P03 - Exception to Fair Opportunity 36C242-21-AP-1912 Philips Patient Monitoring System - HCA - Redacted.pdf

VHAPM Part 816.5—Indefinite-Delivery Contracts Attachment 1: Request for Exception to Fair Opportunity Memo Format

Acquisition Plan Action ID: 36C242-21-AP-1912

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 1 of 6 Original Date: 08/30/2017 Date: 02/19/2021 Rev 06

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID: 36C242-21-AP-1912

1. Contracting Activity:

Department of Veterans Affairs, VISN 02 FDR Campus VA Hudson Valley Healthcare System 2094 Albany Post Rd Montrose, New York 10548

Network Contracting Office 2 (NCO2)

Purchase request (i.e. 2237) number: 632-21-4-3086-0212

2. Description of Action:

The proposed sole source delivery order against NASA SEWP V contract NNG15SD22B is for 180 Days ARO firm-fixed price (FFP) effort for Philips Patient Monitors IntelliVue MX550 & MX750 with Four Points Technology, LLC, 14900 Conference Center Dr., Chantilly, VA 20151.

3. Description of Supplies or Services:

A new Patient Monitoring System will replace the existing, outdated system equipment.

Replacement will include new monitors, hardware, cable and updated software with for the ED, ICU, Surgery and PACU. The vendor will provide installation, removal and disposal of existing equipment, maintenance support services, and training. Northport VA Medical Center will be standardizing all patient monitoring equipment throughout the facility in the future and the system must offer adaptability to be used in a variety of clinical environments.

Total number of monitors required as part of the system installation are as follows:

ICU/OR/PACU: 19 AL2 MX550 8 Wave Adv. Monitors 7 IntelliVue MX750 patient monitors

ED EXPANSION: 20 AL2 MX550 8 Wave Adv. Monitors

Total estimated value of this acquisition:

Estimated delivery: 180 Days ARO

Acquisition Plan Action ID: 36C242-21-AP-1912

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 2 of 6 Original Date: 08/30/2017 Date: 02/19/2021 Rev 06

Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section

41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) Subpart 16.505

Subpart 16.505(b)(2)(i):

( ) FAR Subpart 16.505(b)(2)(i)(A): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

( ) FAR Subpart 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

( ) FAR Subpart 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

( ) FAR Subpart 16.505(b)(2)(i)(D): It is necessary to place an order to satisfy a minimum guarantee.

FAR Subpart 16.505(b)(2)(i)(E): For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source”. The statutory authority permitting an exception to fair opportunity for this action is 38 U.S.C. 8127(c), known as the Veterans First Contracting Program which provides the authority to directly contract with a Service-Disabled Veteran-Owned Small Business (SDVOSB) or a Veteran-Owned Small Business (VOSB).

Rationale Supporting Use of Authority Cited Above:

Philips Healthcare equipment is used throughout the Medical Center and the entire monitoring system is configured with Philips software. In May 2020 these monitors and software were purchased as needed for increased patient care due to COVID-19. The equipment described in Section 3 is for direct replacement of end of life Philips monitors as well as new technology compatible and interchangeable only with Philips Healthcare equipment/accessories. Philips Healthcare is the manufacturer of the equipment and software is proprietary. The Northport VA Medical Center supports standardization of medical equipment known to eliminate confusion and reduce medical errors that negatively affect patient care and outcomes.

Four Points Technology, LLC is the only authorized Service Disabled Veteran Owned Small Business (SDVOSB) distributor of Philips products and services that carries with it the Philips full warranty and service rights as any direct Philips purchase.

This award will be made to Four Points Technology, LLC, via the authority provided by 819.7007 Sole source awards to ervice- isabled Veteran- wned mall usiness concerns.

819.7007 Sole source awards to ervice- isabled Veteran- wned mall usiness

Acquisition Plan Action ID: 36C242-21-AP-1912

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 3 of 6 Original Date: 08/30/2017 Date: 02/19/2021 Rev 06 concerns.

(a) A contracting officer may award contracts to SDVOSB concerns on a sole source basis provided:

(1) The anticipated award price of the contract (including options) will not exceed $5 million;

(2) The requirement is synopsized in accordance with FAR part 5;

(3) The SDVOSB concern has been determined to be a responsible contractor with respect to performance; and

(4) Award can be made at a fair and reasonable price.

