P03 FAR 13.5 Limited Source Justification - Signed.pdf

Effective Date: 11/15/24 Page 1 of 8

REVISION: 01

Acquisition ID#: 36C24W-25-AP-0169

DEPARTMENT OF VETERANS AFFAIRS

LIMITED SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN

COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C24W-25-AP-0169 JOFOC Tracker Number: FY25-RPOW Activations-1608

1. Contracting Activity:

• Department of Veterans Affairs, Regional Procurement Office West (RPOW) Activations Division Branch I, 3237 Peacekeeper Way, Building 200 Suite 204, McClellan Park, CA 95652

• Eastern Oklahoma VA Health Care System, James Mountain Inhofe VA Medical Center, 440 S. Houston Ave, Tulsa, Oklahoma 74127

PR-IFCAP/2237: 623-25-4-2455-0289

2. Nature and/or Description of the Action Being Processed:

This procurement is for a Brand Name Only Item 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. This action will be awarded as a new contract and the type of contract planned is firm-fixed price.

The Eastern Oklahoma VA Health Care System (EOVAHCS) is renovating a non-medical facility into a new Tulsa VA Medical Center (VAMC). The facility requires Patient Beds with Mattresses for the Intensive Care Unit (ICU), Medical Surgical Unit and Rehab Unit.

The Patient Beds with Mattresses will be manufactured by Hill-Rom Company, Inc. This specific bed is essential because of its features to help regulate the patient’s body temperature by either lowering (therapeutic hypothermia) or raising (hyperthermia) the body temperature for therapeutic purposes. The therapeutic temperature control contributes to the patient’s healing and recovery process.

Hill-Rom Centrella Smart + beds are designed for patient use, and are also used in long-term care, med-surg areas and step-down units of an acute hospital. Targeted Pressure Redistribution reduces peak sacral pressure by 21%. Key components include easily understandable verbal prompts that caution caregivers and patients. In addition, there is a Heart Rate and Respiratory Rate Monitoring, which provides continuous monitoring of heart rate and respiratory rate to enable earlier detection of patient deterioration.

This scope includes delivery and installation of the equipment. The provision of products, installation, and training must be accomplished by the contractor in an effective, efficient, and safe manner, while contributing the VA Mission. The requirement will be Brand Name Only. The Patient Beds with Mattresses (Centrella Smart + beds) are sold only by the manufacturer, Hill-Rom Company, Inc.

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Acquisition ID#: 36C24W-25-AP-0169

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

Centrella Smart + beds The estimated value of the proposed action is $1,907,878.68 Period of Performance: 11/25/25-03/26/26

The Eastern Oklahoma VA Health Care System requires the exclusive use of Centrella Smart + beds to aid in the patient’s healing and recovery process. This bed is essential because it includes features to help regulate the patient’s body temperature. In addition, the bed improves clinical outcomes because of its specialized features, which includes minimizing falls, reducing pressure injury (bed sores), improved communication between patients and caregivers. The bed also is equipped with a 40” wide frame and surface. This feature is designed to provide the same recovery and healing process for obese patients.

Centrella Smart + beds focus on managing the patient's microclimate by removing excess heat and moisture from the skin. This helps prevent issues like skin maceration and promotes a more comfortable environment. By managing the microclimate, the Centrella Smart+ bed contributes to overall patient comfort and can help reduce the risk of skin issues related to temperature and moisture.

The Centrella Smart + can be from manufacturer, Hill-Rom Company, Inc. The beds can also be purchased from two authorized SDVOSB resellers: DiSorb Systems, Inc and GEO-Med, LLC.

The Contractor shall furnish all contract oversight, management, technically trained Personnel, OEM authorizations to support provision and installation of OEM products, applicable licenses, uniforms, equipment, tools, materials, supplies, storage, insurances, shipping and delivery costs, and transportation necessary to provide the products, and associated installation, for EOVAHCS.

Quantity of Each Item:

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 reasons below:

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Acquisition ID#: 36C24W-25-AP-0169

( X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) 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):

The Eastern Oklahoma VA Health Care System has determined that the Centrella Smart+ beds manufactured by Hill-Rom Company, Inc. is the only capable, essential product that meets the facility’s requirement for Patient Beds with Mattresses. The selection of Hill-Rom Company, Inc., as a Brand Name provider is essential to maintain operational efficiency, avoid additional costs and delays that are associated with integrating an alternate product.

