Justification and Approval for Sole Source.pdf

36C255-24-AP-0180 Varian TrueBeam Radiotherapy Service VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items

Request for Sole Source Justification >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C255-24-AP-0180

1. Contracting Activity:

Department of Veterans Affairs (VA), Veterans Integrated and Service Network (VISN) 15, Network Contracting Office (NCO) 15. In support of the following VA Facility: John Cochran Veterans Affairs Medical Center, 915 North Grand Blvd., St. Louis, MO 63106. 2237# 657-24-2-1110-0019.

2. Nature and/or Description of the Action Being Processed:

The proposed sole source requirement is for maintenance services to the Varian TrueBeam- H194504, for a Firm-Fixed Price sole source contract to Varian Medical Systems, Inc., 3100 Hansen Way, Palo Alto, CA 94304-1030. The service is to ensure the continuous reliability of the Varian TrueBeam-H194504, equipment and ancillary equipment.

3. Description of Supplies/Services :

The Contractor shall provide full maintenance on site, to include all software updates, labor, tools, test equipment and other incidentals necessary to maintain the Varian TrueBeam-H194504, equipment and ancillary equipment.

The contract is anticipated for a 12-month Base Period plus four, 12-month, Option Periods with an estimated total value of $1,444,756.00. The Base Period is estimated at a value of $280,411.00.

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Brief Description of Service* Period of

Performance Estimated

Amount

Equipment Service Base Period 02/22/2024-02/21/2025 $ 280,411.00

Equipment Service Option Period 1 02/22/2025-02/21/2026 $ 284,618.00

Equipment Service Option Period 2 02/22/2026-02/21/2027 $ 288,887.00

Equipment Service Option Period 3 02/22/2027-02/21/2028 $ 293,221.00

Equipment Service Option Period 4 02/22/2028-02/21/2029 $ 297,619.00

TOTAL IGCE $ 1,444,756.00

Request for Sole Source Justification >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 2 of 4

5. Demonstration that the C Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

This requirement is for the maintenance services of the Varian TrueBeam-H194504, highly specialized ancillary equipment that is currently installed and in use and has a life span of 10 years, in which this equipment is only in its fourth year. This equipment provides a radiotherapy system designed to treat a broad range of cancer cases by delivering precise dosages of medication. The equipment is solely maintained by the manufacturer, a large business, which uses proprietary software and original equipment manufacturer hardware, Varian Medical Systems, Inc. Due to the proprietary nature, and as stated in the Sole Source Letter and E-mail from Varian Medical Systems, Inc., Varian Medical Systems technicians are certified to perform these services with unlimited access to proprietary diagnostic software and parts.

The repercussions of purchasing a whole new system will cause delays in providing Veterans with the needed medical care for cancer and will cost the Government an estimated $3.6 million to which the funds have not been budgeted vs. the maintence over 5 years for a total value of $1.4 million.

The following is for information purposes only: The Varian TrueBeam-H194504 was acquired by the St. Louis VAMC, March 5, 2020. The device is approaching its fourth year. Devices with an acquisition management criticality score of 10 typically have a life expectancy of 10 years.

Therefore, the Varian TrueBeam-H194504 is expected to reach its end of life, March 5, 2030. The asset value of the Varian TrueBeam-H194504 is $3,607,660.00.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

A Sources Sought Notice was issued, November 14, 2023. There were only two responses and both were from vendors that are not authorized to work on Varian Medical Service, Inc.

equipment per -mail to the CO. Varian Medical Systems, Inc. also responded to the

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

A fair and reasonable price determination will be made by comparison to the Independent Government Cost Estimate that was formulated by using market research of historical pricing from same/similar scope contracts and market price lists.

Certified cost and pricing data is not required under this requirement as the items being procured will be under a Firm-Fixed-Price contract and there is historical data available to determine a fair and reasonable pricing.

Request for Sole Source Justification >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 3 of 4

As indicated above, in Section 6, a Source Sought was posted to www.SAM.gov to determine if there manufacturer of TrueBeam-H194504, equipment and ancillary 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. A NAC contract, 36H79719D0014, was found; however, it will expire August 2024 and is no longer viable. A search for SAC and GSA did not find any other viable contracts that can provide this service requirement.

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.

Any Other Facts Supporting the Use of Other than Full and Open Competition: None.

Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

A&B Technical, LLC, 794 Barkley Crest Circle, Auburn, AL 36830-2170 The Remi Group, 6325 Ardrey kell Road, Suite 200, Charlotte, NC 28277 Varian Medical Systems, Inc., 3100 Hansen Way, Palo Alto, CA 94304.

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:

There will be continued surveillance to monitor Varian Medical Systems should they decide in the future to authorize 3rd party vendors to perform their services. Until the manufacturer allows small businesses to train for the maintenance of the equipment, the only other alternative would be to replace the current equipment at all VISN 15 sites, which currently has not been budgeted.

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, are accurate and complete to the best of my knowledge and belief.