Justification and Approval GE Imaging Service.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: 36C263-21-AP-0507

1. Contracting Activity: Department of Veterans Affairs, VISN 23, VA Midwest Health Care Network, VISN 23 Biomedical Service, for facilities located in Minnesota, North Dakota, South Dakota, Nebraska, and Iowa. The contracting Activity presenting this acquisition is Network 23 Contracting Office, Sioux Falls Services Team. The procurement 2237 request (PR-IFCAP) is 618-21-1-6065-0033.

2. Description of Action: The proposed sole source Task Order against NAC Indefinite Delivery Contract VA797H-17-D-0024 is for a one year, plus four option periods, Firm Fixed Price (FFP) effort to provide full service, repair, and maintenance for GE manufactured equipment located within

VISN23.

Name of Proposed Contractor: GE HEALTHCARE, A DIVISION OF GENERAL

ELECTRIC COMPANY

DUNS 073838534

Street Address: 3000 N GRANDVIEW BLVD W-443 City, State, Zip: WAUKESHA,WISCONSIN 53188-1615

Phone: 262-309-4756

3. Description of Supplies or Services: The proposed action is to provide full service, repair, and maintenance for GE manufactured equipment located within VISN23. The proposed Task Order is for a base period of one (1) year and will include four (4) option periods of one (1) year each. The total estimated value of the proposed action, including all option periods is $5,199,692.61.

Period Period of Performance Cost Base 1/1/2021 to 12/31/2021 $820,684.26 Option 1 1/1/2022 to 12/31/2022 $1,091,946.15 Option 2 1/1/2023 to 12/31/2023 $1,095,687.40 Option 3 1/1/2024 to 12/31/2024 $1,095,687.40 Option 4 1/1/2025 to 12/31/2025 $1,095,687.40

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) Subpart 16.505 Subpart 16.505(b)(2)(i):

( 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.

5. Rationale Supporting Use of Authority Cited Above: The GE Healthcare imaging equipment for VISN 23 is covered by GE Healthcare patents and other intellectual property rights. GE Healthcare

VHAPM Part 816.5 Indefinite-Delivery Contracts Page 2 of 4 Original Date: 08/30/2017 Date: 11/10/2020 Rev 04 sells service for this equipment directly in the United States, but not through authorized dealers/distributors. GE Healthcare maintains certain proprietary software and service technologies relating to the equipment. Although other parties are not prevented from servicing GE products, and other parties may sell similar types of services, subsequent damage from non-GE certified and trained service e imaging service organization does not accept pass-throughs from small businesses awarded through Small Business set-aside contracts, and they do not have any VOSB/SDVOSB distributors authorized which are proprietary to GE Healthcare:

Maintenance Reports iCenter is a secure web-based informatics application tool that gives you quick access to up-to-date operational and performance data on diagnostic imaging assets. iCenter consolidates vital inventory, service, compliance and utilization information from multiple databases and places it right at your fingertips in one online location.

-InSite is GE Healthcare's proprietary remote call support or remote diagnostic troubleshooting capability. InSite support is available during online support modality hours of operation (times available upon request). InSite OnWatch MR capabilities include the ability to forecast maintenance needs for coils and heat exchange system issues.

TiP Answer Line -TiP Answer Line provides toll applications experts.

TiP-Ed Online Continuing Education for imaging professionals providing anytime, anywhere access making it convenient to obtain CE credits.

service provides one-touch access to GE Healthcare technical and clinical applications support, via the operator console, so your technicians can keep scanning and stay on schedule.

GE Healthcare does not license proprietary service materials to third parties but will license the materials to in-house customer employees who have been properly trained by GE Healthcare. GE and is not available for third party vendor use. Installation of non-GE sourced parts can prevent GE Healthcare from working on the equipment and/or placing the equipment on service contract in the future. For safety and quality control purposes, GE Healthcare service representatives cannot install parts that are not sourced directly through GE Healthcare sourcing channels.

6. Efforts to Obtain Competition: A Notice of Intent to Sole Source was published to the SAM Contract Opportunities website on 11/30/2020, closing 12/5/2020. Due to proprietary patents and other intellectual property rights, no other firms are capable of providing the level and quality of service.

One SB firm responded to the notice but did not provide documentation to support that they could vices. There is no competition anticipated for this acquisition.

In accordance with FAR 5.301 and 16.505(b)(2), this 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: Market research was conducted through VIP to identify SDVOSB and VOSB firms associated with NAICS 811219. A total of 314 Veteran owned registered firms were identified; 253 SDVOSB and 61 VOSB firms. No SDVOSB or VOSB firms responded to the Notice of Intent to Sole

VHAPM Part 816.5 Indefinite-Delivery Contracts Page 3 of 4 Original Date: 08/30/2017 Date: 11/10/2020 Rev 04

Source which was published on the SAM Contract Opportunities website. Service is required for the GE systems which are already installed throughout VISN23. The services provided by the proposed vendor are proprietary and no other firm has acces vendor is considered the most competent and knowledgeable source for service of the equipment and is the original equipment manufacturer (OEM). Third party firms are not authorized nor trained by the OEM for this highly specialized medical imaging equipment and only GE technicians have access to software and parts for this equipment. Service is available through the NAC IDC specifically designated for High Tech Medical Equipment (HTME).

9. Other Facts: Due to the service of HTME, the VA has partnered with DLA to offer service under the respective contract. It is anticipated that the VA will continue this strategy in the future for this highly specialized and proprietary equipment that is used for Veteran imaging care.

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.

Caroline Campbell Date Chief Biomedical Engineer, VISN 23

11. Determination that Anticipated Cost is Fair and Reasonable: The anticipated cost to the

Government will be fair and reasonable as the NAC IDC has already been determined 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.

John Becker Date Contracting Officer, Sioux Falls SD Services Network 23 Contracting Office (NCO 23)

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

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

a. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Travis Johnson Date Branch Chief, Sioux Falls SD Services Network 23 Contracting Office (NCO 23)

Daryl A. Berg Date Director of Contracting Network 23 Contracting Office (NCO 23)

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.

Terry L Spitzmiller Date Executive Director Regional Procurement Office Central (VHA)

TERRY L.

SPITZMILLER 394683

Digitally signed by TERRY L.

SPITZMILLER 394683

Date: 2020.12.16 17:12:11 -06'00'