P03 - JA- Attachment 1 FAR 13.5 Sole Source Justification - Over SAT - CLC Lift Upgrades - 642-1_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: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN

ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C244-23-AP-3384

1. Contracting Activity:

Department of Veterans Affairs, Network Contracting Office 4, Commodities 1, 1400 Black Horse Hill Road, Coatesville, PA 19320. Purchase Request # 642-23-2-315-0171.

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

This Justifcation and approval is a sole source requirement for a firm-fixed price contract to upgrade and replace Arjo Overhead Patient Lifts throughout the VA Philadelphia Medical Center. The procurement will require 67 upgrades and replcements and 17 new installations. The Philadelphia VA Medical Center (VAMC)requires full installation of new overhead patient lifts for the first completed phase of the Community Living Center (CLC) project. The CLC will require both bariatric and non-bariatric overhead lift systems. Arjo ceiling struts were already installed as part of the ongoing construction project. Additionally, a prior purchase of these lifts included the necessary steelwork for this space. This procurement covers any missing steel needed for rail positional changes, any strut work required for new drawing changes, motors (currently stored ones are aged), and infection control hanger bars. This procurement must be compatible with the existing available steel. The lifts are to be installled at the Philadelphia VAMC and must be installed by Original Equipment Manufacturer (OEM) trained engineers. This procurement is 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. The estimated value of the proposed contract action is

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

Arjo overhead patient lift systems are currently being utilized throughout Philadelphia VAMC. These building integrated systems are used to support patient transfers safely between the bed, chair, stretcher, and procedural table. Additionally, these lifts are utilized for routine patient handling tasks that require the generation of excessive force, such as repositioning a patient in a bed by pushing or pulling. Per VHA Directive 1611: Safe Patient Handling and Mobility (SPHM) Program, SPHM technology has been proven to reduce manual patient handling injuries and is a required technology within all VA Medical Centers.

The current fleet of Arjo Inc. overhead patient lift systems in use at VAPHI are reaching or exceed their end of life per the OEM which requires a full replacement of these lifts. This procurement is for the replacement of 67 upgrades and replcements and 17 new installations to include motors, hangar bars, and scales (as depicted below). The CLC will require both bariatric and non-bariatric overhead lift systems .These items will be installed utilizing the current Arjo ceiling lift track in each room. The project period of performance will be twelve months, which covers upgrade/replacement of all existing overhead patient lift systems that must have mandatory components replaced from age. It has become a safe patient handling concern at the facility level with patient transfers because

Effective Date: 02/01/2022 Page 2 of 4 of the age and life of these lifts. These units must be replaced to prevent the potential failure leading to patient and staff injury.

Item # Description/Part Number*

Qty

1 Patient Lift Upgrades and Replacements: MOTORS 1 2 Patient Lift Upgrades and Replacements: HANGER BARS AND ACCESSORIES 1 3 Patient Lift Upgrades and Replacements: TRACK ASSEMBLY 1 4 Patient Lift Upgrades and Replacements: HARDWARE KIT 1 5 Patient Lift Upgrades and Replacements: FEES AND INSTALLATION 1 6 Patient Lift New Installations: MOTORS 1 7 Patient Lift New Installations: HANGER BARS AND ACCESSORIES 1 8 Patient Lift New Installations: TRACK ASSEMBLY 1 9 Patient Lift New Installations: HARDWARE KIT 1

10 Patient Lift New Installations: FEES AND INSTALLATION 1

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):

Arjo, Inc., is the sole manufacturer of Arjo lifts. A proprietary letter is filed in the eCMS Briefcase.

Arjo, Inc., provided one (1) SDVOSB authorized distributor of Arjo Lifts, Alliant Enterprises, LLC, dba Alliant Healthcare Products.

Arjo Inc. overhead patient lift systems are currently being utilized throughout Philadelphia VAMC. In order to ensure that all systems are working as intended to provide the best care possible for our patients, anyone working on the system needs to be OEM-certified. The requirements are brand specific due to the original steelwork rail and track infrastructure that has been installed to date.

The infrastructure was designed and installed for an Arjo-specific motor/patient lift system. The track system in use has a lifetime manufactures warranty. Utilization of the newly installed Arjo, Inc.

Effective Date: 02/01/2022 Page 3 of 4 ceiling lift motors will maintain the current warranty inplace while the use of any other manufacturers motor would void this warranty. Arjo equipment is the only lift system capable of fulfilling the current equipment need at the Philadelphia VAMC. No other manufacturer can supply a lift system that will be compatible with the steelwork and infrastructure that has been installed to date. The VAMC also utilizes Arjo, Inc. slings on the current ceiling lift and floor lift models, if they were to change manufacturers or product this would require the replacement of over 500 reusable slings which would add a significant cost to this project. Additionally, 95% of the overhead patient lifts installed at the VAMC are Arjo. A different manufacturer would require the training of over 900+ nursing staff to accommodate this change in practice.. Therefore, any new patient lifts that need to be added also need to be Arjo brand lifts to maintain standardization of the lifts across the facility.

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

Market research was conducted on the internet, SBA, FPDS, and on historical procurements. Results of the research revealed that there are only two businesss that can provide the needed patient lifts.

Arjo Inc. which is the manufacturer, and Alliant a SDVOSB that is the only authorized distributor for Arjo Inc. In accordance with the Nonmanufacturer Rule, since there is no waiver in place a SB set-aside cannot be used for this procurement, and because of this rule this resulted in a decision to sole source directly to the manufacturer.

Based on VAPHS historical utilization of Arjo lifts and equipment throughout its facilities, an Intent to Sole Source will be posted to Contract Opportunities for a period of 10 business days. Procuring other than the requested lift system would not be cost effective.

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

Reasonable:

Based on market research, Arjo Inc’s quote received 6/3/2023, and the Independent Government Cost Estimate (IGCE), it is determined that the anticipated price received from Arjo Inc. is fair and reasonable based on current market conditions and FAR 13.106-3 (2)(ii) comparison of the proposed price with prices found reasonable on previous purchases, (iii) current price list, and (vi) comparison to an independent Government estimate.

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; based on the proprietary nature of the equipment, results of the research show that there is no authority to set-aside the procurement. The functionality and needs required by VAPHS are Arjo Lifts and components being the only equipment that can be utilized.

Arjo, Inc., is the sole manufacturer of Arjo lifts, Arjo, Inc. Even though Alliant is authorized to distribute Arjo products, the NonManufacturer Rule does not permit an award to be made to Alliant.

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:

- Arjo, Inc.,

- Alliant Enterprises, LLC, dba Alliant Healthcare Products

Effective Date: 02/01/2022 Page 4 of 4

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:

Although Arjo, Inc., is the original equipment manufacturer (OEM), VA will contact the OEM to determine whether they have added any additional SDVOSB or VOSB distributors, in the future.

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.

Andrea Fiala Date Biomedical Engineer Philadelphia VA Medical Center

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.

Andrea Aultman-Smith Date Contracting Officer, Commodities 1 Network Contracting Officer 4

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.

Brandi Shellhamer Date Branch Chief, Commodities 1

Network Contracting Office 4

BRANDI

SHELLHAMMER

Digitally signed by

BRANDI SHELLHAMMER

Date: 2023.06.09 09:45:48 -04'00'

ANDREA

AULTMAN-

SMITH

Digitally signed by

ANDREA AULTMAN-SMITH

Date: 2023.06.09 13:59:49 -04'00'

ANDREA A

FIALA 3494346

Digitally signed by

ANDREA A FIALA 3494346

Date: 2023.06.13 09:36:52 -04'00'