P03 Atch 1 FAR 13.5 Brand Name Justification over SAT-$7.5M - Upgrade PiiC_SIGNED.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items

Effective Date: 11/15/24 Page 1 of 4

REVISION: 01

Acquisition ID#: 36C262-25-AP-3675

DEPARTMENT OF VETERANS AFFAIRS

BRAND NAME JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Commodity Brand Name Description:

• Brand Name: Philips North America, LLC

• Description: Upgrade Philips IntelliVue Patient Monitoring System for the San Diego VA Healthcare

System (SDVAHCS) – San Diego, California.

Acquisition Plan Action ID: 36C262-25-AP-3675

1. Contracting Activity: Department of Veterans Affairs, VISN 22, Network Contracting Office 22 (NCO

22) in Long Beach, CA, seeks to procure brand name only Philips IntelliVue Patient Monitoring System Upgrade listed in purchase request 664-25-2-072-0059 at/for the SDVAHCS, San Diego, California.

2. Nature and/or Description of the Action Being Processed: This procurement is for a brand name only Philips IntelliVue Patient Monitoring System upgrade in accordance with FAR 13.5. The proposed action will result in a new firm-fixed-price contract award to a verified Service-Disabled Veteran-Owned Small Business (SDVOSB) authorized distributor of Philips equipment. This action is being processed to ensure compatibility with the existing Philips monitoring infrastructure at the VA San Diego Healthcare System. The required upgrade will allow for continuity of clinical operations and meet ongoing patient care requirements without disruption.

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

Veterans Affairs requires the procurement of an upgrade to the existing Philips IntelliVue Patient Monitoring System installed at SDVAHCS. This upgrade includes hardware and software components that are only compatible with the current Philips system and is necessary to maintain continuity of patient care, ensure system compatibility, and avoid costly replacement or reconfiguration of infrastructure. This is a brand name only requirement due to proprietary technology, licensing restrictions, and clinical configuration unique to Philips Healthcare equipment. The requirement is being solicited as a SDVOSB set-aside and limited to authorized Philips SDVOSB distributors. No other brand will meet the agency’s minimum needs without incurring unacceptable delays, compatibility issues, or increased costs. This procurement is conducted in accordance with FAR Part 13.106-1(b)(2) and VAAR 819.7006.

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

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Acquisition ID#: 36C262-25-AP-3675

( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services

( ) International Agreement ( ) Authorized or Required by Statute ( ) 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): This procurement is for a brand name only upgrade to the Philips IntelliVue Patient Monitoring System currently installed at SDVAHCS. The existing infrastructure and equipment are manufactured exclusively by Philips, and only Philips-manufactured hardware and software components are compatible with the current system configuration. The required upgrade components include proprietary software and technology necessary to maintain the functionality of patient monitoring operations without incurring substantial duplication of cost or unacceptable delays.

Due to proprietary technology, security compliance, and brand-specific integration requirements, no other manufacturer or source can meet the VA’s needs. The upgrade must interface with current Philips infrastructure to ensure compatibility, avoid costly full-system replacement, and maintain critical clinical operations with minimal disruption.

Additionally, market research has identified authorized SDVOSB distributors of Philips as potential vendors capable of providing the required brand-name upgrade components. These vendors have been verified through the SBA DSBS. The Government intends to solicit this procurement as a brand name only SDVOSB set-aside to authorized Philips SDVOSB distributors in accordance with FAR 13.106-1(b)(2) and VAAR 819.7006.

Accordingly, competition is limited to SDVOSB concerns who are authorized distributors of the required brand-name product, as no other supplies or services will meet agency requirements without causing unacceptable delays or increased costs to the Government

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: In accordance with FAR 13.106-1(b)(2) and VAAR 819.7006, and to promote competition to the maximum extent practicable, multiple market research efforts were undertaken.

A Request for Information (RFI) was posted to Contract Opportunities (36C26225Q0745), NASA SEWP (340058), and GSA eBuy (RFQ1750805). Ten vendors responded to the RFIs; however, only four vendors indicated they could fulfill need and are verified authorized distributors of Philips products / services. Additionally, a review of the SBA DSBS (Dynamic Small Business Search) identified 591 SDVOSBs/VOSBs under NAICS 334510.

