P03 - JOFOC - 36C259-24-AP-0946 _Redacted.pdf

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

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C259 24 AP 0946

RPOW JOFOC Tracker # FY24 NCO 19 1237

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO)19, 6162 S.

Willow Drive, Suite 300, Greenwood Village, Colorado 80111, in support of VISN 19 Rocky Mountain Network Offices located at 4100 E. Mississippi Ave, Glendale, CO 80246 3048. This action is funded by 2237s; .

2. Nature and/or Description of the Action Being Processed: This procurement is for a follow on requirement to contract GS 35F 0462X 36C25922F0583 with Censis Technologies which was awarded with the intent of completing implementation of CensiTrac® Operations and Maintenance solutions including hardware/software maintenance, instrument marking, commissioning, quality assurance, data optimization and support services for eleven (11) locations within eight (8) VISN 19 stations during its period of performance. However, due to pricing issue beyond the control of VISN 19 or NCO 19 (GSA intervened as this was issued as a GSA task order), work was stopped for several months. This delay resulted in less than half of the VISN facility locations getting fully serviced during the period of performance. This new one year follow on contract is to allow for six (6) facilities within four (4) VISN 19 stations to receive proprietary Census Technologies services. This will be a Firm Fixed Price Indefinite Delivery Indefinite Quantity (IDIQ) contract with estimated quantities. Also, this contract will be an IDIQ because contract GS 35F 0462X 36C25922F0583 did not fully include the required services and those services are not available on contract with GSA.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: CensiTrac® is a Dental and Medical Surgical instrument and reusable medical device (RMD) tracking solution developed by Censis Technologies, Inc. (Censis) that works in conjunction with other Censis Technology systems and interfaces. CensiTrac® has been installed in multiple Veteran Integrated System Network (VISN) VA Medical Centers (VAMCs). All instruments require a unique device identification (UDI) that is applied by laser in order to utilize the CensiTrac® system for tracking each instrument. The UDI is applied by a laser marking system (CensiMark with Data Optimization) to be supplied by the contractor/vendor for the facility to be able to enter the details about the instrument into the CensiTrac® database. As the instrument travels through the sterilization process, the laser mark is scanned and tracked through the process. As many of the instruments are to be marked as feasibly possible, pending any restrictions due to composition of the instrument.

VISN 19 desires to complete the laser marking for all of their instrument inventory at:

All other VISN 19 facilities have either had services completed under the current contract or have chosen not to continue participation.

The total estimated value of the 1 year contract is $ . The Independent Government Cost Estimate (IGCE) amount, $ , will be the maximum ceiling value. The contract will include the evaluation of the clause at FAR 52.217 8 and will be exercised at the same rates as those in effect under the contract at the time the contract is exercised. The estimated period of performance is April 15, 2024

Effective Date: 02/01/2022 Page 2 of 4 through April 14, 2025. The reason the period of performance is for only 1 YEAR, is because once initial marking is completed, services are on an “as needed” basis and not required on going from year to year.

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): The required service of Instrument Laser Marking/Commissioning, is a follow on requirement to contract GS 35F 0462X 36C25922F0583 using a system compatible with CensiTrac® (the software tracking system in use under a separate contract), proprietary to Censis Technologies and its CensiMark with Data Optimization system. While some third party companies offer an instrument marking service, they cannot do so using the proprietary marking data from Censis. Additionally, instrument marking is only one component of the entire project, and other companies would not fulfill the necessary requirements for commissioning, quality assurance, or Data Optimization.

There are no other authorized vendors capable of providing this service that are compatible with CensiTrac®. All Versions of CensiTrac®, including but not limited to Advanced CensiTrac®, InstrumenTrac, Base CensiTrac®, TrayTrac, ScopeTrac, Censis® AWS GovCloud, ServicePlus, LoanerLink and related interfaces

– such as the OR Scheduler are protected Censis Technologies, Inc. proprietary Trade Secret products and services and are registered with the United States Patent and Trade Office. Censis Technologies provided documentation confirming the proprietary nature of the required services.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The NAICS selected for this requirement is 811210 Electronic And Precision Equipment Repair And Maintenance with a small business size of $34 Million. Market research was conducted January 4, 2024 using NAICS 811210. A search on Small Business Administration (SBA) VetCert was conducted to identify potential offerors capable of providing the required services. The search produced zero (0) results for laser marking vendors. VA VIP was also searched January 4, 2024 using NAICS 811210 and zero (0) results were returned. Additionally, Notice of Intent to Sole Source 36C25924Q0166 was posted on Contract Opportunities January 16, 2024 with response due by 2:00pmMST January 31, 2024. One (1) response to the Notice of Intent was received to provide partial services (marking and commissioning); however, Censis Technologies is the sole authorized provider of CensiTrac® for the North American market and no other entity has been authorized by Censis Technologies, Inc. to provide marking and commissioning services utilizing CensiTrac®. Censis Technologies provided a sole source letter documenting the fact that there are no other authorized vendors.

Effective Date: 02/01/2022 Page 3 of 4

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

The contracting officer determined the anticipated prices for instrument marketing and data optimization from Censis Technologies can be determined fair and reasonable based on comparison of proposed prices to the FSS Schedule and the IGCE. Contract GS 35F 0462X 36C25922F0583, a Federal Supply Schedule order, was awarded September 28, 2022 with a pricing of for the marking of instruments at eleven (11) VISN facilities and includes one (1) year data optimization and commissioning per station at per year. Further, internet research resulted in publicized personalized laser engraving pricing from $6 $200 per item.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: As described in Section 6 above, market research, in accordance with FAR Part 10 was conducted. A search of VA VIP, utilizing NAICS code 811210 resulted in zero (0) SDVOSBs/VOSBs vendors. A search of SBA VetCert, utilizing NAICS code 811210, resulted in 149 SDVOSBs/VOSBs, with zero

(0) vendors capable of providing unique and proprietary Censis Technology marking and tracking. A search of SBA Dynamic Small Business Search (DSBS) utilizing NAICS code 811210, and keyword ”laser” resulted in 16 results; of the 16 results, zero (0) results were Laser Marking vendors. Additionally, FPDS was searched on January 9, 2024 and no results were returned for Strategic Acquisition Center (SAC) contracts for Product Service Code K065.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: There is no other supporting information not previously stated to support the use of other than full and open competition.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

Censis Technologies 4031 Aspen Grove Dr., Ste 350 Franklin, TN 37067

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:

All future requirements for the same/similar service will be competed to the fullest extent practicable.

Future acquisitions for laser marking and data commissioning for VISN 19 stations using Censis CensiTrac® Software (a separate contract), will need to be accomplished using the proprietary CensiMark with Data Optimization system as it is the only product compatible with CensiTrac®.

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.

Acquisition Utilization Specialist (AUS)

VISN 19

Effective Date: 02/01/2022 Page 4 of 4

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.

Contracting Officer Network Contracting Office (NCO) 19

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.

Branch Chief Network Contracting Office (NCO) 19