P03 JA Philips 36C257-24-AP-0486. FAR 13.5 signed by BC.pdf

VHAPG 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: 36C257-24-AP-0486 JOFOC Log Number: FY24-NCO 17-379

1. Contracting Activity: Department of Veterans Affairs, VISN 17, 549 Dallas VA Medical Center.

2237: 549-24-1-096-0092

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

The contractor shall provide all required service including repairs, preventative maintenance, labor, travel, and parts for the VA software and hardware for the Philips lnvivo UroNav System. All services performed shall be in accordance with the original equipment manufacturer (OEM) specifications.

Field service engineers must be licensed or contracted with the original manufacturer in order to work on the equipment. The service contract includes coverage for:

parts and factory repair labor cost for defective systems transport cost for receiving systems back after repair (one leg of freight cost) next day delivery for smart set of field replaceable parts, including related transport cost immediate access to remote applications & tech support (standard office hours) on-site technical support (time, material and travel cost)

1 time period of 2 days per year on-site application training (not valid for SensaVue)

System tune-up service up to 2 times / year, on customer request free updates for lnvivo Software, which comprises enhancement of existing feature packages

Delivery shall occur Monday through Friday 8:00 AM to 5:00 PM CST for all issues requiring corrective maintenance, and Monday through Friday 8:00 AM to 5:00 PM CST for all periodic maintenance. There will be 24/7 telephone support.

Base: 12/15/2023 through 1/14/2024 -$56,725

Option Year 1: 12/15/2024 through 12/14/2025 -$56,725

Option Year 2: 12/15/2025 through 12/14/.2026 -$56,725

Option Year 3: 12/15/2026 through 12/14/2027 -$56,725

Option Year 4: 12/15/2027 through 12/14/2028 -$56, 725

Total estimated amount of: 283,625.00

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

The system being services is a highly specialized system that only the OEM can provide service for.

This is due to the highly proprietary diagnostic software and other tools needed to maintain the equipment. Substantial duplication of cost is not expected to be recovered through competition due to the complex nature of the system and its proprietary nature. Other services cannot provide the

OEM parts, certification, and services required of the system.

Philips Healthcare is the Original Equipment Manufacturer (OEM) of the Philips equipment (UroNav)

As your sole source service provider, its assured that Philips' Field Service Engineers (FSEs), as well as Philips authorized representatives, will provide quality service, parts that are OEM certified (new or like new), and are compatible with equipment. Philips provide access to the highest level of proprietary diagnostic software and other tools to maintain the equipment covered. Due to this, Philips will only allow these individuals to install proprietary software and hardware

Effective Date: 02/01/2022 Page 1 of 4

Attachment 1: Request for Sole Source Justification Template >SAT-$7.SM under FAR13.S

A search in VetBiz with NAICS 811210 and FSC JOGS resulted in zero organizations. Additional MR conducted in SBA also resulted in zero vendors. Philips is the only vendor that can provide these services. A Sole Source letter was also provided by Philips indicating above mentioned statement.

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

Reasonable:

The estimated cost is $283,G2S over the next S years. Within the next year it is estimated to be

$SG,72S. Prices will include a 20 % discount on all services - Base Year and Option Year (4). The price quoted is consistent with prices paid by industry and other agencies for the same services.

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

Market Research Was Not Conducted:

Market research conducted included visiting SAM.gov to view certified providers of service as well as specifics for the device itself. There were no official OEM providers for the service that could satisfy the requirements except for Philips. A search in VetBiz with NAICS 811210 and FSC JOGS resulted in zero organizations. Additional MR conducted in SBA also resulted in zero vendors. Philips is the only vendor that can provide these services. A Sole Source letter was also provided by Philips indicating above mentioned statement.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

The OEM and proprietary nature of the software, system, and tools used to provide service for the aforementioned devices restricts the request to OEM service. This is due to the fact that the software itself cannot be maintained by other services as they do not have access to the necessary tools and information that the proprietary provider can utilize.

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

PHILIPS NORTH AMERICA LLC

CAGE: 8HEGS

UEI: T41NB3MDAPZG

22100 BOTHELL EVERETT HWY

BOTHELL, WA 98021-8431

Congressional District: 01

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:

No actions are planned as this is proprietary software. If other businesses wish to compete for this acquisition, they would need to gain access to company specific devices and softwares, as well as the tools to service them.

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.

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

Attachment 1: Request for Sole Source Justification Template >SAT-$7.SM under FAR13.5

SHAWN BYRNE

DigitallysignedbySHAWNBYRNE

Date: 2023.11.30 13:50:14-06'00'

Shawn Byrne Title : Biomedical Engineer 549- Dallas V AM

11/30/2023

Date

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.

RAFAEL

RODRIGUEZ

Rafael Rodriguez Contracting Officer

NCO17-BETS

Digitally signed by RAFAEL

RODRIGUEZ

Date: 2023.11.30 14:38:1 O

-06'00' 11/30/2023

Date

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $7S0K): I certify the justification meets requirements for other than full and open competition.

Sandra M. Norton Branch Chief

NCO17-BETS

Date

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