P03 FAR 13.5 Sole Source Justification - Over SAT_Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

Effective Date: 11/15/24 Page 1 of 4

REVISION: 01

Acquisition ID#: 36C260-25-AP-0449

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C260-25-AP-0449

1. Contracting Activity: Department of Veterans Affairs, Regional Procurement Office West, Netowrk

Contracting Office 20 on behalf of Portland VA Healthcare System. Funding for this procurement action is provided through 2237 number 648-25-1-105-0014.

2. Nature and/or Description of the Action Being Processed: This procurement is for a new firm fixed-price Full Service maintenance and repair contract of Synaptive Modus V robotic digital microscope, BrightMatter Plan system, BrightMatter Guide system, and ImageDrive system 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 sill require a justification using the format of FAR 6.303-2. The proposed firm fixed price contract will provide on-site service with a Base Plus Two Option Years.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Portland VA Medical Center requires an on-site, full service maintenance and repair contract to ensure that all Synaptive Modus V robotic digital microscope, BrightMatter Plan system, BrightMatter Guide system, and ImageDrive system currently in service at the Portland are kept in proper operating condition and ready for use. This contract includes:

o Assistance with clinical use, o 24X telephone support within 30 minutes, o On-site support when telephone support is not successful, o On-site support within 24 hours, o Parts, labor, and travel for on-site support and planned maintenance, o 2 preventative maintenance and software health checks per year, o 95% uptime.

The total estimated value of the proposed action:

Base year 11/28/2024-11/27/2025 Option Year One 11/28/2025-11/27/2026 Option Year Two 11/28/2026-11/27/2027

Grand Total

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

Effective Date: 11/15/24 Page 2 of 4

Acquisition ID#: 36C260-25-AP-0449 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

( ) 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 Synaptive products are highly specialized, including proprietary software. These products can only be serviced by Original Equipment Manufacturer (OEM) authorized Technicians utilizing OEM replacement parts distributed by OEM authorized distributors IAW VAAR Clause 852.212-71.

This equipment is relied upon during surgical procedures, and as such has critical requirements for support: the availability of 24- hour telephone technical support, on-site support, troubleshooting support within 30 minutes, and planned maintenance & software updates performed per the Original Equipment Manufacturer (OEM) specifications. Fidelis Sustainability Distribution LLC has the ability, and authorization from the OEM, to ensure that these necessary services are provided.

Due to the need for OEM replacement parts award is required to include VAAR Clause 852.212-71 prohibiting grey market products. Therefore, only contractors providing documentation as an OEM authorized distributor can be considered for award. Only OEM authorized distributors can provide clinical applications support for the OR team. These services are only available through their SDVOSB authorized distributor, Fidelis Sustainability Distribution, LLC.

This procurement is authorized for sole source award to a certified SDVOSB IAW 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Government wide databases were searched for possible contract vehicles and sources of supply. FPDS was searched to for acquisition history and reveals that historically this service has been awarded sole source to Fidelis. There are no existing contract vehicles for this service. A statement of proprietary ownership has been provided and is in the contract file. Fidelis is the only authorized company to provide maintenance and support of the of this system.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: : IAW FAR 13.106-3(a)(2)(ii) the pricing provided by Fidelis, based on comparison to pricing provided in past purchase for similar services and the prior contracts for this same service. Pricing for the current proposed base plus two option year contract is per year. Both prior contracts, 36C26023P0079 and 36C26024P0109 were priced . In

Effective Date: 11/15/24 Page 3 of 4

REVISION: 01

Acquisition ID#: 36C260-25-AP-0449 addition, the current proposed contract adds value for the Government as is includes two priced options at the same price.

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 to satisfy the requirements of the FAR 10.002(b) collaboratively with NCO 20 Contracting and the Portland VAHCS Biomedical Engineering Department. Searches conducted of the commercial marketplace conclude that this requirement can only be met by the original equipment manufacturer’s authorized distributor for the required parts and services. A search of the VIP database identified 315 certified contractors for NAICS code 811210. However, due to the proprietary nature of the requirement and the OEM letter identifying Fidelis Sustainability Distribution, LLC, a registered SDVOSB, as the ONLY authorized distributor for this requirement, there is no reasonable expectation that additional SD/VOSB will be able to meet the requirement.

The Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future actions to be competed. Reviewing the market for similar maintenance indicates that retaining rights to this type of system is common within the industry.

9. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Fidelis Sustainability Distribution, LLC

10. 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: None at this time. The OEM retains sole rights to maintain their equipment, with only one authorized distributor.

11. 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.

Date

Name:

Title:

Facility: Portland

12. 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.

Gregory G. Watson Date Contracting Officer

NCO20

11/22/2024

GORDON

HOSODA

Digitally signed by

GORDON HOSODA

Date: 2024.11.22 09:04:27 -08'00'

GREGORY

WATSON

Digitally signed by GREGORY

WATSON

Date: 2024.11.25 07:38:21 -08'00'

Effective Date: 11/15/24 Page 4 of 4

Acquisition ID#: 36C260-25-AP-0449

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.

Krystal Weeks Date Branch Chief, Medical Equipment

NCO20

RPO West J&A Tracker #

KRYSTAL WEEKS

Digitally signed by KRYSTAL

WEEKS

Date: 2024.11.22 09:38:11 -08'00'