P03. JOFOC - Copper Silver Ionization_HCA.pdf

Attachment 1: Request for Sole Source Justification under FAR13.5

36C249-24-AP-1468

Effective Date: 02/01/2022 Page 1 of 3

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C249-24-AP-1468

1. Contracting Activity: Department of Veterans Affairs (VA), Veterans Integrated Service Network (VISN) 9, Nashville Medical Center, Network Contracting Office 9, Services Team East

626-24-4-4138-0075

2. Nature and/or Description of the Action Being Processed: This procurement is for a five year Service and Maintenance Agreement for the Liquitech Copper Silver Ionization (CSI) System for water treatment in accordance with FAR 13.5 Simplified Procedures for Certain Commercial 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. VA Tennesse Valley Healthcare System (TVHS) is pursuing the ‘Tier 1’ Service agreement for the respective equipment. The contractor will provide recommended manpower, parts, equipment, and maintenance service on the proprietary equipment at the VA TVHS Nashville Campus, 1310 24th Ave South, Nashville, TN 37212.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Manufacturers recommended services to include: decalcification, recalibration, electrode replacement, electrode rebuild, copper silver lab testing, and remote monitoring the equipment.

Year 1: August 1, 2024 – July 31, 2025 $155,759.00 Year 2: August 1, 2025 – July 31, 2026 $155,759.00 Year 3: August 1, 2026 – July 31, 2027 $155,759.00 Year 4: August 1, 2027 – July 31, 2028 $155,759.00 Year 5: August 1, 2028 – July 31, 2029 $155,759.00

Total $778,795.00

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

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Only One Responsible Source: In 2023, VA TVHS Installed Liquitech LLC, CSI Equipment at the Nashville Campus. This equipment was installed to combat system Legionella outbreak issues, Effective Date: 02/01/2022 Page 2 of 3 particularly in patient care issues. To properly maintain the CSI Equipment, a new contract for annual service and maintenance on the proprietary equipment is being pursued.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The Original Equipment Manufacturer (OEM) has provided a proprietary letter stating they are the only authorized provder for service and maintenance to ensure the system works properly. This letter is uploaded in the briefcase and is attached for reference.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

This is a commercially available service that the vendor provides regularly in the market place. The Department of Veterans Affairs was quoted the service at the market prices available to all customers as was identified by the vendor via email communications. This is within the definition of fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Limited market research was conducted due to the proprietary letter provided by the OEM.

Vet Cert was checked under NAICS 221310, Water Supply and Irrigation Systems. Since the OEM is the provider of this service, this was the most appropriate NAICS. 374 SD/VOSB businesses were identified under NAICS 221310 utilizing the SBA VetCert site. There is not a reasonable expectation that two or more qualified SD/VOSBs will submit an offer at a fair and reasonable price based on the OEM proprietary letter.

In Accordance With FAR 25, the consideration for Buy American Act/Trade Agreement Acts does not apply for this acquisition. This is a service and maintenance agreement, there is no manufactured end product.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: To combat systemic issues with Nashville Campus Legionella outbreaks, VA TVHS pursued installation of the Liquitech CSI Equipment via contract 36C24922P0779 under an urgent and compelling limited source justification after a Legionella outbreak. Liquitech was the only company available to begin work immediately.

Total cost of equipment and installation was $533,763.89. The five year maintenance and service agreement will cover about 50% of the useful life of the equipment. According for FAR 5.203 (a) notice must be published 15 days before issuance of the solicitation if the Government intends to solicit and negotiate with only one source under the authority of FAR 6.302. This action is completed under the authority of FAR 13.5 and FAR 13.106-1(b)(2) and is therefore not required to be posted prior to award, but the justification is to be posted at the time of award.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Liquitech, the OEM, is the only authorized source that can express interest in the acquisition.

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: For future requirements, once the equipment has reached the end of its lifecycle, a new acquisition should consider the equipment and the maintenance and service be competed under competition for the expected lifecycle of that equipment. This ensures the equipment and service agreements are competed and avoids limited sourced acquisitions.

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

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.

Jake Slivensky Date Safety Engineer Tennesse Valley Healthcare System

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.

Harry R. Grambo III Date Services East Branch Chief Network Contracting Office 9

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.

Robert M. Kellner Date Division Chief Network Contracting Office 9

Susan F. Nagel Date Acting Director of Contracting Network Contracting Office 9

c. VHA RPO HCA Review and Approval: 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 other than full and open competition.

Daryl A. Berg Date Executive Director Regional Procurement Office Central https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx