P03 - JA_Reverse Osmosis_Final signed.pdf

VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification >SAT-$7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 4 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C242-21-AP-0853

1. Contracting Activity: Department of Veterans Affairs, VISN 02

Network Contracting Activity (2-90NCA) Buffalo VA Medical Center 3495 Bailey Avenue Buffalo, NY 14210 528-21-2-4803-0354

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

This procurement is for other than full and open competition for the service and maintenance of the currently installed Reverse Osmosis Water Deionization System located at the Buffalo VAMC. 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 service maintenance agreement includes the following: On-site support to include labor and parts, tools, and supplies to provide full maintenence, service, and repairs to testing and preventative maintenance for all equipment related to the operation, function and safety for the reverse osmosis and deionization systems currently in use at the facility . The proposed contract action shall be provided by: Aqua Sciences, Inc. located at: 565 Fillmore Avenue Tonawanda, NY 14150 for a base and four option years from April 1, 2021 through March 31, 2026 with a firm fixed-price contact with a total cost estimated to be: $658,676.00.

Equipment:

Number of Units

Equipment Description

Model# Serial# Location Frequency of Maintenance Required

1 Better Water RO Unit EQRMA-247K-3L 0807006 Dialysis Unit Monthly 1 New Terra EPRO-3000 12-15-147875 SPS Monthly, Quarterly, Bi-annual, Annual

1 Zenon Environmental Inc RO

WMQ 300 10090 Research (Bldg.

20)

Weekly, Bi-annual

4 Deionization Systems N/A – tank and hosed based system

N/A – tank and hosed based system

SPS (313C)

Histology (211B) Core Lab (221B)

Tanks replaced as needed per system

PM Part 813.5 SAP for Certain Commercial Items Page 2 of 4

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

• Monthly inspection, preventive maintenance and component replacement, cleaning/loop disinfection to the reverse osmosis deionization system located in Building 1 Dialysis Unit.

• Monthly testing, quarterly cleaning, bi-annual sterilization and annual testing for reverse osmosis system located in Building 1 Sterile Processing Services (SPS).

• Weekly inspections, bi-annual cleanings, component replacement as needed for reverse osmosis deionization system located in building 20 – Research

• Regular filter tank replacements to the deionization systems located at SPS – Rm#313C, Histology – Rm#211B, Core Lab – Rm#221B.

• Emergency telephone and/or onsite service or repairs within 24hrs of being identified.

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):

Certain components of the system can only be maintained by the original equipment manufacturer (OEM); Aqua Sciences, who currently owns the portable exchange tanks being used on the system which are serviced, and regenerated/rebidded at their local warehouse/regeneration facility. Aqua Sciences is also qualified to work on the deionization system that is used in the hemodialysis unit that other vendors have expressed they are not capable of providing. Additionally, Aqua Science is the only firm capable of providing the supplies and services described in Section III above without the Veteran’s Health Administration experiencing unacceptable delays in fulfilling its requirements.

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

Past procurement history indicates that this procurement was sole sourced to Aqua Sciences, Inc.

using Contract# VA528-16-C-0030 with a performance period of 4/1/2016-3/31/2021, given that the portable exchange tanks currently used on the system are the property of Aqua Sciences, and must be serviced by them to maintain warranty. A query of VIP utilizing NAICS: 811310 and keywords “Reverse Osmosis” returned 1 potential VOSB source (J&K Wade, LTD). J&K Wade, Ltd

PM Part 813.5 SAP for Certain Commercial Items Page 3 of 4

Revision 03 Date: 02/11/2021

(dba Environmental Water ltd.) can only provide services in Ohio, Indiana and Michigan and are therefore not capable to perform the required services. A DSBS search utilizing NAICS: 811310 and keywords “Reverse Osmosis” returned 8 potential companies. A search of GSA Advantage utilizing keywords “Reverse Osmosis” identified (8) potential sources. A Notice of Intent to Sole Source (36C24221Q0497) was published on Beta.Sam.gov from: 2/8/2021-2/22/2021. Only (1) contractor responded to the government posting (Evoqua Water Technologies) however after speaking with company representative David Flood, it was determined that Evoqua would not be able to provide the services for Dialysis as required by the Scope of Work (SOW). Additionally, a proprietary letter was received from Aqua Sciences verifying that they maintain ownership of the portable exchange tanks currently in use on the reverse osmosis system, a copy of this letter has been uploaded to the contract file.

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

Reasonable:

The anticipated cost to the government was determined to be fair and reasonable based upon a comparission of the total contract value of the current active contract (VA528-16-C-0030 , $436,976.00), and the anticipated contract value of the new requirement ($658,676.00). The increase in cost of this requirement is due to the RO system in the research building being added to the requirement (estimated $23-27K/year) which was not in the previous contract. The cost assiciaetd with the over the course of the contract is approximate $125k and accounts for more than half of the price difference. The rest of the cost can be attricbuted to industry standard yearly increases of about 4% each year.

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

Market Research Was Not Conducted: See Section# 6.

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:

Only (1) contractor responded to published Notice of Intent to Sole Source (Evoqua Water Technologies); however, after speaking with company representative David Flood, it was determined that Evoqua would not be able to provide the services for Dialysis as required by the Scope of Work (SOW).

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:

None, as the main barrier to competition was the ownership of the equipment currently used in the system is held by Aqua Sciences, Inc.

PM Part 813.5 SAP for Certain Commercial Items Page 4 of 4

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.

Name: Lisa Rummings Date Title: Program Support Facility: Biomedical Engineering Facility: Buffalo

VAMC

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.

Name: Janine Childs Date Title: Contracting Officer Facility: NCO 2 Buffalo, NY

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.

Name: Cheryl Brimmer Date Title: Branch Chief-Services Team I

Facility: NCO 2 Bath, NY https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx