P03 FAR13.5_JA_OVER_SAT Varian True Beam_36C242-20-AP-2435.pdf

VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 4 Original Date: 08/30/17 Revision 02 Date: 08/04/2020

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID:36C242-20-AP-2435 Transaction: 528-21-1-8803-0011

1. Contracting Activity: Department of Veterans Affairs, VISN 02 Stratton VA Medical Center 113

Holland Ave, Albany NY 12208

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

The Stratton VA Medical Center Purchase the Varian Equipment in October of 2019. This equipment has a one-year warranty that is expiring. The facility seeks a base plus option contract for Preventative Maintenance, Inspection, Repair and Software Support to continue upkeep of the equipment.

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

The Stratton VAMC is currently seeking Preventative Maintenance and Inspection of Varian, Aria, Eclipse, and Velocity. The Preventative Maintenance includes safety modifications, software upgrades as they are released, training, hardware and supplies, and technical support.The estimated amount is $204,402.00 for the base $1,022, 005.00 for total with all options.

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

( ) 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):

Varian Medical Systems is the Original Equipment Manufacturer for the equipment which require maintenance and support for this requirement. The Velocity, Aria, and Eclipse are proprietary to Varian Medical Systems. The specifications of this equipment and the software on which they operate are also proprietary. Varian Medical Systems does not currently authorize technicians

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Revision 02 Date: 08/04/2020 outside of their company to maintain their equipment or engage their software platform. As the sole company with the expertise and knowledge to maintain the equipment on site at the Stratton VA Medical Center, they are uniquely qualified to provide for the requirement. They are also the sole manager of the software and their technicians are the only technicians in the industry with access to software support keys and updates.

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

Market research in VIP using NACIS Code “811219” and description keyword “Varian” & “software”.

The results showed (29) SDVOSB, (51) VOSB that are potentially capable to perform services. Market research in SBA’s Dynamic Small business Search (DSBS) using NAICS code “811219” and keyword “Varian” & “software”. The results were (0) vendors available to provided service. Market research in Federal Procurement Data System (FPDS). The results indicate contracts for service for preventive maintenance and software were solely performed through Varian Medical system. A Request for Information was issued to beta.sam.gov in the form of an intent to sole source notice 36C24220Q0927. This intent to sole source received (0) vendor reply.

Varian Medical provide a proprietary letter to indicate they do not authorize outside sources to maintain the equipment which they manufacture. The market research concludes Varian Medical is the original equipment manufacturer (OEM). They are uniquely capable to provide preventive maintenance services, software support, inspection and repair for Varian’s Clinics and TrueBeam Delivery System products (including Calypso and RPM Gating) and ARIA, Eclipse.

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

The price offered by Varian of $204,402.00 for the base and $1,022,005.00 for base and all options.

This price is for preventative maintenance, inspection, repair and software support. This is a standard service package offered by Varian for upkeep of all of their proprietary equipment. The service covers the Aria, the Eclipse SW, the Velocity SW, and all components and software.

Eight hours of onsite training for all staff on each piece of equipment and product application that accompanies the systems is included. This amounts to 120 hours of training for each member of the staff that will be operating the equipment. The cost of this training is $13,324.00, or $110 per hour for an unlimited number of personnel to be trained on the equipment. The Contracting Officer finds this price to be fair and reasonable.

Annual Preventative Maintenance, mandatory upgrades to the equipment and all associated software, and onsite labor for any and all repairs not due to negligence are also included. These services are standard.

A search of FPDS found that these services for the Aria alone have been awarded for $62,875.00.

Services for all Aria have been awarded for $235,558.00 Services for the Aria and the Eclipse have been awarded for $126,369.00, $181,290.00 and $99,694.00. The average cost for service for the equipment on our requirement is $135,784. The higher costs can be attributed to the ancillary devices and services that can be added on as the buyer desires. The cost offered by Varian for our

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Revision 02 Date: 08/04/2020 requirement for the Varia and Eclipse support is $184,554.00. This is on the higher end of the spectrum for these two pieces of equipment. However, our requirement includes integration of the Aria and the Eclipse RO Base, 31 disease management smart spaces for the Aria, Eclipse access over citrixand a number of other Clinical and Non-Clinical add ons which would justify a higher price for services. The Contracting Officer finds this price to be fair and reasonable.

The cost of the velocity AI essentials for our requirement is $4,624.00. The contracting officer could not find evidence of this software support being purchased. However, the price range is in line with software support for other RO systems utilized. The Contracting Officer finds this price fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted:

Market research in VIP using NACIS Code “811219” and description keyword “Varian” & “software”.

The results showed (29) SDVOSB, (51) VOSB that are potentially capable to perform services. Market research in SBA’s Dynamic Small business Search (DSBS) using NAICS code “811219” and keyword “Varian” & “software”. The results were (0) vendors available to provided service. Market research in Federal Procurement Data System (FPDS). The results indicate contracts for service for preventive maintenance and software were solely performed through Varian Medical system. A Request for Information was issued to beta.sam.gov in the form of an intent to sole source notice 36C24220Q0927. This intent to sole source received (0) vendor reply.

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

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

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:

To ensure that the government seeks competition for services for all procurements, the contracting officer will conduct market research for each follow on requirement should this services needs continue beyond the terms stated. The purpose of this market research will be to identify any new or current contractors available to meet the needs of the facility.

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.

Esmeralda Ramirez Date Biomedical Engineer Stratton VA Medical Center

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

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Revision 02 Date: 08/04/2020

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.

Anthony Murray Date Contracting Officer NCO 2 Contracting Office, Albany

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Jadwiga Kustra Division Chief Date NCO 2 Contracting Office, Bronx

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 ($700K to $7 million (or $13.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Joseph Maletta Date VHA Head of Contracting Activity (HCA)