P03 - JA - Exception to Fair Opportunity - Siemens VAGLASH Signed.pdf

Indefinite-Delivery Contracts

Request for Exception to Fair Opportunity

VHAPM Part 816.5—Indefinite-Delivery Contracts Original Date: 08/30/2017 Date: 02/19/2021 Rev 06

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID: 36C262-21-AP-5561

1. Contracting Activity:

Department of Veterans Affairs

Network Contracting Office (NCO) 22

4811 Airport Plaza Drive Suite 600

Long Beach, CA 90815

Requiring Activity:

Department of Veterans Affairs

VA Greater Los Angeles Healthcare System

11301 Wilshire Blvd.

Los Angeles, CA 90073

The Purchase Request Number is 691-22-1-208-0013 and this request is for Preventative Maintenance

Inspection (PMI) and Corrective Services for Siemens High-Tech Medical Equipment (HTME)

Imaging Systems located at the VA Greater Los Angeles Healthcare System (VAGLAHS).

2. Description of Action:

This acquisition is conducted under the National Acquisition Center’s (NAC) High-Tech Medical

Equipment (HTME) program. The proposed sole source task order against the NAC contract

SPE2D1-17-D-0023 is for a one-year Firm-Fixed Price (FFP) task order plus three (3) option years, for PMI and Corrective Services, and applicable software updates for the Government-

Owned Siemens HTME Imaging Systems. NAC Contract Number SPE2D1-17-D-0023 expires on

02/27/2027.

3. Description of Services:

The proposed action is to provide all necessary labor, materials, supplies, parts, and software updates

(needed for the general operation of the equipment) to provide PMI and corrective services for Siemens

HTME Imaging Systems at the Radiology Service Department located at VAGLAHS. The proposed contractor will perform onsite preventive/corrective maintenance, inspections and, software updates to the equipment including the Magnetom Systems, Somatom Definition Force System and the Biograph mCT System. These highly specialized equipment are essential to the operation of the hospital and the continuous healthcare services to provide CT, MRI and Radiography services to our Veterans. This request is for a Base Year and Three (3) Options Years:

Base Year: $1,715,401.54

Option Year 1: $1,705,401.54

Option Year 2: $1,705,401.54

Option Year 3: $1,695,401.54 Total: $6,821,606.16

VHAPM Part 816.5—Indefinite-Delivery Contracts Original Date: 08/30/2017 Date: 02/19/2021 Rev 06

4. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section 41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) Subpart

16.505(b)(2)(i)(B).

5. Rationale Supporting Use of Authority Cited Above:

Siemens Medical Solution is the Original Equipment Manufacturer (OEM) of VAGLAHS’ Siemens imaging systems. Siemens Medical Solution owns all proprietary rights to software systems and parts used with the imaging systems. All PMI and corrective services of the equipment requires access to proprietary systems owned by Siemens Medical Solution. Due to this proprietary nature of the imaging systems, OEM parts and services must be used for maintenance requirements. Furthermore, awarding to another source would require a steep learning curve while gaining familiarity with HTME and they will not be able to update the software equipment nor provide the proper parts needed to service the equipment.

6. Efforts to Obtain Competition:

Market research was conducted, details of which are in the market research section of this document.

This effort did not yield any additional sources that can meet the Government’s requirements. There is no competition anticipated for this acquisition. In accordance with FAR 5.301 and 16.505(b)(2), this action will be synopsized at award on the Federal Business Opportunities Page (FBO) and the justification will be made publicly available.

7. Actions to Increase Competition:

The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

8. Market Research:

In accordance with FAR 10.001, Market Research reveals that Siemens Medical Solution is the OEM and owns all proprietary rights to software and parts used for the imaging systems. Market Research also reveals numerous contracts awarded against the Siemens Medical Solution NAC contract. As verified through VA’s VIP Database, there are no capable SDVOSB/VOSBs that can meet this requirement. The Siemens Medical Solution Imaging systems that require the requesting services are included in the VA’s NAC HTME contract with Siemens Medical Solution, SPE2D1-17-D-0023.

9. Other Facts:

These systems are used extensively by VAGLAHS’ Radiology Service Department for diagnostic imaging services, nuclear medicine services, and interventional radiology. Downtime of these devices will create a significant negative impact on Radiology’s ability to provide clinical services to their patients. They require preventive maintenance service and continual corrective maintenance that Biomedical Engineering is unable to provide.

VHAPM Part 816.5—Indefinite-Delivery Contracts Original Date: 08/30/2017 Date: 02/19/2021 Rev 06

10. Technical and Requirements Certification:

I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Avery Newsom Date Biomedical Engineer

VA Greater Los Angeles Healthcare System

11. Determination that Anticipated Cost is Fair and Reasonable:

A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The NAC has determined and negotiated that prices are fair and reasonable. Additional discounted prices will be requested before award of the task order to ensure the best value to the

Government.

12. Contracting Officer's Certification (required):

I certify that the foregoing justification is accurate and complete to the best of my knowledge.

Michael Cordeiro Date Contacting Officer

Network 22 Long Beach Contracting Office

13. Approvals in accordance with VHAPM Part 816.505 Indefinite Delivery Contracts: Ordering.

a. 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.

Date Chelsea Black Acting Director of Contracting Network 22 Long Beach Contracting Office https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_816.505.aspx

VHAPM Part 816.5—Indefinite-Delivery Contracts Original Date: 08/30/2017 Date: 02/19/2021 Rev 06

HIGHER LEVEL APPROVAL (Required for orders over $750,000):

b. VHA Advocate for Competition/Head of Contracting Activity (HCA) REVIEW AND

APPROVAL (over $750,000 to $15 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for other than full and open competition.

Curtis M. Jordan Executive Director, Regional Procurement Office West Veterans Health Administration

Date