Justification and Approval - ANNUAL SERVICE CONTRACT FOR MEDICAL SERVICE BEDS SAM.pdf

OFOC SOP Revision 11 Page 1 of 3 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C242-21-AP-0606

Contracting Activity: Department of Veterans Affairs, VISN 02, New York Harbor VA Healthcare Medical Center, New York Campus.

Transaction request number: 630-21-2-4456-0017

Nature and/or Description of the Action Being Processed: Network Contracting Office (NCO) 2 intends to award a sole-source service contract for the procurement of a full-Service contract to include PM, Repair, Parts and Labor with Hill-rom Inc. The anticipated period of performance is from May 3, 2021 to May 2, 2022 with the provision of four (4) option years. The annual cost is $80,742.60 with an estimated total cost of $411,267.60.

Base Year 05/03/2021 to 05/02/2022 $80,742.60 Option Year 1 05/03/2022 to 05/02/2023 $80,742.60 Option Year 2 05/03/2023 to 05/02/2024 $80,742.60 Option Year 3 05/03/2024 to 05/02/2025 $83,227.50 Option Year 4 05/03/2025 to 05/02/2026 $85,812.30

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The New York Harbor VA Healthcare Medical Center is currently seeking a service contract for the maintenance of 28 Hill-Rom Care Assist beds, 26 Hill-Rom Progressa Beds, 9 Total Care Sport, 17 Total Care Modules, 58 Hill-Rom Versa Care beds, and 44 Centrella beds located in New York Campus. Repair services will be provided, at the request of the VA, to diagnose and correct equipment malfunctions on a routine basis. All repairs shall be performed by a manufacturer trained technician. Contractor will follow manufacturer's recommendation for PM, repairs, calibrations and modifications. Contract to include all necessary labor, tools, equipment, transportation and parts required to perform repair and preventative maintenance (PM) on listed equipment. All equipment shall be maintained in proper operating condition as specified by the manufacturer. Vendor must have access to Original Equipment Manufacturers (OEM) parts, manuals and schematics to perform the service. Vendors must have their own schematics available on site at time of service. PMs must be completed two times per year on each bed, also, in an event that a module requires repair, Contractor shall provide the VA with a new module.

The purpose of the service agreement is to reduce service costs and improve equipment turn-around time and reliability.

4. Statutory Authority Permitting Other than Full and Open Competition:

(X ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

OFOC SOP Revision 11 Page 2 of 3

Revision 11 Date: 02/11/2021

Acquisition Plan Action ID: 36C242-21-AP-0606

Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Hill-Rom Technicians are factory trained and certified on all of the products required. Having certified technicians working on the equipment keeps the hospital in compliance with all regulatory agencies. Each service representative is trained on safety procedures including Infection Control, Hepatitis-B Virus, OSHA Hazard Communications, back safety and applicable regulatory requirements. Many of the parts necessary to maintain these products are unique to the products and can only be purchased through Hill-Rom, the OEM. All Hill-Rom motors and circuit boards are UL listed. Cannot and will not function without the aforementioned services.

Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A source sought notification was posted on Beta.Sam.GOV on January 22,2021- January 29,2021; resulted in (1) SDVOSB vendor Emeritus Clinical Solutions; (1) Small business vendor Biomedical Equipment Solutions and (1) large business vendor HILL-ROM INC. The SDVOSB vendor Emeritus Clinical Solutions provided capability of statement and proof of certification to work on CENTRELLA beds but fail to provide proof of certification for the CAREASSIST, PROGRESSA, VERSACARE, TOTALCARESPO2RT and TOTALCARE module beds. Small business vendor Biomedical Equipment Solutions provided capability statement and basic certification but no proof that they have certification to work on HILL-ROM beds. Base on the information provided Emeritus and Biomedical Equipment Solutions are unable to provide the services required under this requirement.

HILL-ROM INC. is the OEM for this requirement and submitted a sole source letter stating that Hill-Rom does not provide training to third party and they can provide the service required. Consequently, CO determined that there was no basis to pursue an SDVOSB, VOSB set-aside or SB. On April 27,2021 we conduct market research in SBA’s Dynamic Small business Search (DSBS) using NAICS code “811219” and keyword “CAREASSIST”. The results were (0) potential vendors that can provide services required.

A search of Vendor Information Pages (VIP) on April,27,2021 24,2020 under NAICS Code 811219 with key word “CAREASSIST”, produced potential (0) VOSB and (0) SDVOSB vendors. Market research was accomplished on GSA and it was determined the services are not available from that source.

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

I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Pricing analysis accomplished by reviewing procurement history beginning in FY15 to the present to determine prices to be fair and reasonable. Hill-Rom, Inc., has been the sole provider of the maintenance and support for the Hill-Rom medical beds and a detailed history of pricing is available. In addition, the Contracting Office reviewed the Independent Government Cost Estimate (IGCE) and estimates identified in acquisitions for similar products and service and compared prices paid for the same or similar commercial items under comparable terms and conditions by both Government and commercial customers. All sources receiv similar pricing for similar work to be performed by Hill-Rom, Inc. The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable.

Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: A source sought notification was posted on Beta.Sam.G on January 22,2021- January 29,2021; resulted in (1) SDVOSB vendor Emeritus Clinical Solutions; (1) Small business vendor Biomedical Equipment Solutions and (1) large business vendor HILL-ROM INC. The SDVOSB vendor Emeritus Clinical Solutions provided capability of statement and proof of certification to work on CENTRELLA beds but fail to provide proof of certification for the CAREASSIST, PROGRESSA, VERSACARE, TOTALCARESPO2RT and TOTALCARE module beds. Small business vendor Biomedical Equipment Solutions provided capability statement and basic certification but no proof that they have certification to work on HILL-ROM beds. Based on the information provided Emeritus and Biomedical Equipment Solutions are unable to provide the services

OFOC SOP Revision 11 Page 3 of 3

Revision 11 Date: 02/11/2021

Acquisition Plan Action ID: 36C242-21-AP-0606 required under this requirement. HILL-ROM INC. is the OEM for this requirement and submitted a sole source letter stating that Hill-Rom does not provide training to third party and they can provide the service required. Consequently, CO determined that there was no basis to pursue an SDVOSB, VOSB set-aside or SB. On April 27,2021 we conduct market research in SBA’s Dynamic Small business Search (DSBS) using NAICS code “811219” and keyword “CAREASSIST”. The results were (0) potential vendors that can provide services required. A search of Vendor Information Pages (VIP) on April,27,2021 24,2020 under NAICS Code 811219 with key word “CAREASSIST”, produced potential (0) VOSB and

(0) SDVOSB vendors. Market research was accomplished on GSA and it was determined the services are not available from that source..

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Hill-Rom, Inc., is the OEM and the only source for maintaining and repairs for Hill-Rom Inc., medical beds. Hill-Rom, Inc., has communicated there are no authorized contractors to service its equipment. An exhaustive search of FBO revealed several J&A's for sole source procurements of the exactly similar services to the medical beds described herein.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other sources were identified.

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: Hill-Rom, Inc., is the OEM and the only source for maintaining and repairs for Hill-Rom Inc., medical beds. Hill- Rom, Inc., has communicated there are no authorized contractors to service its equipment. Market research will be conducted on a continuing basis to determine if additional sources enter the market.