P03 - JA_Redacted.pdf

VHAPM Part 819.7007/7008 Page 1 of 5 Original Date: 08/30/2017 Revision 03 Eff Date: 04/03/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) for Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C252-21-AP-2845

1. Contracting Activity: Department of Veterans Affairs, VISN 12, Jesse Brown VA Medical

Center, Great Lakes Acquisition Center, 537-21-3-969-0617.

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

This is a new, firm-fixed-price justification and approval for wireless home sleep testing systems manufactured by Philips Respironics, a subdivision of Philips Electronics North America Corporation (“Philips,” “Philips Respironics”).

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

Philips’s Alice NightOne wireless home sleep testing system is an electromedical device with sensors that are used to diagnose obstructive sleep apnea (OSA).

The total estimated value of the acquisition is

CLIN Item Description Qty Unit

0001 1132001 Alice NightOne Wireless Home Sleep Testing System.

Includes sensor, software, 2-year warranty.

400 EA

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC

§3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or ( ) 819.7008 Sole source awards to a verified veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

The authority cited above allows sole source awards to SDVOSBs based on 38 USC 8127(c).

The SDVOSB concern meets the eligibility requirements of VAAR 819.7003 and has been determined to be a responsible source with respect to performance. Philips Respironics has appointed First Nation Group, LLC dba Jordan Reses Supply Company as the exclusive supplier of Philips Respironics’ Sleep and Respiratory Care products to the VA. As such, Philips Respironics has not provided authorization to any other entity to provide its Sleep and Respiratory Care products to the VA, and the warranty is non‐transferable by unauthorized distributors of Philips Respironics’ products. See contract file, “P02 - Authorization Letter.pdf.”

The Jesse Brown VA Medical Center has purchased Philips-brand Alice NightOne equipment in the past (36C25218P5619, 36C25220P0829) and has approximately 140 sleep testing

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Revision 03 Eff Date: 04/03/2020 systems; however, over 600 Veterans now require the studies. Having additional wireless systems will not only reduce Veteran wait time facility but each patient use would also decrease inconvenience/disruption to Veterans’ time as they would able to monitor from home without repeated trips.

In addition, there are approximately 20-30 doctors/physicians that rotate in and out of the facilities at any given time that are familiar with the Philips G3 software/reports and how to interpret them. A further 40 respiratory therapists and 5 biomedical engineers are familiar with these systems. Moving to another brand would require re-training for all and further delay Veteran care.

The following are also applicable for this equipment:

(a) Automatically powers on and begins recording when the effort belt is connected; Auto-on feature ensures the study will not need to be repeated due to confusion over whether the unit is recording. This is the largest reason for repeating tests in the industry.

(b) Has enhanced “good study” indicator which tells the patient/clinician in the morning whether enough good data was recorded for interpretation, saving staff and patient time.

(c) Built in body position sensor which is built into the device to aid the sleep doctors in treating the Veteran.

(d) “Smart Guide” set up for patient setup sequences that assures that the device is easy for Veterans to self-apply when testing occurs in the home.

(e) Simplicity of the device will allow current staff to set up more Veterans and put out more units per night to reduce back logs and keep up with the demand.

(f) Wireless connection to Philips Dream Stations and System One PAP machines (in use at the Jesse Brown VA Medical Center).

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under 5.202 applies:

The contracting officer’s determination to make a sole source award is a business decision wholly within the discretion of the contracting officer and in the best interest of the Government.

An Intent to Sole Source notification (36C25221Q0682) was posted to beta.sam.gov on 5/11/2021 with responses due 5/14/2021 at 5:00 p.m. CDT. Zero responses were received.

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

A search for “Alice NightOne” (brand name) in the Department of VA was conducted on FPDS.

There were several results returned for procurements fulfilled only by First Nation Group, LLC and Jordan Reses Supply Company, LLC (these two companies merged in 2016 and the DUNS number 078875731 now represents First Nation Group, LLC doing business as Jordan Reses Supply Company). Three of these entries - 36C25218P5619, 36C25220P0829, 36C25921P0147 – were for the exact equipment, each listed at . Market research provided by the requiring activity shows prices of each, which is the vendor’s volume-discounted price compared to each for its current price. At a quantity of 400 requested by the facility, this represents a savings of . Additional price reduction was requested from the SDVOSB but none was offered. Pricing will be determined to be fair

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Revision 03 Eff Date: 04/03/2020 and reasonable IAW FAR 13.106-3(a)(2)(ii), Comparison of the proposed price with prices found reasonable on previous purchases.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

In addition to the FPDS and Intent to Sole Source notification market research mentioned above, several searches in Vendor Information Pages (VIP) were conducted with the NAICS 334510:

1. Separate searches for “Alice” and “NightOne” (brand names) produced zero results.

2. “Philips” (brand name) produced seven results, all SDVOSBs. One of the SDVOSBs is First Nation Group, LLC, the only authorized distributor of Philips Respironics products.

3. The keyword, “Sleep” produced three results, all SDVOSBs. First Nation Group, LLC was one of the results.

The CO also surveyed the catalogs of GSA Advantage, NASA SEWP V, NAC MedSurg, and the VA’s Non-Expendable Equipment List for brand name equipment. Zero results were returned.

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:

First Nation Group, LLC dba Jordan Reses Supply Company 4566 Hwy 20 E Court Yard Plz Ste 208 Niceville, FL 32578

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

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Revision 03 Eff Date: 04/03/2020

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.

SIGNATURE DATE

NAME TITLE SERVICE LINE/SECTION

FACILITY

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.

JIM R. HEDMAN

CONTRACTING OFFICER, NCO-12

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding

$700K): I certify the justification meets requirements for other than full and open competition.

PARRIS S. WEIDENBACH

BRANCH CHIEF, EQUIPMENT TEAM, NCO-12

c. Division Manager Review:

I certify the justification meets requirements for other than full and open competition.

SCOTT A. IVY

DVISION MANAGER, NCO-12

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d. Director of Contracting Review:

I certify the justification meets requirements for other than full and open competition.

PAUL M. LAURO

DIRECTOR OF CONTRACTING, NCO-12

e. 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 recommend approval (if over $68 million) or approve ($750K to $68 million) for other than full and open competition.

TERRY L. SPITZMILLER

EXECUTIVE DIRECTOR

REGIONAL PROCUREMENT OFFICE – CENTRAL (VHA)