(b) The contracting officer’s determination whether to make a sole source award is a business decision wholly within the discretion of the contracting officer. A determination that only one SDVOSB concern is available to meet the requirement is not required.

(c) When conducting a SDVOSB sole source acquisition, the contracting officer shall ensure businesses are registered and verified as eligible in the VIP database prior to making an award.

6. Efforts to Obtain Competition: A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

Market research was conducted, details of which are in the market research section of this document. This effort did not yield any additional sources that can meet the Government’s requirements. There is no competition anticipated for this acquisition. In accordance with FAR

5.301 and 16.505(b)(2), this action will be synopsized at award on the Federal Business Opportunities Page (FBO) and the justification will be made publicly available.

7. Actions to Increase Competition: Describe actions taken, or that will be taken, to remove or overcome any barriers to competition before initiating any subsequent acquisitions for the supplies, or services required, including challenges to restrictive data markings, data rights, preparation of a performance based work statement, and etc.

The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

8. Market Research: Provide a description of the market research conducted among the contract holders and the results. If market research was not conducted, the reasons it was not conducted should be stated. When citing 16.505(b)(2(i)(b) or 16.505(b)(2)(i)(e), the only possible way to state in paragraph 5 of the J&A that there is only one contractor who can fulfill the agency’s needs is to conduct market research, and it should be summarized here.

Conducted a search on the VIP database using NAICS Code 541519 (Other Computer Related Services), and keywords IntelliBridge, IntelliVue, and Philips. Two vendors were identified using Philips. Alliant Enterprises LLC dba Alliant Healthcare Products (SDVOSB), and The Janz Corporation (SDVOSB); however, neither of those two vendors are IT Value Added Resellers of the Philips products.

Acquisition Plan Action ID: 36C242-21-AP-1912

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 4 of 6 Original Date: 08/30/2017 Date: 02/19/2021 Rev 06

Conducted a search on the SBA DSBS using NAICS Code 541519 (Other Computer Related Services), and keywords IntelliBridge, IntelliVue, and Philips . Three vendors were identified using Philips;

however, all three of those vendors sell medical equipment and are not IT Value Added Resellers of the Philips products.

Conducted a search on NASA SEWP for IntelliBridge and IntelliVue products. Found these product lines available through NASA SEWP contract holder Four Points Technology, LLC. Verified that Four Points Technology, LLC is an active NASA SEWP contract holder with contract NNG15SD22B effective May 1, 2015.

Received a letter from Derek Farias JD, National Director Government Channels, Philips Healthcare that Four Points Technology, LLC is an authorized distributor of Philips products and services that carries with it the Philips full warranty and service rights as any direct Philips purchase.

Published Request #200247, Market Research Request 36C24221Q1107, ***INTENT TO SOLE SOURCE*** Philips Patient Monitoring System to Four Points Technology, LLC on NASA SEWP from July 2, 2021 through July 19, 2021. No responses were received.

Published Special Notice – 6515 - ***INTENT TO SOLE SOURCE*** 36C242-21-AP-1912 Philips Patient Monitoring System to Four Points Technology, LLC on beta.SAM.gov from July 2, 2021 through July 19, 2021. No responses were received.

Confirmed via the VIP database that Four Points Technology, LLC is a verified SDVOSB.

Confirmed via the SBA DSBS that Four Points Technology, LLC is a registered small business.

Confirmed via SAM that Four Points Technology, LLC, DUNS 089896737 is registered with an expiration date of 5/12/2022.

Confirmed via FedDataCheck that Four Points Technology, LLC is a responsible contractor and there are no issues that would prevent them from receiving an award.

9. Other Facts:

This is a direct replacement of the existing, outdated Patient Monitoring System system and equipment. Replacement shall include new monitors, hardware, cable and updated software with clinical decision support tools for the ED, ICU, Surgery and PACU. The Northport VA Medical Center anticipates standardizing all such monitoring equipment throughout the facility in the future and the system must offer adaptability to be used in a variety of clinical environments. Currently there is only one Service Disabled Veteran Owned Small Business (SDVOSB) that is an authorized distributor of Philips products.