Alternative Item:

Accepting an alternative product will result in accrued costs, which may not be easily recovered. An alternative model will increase costs because of the type of upgrade and/or installation kits that will be required. Thus, a brand produced by a single company is required as opposed to allowing free and open competition.

The contractor must provide and maintain for the life of the contract, written certification from the Original Equipment Manufacturer (OEM) that authorizes the Contractor to provide and assemble the products. The original manufacture is Hill-Rom Company, Inc. An alternative product will require the contractor to provide additional training on an unknown product, and place unforeseen liability on EOVAHCS. Furthermore, alternative brands are not comparable with Centrella Smart+ beds and do not provide the same technological features and therapeutic features that help regulate the patient’s body temperature. Acquiring an alternate brand will result in upgrades and will substantially increase unrecoverable costs to the Government.

This request is to purchase patient beds in support of the new Tulsa VA Medical Center. This equipment package includes the installation and training of Hill-Rom patient beds and pressure reduction mattresses. Currently, Tulsa VA Medical Center has no beds for the new building. To maintain standardization and continuity for staff, the procurement of the same equipment throughout the Eastern Oklahoma VA Health Care System (EOVAHCS) is critical.

Accepting a brand other than Centrella Smart+ beds creates an opportunity for unacceptable delays, which will impact EOVAHCS ability to provide therapeutic care to the patients.

Upgrading to another brand will require intense research, planning, and implementation.

Such delays are unacceptable and critical in the patient’s healing and recovery process.

Centrella Smart+ beds are highly specialized, and an alternative item will result in duplication of cost to the Government that is not expected to be recovered through competition. The use of such descriptions in the acquisition is essential to the Government’s

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Acquisition ID#: 36C24W-25-AP-0169 requirements, thereby precluding consideration of a product manufactured by another company.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

The requirement for Centrella Smart+ beds brand is specific and essential to the EOVAHCS need for the successful recovery process for the patients. A brand-name justification was determined necessary due to the proprietary nature of the product’s technology and therapeutic temperature controls, which is not interchangeable with other brands. Centrella Smart+ beds can be purchased from the manufacturer, Hill-Rom Company, Inc. The beds can also be purchased from two authorized SDVOSB resellers: DiSorb Systems, Inc and GEO- Med, LLC.

On June 11, 2025, an Request for Information email was sent to the manufacturer, Hill-Rom Company, INC inquiring if their company was the only authorized sellers of the Centrella Snart+ beds and if there are any SDVOSB/SB resellers. Hill-Rom Company, INC stated there are two SDVOSB (DiSorb Systems, Inc and GEO-Med, LLC) authorized resellers of their product. On June 12, 2025, an email was sent DiSorb Systems, Inc and GEO-Med, LLC inquiring if they are authorized re-sellers of Centrella Smart+ beds. Both SDVOSB re-sellers confirmed they are re-sellers and submitted authorized re-seller documentation.

A Sources Sought Notice was posted on June 15, 2025. The response due date was June 25, 2025. The results are as follows: One (1) SDVOSB vendor, one (1) small/SDB vendor and one (1) LB vendor. The findings are as follows:

Maness Veteran Medical, LLC (SDVOSB) responded that they can offer an alternate/equal items. The vendor has an active contract (36F79725D0083) on FSS and has similar items;

however, the items that being requested are not under this contract. The vendor does not demonstrate the ability to fulfill the requirement for patient beds and mattresses.

CW Builders Group LLC (SB/SDB) responded that they are actively exploring a partnership with the authorized distributor to supply the items; however, the vendor does not demonstrate the capability to fulfill the requirement for patient beds and mattresses.

Hill-Rom Company, INC (LB) responded that their business is OEM and sole source manufacturer of the exact match brand name only Centrella, Compella beds. The vendor has an active FSS contract (36F79721D0160).

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

Fair and Reasonable cost will be based on FAR 13.106-3. Price reasonableness will be based on competitive quotation or offers, comparison of the proposed price with prices on previous purchases, comparison with similar items in a related industry, comparison to the Independent Government Cost Estimate (IGCE), and comparison to previously awarded contracts such as the Federal Supply Schedule. The best value will be selected based on the technically acceptable offer with the lowest price.

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Acquisition ID#: 36C24W-25-AP-0169

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Market Research was conducted in accordance with FAR Part 10. NAICS Code 339113 was used with keywords “Beds and Mattresses, Hospital Beds and Mattresses.” Additional market research was conducted through GSA Advantage, FPDS, NAC, SAM.gov/Contract Opportunities, VA Master Supply Chain Catalog, and Strategic Acquisition Center (SAC).

