P03-JOFOC FujiFilm PM_SIGNED.pdf

Last Updated: 02/01/22 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: 36C249-22-AP-1670

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 09, James H.

Quillen Veterans Affairs Healthcare System (VAHCS), Mt. Home, TN, 37684., station 621 and 2237# 621-23-1-096-0002 sent to Network Contracting Office 09, 1639 Medical Center Parkway, Suite 400, Murfreesboro, TN 37129 has a base and four option years requirement for radiology imaging preventative maintenance service.

2. Nature and/or Description of the Action Being Processed: This procurement is for a base and four option years with the new firm-fixed-price contract for radiology imaging preventative maintenance service for the James H. Quillen Veterans Affairs Healthcare System.

Period of Performance:

Base Year: 10/01/2022-09/30/2023 $348,475.00 Option Year 1: 10/01/2023-09/30/2024 $353,920.00 Option Year 2: 10/01/2024-09/30/2025 $353,920.00 Option Year 3: 10/01/2025-09/30/2026 $353,920.00 Option Year 4: 10/01/2026-09/30/2027 $353,920.00 Total Estimated Contract: $1,764,155.00

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for radiology imaging equipment preventative maintenance service to include annual software updates at the James H. Quillen 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.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The James H. Quillen Veterans Affairs Healthcare System has a requirement for a service contract with Fujifilm Medical Systems, USA (FSMU), Radiology equipment, which shall provide routine preventative and corrective maintenance to ensure optimal working condition and lessen the likelihood of downtime. During the annual preventative maintenance, FMSU will update the Fujifilm application software to the latest version that the Operating System and PC hardware will support. The estimated dollar value of this contract is $1,764,155.00 for a base and four option years.

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

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( ) 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 current contract expires on September 30, 2022, 36C24922P0003 awarded to FujiFilm Medical Systems, USA, with one year period of performance. A FujiFilm Medical Systems, USA is a large business entity and has proprietary rights to radiology equipment software. It is required that service personnel are factory trained and certified on the FujiFilm Medical Systems USA equipment. Training and certification documentation must be provided to the Contracting Officer’s Representative (COR) upon execution of the contract and requested by the COR. The equipment has proprietary restrictions, and it’s highly recommended that service be performed by their qualified technicians, or the warranty could be voided. The annual software upgrade and remote monitoring are available only through FujiFilm directly, as the author/owner of these codes. The proprietary letter was provided by FujiFilm. The Fujifilm system/equipment provides high-performance resolutions and reliable results for the radiology department. Trained medical professionals determined that the FujiFilm system is the only system/equipment that can satisfy the VA's needs to provide the best patient care.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Acquisition history and market research showed that FujiFilm Medical Systems, USA is the only contractor that can meet the requirement. Intent to Sole Source was posted www.Sam.gov under 36C24922Q0334 with no response.

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

Reasonable: The price on this requirement is determined fair and reasonable based on a comparison with the previously awarded contracts by Network Contract Office(NCO) 2 and Network Contracting Office 10. Consideration of pricing was conducted using other comparable similar contracts awarded by NCO 2 and NCO 10. The pricing analyzed was found to be consistent with the market research pricing that was provided by the below contract.

1. Radiology Equipment maintenance NCO 2/Firm Fixed Price/VA24217F2200/ NAC Contract SPE2D117D0023/Awardee Siemens Medical Solutions USA, Inc./One year Contract awarded for $440,402.93

2. Radiology Equipment maintenance NCO 10/Firm Fixed Price/36C25022F0008/NAC Contract VA797H17D0024/Awardee General Electric Company/One year Contract awarded for $333,455.00

3. Radiology Equipment maintenance NCO 09/Firm Fixed Price/36C24922P0003/Intent to sole source posted under 36C24921Q0394/Awardee FujiFilm Medical Systems, USA/One year Contract awarded for $245,840.00

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: A search was conducted on the Vendor Information Page using North American Industry Classification System (NAICS) code 811219 with the keyword “radiology” and 2 (1) SDVOSBs and (1) VOSBs were returned on this search. Market research revealed many Small Business opportunities that are able to provide the services required. However, further market research revealed that no Service-Disabled Veteran, Veterans Owned, or other small businesses are capable of meeting the requirement in the Statement of Work.

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9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The annual software upgrade and remote monitoring is available only through Fujifilm directly, as the author/owner of these codes.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None

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: The Veterans Affairs will continue to ask Fujifilm Medical Systems USA has authorized SDVOSB, VOSB or small business vendors with original equipment manufacturer certified technicians that can perform the task.

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.

Terry Brlecic Date

Biomed Tech

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Michael Edwards Date Contracting Officer Network Contracting Office 9

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.

Stacey McClendon Date

Branch Chief Network Contracting Office 9

. 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.

Kenneth N. Hooks Jr. Date Division Chief Network Contracting Office 9

. 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.

Tara L. Petersen Date Director of Contracting Network Contracting Office 9

. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Terry L. Spitzmiller Date Executive Director Regional Procurement Office Central (VHA)

MICHAEL

EDWARDS

Digitally signed by

MICHAEL EDWARDS

Date: 2022.06.14 09:40:25 -05'00'

STACEY

MCCLENDON

Digitally signed by

STACEY MCCLENDON

Date: 2022.06.15 14:10:30 -05'00'

Kenneth N.

Hooks 498714

Digitally signed by Kenneth N.

Hooks 498714 Date: 2022.06.21 07:52:36 -05'00'

6/14/22

Tara L. Petersen 3529852

Digitally signed by Tara L.

Petersen 3529852 Date: 2022.06.28 16:55:27 -05'00'

TERRY

SPITZMILLER

Digitally signed by TERRY

SPITZMILLER

Date: 2022.06.29 15:01:55 -05'00' 6/29/22