RFI responses confirmed the unique nature of the requirement as a brand-name-only upgrade to existing infrastructure. As a result, only authorized Philips SDVOSB distributors are capable of fulfilling the agency’s minimum needs.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer has determined that the anticipated cost to the Government will be fair and reasonable based on market research, recent similar procurements, and available pricing data. A comparable award under Solicitation 36C26225F0025, issued by the VA Greater Los

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Acquisition ID#: 36C262-25-AP-3675

Angeles Healthcare System (NCO 22), involved the procurement of similar Philips IntelliVue monitoring system hardware and software upgrade components. That award, valued at $350,939.84, included items consistent in brand and functionality with the current requirement and supports a finding of price reasonableness under FAR 13.106-3(a)(2)(ii).

Additionally, internal Government price comparisons, catalog pricing, and responses to the Request for Informations (RFIs) confirmed that the unofficial pricing is consistent with recent market rates for similar brand-name-only Philips IntelliVue upgrades. Based on this collective analysis, the proposed pricing is fair and reasonable for the supplies required.

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

Market Research Was Not Conducted: Comprehensive market research was conducted in accordance with FAR Part 10 and VAAR 810.001-70. Efforts included a review of the SBA DSBS database to identify capable SDVOSBs and VOSBs under NAICS 334510, and the posting of formal RFIs on SAM.gov (36C26225Q0745), NASA SEWP (340058), and GSA eBuy (RFQ1750805). Of the ten responses received, only four vendors were identified as verified SDVOSB authorized Philips distributors.

Additionally, the Federal Procurement Data System (FPDS) was reviewed and revealed a relevant award by NCO 22 to the VA Greater Los Angeles Healthcare System for a similar IntelliVue upgrade.

This supports both the technical requirements and anticipated pricing. Based on the information above, market research suggests there is a reasonable expectation to receive quoted offers from two or more SDVOSB vendors. It is in the Government’s best interest to compete this requirement as brand name only SDVOSB set-aside in the Open Market IAW FAR Part 13.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The Philips IntelliVue system upgrade requires proprietary hardware and software components available only through Philips Healthcare and its authorized SDVOSB distributors. The use of another brand would not ensure compatibility with the current system in place, which could jeopardize patient care and increase operational risk. In addition, use of another brand would result in significant delays and costs due to necessary reconfiguration and clinical retraining. Due to the proprietary nature of Philips’ system design and licensing restrictions, no other brand or supplier can meet the VA’s specific technical requirements. This supports the use of a brand-name-only justification under FAR 13.106-1(b)(2) and VAAR 819.7006.

VA Rule of Two applies. Due to urgency, time constraints, and exclusive licensing agreements of proprietary software / hardware / technology, circumstances of contract action deem only one brand (OEM – Philips or its authorized distributor(s) / reseller(s)) reasonably available, and no other supplies or services will meet agency need. It is in the Government’s best interest to compete this requirement as brand name only SDVOSB set-aside in the Open Market IAW FAR Part 13.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: As noted in Section 6, a total of 10 vendors responded to the posted RFI (RFQ 36C26225Q0745, NASA SEWP 340058, and GSA eBuy RFQ1750805). Of those, only four vendors indicated they could fulfill the need and were verified as authorized Philips distributors, and indicated the capability to meet the agency’s requirements. The remaining vendors did not possess the necessary authorization or could not confirm compatibility with the required brand-name-only system.

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Acquisition ID#: 36C262-25-AP-3675

The following sources appear qualified and interested to fulfill this requirement:

Firm 1: Philips North America, LLC (large business – OEM) Firm 2: Alliant Healthcare Products, LLC (authorized distributor – SDVOSB) Firm 3: AVMedical, LLC (authorized distributor – SDVOSB) Firm 4: Four Points Technology, LLC (authorized distributor – SDVOSB) Firm 5: Macalean Group, LLC (authorized distributor – SDVOSB)

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: Due to the proprietary nature of the Philips IntelliVue system and its integration with existing infrastructure, this action is brand-specific and competition is limited to verified SDVOSB authorized distributors. There are currently no planned actions to remove this barrier for this requirement, as it is essential to maintain system compatibility and ensure continuity of care. Any future procurement actions will continue to assess the availability of competitive alternatives and evaluate the feasibility of transitioning to a more open platform, provided it does not compromise existing systems or patient safety.

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.

Aaron Ketting-Olivier Biomedical Engineer VA San Diego HCS

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.

Cecil S. Nichols Contracting Officer

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.

Peter Kim Branch Chief https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx