Justification for Exception to Fair Opportunity 644B08050 (signed).pdf

DEPARTMENT OF VETERAN AFFAIRS

Office of Acquisition and Logistics National Acquisition Center

P.O. Box 76 Hines, IL 60141

Justification for an Exception to Fair Opportunity

FAR 16.505(b)(2)(i)(C) Sole Source Logical Follow On

(1) Identification of the agency and the contracting activity.

This Justification for an Exception to Fair Opportunity is on behalf of the Phoenix VA Health

Care System located in Phoenix, Arizona, executed by the Veterans Affairs National

Acquisition Center located in Hines, Illinois.

(2) Nature and/or description of the action being approved.

This activity proposes to issue a sole-source delivery order against the High-Tech Medical

Equipment multiple-award Indefinite Delivery, Indefinite Quantity contract SPE2D1-17-

D-0015 and VA797H-17-D-0024 awarded to GE Healthcare.

Delivery Order No.: 36A79721N0091 Purchase Order No. 644B08050

Equipment: IGS 630 with AutoRightTM configuration with Omega V

Table Manufacturer: GE Healthcare

Equipment Cost: $1,518,376.00

(3) A description of the supplies or services required to meet the agency’s needs, including the estimated value.

The Phoenix VA Health Care System requires replacement of the Siemens Axiom Artis MP with the GE IGS 630 with AutoRightTM configuration with Omega V Table. The existing Siemens equipment was determined past end of life as of July 25, 2016 and has had over

$100,000.00 in repairs over the last 5 years to keep it running.

The estimated total value of the replacement equipment to be procured is $1,518,376.00.

(4) An identification of the exception to fair opportunity (see 16.505(b)(2)) and the supporting rationale, including a demonstration that the proposed contractor’s unique qualification or the nature of the acquisition requires use of the exception cited. If the contracting officer uses the logical follow-on exception, the rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g. in terms of scope, period of performance, or value).

The order will be issued on a sole-source basis in accordance with FAR 16.505(b)(2)(i)(C) as this is a logical follow on to delivery order VA797R-16-F-0070. A GE IGS 630 was originally procured under order VA797R-16-F-0070 in FY2015 to replace the existing equipment. Order

VA797R-16-F-0070 was originally competed among all contract holders and was awarded to

GE on July 25, 2016 The requirement was submitted in FY 2015 and funded with FY15 funds, which expired September 30, 2020. There have been complications regarding the site-prep that have resulted in the purchase order reaching expiration prior to the deployment of the system.

As such, order VA797R-16-F-0070 was

P.O. Box 76 Hines, IL 60141 terminated and the funds were returned. This order is a logic follow-on to order VA797R-16- F-0070 and this equipment will meet the same need as this previous order.

(5) A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The contracting officer for the resultant order has determined the prices offered to be fair and reasonable for this justification for an exception to fair opportunity. All items are priced at or below the contract price, which was previously determined fair and reasonable at time of contract award, and there have been no significant changes to the industry or market conditions that would result in changes to the reasonableness of the underlying contract prices.

(6) Any other facts supporting the justification.

In order to install the equipment purchased on order VA797R-16-F-0070 the station began contracting locally for design plans. These plans were required in order to place a local construction contract to complete the site-prep and install the purchased system. $690,747 was spent in FY2015 on designs and there is a current NRM solicitation for the site-prep of the procedure room in preparation for the GE INNOVA IGS 630 Biplane System. The site-prep documentation is specific to this equipment. Any change in manufacturer or equipment model will result an estimated $455,513 extra cost, 30% of the total project, for new designs.

Furthermore, this will cause additional delays with the overall construction process as the

NRM process will have to restart. To cancel the current construction project and restart the process to accommodate a different vendor’s equipment would add excessive rework at a high cost, and further delay the ability of the facility to provide up-to-date, clinically acceptable services to patients. Therefore, it is in the best interest of the VA to continue with the current

NRM project and purchase the GE IGS 630 with AutoRightTM configuration with Omega V

Table.

(7) A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.

Future procurements will synchronize the equipment procurement more closely with the facility projects funding process allowing all vendors to participate in the fair opportunity process. All prospective delivery orders are competed among all contract holders. Once an order is placed for proprietary equipment, it is generally not possible to compete follow-on acquisitions for upgrades because the system to be upgraded is proprietary in nature. Future requirements will be handled on a case-by-case basis and all attempts will be made to provide fair opportunity to all schedule holders when appropriate.

P.O. Box 76 Hines, IL 60141

(8) The contracting officer’s certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

By signing this justification, the Contracting Officer hereby certifies that the justification is accurate and compete to the best of their knowledge.

(9) Evidence that any supporting data that is the responsibility of the technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

By signing this justification, the Facility Biomedical Engineer hereby certifies that the justification is accurate and compete to the best of their knowledge.

(10) A written determination by the approving official that one of the circumstances in (b)(2)(i)(A) through (F) of this section applies to the order.

Based on the information contained herein, a determination has been made that this requirement meets the exception at FAR 16.505(b)(2)(i)(C).

P.O. Box 76 Hines, IL 60141

CERTIFICATION AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION:

Pursuant to FAR 16.505(b)(2)(ii)(B)(9), I certify that any supporting data that is my responsibility and which forms a basis for the justification is complete and accurate to the best of my knowledge and belief.

Jennifer Wong Date

Facility Biomedical Engineer

Phoenix VA Health Care System

CONTRACTING OFFICER CERTIFICATION:

Pursuant to FAR 16.505(b)(2)(ii)(B)(8), I certify that the justification is complete and accurate to the best of my knowledge and belief.

Stephanie E. Thigpen Date

Contracting Officer (orders less than $700,000)

VA National Acquisition Center – Hines

High-Tech Medical Equipment Ordering Division

Reagan Criddle Date

Chief HTME Ordering Division

VA National Acquisition Center – Hines

High-Tech Medical Equipment Ordering Division

COMPETITION ADVOCATE APPROVAL:

Craig Robinson Date

Competition Advocate (orders > $700,000 up to $13,500,000)

VA National Acquisition Center – Hines

Associate Executive Director

Pursuant to 16.505(b)(2)(ii)(C))