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This document is a Justification for an Exception to Fair Opportunity under FAR 16.505(b)(2)(i)(C) - Logical Follow-On. The Department of Veterans Affairs (VA) National Acquisition Center proposes to issue a delivery order against an existing Indefinite Delivery Indefinite Quantity (IDIQ) contract VA797H-17-D-0024 held by GE Precision Healthcare, LLC. The delivery order is to upgrade the current GE Optima MR450w GEM MRI system at the VA Medical Center Puget Sound to the GE Signa Artist 1.5T, at an estimated cost of $946,611.54. The justification cites that the original equipment was purchased competitively in FY2010, and this upgrade is a logical follow-on that only the original equipment manufacturer, GE Precision Healthcare, LLC, can provide due to proprietary technology. The Contracting Officer has determined the price to be fair and reasonable. Future requirements will be handled on a case-by-case basis to provide fair opportunity when appropriate.

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1 PageSource Selection Info – See FAR 3.104 & FAR 2.101

DEPARTMENT OF VETERAN AFFAIRS

Office of Acquisition and Logistics

National Acquisition Center P.O. Box 76

Hines, IL 60141

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 20 VA Medical Center Puget Sound 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 VA797H-17-D-0024 awarded to GE Precision Healthcare, LLC for the fulfillment of required MRI hardware and software. The original delivery order, V797A07281, was competed during the September FY10 Consolidation.

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

VA Medical Center Puget Sound needs to upgrade the current GE Optima MR450w GEM MRI system to the GE Signa Artist 1.5T. This software and hardware upgrade will increase the life expectancy of the current GE MRI and will cost much less than purchasing a new MRI system.

The estimated price for this requirement is $946,611.54.

(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 original equipment was purchased during the September FY10 Consolidation and installed in 2016. Since that time, the manufacturer released a software upgrade that accommodates expanded patient services at the station. All vendors were given a fair opportunity to be considered for the original order. Therefore, this requirement meets the exception to fair opportunity pursuant to FAR 6.505(b)(2)(i)(C) – Logical Follow-On.

Moreover, the original equipment manufacturer (OEM), GE Precision Healthcare, LLC, is the only awardee that can provide the supplies and services for this upgrade. Only their upgrade software and related hardware are compatible with the current MRI system. The technology necessary for this procurement is a trade secret only available to the OEM. Due to its proprietary nature, it is logically and fiscally responsible to acquire this upgrade from GE Precision Healthcare, LLC versus procuring an entirely new MRI system.

(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 established pricing schedules contained in the base IDIQ contract.

(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.

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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.

Justin Collins

VISN 20

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

COMPETITION ADVOCATE APPROVAL:

Christopher D. Parker Head Contracting Activity Strategic Acquisition Center and National Acquisition Center

JUSTIN COLLINS

Digitally signed by JUSTIN

COLLINS

Date: 2024.09.26 08:16:55 -07'00'

LA TORSHA JACKSON

Digitally signed by LA TORSHA

JACKSON

Date: 2024.09.26 14:23:58 -05'00'

REGINA BLAIR Digitally signed by REGINA BLAIR Date: 2024.09.26 16:23:42 -05'00'

2024-10-04T15:13:48-0400
CHRISTOPHER PARKER

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