Limiting_Sources_Justification-a-6 CO BC-CO-RPO.pdf

VHAPG Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT

Acquisition Plan Action ID: 36C245-24-AP-0585

Effective Date: 02/01/2022 Page 1 of 6

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Contracting Activity: Department of Veterans Affairs, Network/Program Contracting Office 05, located at Martinsburg VA Medical Center (613), 510 Butler Avenue, Martinsburg, WV 25405, in support of VISN 05 VA Health Care System at Washington DC VA Medical Center (688), 50 Irving St. NW, Washington, DC 20422. Purchase request (i.e., 2237) number, 688-24-2-028-0001.

(2) Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501).

Order against: FSS Contract Number: GS-30F-0026Y 36C24524F0158

Name of Proposed Contractor: Mobile Medical International Corporation (MMIC)

Street Address: 2176 Portland St.

STE 4

City, State, Zip: Saint Johnsbury, VT 05819-8971

Phone: 802-748-2322 ext. 102

(3) Description of Supplies or Services:

This is a new contract in an estimated value of $2,872,135.44 for a proposed firm fixed price task order action that is for the rental of trailers and equipment of a temporary Sterile Processing System.

The items being leased are:

• Mobile Sterilizer Unit equipped with three (3) Getinge 633HC Vacuum Gravity Sterilizers

• Mobile Decontamination Unit equipped with (3) Getinge 86-Series Washer/Disinfectors, two72” x 36” Prep and Pack Tables; two (2) Getinge 2460 Ultrasonic Cleaners, two (2) Workstations each with integral -bay sink https://www.acquisition.gov/far/part-8#FAR_8_405_6 http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 https://www.gpo.gov/fdsys/pkg/USCODE-2011-title40/pdf/USCODE-2011-title40-subtitleI-chap5-subchapI-sec501.pdf

Acquisition Plan Action ID: 36C245-24-AP-0585

Effective Date: 02/01/2022 Page 2 of 6

• Unit De-Commissioning – includes unit deinstallation, pick-up and delivery back to MMIC factory in St. Johnsbury, VT

The estimated value of the proposed action is:

Base 01/01/2024 through 6/30/2024 $957,378.48

Option 1 07/01/2024 through 12/31/2024 $957,378.48

52.217-8 Option to Extend Services 01/01/2025 through 6/30/2025 $957,378.48

Total base and all options $2,872,135.44

Department of Veterans Affairs, VISN 05, VA Medical Center, Washington DC has an approved and funded project 688-14-003 to Renovate and Expand the Sterile Processing Service (SPS) to correct Functional Deficiencies at the Washington DC facility. The project began in September 2017 and is on-going. The renovation is occurring in the same footprint occupied by SPS. The SPS department must be operational and fully functional during construction. The reprocessing of reusable medical equipment (RME) moved to another location to allow required work in the existing space to be completed. The original plan involved coordination of multiple phases that called for joint occupancy of the sterile processing areas to allow work to proceed during early phases of the construction and rental of a temporary mobile reprocessing unit (trailer) for a period of approximately 6 months while the existing sterile processing area is renovated and reconfigured in succeeding phases of work. Chronic issues with work conditions in the SPS area that have been documented by the National Program Office for Sterilization (NPOS) coupled with the Office of Inspector General (OIG) findings during a site survey resulted in a decision to vacate the existing SPS immediately and remain vacated during the entire renovation project to preclude any of the identified issues in SPS being exacerbated by ongoing construction work, phasing, and joint occupancy of the existing space during construction. This decision extended the period during which mobile sterile processing trailers are required to approximately 12 months. The original award was made to Mobile Medical International Corporation (MMIC), a small business. Since the first award, on May 16, 2017, options have been awarded and new sole-source contracts established.

VA245-17-F-0752 – Awarded 5/16/2017 – POP (Base plus options) 5/16/17 through 1/31/20.

36C24520F0289 – Awarded 1/24/20 - POP (Base plus options) 2/1/20 through 1/31/21.

36C24521F0206 – Awarded 1/29/21 POP (Base plus options) 2/1/21 through 1/31/22.

36C24522F0181 – Awarded 1/27/22 POP (Base plus options) 2/1/22 through 3/31/22.

36C24522F0274 – Awarded 4/1/22 POP (Base plus options) 4/1/22 through 12/31/22.

36C24523F0181- Awarded 12/21/2022 POP (Base plus options) 1/1/23 through 6/30/23.

