P03 JA - Final Approved.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification >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: 36C250-23-AP-5821

1. Contracting Activity: Department of Veterans Affairs, VISN 10, LTC Charles S. Kettles VA Medical

Center, 2215 Fuller Road, Ann Arbor, MI 48105. The 2237 number is 506-24-2-1527-0024.

2. Nature and/or Description of the Action Being Processed: This is a request for a new firm-fixed price contract to Varian Medical Systems (3100 Hansen Way, Palo Alto, CA 94304; 800-544-7450).

FAR 13.5 Simplified Procedures for Certain Commercial Items: In accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements.

3. Description of Supplies/Services Required to Meet the Agency�s Needs: Software maintenance and hosting services on the software serving the Varian Medical Linear Accelerator System that is located at the LTC Charles S. Kettles VA Medical Center Radiation Oncology Service. This system is utilized for patient data management and treatment planning. The contractor will provide maintenance of the software and hardware to include: system components and licensing, backup and snapshot management, antivirus software, remote system monitoring, infrastructure software upgrades, and anti-obsolescence of hardware and software to ensure the system is kept at required performance levels. This system is a unique tool that is vital to the LTC Charles S. Kettles VA Medical Center�s infrastructure due to the patient data management and treatment planning. Total aggregate cost of base plus four (4) option years is $1,735,500.00. Period of performance will be 3/15/2024 � 3/14/2029.

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 only firm in existence capable of providing the hardware and service support implementation described in Section III above without the Veteran�s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competion. There would be

Effective Date: 02/01/2022 Page 2 of 4 unacceptable delays in fulfilling this requirement though a different source. This is the only vendor found through market research that offers this solution. The closest competitors are Siemens and Philips and they do not offer a solution like Varian Medical Systems. Also, Varian Medical Systems has the proprietary software and hardware currently in use with the linear accelerators with which this implementation must interface. It is imperative to keep the system functioning at its best in order to provide Radiation Oncology services to our veteran patients, and at this time it can only be achieved through Varian Medical System�s full implementation solution.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A sources sought announcement was issued on SAM.gov (36C25024Q0016), and three responses were received; A&B Technical, LLC (SDVOSB) and Regan Technologies Corporation (SDVOSB), and Varian Medical Systems (Large Business). Even though interest was expressed by those entities, Varian Medical Systems uses proprietary Varian technology. Only Varian Medical Systems can provide and install Varian software upgrades and firmware patches for Varian products.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated cost to the Government will be determined to be fair and reasonable through comparison with the previous contract with Varian Medical Systems for identical services.

36C25022P0546 listed a price of $24,900.00/month for the software hosting services. An RFQ will be sent to Varian Medical Systems for their completion, and the Contracting Officer will compare the breakdown of expenditures in the RFQ response to the previous contract to ensure fair and reasonable pricing. In addition, the Contracting Officer will utilize any other price analysis techniques identified in FAR 13.106-3(a)(2), as necessary, to determine a fair and reasonable price.

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

Market Research Was Not Conducted: The Contracting Officer (CO) searched the internet for applicable contracts or an open market competitor that could provide the services required and was unable to locate one. Additionally, an initial screening of potential offerors was conducted by publication of a sources-sought synopsis in SAM.gov (issued on September 13, 2023;

36C25022Q0016) and three entities replied. Furthermore, a query of the Veteran Small Business Certification (VetCert) was conducted using NAICS code 541519 alone and 4225 SDVOSBs/VOSBs resulted. A subsequent search through DSBS.SBA.gov using NAICS code 541519 and keyword �Varian� returned nine results, but these entities were identified because their capabilities statements mention the word �Variances�. The VA Rule of Two cannot be met, as Varian Medical Systems is the only responsible source capable of performing the requirement.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None.

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

A&B Technical, LLC (SDVOSB) 794 Barkley Crest Circle Auburn, AL 36830 706-662-01576

Regan Technologies Corporation (SDVOSB) 515 Centerpoint Drive, Suite 115 Middletown, CT 06457 571-299-7378

Effective Date: 02/01/2022 Page 3 of 4

Varian Medical Systems (Large Business) 3100 Hansen Way Palo Alto, CA 94304 650-424-5025

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: The VA will research the market prior to any purchases for these services to determine if there are any other sources with the capabilities to meet the Government�s requirements.

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.

Mark Matusik Date Supervisory Biomedical Engineering Support Specialist LTC Charles S. Kettles 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.

Jennifer A. Johnson Date Contracting Officer, Services Team #4 Network Contracting Office 10

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

Lisa D. Bailey Date Branch Chief, Services Team #4

Jason E. Lawson Date Division Chief, Healthcare and Services

Marie L. Smith Date Director of Contracting Network Contracting 10

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 ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Daryl A. Berg Date Acting Executive Director, RPO Central Head of Contracting Activity