Justification 816.505 Carestream Hudson Valley_Redacted.pdf

VHAPM Part 816.5—Indefinite-Delivery Contracts Attachment 1: Request for Exception to Fair Opportunity Memo Format

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 1 of 4 Original Date: 08/30/2017 Date: 11/10/2020 Rev 04

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID:_36C242-21-AP-0618

1. Contracting Activity: Department of Veterans Affairs, VISN 02, Hudson Valley Medical Center

Justification for Other Than Full and Open Competition. 2237 - 620-21-2-131-0016

Description of Action:

The proposed sole source task order against VA/DLA NAC Agreement Number SPE2D1-17- D-0019 is for a Base plus four (4) option year firm-fixed price (FFP) effort for full-service and preventative maintenance inspections of Government owned Carestream imaging systems for the Hudson Valley VA Medical System.

2. Description of Supplies or Services:

The proposed action is to provide full-service and preventative maintenance inspections of Government owned Carestream imaging systems. The contractor will provide service to support government owned Carestream imaging systems to include preventative maintenance inspections, emergency repairs, glassware, and detector coverage. This service is required to ensure imaging systems which are used for veteran imaging care are operating at optimal capacity. The total estimated value of the proposed action is

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

( X ) FAR Subpart 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.

4. Rationale Supporting Use of Authority Cited Above:

The Hudson Valley VAMC has conducted market research and determined that Carestream is the only known manufacturer who offers service and maintenance to Carestream brand imaging equipment. The manufacturer holds parts and service information as proprietary.

There is no third-party service available for repair of this equipment, unless engineered or refurbished parts are used, which is unacceptable to VA medical equipment standards. Only

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Original Equipment Manufacturer (OEM) repair parts may be utilized. If services were performed via third party vendor, all liability would be the responsibility of the Hudson Valley VAMC. Only Carestream has access to required proprietary software keys, parts, repair processes and factory trained and authorized maintenance personnel to perform required services on this highly specialized system. Only Carestream performs repair services on Carestream-manufactured parts and equipment. Carestream does not sponsor a maintenance distributorship program nor do they sell their products/services through any other vendor. The VA does not allow reverse engineered or refurbished parts to be utilized in its medical equipment. Third party contractors do not have access to Carestream repair processes and would not have access to factory diagnostic software tools which would result in their inability to repair the system. Additionally, Non-OEM service providers would not have factory-trained field-service representatives (FSEs) since medical equipment OEMs do not offer training to third-party service providers or give them authorization to maintain their systems. The original equipment manufacturer (OEM) FSEs are fully-factory-trained, qualified and experienced in the maintenance inspections and repair requirements. Based on market research, as described in paragraph eight of this document, it was determined that zero competition is viable.

6. Efforts to Obtain Competition:

Market research was conducted, details of which are in the market research section of this document. This effort 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 Federal Business Opportunities Page (FBO) and the justification will be made publicly available.

7. Actions to Increase Competition:

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:

VIP search and related market research conducted, yielded zero (0) SDVOSB sources and one

(1) OEM source, Carestream, who holds Joint DLA / VA contract #SPE2D1-17-D-0019 for the required services. There is no expectation that any source other than the OEM manufacturer can provide the required services with the salient characteristics needed at a fair and reasonable price to the government. Additionally, VA Subject Matter Experts regularly review industry trade publications and conduct internet research to ascertain if any other brand name items are available. Based on all these market research efforts, the Government’s technical

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 3 of 4 Original Date: 08/30/2017 Date: 11/10/2020 Rev 04 experts have determined that only Carestream can provide the services required through the Joint DLA/VA HTME contract vehicle can meet all of VA’s needs.

9. Other Facts:

Due to Limitations on Subcontracting per the Veterans First Contracting program, “In the case of a contract for services (except construction), it will not pay more than 50% of the amount paid by the government to it to firms that are not VIP-listed SDVOSBs”. As such, an SDVOSB firm cannot act as a passthrough entity by subcontracting all of the service and maintenance of Carestream imaging equipment to the manufacturer. As such, only Carestream is able to provide services for the Government owned Carestream Imaging equipment.

10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

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: is not required as this was accomplished at the base contract level and validated by the DLA/VA Catalog Price.

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

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

b. VHA RPO HCA REVIEW AND APPROVAL (over $700,000 to $13.5 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 other than full and open competition.

Name Date VHA Head of Contracting Activity (HCA)