Justification_Redacted.pdf

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Attached to
J065--Advanced Sterilization Maintenance & Repair Agreement Federal contract opportunity
Solicitation number
36C24625Q0168
Issued by
Department of Veterans Affairs Veterans Health Administration Veterans Integrated Service Network 6

About this file

This is a Sole Source Justification document for maintenance and repair services for Sterrad sterilization equipment at the Asheville VA Medical Center. The justification supports awarding a contract to Advanced Sterilization Products (ASP) as the Original Equipment Manufacturer (OEM) for servicing one Sterrad NX and two Sterrad 100NX Advanced Sterilization units.

The contract will be a firm-fixed-price award for a base year plus 4 option years, running from December 9, 2024 to December 8, 2029. Services include calibration, inspection, safety testing, 24/7 technical support, VirtualCARE remote support, preventative maintenance, and corrective maintenance. ASP is identified as the sole authorized provider of these services, as they are the OEM and any unauthorized servicing would void warranties. The contract was awarded to Advanced Sterilization Products Services Inc. for $295,728.75 on January 3, 2025. No market research or sources sought notice was issued due to ASP being the only authorized service provider.

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VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT $7.5M under FAR13.5

Effective Date: 11/01/24 Page 1 of 3

REVISION: 01

Acquisition ID#: 36C246 24 AP 6401

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C246 24 AP 6401

1. Contracting Activity: Department of Veterans Affairs, VISN 06, Hampton VA Medical Center, 100 Emancipation Drive, Hampton, VA 23667 for Asheville VA Medical Center, 100 Tunnel Rd, Asheville, NC 28805. 2237: 637 25 1 062 0005

2. Nature and/or Description of the Action Being Processed: This procurement is for maintenance and repair services for (1) Sterrad NX and (2) Sterrad 100NX Advanced Sterilization equipment in accordance with FAR 13.5 Simplified Procedures for Certain Commerical 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. Network Contracting Office 6 intends to issue a sole source, open market solicitation and award a new firm fixed price contract for a Base plus 4 option years with a period of performance to start

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The maintenance and repair services are for (1) Sterrad NX and (2) Sterrad 100NX Advanced Sterilization equipment. The services would include:

Calibration per OEM specifications and procedures Complete inspection and safety testing

1. 24/7 Technical Support

2. VirtualCARE® Remote Support

Preventative Maintenance Corrective Maintenance

Period of Performance: 12/9/2024 – 12/8/2029

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

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

Services ( ) International Agreement ( ) Authorized or Required by Statute

Effective Date: 11/01/24 Page 2 of 3

REVISION: 01

Acquisition ID#: 36C246 24 AP 6401

( ) National Security ( ) Public Interest

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Advanced Sterilization Products (ASP) is the OEM of the Sterrad System is the only entity authorized to provide all scheduled preventive maintenance, corrective maintenance, repairs, OEM parts, calibration, telephone support and full access to ASP’s software for calibration and repairs. Any service performed by unauthorized persons will void ASP wanrranties and/or service agreements for the specific system.

Approved and proprietary parts are necessary to service all ASP systems.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Due to the Contract Specialist’s familiarity with similar requirements, a Sources Sought was not sent or posted. ASP, the OEM has identified only themselves as the proprietary provider of the requested services.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer will determine the price to be fair and reasonable based on previous awarded contracts from year 2019 – 2024, ranging between for a base year to for a base + 4 Option years.

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 to identify available sources and to evaluate the availability of the marketplace to meet the requirement. Based on this, it was determined the VA Rule of two or the SBA rule of two could not be met due to the OEM, Advanced Sterilization Products (ASP), a large business is the only entity authorized to provide all scheduled preventive maintenance service on their equipment and no authorized businesses to do the same.

Searches of FPDS NG, SBA CERT, SCMC were conducted. A Sources Sought was not posted to SAM.gov due to personal knowledge and receiving a letter verifying ASP, as the OEM currently does not endorse or have a formal business relationship with any small business including SDVOSB to provide servicing of ASP systems or to supply OEM parts.

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: None

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: The Government will continue to conduct thorough market research to monitor marketplace capabilities for similar requirements in the future.

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.

Effective Date: 11/01/24 Page 3 of 3

REVISION: 01

Acquisition ID#: 36C246 24 AP 6401

Name Date Title Facility

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.

Harold McQuillia Date Contracting Officer Hampton NCO 6

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.

Natasha Jacobson Date NCO 6 Branch Chief Hampton NCO 6

HAROLD

MCQUILLIA

Digitally signed by HAROLD

MCQUILLIA

Date: 2024.11.15 09:09:40 -05'00'

EMMA

NEHRING

Digitally signed by EMMA

NEHRING

Date: 2024.11.21 14:59:46 -05'00'

NATASHA

JACOBSON

Digitally signed by

NATASHA JACOBSON

Date: 2024.11.21 16:02:26 -05'00'

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