P03 JA - 36C260-22-AP-2817 MGC equipment maintenance.pdf

Part 806.3 Other Than Full and Open Competition (OFOC)

Rev: 13 Effective Date: 02/01/22 Page 1 of 2

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C260‐22‐AP‐2817

1. Contracting Activity: Department of Veterans Affairs, VISN 20, all VA Medical Centers in VISN 20:

Full Service and Maintenanct of VISN 20 owned MGC Diagnostics Systems.

2237 #: 496‐22‐4‐287‐0057

2. Nature and/or Description of the Action Being Processed: The VA Medical Centers in VISN 20 requires a firm‐fixed, price service contract for equipment and software maintenance to include on‐ site preventative maintenance, diagnostics, phone support, software updates and on‐site repairs for Medical Graphics Corp pulmonary function equipment including the Plethysmograph, Metabolic Stress Testing System, Gas Exchange and BreezeSuite HL7 Interface to Electronic Health Records

(EHR).

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Medical Graphics Pulmonary Function Testing equipment requires yearly maintenance and part replacement by a qualified service technician. The manufacturer, Med Graphics Corp (MGC) Diagnostics, does not offer service training to allow Biomedical Engineering staff to perform the work. The reliable and accurate operation of this equipment is xonsidered critical to the health and safety of patients.

Period of Performance will be September 1st, 2022 through August 31st, 2023 with one option period.

Estimated value: $256,620.48

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(1), as implemented by FAR 6.302‐1.

( X ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302‐1;

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 Original Equipment Manufacturer (OEM), MGC Diagnostics Corporation, is the sole source for providing proprietary parts, diagnostics, maintenance and service to these systems. MGC Diagnostics systems are considered highly specialized and proprietary. MGC Diagnostics Corp has provided a statement of proprietary ownership. It would not be cost efficient to consider replacing this equipment.

Accordingly, MGC Diagnostics is the only firm capable of providing the services described above without the Veteran’s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The OEM was contactd and provided documentation that supports they are the sole authorized service provider for these systems. They do not have authorized agents and

Part 806.3 Other Than Full and Open Competition (OFOC)

Rev: 13 Effective Date: 02/01/22 Page 2 of 2 retain full proprietary rights to this system. Reviewing the market for similar maintenance indicates that retaining rights to this type of system is common within the industry.

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

Reasonable: Cost have been determined fair and reasonable based on commercial price lists. The prices offered are the same for all users of Pulmonary Function testing equipment. Upon award prices will again be reviewed and determined 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 resulted in only one vendor authorized to perform full service and maintenance on this pulmonary systems. MGC Diagnostics Corp has not acknowledged any third parties to service and maintain these systems. Due to proprietary rights, VISN 20 has concluded that MGC Diagnostics can provide the best and most qualified service for these systems as they are the only authorized provider. A VIP search resulted in 341 possible vendors under NAICS Code 811219 however due to proprietary rights held by the manufacturer no SDVOSB or VOSB can perform the work. Furthermore, a Notice to Sole Source was posted on beta.SAM with no responses other than the OEM. Further actions will be reviewed with respect to competition in the marketplace.

9. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: MGC Diagnostics

Corporation is the only company that can perform the work.

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: Further actions will be reviewed with respect to competition in the marketplace. However as long as this is proprietary to the manufacturer and they do not allow other companies rights to provide service this will be a single source which is common for highly specialized system maintenance in the marketplace.

11. 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.

Jared P Zinsmeister Contracting Officer

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.

Brian M Corey Branch Chief

RPO West Tracking #: 2022‐06‐29T10_05_35