P03-D and F Hospital Bed extended BPA_Redacted.pdf

VETERANS INTEGRATED SERVICE NETWORK (VISN) 9

DETERMINATIONS AND FINDINGS

AUTHORITY TO UTILIZE FIRM FIXED PRICE FEDERAL SUPPLY SCHEDULE BLANKET

PURCHASE AGREEMENT WITH A 10-YEAR TERM

The James H. Quillen Veterans Affairs Medical Center (VAMC) requires the replacement of hospital beds, along with a maintenance service contract, to support veteran patient care at the facility. This requirement is outlined in Acquisition Plan 249-26-AP-1822.

BACKGROUND

The James H. Quillen VAMC requires the replacement of patient hospital beds in the Medical-Surgical (Med-Surg) Department. The VA Rule of Two and the Federal Acquisition Regulation (FAR) Rule of Two were not met. The General Services Administration (GSA) searched for identified one small business and two large businesses capable of providing the brand name or equal beds under a Federal Supply Schedule (FSS) contract.

The proposed acquisition is for a Fixed Price (FFP) contract with base plus nine option years. Procurement will be conducted via GSA e-Buy under Schedule/SIN 65IIA/A-69.

Equipment can be acquired under the FSS contract, and vendors may provide maintenance services under the FSS contract or via the open market. Vendors must clearly indicate in their quotes whether the product and/or services are available under the FSS contract or the open market.

Hospital beds are typically recommended and serviced by the Original Equipment Manufacturer (OEM) due to warranty coverage, proprietary rights, parts availability, and the need for certified, trained maintenance technicians to extend the beds' lifespan. The average lifespan of electronic hospital beds and bed frames is 10 years. Historically, managing this requires up to 10 separate market research reports, 10 funding documents, and 10 different contracts.

Combining these requirements into a single FSS-FFP contract with option years will provide maximum value by ensuring the beds are properly maintained and serviced, thereby ensuring optimal condition and longevity. This approach also reduces the administrative burden of recompeting requirements and avoids future sole source procurement to the OEM.

FINDINGS

1. FAR Part 12.213 (Other Commercial Practices) states the following: “...market research may indicate other commercial practices that are appropriate for the acquisition of the item. These practices should be considered for incorporation into the solicitation and contract if the contracting officer determines them appropriate in concluding a business arrangement satisfactory to both parties and not otherwise precluded by law or Executive order.” Currently, there are only four instances in the FAR where contracts are specifically limited to 5 years. FAR 17.104 (a) has a limitation on multi-year contracts, this would be multiple years. FAR 17.204 (e) has a limitation of contracts with options, this contract would have . FAR

DETERMINATIONS AND FINDINGS

AUTHORITY TO UTILIZE FIRM FIXED PRICE FEDERAL SUPPLY SCHEDULE BLANKET

PURCHASE AGREEMENT WITH A 10-YEAR TERM

16.505 (c) (1) has a limitation on task order contracts for advisory and assistance services, not applicable here. And finally, FAR 22.2002-1 has a limitation on contracts covered by the Service Contract Act of 1965, as amended, 41 U.S.C. § 353(d), this is a commodity and is not applicable. The CO has determined this practice, a term longer than 5 years, appropriate to the acquisition.

1. FAR Part 12.213 (Other Commercial Practices): Market research may indicate other commercial practices suitable for the acquisition. These practices should be considered if the contracting officer determines if they are appropriate, provided they are not prohibited by law or by executive order. The FAR typically limits contracts to five years in only four instances, none of which apply here.

Therefore, the contracting officer has determined that a term longer than five years is appropriate for this acquisition.

2. Proprietary Nature of Equipment: Given the proprietary nature of the hospital beds and required maintenance and repair services, an FSS-FFP contract is the most suitable solution. OEM parts, certified technicians, and OEM equipment warranties must be considered.

3. Ten-Year FSS-FFP Contract: Issuing a request for quote (RFQ) for a ten-year FSS-FFP contract via GSA e-Buy will allow James H. Quillen VAMC to benefit from equipment competition and secure repair and maintenance services for the full lifespan of the beds, rather than the typical five options years. Vendors typically amortize equipment costs over five years due to potential uncertainty of follow-on contracts. A ten-year contract maximizes the value and allows cost distribution over the equipment’s full life cycle, yielding savings for the VA.

4. Impact on Patient Care: Consultation with the Medical-Surgical Department indicated that changing vendors adversely affects patient care, as bed availability directly impacts patient intake. Each vendor uses proprietary equipment, parts, and service approaches. Longer comparison periods enhance preventative maintenance and extend equipment lifespan.

5. Changes in Service Contracts: Whenever there is a change in the repair or maintenance contract, the contracting officer must verify that the vendor possesses distributor and proprietary rights from the OEM and that technicians are OEM trained and certified. Generally, only OEM technicians can provide warranty-compliant service; subcontracted services can avoid warranties.

DETERMINATIONS AND FINDINGS

AUTHORITY TO UTILIZE FIRM FIXED PRICE FEDERAL SUPPLY SCHEDULE BLANKET

PURCHASE AGREEMENT WITH A 10-YEAR TERM

6. FAR 16.501(b)(3): This provision limits the Government’s obligation to the minimum contract quantity, reducing initial risk and providing flexibility for the VA regarding quantities and later ordering as requirements arise.

DETERMINATION

Based on the information presented above, I have determined that it is in the best interest of the Government to pursue an FSS-FFP contract with ten option years.

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

DETERMINATIONS AND FINDINGS

AUTHORITY TO UTILIZE FIRM FIXED PRICE FEDERAL SUPPLY SCHEDULE BLANKET

have the best of ral Supply

Executive Director, RPO Central Head of Contracting Activity