P03 JA 36C260-21-AP-2027_WaveMark.docx

VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Request for Sole Source Justification >SAT-$7.5M under FAR13.5

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C260-21-AP-2027

1. Contracting Activity: Department of Veterans Affairs, Veterans Healthcare Administration, Regional Procurement Office West, Network Contracting Office 20 on behalf of, VA Puget Sound Health Care System (VAPSHCS), Logistics, 663-21-1-9961-0258

2. Nature and/or Description of the Action Being Processed: The VAPSHCS, has a new firm fixed price purchase order requirement for WaveMark Supply Inventory Management System. The proposed procurement is for Cardinal Health WaveMark cabinets to support VAPSHCS Hybrid OR to support the cardiac surgery and vascular surgery supplies.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: VAPSHCS requires seven (7) WaveMark cabinets for the Hybrid OR to support the cardiac surgery and vascular surgery supplies. In addition to the 7 cabinets WaveMark will provide ongoing service to the cabinets after initial installation for a base period and four option years. The estimated base value of $395,328.00 with a life of $620,848.00 including Base + four (4) option years of support. The base period of performance (POP) starting 09/30/2021 – 09/29/2022.

Total

$620,848.00

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): Cardinal Health WaveMark is the original manufacturer of the WaveMark Supply Inventory Management System. Cardinal Health WaveMark is the only source capable of providing the supplies and support/maintenance required at the level of quality required because the supplies and support/maintenance are unique and highly specialized. This is the only vendor who can support the cardiac surgery and vascular surgery supplies because of the interface with Cerner Supplies is with WaveMark. The required supplies are from WaveMark, as well as Cardiology currently uses WaveMark in the Cath Labs for supplies. More large hanging supplies are needed for the Hybrid OR, which the WaveMark cabinets can fully support. This will allow staff to utilize the manufacturer’s patented RFID/BARCODE/USP label to assist in tracking products as well as allow staff to add pertinent information such as expiration date, lot number and on hand quantities of products contained within the cabinets

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: No actions were taken by the agency, as this equipment is highly specialized in its ability to interface with Cerner Supplies, and its patented RFID/BARCODE/USP label to assist in tracking.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The estimated cost of the contract is anticipated to be fair and reasonable IAW FAR 13.106-3(a)(2)(ii). Other purchases for similar equipment and support/maintenance has been found fair and reasonable on previous purchases. 36C25019C0082 awarded on 01/24/2019 was an open market award, sole sourced to Cardianl Health WaveMark for $407,158.99. The difference in total cost reflects a difference in scale as this action also has support & maintenance.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: A search of VIP was conducted to determine if any SDVOSB/VOSB vendors who are registered under NAICS code 339113 and keyword “WaveMark”, this search populated zero positive results. A similar search was done on SBA using the same information, ending with the same result. FPDS was searched using key word “WaveMark Cabinets” to determine if any purchase for the same cabinets & support & maintenance, and it was discovered that all prior purchases were sole-sourced to Cardinal Health for WaveMark Cabinets. Cardinal Health WaveMark was contacted to discover if they have any third party distributors of any business size, they responded that they do not subcontract through any other vendors.

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: N/A

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: N/A, as the manufacture currently does not have an authorized vendor to distribute or provide support maintenance on their patented equipment.

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.

Title: Biomedical Engineer Facility: VAPCHCS

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.

Title: Contracting Officer - BSL Facility: NCO 20

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.

Title: Chief, Division I Facility: NCO 20

JOFOC Tracker # 2021-07-09T11:23:02

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 9 Original Date: 08/30/17 Revision 03 Date: 02/11/2021