The results are as follows:

Using the keywords above, a search was conducted with FPDS, which resulted in three (3) LB, four (4) SB, and one (1) SDVOSB). The large business vendors demonstrate the ability to patient beds and mattresses, but do not demonstrate the ability to fulfill the specified requirement for beds and mattresses that are being requested. The small business vendors demonstrate the ability to acquire hospital beds and mattresses; however, they do not demonstrate the ability to fulfill the specified requirement for beds and mattresses. The SDVOSB vendor demonstrates the ability to acquire hospital beds and mattresses, but they do not demonstrate the ability to fulfill the specified requirement for patient beds and mattresses. The beds and mattresses offered do not have salient characteristics of the Centrella, Compella beds.

The same keywords were used conducting a search with GSA Advantage. This resulted in one (1) LB (Hill-Rom, INC) who demonstrated the ability to fulfill the requirement for patient beds and mattresses.

Using the same keywords above, a search was conducted with SBA DSBS, which resulted in zero (0) vendors.

Keywords “beds and mattresses,” hospital beds and mattresses were used conducting a search with VA Supply Chain Master Catalog, which resulted in one (1) LB (Hill-Rom, INC) who demonstrated the ability to fulfill the requirement for patient beds and mattresses.

Using the same keywords above, a search was conducted with NAC. This resulted in one (1) LB vendor vendors (Hill-Rom Company, INC) who demonstrated the ability to fulfill the requirement for patient beds and mattresses.

The Government estimate for supplies is over the micro-purchase threshold. The Government estimate for the supplies is $50,000 or more. This requirement is not a small business set-aside. Supplies are not being bought for outside the U.S. Information technology that is a commercial product is not being bought. Items are not being bought from the nonavailability list. The agency did not determine that a domestic preference would be inconsistent with the public interest or have an agreement with a foreign Government that provides a blanket exception to the Buy American statue. Items are not being bought for commissary resale.

Domestic end items are available per Federal Supply Schedule (FSS).

FAR 25.103(b)(2) applies to this requirement. The items are available on FSS; however, the authorized re-sellers do not have a Federal Supply Schedule. Thus, this will be an open market solicitation. The two SDVOSB re-sellers cannot meet the Non-Manufacturer Rule (NMR) because of the dollar value and the manufacturer is a large business.

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Acquisition ID#: 36C24W-25-AP-0169

As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

Full and Open Competition is not feasible since Hill-Rom Company, INC is the sole proprietor and restricts who can sell their products. As a result, competition will be restricted between Hill-Rom Company, INC., and their authorized distributor, DiSorb Systems, Inc & GEO-Med, LLC.

Accepting another brand, other than Centrella Smart + beds, will compromise the operational integrity of EOVAHCS to properly care and treat their patients. The specialized features promote skin integrity and improve clinical outcomes. An alternative brand will require the facility to jeopardize its reputation and knowingly, settle for a brand that will not produce the desired clinical outcomes. This will result in substantial duplication of cost and unacceptable delays that could not be expected to be recovered through competition and unacceptable delays in fulfilling this requirement.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

Hill-Rom Company, INC - (able to provide Brand Name Centrella Smart+ beds) DiSorb Systems, Inc - (able to provide Brand Name Centrella Smart+ beds) GEO-Med, LLC - (able to provide Brand Name Centrella Smart+ beds) Maness Veteran Medical, LLC - (offered an altenate/equal item)

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:

A pre-solicitation was issued to assess the potential for increased competition. Based on the Sources Sought Notice and market research that has been conducted, it is unlikely that the outcome will change. This brand (Centrella Smart+ beds) will improve clinical outcomes and patient recovery through therapeutic therapy.

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Acquisition ID#: 36C24W-25-AP-0169

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.

Michael Galow Date Supervisor Biomedical Equipment Facility Eastern Oklahoma VA Health Care 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.

Dewana Raynor Date Contracting Officer

RPOW/Activations Branch I

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.

Jeffrey Crysler Date Branch Chief

c. Division Chief Activations (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Antonio Jackson Date Division Chief https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

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Acquisition ID#: 36C24W-25-AP-0169

d. 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 ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Curtis M. Jordan Date Executive Director, Regional Procurement Office West VHA Head of Contracting Activity (HCA)