies; and Section 803 of the National Defense Authorization Act of 2002 (PL 107-107) and implemented by GSAR 538.7104-3.

Mark the applicable exception:

Unusual Urgency: The need is of such unusual urgency that following the procedures would result in unacceptable delays in fulfilling that need; GSAR 538.7104-3(b)(i).

Only one source: Only one source is capable of providing the products, services, or solution required at the level of quality required because the products, services, or solutions are unique or highly specialized; GSAR 538.7104-3(b)(ii).

Follow-on to previous FSS order: The order should be issued on a sole source basis in the interest of economy and efficiency because it is a logical follow-on to an FSS order already issued on a competitive basis; GSAR 538.7104-3(b)(iii).

Minimum Guarantee in FSS BPA: It is necessary to place the order with a particular FSS contractor to satisfy a minimum guarantee established in the FSS BPA; GSAR 538.7104-3(b)(iv);

or

Law: A law expressly authorizes or requires that the purchase be made from a specified source; GSAR 538.7104-3(b)(v).

Items peculiar to one manufacturer: The particular brand name, product, or feature is essential to the ordering activity’s requirements, and market research indicates other companies’ similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the need; GSAR 538.7104-4(b)(1).

(5) Describe Why You Believe the Order Represents the Best Value consistent with GSAR 538.7104-3 to aid the contracting officer in making this best value determination:

The proposed FSS order will be solicited sole-source to the only verified SDVOSB, The Maclean Group LLC., with a current FSS/NAC contract. Soliciting from the Maclean Group LLC., off their existing NAC Contract 36F79723D0201, as the NAC’s only authorized SDVOSB distributor, GSAR 538.7104-3 Sole Source Justification Page 3 of 7 ensures the Government receives fair and reasonable pricing, as open market pricing tends to have 5 to 10 percent mark-up from the existing GSA contract holder pricing.

Due to the current contract, 36C25925C0068, which is for a hospital wide patient monitoring replacement to the Philips patient monitoring system. Should this procurement be awarded to any non-Philips brand, 635 Oklahoma City (OKC) would need duplicate servers, switches, data drops, clinical training, biomedical technical service training for future staff in order to maintain and operate two different proprietary systems. Best estimate of duplicate cost over and above the cost of procuring the patient monitoring equipment would be approximately $985,000.00 over the current Independent Government Cost Estimate (IGCE), based on market research.

(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 was conducted by researching:

Historical data – Contract 36C25925C0068 (RFI 36C25925R0017, Market Research and Source Selection Decision Document)

Government websites – Adds Up, GSA, Small Business Administration Dynamic Small Business Search (SBA DSBS), Ability One, and Global Supply

USA Manufacturing websites – Thomas Net and Manufacturing USA

Adds Up was searched 07/28/2026 by using key word “MX750” and contract 36C26126N0350 (awarded 03/11/2026 to Philips North America LLC) a delivery order from parent contract 36F79720D0042 FSS. Additionally, contract 36C26126F0204 (awarded 05/04/2026 to Alverez LLC) a delivery order from parent contract NNG15SD19B NASA SEWP.

GSA eBuy was searched 07/27/2026 using part number “866471” MX750 and found that two vendors Philips Healthcare (36F79720D0042) and The Maclean Group LLC (36F79723D0201).

SBA DSBS was searched 07/21/2026 using key words “patient monitoring system,” NAICS code 334510 and SDVOSB and found 45 SDVOSBs that could potentially provide for the requirement.

Ability One products were searched 07/21/2026 using key words “patient monitor” with zero results.

Global Supply was searched 07/21/2026 using key words “patient monitor” with zero results.

Thomas Net was searched 07/21/2026 using key words “medical patient monitoring system” and search criteria of Buy American Act. While there were 7 vendors identified, further research found that all 7 vendors provide monitoring systems (CCTV, IT, Force and distance, Cellular and Boilers) but not patient monitors.

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Manufacturing USA was searched 07/21/2026 using key words “patient monitoring system” and received 1 result. After reviewing the 1 result it was determined to be an article from 01/17/2018 about a new sensor application that a company had recently made advances on.

Based on the above market research, the rule of two has not been met and there is not a reasonable expectation of receipt of offers from two or more responsible Small Businesses.

However, there is one large business and one SDVOSB, with NAC contracts that can provide the supplies for this requirement.

(7) Any Other Facts Supporting the Justification: The physiological monitoring system within a hospital is a highly specialized major system used throughout the hospital. Physiological monitors are electronic devices that continuously or periodically measure, record, trend, and report a patient's vital signs and/or bodily functions. Tracking parameters such as electrocardiography, heart rate, blood pressure, respiratory rate, oxygen saturation, end-tidal capnography, continuous core temperature, cardiac output, and more provide data-driven insight into a patient's physiological condition. This allows clinicians to assess patients for early decompensation, subtle changes in condition, or health risks in a timely manner, thereby enabling clinicians to take proactive interventions to avoid adverse outcomes. Physiological monitoring is a staple of intensive care and peri-operative care management.

If the OKC VAHCS is to avoid substantial duplication of cost or unacceptable delays in fulfilling the OKC VAHCS requirements, Philips patient monitoring systems provided by The Maclean Group is both clinically and fiscally in the best interest of the Government. If the physiological system is awarded to a third party, there will be substantial duplication of cost. Nursing personnel will have to be trained on two systems that have completely different operating systems. The current nursing and biomed training cost for the Philips system is $222,476.00. If a different manufacturer is awarded, it can be expected that close to an additional $222,476.00 will be required in funding just for training. Additionally, nursing will have to hire additional personnel to monitor the patients, as Philips and a third-party manufacturer would not be able to share the same displays in the central monitor room or at the nursing stations. The average cost to hire, onboard, and orient a new nurse is $80,000. Finally, the average operational lifespan of patient monitors is a significant consideration in financial and hospital planning. The right monitor impacts not just the immediate quality of care, but also the long-term financial and operational aspects of the facility. The general lifespan expectation of physiological monitors is 5-8 years. Philips Intellivue lifespan is estimated to be 10-15 years.

Clinically, Philips meets the clinical and patient safety needs of OKC VA and their patient population, addresses performance gaps in; patient monitoring during transportation, coverage and dead zones, real-time monitoring, advanced visual displays, setting “boundaries” for better accountability of patients at high risk of elopement or wandering, historical data disclosure, alarm flexibility, and alarm analytics.

Additionally, if this package was to go through an open market solicitation, there would be unacceptable delays. The OR/SICU areas will not be able to open without the equipment

GSAR 538.7104-3 Sole Source Justification Page 5 of 7 required for the physiological systems. Waiting for open market bids will increase the length of the activation for the new OR/SICU areas. All nursing staff will be trained on the Philips patient monitoring system via the hospital wide patient monitoring system upgrade.

Accordingly, The Maclean Group is the only NAC SDVOSB contract holder capable of providing the supplies described above without the Veteran’s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through more competition and unacceptable delays in fulfilling its requirements.

(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: No additional actions outside of market research will be performed to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies required for patient monitoring.

(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, is accurate and complete to the best of my knowledge. I understand that processing of this justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by GSAR 538.71.

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(10) Approvals

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HIGHER LEVEL APPROVAL (Required for orders over $900,000):

d. VHA RPO HCA Review and Approval (over $900,000 to $90 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 GSAR 538.7104-3.

Curtis M. Jordan Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA)

CURTIS JORDAN

Digitally signed by CURTIS

JORDAN

Date: 2026.09.09 19:50:02 -06'00'