Acquisition Plan Action ID: 36C245-24-AP-0585

Effective Date: 02/01/2022 Page 3 of 6

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized:

Due to time constraints and the additional costs of removing the existing trailers and installing new trailers, with a 6-month lead time for another trailer, it is recommended the contract be awarded to MMIC, a small business, under their GSA schedule contract. Only one source exists for this procurement and following the ordering procedures would result in unacceptable delays that would cause serious risks to veterans, their families, and staff health and safety at the hospital. Using any other contractor would cause serious damage to the Government there would in delay in treatment of patients and extra costs incurred to bring in a new rental unit and equipment for the Government to use for a maximum of 18 months.

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination:

The MMIC rentals are currently on site. Due to the urgent and compelling nature of the requirement, it would not be expedient to replace the current units with the product of another company. In addition to the cost of MMIC dismantling and removing the existing equipment, there would be additional costs for a new vendor to deliver and install new SPS units. MMIC is still offering old contract pricing on its https://www.acquisition.gov/far/part-8#FAR_8_405_6 https://www.acquisition.gov/far/part-8#FAR_8_405_6 https://www.acquisition.gov/far/part-8#FAR_8_405_6 https://www.acquisition.gov/far/part-8#FAR_8_405_6

Acquisition Plan Action ID: 36C245-24-AP-0585

Effective Date: 02/01/2022 Page 4 of 6 quotes; furthermore, the lead time of a new companies’ units would take 6 months to be manufactured to meet our needs at Washington, D.C.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

Market research was conducted by reviewing past procurements (VA245-17-F-0752, 36C24520F0289, 36C24521F0206, 36C24522F0181, 36C24522F0274, and 36C24523F0181), searching Veteran Small Business Certification (VetCert), FPDS-NG, SBA-Dynamic, Adds UP, NAC, ECMS, GSA Advantage, and the internet.

Market research has been conducted on GSA Schedule and Open Market and we have found five companies that provide Mobile SPS rentals: Three, Odulair, LLC, Mod Build, LLC, and Steelco-USA Inc are in the open market. Mod Build, LLC is not registered in SAM.gov. Two, Steris and MMIC hold GSA contracts. The average lead-time for a rental unit to be delivered is 6 months. All units are custom builds, reflecting the equipment needs of the hospital or facility using them. Both short-term and long-term leasing options are available. There are no Veteran Owned Small Businesses that provide mobile SPS units. Steris, a large business, provides a mobile SPS rental which is equipped with Steris sterile processing equipment and MMIC, a small business, provides a mobile SPS rental which is equipped with Getinge sterile processing equipment. Getinge sterile processing equipment is what the hospital personnel are trained in this equipment. Both are on GSA Schedule. GSA has determined prices to be fair and reasonable and has determined MMIC to be a responsible contractor. Based on historical rates with other VA Hospitals, the schedule rates that we will pay are fair and reasonable. The sole source is based on availability, ability to meet procurement timelines, availability during the performance period necessary, and the type of equipment utilized to minimize development of new staff competencies.

(7) Any Other Facts Supporting the Justification:

The MMIC rentals are currently on site. Due to the urgent and compelling nature of the requirement, it would not be expedient to replace the current units with the product of another company. In addition to the cost of MMIC dismantling and removing the existing equipment, there would be additional costs for a new vendor to deliver and install new SPS units. MMIC is still offering old contract pricing on its quotes; furthermore, the lead time of a new companies’ units would take 6 months to be manufactured to meet our needs at Washington, D.C

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

The Contracting Officer will monitor market conditions for changes to overcome barriers to competition.

(9) 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

Acquisition Plan Action ID: 36C245-24-AP-0585

Effective Date: 02/01/2022 Page 5 of 6 cognizance, which are included in the justification, are accurate and complete to the best of my knowledge. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4. (This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)

Lonnell Roberts Chief, Maintenance and Operations Washington, DC VISN 05 NCO 05 Date

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Joseph J. Krupa, Contracting Officer Martinsburg VISN 05 NCO 05 Date

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K):

I certify the justification meets requirements for other than full and open competition.

Philip G. Duba, Branch Chief Martinsburg VISN 05 NCO 05 Date https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx

Acquisition Plan Action ID: 36C245-24-AP-0585

Effective Date: 02/01/2022 Page 6 of 6

HIGHER LEVEL APPROVAL (Required for orders over $750,000):

c. VHA RPO HCA Review and Approval (over $750,000 to $75 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 restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Joseph P. Maletta VHA Head of Contracting Activity (HCA) Executive Director, Regional Procurement Office – East (RPO-E) Date