P03 Exception to Fair Opportunity Fujifilm_Redacted.pdf

Request for Exception to Fair Opportunity Memo

Effective Date: 03/15/2023 Page 1 of 3 Revision: 02 Acquisition ID#: 360260-24-AP-4569

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID: 36C260-24-AP-4569

1. Contracting Activity: Department of Veterans Affairs, Veterans Healthcare Administration, Regional

Procurement Office West, Network Contracting Office 20 on behalf of Roseburg and Eugene VA Medical Centers. 2237 #: 653-25-3-103-0015

2. Description of Action: The proposed action is for a sole source, firm-fixed-price, task order to be issued against Fujifilm Healthcare Americas Corporation HTME contract, VA797H-17-D-0020. This action is for a base plus 4 option year service order for two (2) Fujifilm ultrasounds. This requirement is for product maintenance and support.

3. Description of Supplies or Services: The proposed action is to service and support for the Fujifilm ARIETTA65 ultrasounds for the Roseburg and Eugene facilities. This service order includes:

o Maintenance and repair in accordance with the manufacturer’s recommendations o Software updates and onsite applications training o Applications helpline Monday-Friday, 08:00 AM – 9:00 PM (Eastern time) o Travel, living expenses, and parts, including coils o Preventative maintenance and inspection o 99% guaranteed uptime o Loaner equipment at no additional charge for equipment that cannot be repaired at the facility o One replacement probe per year The total estimated value of the proposed action is , inclusive of options.

Base year:

DESCRIPTION QTY COST

BASE YEAR

POP: 06/29/2025-06/28/2026

1 YEAR

OPTION YEAR ONE

POP: 06/29/2026-06/28/2027

1 YEAR

OPTION YEAR TWO

POP: 06/29/2027-06/28/2028

1 YEAR

OPTION YEAR THREE

POP: 06/29/2028-06/28/2029

1 YEAR

OPTION YEAR FOUR

POP: 06/29/2029-06/28/2030

1 YEAR

TOTAL

Effective Date: 03/15/2023 Page 2 of 3 Revision: 02 Acquisition ID#: 360260-24-AP-4569

VISN Sites:

Roseburg VA Medical Center 913 NW Garden Valley Blvd.

Roseburg, OR 97471

Eugene Health Care Clinic 3355 Chad Drive Eugene, OR 97408

4. 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) 16.505(b)(2)(i):

(X) FAR 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.

5. Rationale Supporting Use of Authority Cited Above: This is a sole source justification in accordance with FAR 11.105, Items Peculiar to One Manufacturer. There is only one source capable of providing the service and replacement supplies required at the level of quality required because the service and supplies are unique and highly specialized. The warranties of this equipment must be maintained by proprietary software and services exclusive to Fujifilm Healthcare. Fujifilm does not have authorized third party service providers and only Fujifilm produced transducers are supported and have regulatory approval for Fujifilm ultrasound consoles. Use of “grey goods” voids Fujifilm’s warranty and unauthorized third party service providers do not have access to proprietary software.

The software, updates, diagnosis, and repair service are proprietary to Fujifilm.

6. Efforts to Obtain Competition: 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. The manufacturer, Fujifilm Healthcare Americas, does not have any authorized service providers. 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: At this time there are no additional actions that can be taken to remove or overcome the barriers that lead to the exception to fair opportunity. Proprietary software and highly technical service restrictions are common in the marketplace for this type of requirement. 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: Market research was conducted to verify the proprietary nature of the requirement. Fujifilm provided a sole source letter confirming the proprietary nature of the requirement and that no third-party sources can provide the service and software support. There is not a reasonable expectation that two or more SDVOSBs nor small businesses will be able to provide

Effective Date: 03/15/2023 Page 3 of 3 Revision: 02 Acquisition ID#: 360260-24-AP-4569 the required service. As such, it has been determined by the Contracting Officer that only Fujifilm can meet the Government’s needs.

9. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Kristine Mills Biomedical Equipment Specialist Roseburg VA Medical Center

10. Determination that Anticipated Cost is Fair and Reasonable: A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable: An independent Government Cost Estimate (IGCE) was developed for this procurement and market research was conducted that affirmed this IGCE for this type of service. A quote was sought from Fujifilm based on their IDIQ VA797H-17-D-0020, which was determined fair and reasonable at the time of award, and, all option years are priced with no increase over the base year.

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

Gregory G. Watson Contracting Officer

NCO 20

RPOW JOFOC Tracker #: FY25 – NCO 20 - 135

12. Approvals in accordance with RPOW Operations Manual Section 20-206.

a. Branch Chief or Higher (Required MPT to SAT): I certify the justification meets requirements for other than full and open competition.

Krystal Weeks Branch Chief Network Contracting Office 20

GREGORY

WATSON

Digitally signed by

GREGORY WATSON

Date: 2024.10.09 14:34:51 -07'00'

KRISTINE

MILLS

Digitally signed by

KRISTINE MILLS

Date: 2024.10.10 11:50:52 -07'00'

KRYSTAL

WEEKS

Digitally signed by

KRYSTAL WEEKS

Date: 2024.10.10 13:22:30 -07'00'