Justification.pdf

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: 36C261‐23‐AP‐3310, 2023‐07‐06T10:45:20

1. Contracting Activity: Department of Veterans Affairs, Regional Procurement Office West, Veterans Integrated Service Network 21, Network Contracting Office 21, in support of the VA San Francisco Healthcare System. 2237: 662‐23‐2‐396‐0031

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

BRAND NAME ONLY: This is a procurement for replacement and upgrades to all lights, booms and monitor arms in 7 operating rooms at the VA San Francisco Healthcare System in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303‐2. This requirement will result in a new firm fixed price contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The VA San Francisco Healthcare System requires replacement and upgrades to all lights, booms and monitor arms in 7 of their operating rooms. Existing equipment in these specific rooms are rusting and have outdated technology. Only brand name Stryker Corporation operating room lights, booms and monitor arms can meet the Government’s requirement. The estimated delivery date is 60 days after receipt of order.

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 – Brand Name

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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

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

All operating rooms at the VA San Francisco are currently running on a Stryker Hub Integration Systems. Therefore, in order to ensure compatibility and operability with currently installed systems, Stryker Corporation operating room lights and booms and monitor arms are required to ensure integration. Procuring an alternate brand would require a new integration system. The Stryker Hub Integration System was purchased in September 2022 for $147,221.73 and is used in the 7 operating rooms. There would be a duplication of costs if another brand was purchased.

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

Market research indicated that Stryker Corporation has five (5) Service Disabled Veteran Owned Small Business (SDVOSB) authorized distributors. A Non‐Manufacturer Rule class waiver applies to NAICS 335132 Commercial, Industrial and Institutional Electric Lighting Fixture Manufacturing.

Therefore, this requirement will be solicited as a 100% SDVOSB set aside for brand name only Stryker Corporation surgical lights, booms and monitor arms therefore maximizing competition to the maximum extent practicable.

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

Reasonable:

As this requirement will be competed amongst Stryker Corporation authorized distributors and evaluated based on price only, it is believed that competition and pricing available on historical awards will aid in the determination of fair and reasonable pricing IAW FAR 13.106‐3.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted:

Market research was conducted through Veteran Small Business Certification (VetCert), Federal Procurement Data System (FPDS), General Services Administration (GSA), and a request for information to the requested equipment manufacturer Stryker. A review of GSA did not identify all equipment on the Federal Supply Schedule (FSS). An email to Stryker Corporation identified five (5) SDVOSB authorized distributors outlined below.

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

FPDS yielded a myriad of awards to Stryker. VetCert was used to verify the above five (5) SDVOSB authorized distributors are certified.

The NMR states that this requirement should be solicited as unrestricted on the open market.

However, NAICS 335132 has an active NMR class waiver list. Therefore, it is recommended that this requirement be solicited on the open market as a 100% SDVOSB set aside for brand name only Stryker OR lights, booms and monitors.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

None

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

Please see Section #8 above for a list of SDVOSB vendors that are authorized distributors of Stryker Corporation and have expressed interest in this acquisition.

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:

Network Contracting Office 21 Contracting Officer will continue evaluate each requirement package and conduct substantial market research. In the future, the Contracting Officer will continue to utilize market research to evaluate the industry. When market research demonstrates that real competition is available, solicitation strategies will always promote competitive acquisitions to the maximum extent practicable.

12. 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.

Rogelio Zulueta Date OR Administrator, Surgical Service

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Maxwell W. Derck Date Contracting Officer/Branch Chief NCO 21 Supply II

7/10/2023

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

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Brooke C. Robison Date Director of Contracting, Network Contracting Office 21 (NCO21)

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

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