P03 JnA Part808.405-6_OVER_SAT.pdf

VHAPM Part 808.405 6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPM Part 808.405 6 Limiting Sources Page 1 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405 6

Acquisition Plan Action ID: __36C261 20 AP 2008___________________

(1) Contracting Activity: Department of Veterans Affairs, VISN 21 San Francisco VA Medical Center (SFVAMC). Requested by Biomedical Dept., funding document 662 20 2 067 0030.

(2) Description of Action: This acquisition is conducted under the authority of the Multiple Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). This is a preventative maintenance & emergency services contract for Carefusion Solutions, LLC's Pyxis ES MedStation Automated Medication Dispensing cabinets for San Francisco VA Medical Center (various locations throughout STA662). This will utilize Federal Supply Schedule (FSS) order 36F79718D0454.

Order against: FSS Contract Number: ___ 36F79718D0454____________________

Name of Proposed Contractor: CAREFUSION SOLUTIONS, LLC Street Address: 3750 TORREY VIEW COURT City, State, Zip: SAN DIEGO, CA 92130 Phone: (858) 617 4824

(3) Description of Supplies or Services:

The estimated value of the proposed action is $ 495,324.00.

This is a service contract to provide preventative maintenance & emergency services for STA 662’s Becton Dickinson (BD) Pyxis ES MedStation Automated Medication Dispensing Cabinets used in the Pharmacy departments throughout various locations within STA662’s network. This contract includes hardware and software support. The total estimated value of the proposed action is $495,324.00 for one (1) base year plus four (4) option years.

Period of Performance Amount

Base Year: (10/1/2019 – 9/30/2020) $89,592.00

Option Year 1 (10/1/2020 – 9/30/2021) $94,212.00

Option Year 2 (10/1/2021 – 9/30/2022) $98,9040.00

Option Year 3 (10/1/2022 – 9/30/2023) $103,656.00

Option Year 4(10/1/2023 – 9/30/2024) $108,960.00

Grand Total: $495,324.00

(4) Identify the Authority and Supporting Rationale: see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

VHAPM Part 808.405 6 Limiting Sources Page 2 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

FAR 8.405 6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405 6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized;

FAR 8.405 6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405 6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition.

The proprietary data is: Carefusion Solutions LLC is the exclusive manufacturer and hence, the sole source provider for the Pyxis ES MedStation Automated Medication Dispensing Cabinets. Only Carefusion and their Field Service Technician Affiliates have the capabilities and authorization necessary to perform installation and maintenance services for Pyxis products. Performance of those services by any other party voids the warranty for the serviced products. The VA is interdependent with Carefusion on being provided these support services having signed on 07/27/2016, Version 5.0 of a Memorandum of Understanding (MOU) and Interconnection Security Agreement (ISA) between the VA and Carefusion.

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination:

Pricing for this contract is based off CareFusion’s GSA schedule contract# 36F79718D0454 which has already been determined to be fair and reasonable. The pricing is proposed by Carefusion is a fixed price with a three percent (3%) discount from their GSA schedule. The yearly increases are considered to be fair and reasonable as it is at a five percent (5%) increase per year.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

Market research was conducted through multiple sources, an intent to sole source was posted to FBO (FedBizOpps) on April 20, 2020 through April 29, 2020 request number 36C26120Q0540. There were no responses received from any source. This effort did not yield any additional sources that can meet the Government’s requirements. There is no competition anticipated for this acquisition. In accordance with 13.106 1(b)(1), this action will be synopsized at award on the Federal Business Opportunities Page (FBO) and the justification will be made publicly available.

VHAPM Part 808.405 6 Limiting Sources Page 3 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

(7) Any Other Facts Supporting the Justification:

In situations involving complex medical equipment, it is difficult to remove barriers to competition because the OEM is the only qualified company capable to provide the repair and maintenance of its own specialized medical equipment. This is especially true where proprietary software, specific diagnostics tools, and specialized electronics are used to maintain the Pyxis ES MedStation Automated Medication Dispensing Cabinets in accordance with OEM specifications. Unless the manufacturer chooses to license its software and authorize local service providers to maintain the Philips Medical equipment. 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.

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

Due to the proprietary nature, Carefusion is the only authorized company able to perform maintenance on its Pyxis ES MedStation Automated Medication Dispensing Cabinets. They have the technical expertise to provide maintenance and service, as well as the only company with access to manuals and design specs of its imaging equipment. Carefusion is the only authorized company that can access its systems remotely and offer certified parts that meet the original equipment manufacturer’s specifications. Carefusion technicians are the only authorized OEM trained and certified personnel to perform work on this high tech medical equipment (HTME). However, GSA and VetBiz were used to determine if there were any other vendors capable of providing service and/or maintenance on the Pyxis ES MedStation Automated Medication Dispensing Cabinets. It has been determined that Carefusion is the only company capable of providing these services on this highly specialized equipment to the agency.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4. (This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)

SIGNATURE DATE

Gabriella B. Orteza, Biomedical Engineer San Francisco VA Medical Center

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

Gabriella B. Orteza 1411696 Digitally signed by Gabriella B. Orteza 1411696 Date: 2020.05.29 15:07:33 -07'00'

VHAPM Part 808.405 6 Limiting Sources Page 4 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

a. Contracting Officer’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

SIGNATURE DATE

Daniel Szambelan NCO21 Network Contracting Office Contracting Officer

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.

SIGNATURE DATE

Mark J. Mikus NCO 21 Contracting Office Branch Chief (Services Team I)