LSJ.pdf

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C261-21-AP-2354

(1) Contracting Activity: Department of Veterans Affairs, VISN 21

Network Contracting Office (NCO) 21 VA Southern Nevada Healthcare System 6900 N Pecos Road North Las Vegas, NV 89086

Requisition Number: 640-21-3-221-0066

(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). Approval is requested for a new, sole source delivery order with KCI USA, Inc., a Large Business.

Order against: FSS Contract Number: V797D - 30198

Name of Proposed Contractor: KCI USA, Inc.

Street Address: 12930 W Interstate 10

City, State, Zip: San Antonio, TX 78249

Phone: 1-844-425-5468

(3) Description of Supplies or Services: The estimated value of the proposed action is $464,112.00 base period of two (2) months + one (1) option year.

This procurement is for a firm-fixed price delivery order against VA FSS V797D - 30198 for the continued rental and maintenance for an entire suite of various equipment is used to increase patient outcomes by improving Veteran wound care through negative pressure delivery system. Acelity/KCI by 3M has developed a comprehensive range of products and therapies for a wide variety of wounds. There are no other source of supply/service that will satisfy agency requirements. The KCI wound vacs and associated eqipment are already being leased and maintained for the doctors at the VA Palo Alto Healthcare System. The current order for lease expires on 07/29/2021. Items to be leased are identified below:

1. ULTA VAC THERAPY UNIT

2. ACTIV VAC THERAPY UNIT

TOTAL CONTRACT VALUE $464,112.00

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

(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.

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:

VA has already determined the prices of supplies and fixed-price services, and rates for services offered at hourly rates, under schedule contracts to be fair and reasonable. Therefore, ordering activities are not required to make a separate determination of fair and reasonable pricing, except for a price evaluation as required by 8.405-2(d). By placing an order against a schedule contract using the procedures in 8.405, the ordering activity has concluded that the order represents the best value (as defined in FAR 2.101) and results in the lowest overall cost alternative (considering price, special features, administrative costs, etc.)

to meet the Government's needs. In accordance with FAR 8.404 (d), we will also seek additional discounts.

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

After initial market research was conducted among schedule holders, there was no further market research was conducted as this is a highly specialized product. The only source can provide therapy units is KCI USA Inc, and according to the company’s letter, they are the only manufacturer and distributor of the units. Historical market research further supports that KCI USA Inc. was the only sole source company to provide this particular product. There are no other source of supply/service that will satisfy agency requirements. The KCI wound vacs are already being leased and maintained for the Supply Chain Services department at the VA Palo Alto Health Care System. Remaining with KCI wound vacs will eliminate the need for additional equipment and costs, will reduce training requirements and allow the use of existing equipment with no additional purchase of equipment or attachments. In addition, KCI wound vacs Inc. is the only source that can perform repairs/maintenance to the scopes due to the proprietary nature of this equipment, no other company was found that has authorized third-party service providers. Furthermore, KCI USA Inc does not grant a license, express or implied, for the use of KCI patented products or technology in combination with or substituted by products made by other suppliers or alternative hospital equipment or suction sources, or with any products or components not expressly authorized by KCI USA Inc..

(7) Any Other Facts Supporting the Justification: No other factors are applicable at this time.

(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:

In future acquisitions, VA contracting staff will continue to conduct appropriate market research to determine if sources capable of meeting the agency’s requirement become available in the marketplace.

(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 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.

Ismael Barrera Tovar Date Chief, Business and Procurement Planning VA Palo Alto Health Care System

(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.

Maxwell Derck Date Contracting Officer Network Contracting Office (NCO) 21

6-28-2021

7/6/2021 https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx