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This document is a Justification for an Exception to Fair Opportunity issued by the Department of Veterans Affairs (VA) National Acquisition Center (NAC) on behalf of the VISN 10 VA Medical Center in Dayton, Ohio.

The VA seeks to upgrade the current Siemens Magnetom Sola MRI system at the Dayton medical center with a software upgrade from Siemens Medical Solutions, the original equipment manufacturer (OEM). The estimated value of the upgrade is $296,524. The VA is justifying the use of the "logical follow-on" exception under FAR 16.505(b)(2)(i)(C) since Siemens is the only contractor capable of providing the proprietary technology and components needed to be compatible with the existing MRI system, which was previously procured through a fair and open competition. The VA contracting officer has determined the proposed price to be fair and reasonable based on the established IDIQ contract pricing. Future requirements will be handled on a case-by-case basis to provide fair opportunity when possible.

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1 Page Source Selection Info – See FAR 3.104 & FAR 2.101

DEPARTMENT OF VETERANS

AFFAIRS

Office of Acquisition and Logistics National Acquisition Center

P.O. Box 76

Justification for an Exception to Fair Opportunity FAR 16.505(b)(2)(i)(C) – Logical Follow-On

(1) Identification of the agency and the contracting activity.

This Justification for an Exception to Fair Opportunity is on behalf of VISN 10 VA Medical Center Dayton OH and will be executed by the Department of Veterans Affairs (VA) National Acquisition Center (NAC-36A797) located in Hines, IL.

(2) Nature and/or description of the action being approved.

The activity proposes the issuance of a logical follow-on delivery order against Indefinite Delivery Indefinite Quantity (IDIQ) contract SPE2D1-17-D-0023 awarded to Siemens Medical Solutions for the fulfillment of required ultrasound hardware and software. The original delivery order, 36A79719F0404, was competed during the September FY18 Consolidation.

(3) A description of the supplies or services required to meet the agency’s needs, including the estimated value.

VA Medical Center Dayton OH needs to upgrade the current Siemens Magnetom Sola to the Siemens Magnetom Sola 1.5T MRI. This software upgrade will increase the life expectancy of the current Siemens MRI system and cost much less than purchasing a new MRI system. The estimated price for this requirement is $296,524.00.

(4) An identification of the exception to fair opportunity (see 16.505(b) (2)) and the supporting rationale, including a demonstration that the proposed contractor’s unique qualification or the nature of the acquisition requires use of the exception cited. If the contracting officer uses the logical follow-on exception, the rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g. in terms of scope, period of performance, or value).

The OEM, Siemens Medical Solutions, is the only awardee that can provide the supplies and services for this upgrade. The technology necessary for this procurement is a trade secret only available to the OEM. The components are the only ones that can meet the needs of the Dayton VA Medical Center to be compatible with the current MRI system.

The original equipment was purchased during the September FY18 Consolidation and installed in 2022. Since that time, the manufacturer has released a software upgrade that reduces scan time, expedite exams times, and accommodates increased workflow. This is a one-time acquisition at the Dayton VA Medical Center and due to its proprietary nature, it is logically and fiscally responsible to acquire this upgrade from Siemens Medical Solutions versus procuring an entirely new MRI system. As a result, this requirement meets the exception to fair opportunity pursuant to FAR 6.505(b)(2)(i)(C) – Logical Follow-On, since all awardees were given a fair opportunity to be considered under the original order.

(5) A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

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The contracting officer for the proposed order has determined the estimated price offered to be fair and reasonable for this justification for an exception to fair opportunity. The proposed price is in line with the already established pricing schedules contained in the base IDIQ contract. Although there have been changes to the industry or market conditions due to supply chain shortages, the prices remain stable.

(6) Any other facts supporting the justification.

N/A

(7) A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.

Future requirements will be handled on a case-by-case basis and all attempts will be made to provide fair opportunity to all contract holders when appropriate.

(8) The contracting officer’s certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

By signing this justification, the Contracting Officer hereby certifies that the justifications are accurate and complete to the best of their knowledge.

(9) Evidence that any supporting data that is the responsibility of the technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

By signing this justification, the requiring activity hereby certifies that the justifications are accurate and complete to the best of their knowledge.

(10) A written determination by the approving official that one of the circumstances in (b)(2)(i)(A) through (F) of this section applies to the order.

Based on the information contained herein, a determination has been made that this requirement meets the exception at FAR 16.505(b)(2)(i)(C) since it is a logical follow-on to an order already issued under the contract. All awardees were given a fair opportunity to be considered for the original order.

CERTIFICATION AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION:

Pursuant to FAR 16.505(b)(2)(ii)(B)(9), I certify that any supporting data that is my responsibility and which forms a basis for the justification is complete and accurate to the best of my knowledge and belief.

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Emily Sizemore

VISN 10

Biomedical Engineer

CONTRACTING CERTIFICATION:

Pursuant to FAR 16.505(b)(2)(ii)(B)(8), I certify that the justification is complete and accurate to the best of my knowledge and belief.

La Torsha Jackson Contract Specialist VA National Acquisition Center – Hines High-Tech Medical Equipment Ordering Division

CONTRACTING OFFICER CERTIFICATION:

Pursuant to FAR 16.505(b)(2)(ii)(B)(8), I certify that the justification is complete and accurate to the best of my knowledge and belief.

Regina Blair Chief, High-Tech Medical Equipment Ordering Division Contracting Officer VA National Acquisition Center – Hines

(1) Identification of the agency and the contracting activity.
This Justification for an Exception to Fair Opportunity is on behalf of VISN 10 VA Medical Center Dayton OH and will be executed by the Department of Veterans Affairs (VA) National Acquisition Center (NAC-36A797) located in Hines, IL.
(2) Nature and/or description of the action being approved.
(3) A description of the supplies or services required to meet the agency’s needs, including the estimated value.
(4) An identification of the exception to fair opportunity (see 16.505(b) (2)) and the supporting rationale, including a demonstration that the proposed contractor’s unique qualification or the nature of the acquisition requires use of the exception c...
The OEM, Siemens Medical Solutions, is the only awardee that can provide the supplies and services for this upgrade. The technology necessary for this procurement is a trade secret only available to the OEM. The components are the only ones that can m...
The original equipment was purchased during the September FY18 Consolidation and installed in 2022. Since that time, the manufacturer has released a software upgrade that reduces scan time, expedite exams times, and accommodates increased workflow. Th...
(5) A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.
(6) Any other facts supporting the justification.
N/A
(7) A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.
(8) The contracting officer’s certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.
(9) Evidence that any supporting data that is the responsibility of the technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) and which form a basis...
(10) A written determination by the approving official that one of the circumstances in (b)(2)(i)(A) through (F) of this section applies to the order.
CERTIFICATION AND APPROVAL
2024-06-11T08:29:57-0400
EMILY SIZEMORE
2024-06-11T09:08:38-0500
LA TORSHA JACKSON
2024-06-11T09:49:00-0500
REGINA BLAIR

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