P03 JOFOC Phillips Maintenance - HCA Signed.pdf

VHAPM Part 816.5—Indefinite-Delivery Contracts Attachment 1: Request for Exception to Fair Opportunity Memo Format

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 1 of 3 Original Date: 08/30/2017 Date: 11/10/2020 Rev 04

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID: 36C260-20-AP-3198

1. Contracting Activity: Department of Veterans Affairs, Regional Procurement Office West, Network

Contracting Office 20 on behalf of Roseburg/Eugene VA Medical Centers. Justification for Other Than Full and Open Competition. 2237: 653-21-2-103-0001.

2. Description of Action: The proposed sole source, base plus four option year, task order against NAC

IDIQ High Tech Medical Equipment (HTME) IDIQ VA797H-17-D-0022 is for the maintenance of Philips imaging equipment that need inspection, support, repair and software updates.

3. Description of Supplies or Services: The proposed action shall provide maintenance and repair services, parts and labor, system software updates and technical telephone support for the following Philips imaging equipment: Estimated cost: $2,911,894.30 w/all options (52.217-8/9)

Cost Breakdown Table

Base Year $566,158.32 Philips Primary Service Plan

52.217-9 / OY-1 $560,273.90 Philips Primary Service Plan

52.217-9 / OY-2 $512,238.60 Philips Primary Service Plan

52.217-9 / OY-3 $512,238.60 Philips Primary Service Plan

52.217-9 / OY-4 $507,323.25 Philips Primary Service Plan

52.217-8 / 6-Month Option $253,661.63 Philips Primary Service Plan

Total Cost $2,911,894.30

Equipment Covered/Location

Ingenia 1.5T CT with Injector, Chiller and X-Ray Tube Coverage Eugene

Easy Diagnostic Elva DRF Release 5 with Skyplate, battery and X-Ray Tube Coverage

Eugene

Ingenuity Core 128 CT with Injectors X-Ray Tube Coverage Eugene

Digital Diagnostic 4 HP with Skyplate, battery and X-Ray Tube Coverage

Eugene

EPIQ 7C with Transducer Coverage (X2) Roseburg

Easy Diagnostic Eleva with Skyplate, battery and X-ray tube coverage Roseburg

PCR Corado Eleva Roseburg

Ingenuity Core 128 CT with Injectors X-Ray Tube Coverage Roseburg

X7-2t Compact TEE Probes Roseburg

X8-2t TEE Probes Roseburg

All Equipment will get annual software updates/upgrade as needed Eugene/Roseburg

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 2 of 3 Original Date: 08/30/2017 Date: 11/10/2020 Rev 04

4. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section

41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) Subpart 16.505

Subpart 16.505(b)(2)(i):

(X) FAR Subpart 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

5. Rationale Supporting Use of Authority Cited Above: This is essential for continued operability of all identified equipment during this critical time. The software, updates, diagnosis and repair services are proprietary to Philips North America. The Contractor has supplied a notice of proprietary rights for the software, licensing, and parts for the equipment as the original equipment manufacturer

(OEM). This prevents other possible contractors from accessing the diagnostic software, possessing necessary tooling and providing OEM parts to the Government.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in the market research section of this document. 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 16.505(a)(4)(iii)(B), the justification will be made publicly available.

7. Actions to Increase Competition: 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 highly specialized medical equipment. This is especially true where proprietary software, specific diagnostics tools, and specialized electronics are used to maintain the HTME equipment in accordance with OEM specifications.

8. Market Research: Market research was conducted to include searches of GSA, VetBiz, SBA and the

VA NAC High Tech Medical Equipment website to determine if there were any other vendors capable of providing service and/or maintenance on the Philips software or equipment. This effort identified this requirement as a commercial service available through VA IDIQ Contract

VA797H17D0022. Furthermore, a review of all NAC High Tech Medical Equipment contract holders did not yield additional sources that can meet the Governments requirement. In addition, Philips

North America does not have authorized Service-Disabled Veteran Owned Small businesses or other small business service providers and retains full proprietary rights to the service which is common within the industry. There is no anticipated competition for this acquisition and the justification will be made publicly available.

9. Other Facts: There are no other facts necessary to support this justification.

10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 3 of 3 Original Date: 08/30/2017 Date: 11/10/2020 Rev 04

Robert Hruza Supervisor, HTM BESS Roseburg VA Medical Center

11. Determination that Anticipated Cost is Fair and Reasonable: The price is determined to be fair and reasonable based on Philips service price book offering special negotiated terms to include up to a

20% discount. In addition, when compared to the following historical purchase, the current pricing is considered fair and reasonable: 36C26019F0486 – Awarded: 07/29/2019 - $2,359.880.76 (Base plus 4 pricing). For similar equipment/software preventive maintenance and repair program.

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

Robert Hamilton Contracting Officer Network Contracting Office 20 (NCO 20)

RPO West JA Tracker# 2020-12-09T08:49:07

13. Approvals in accordance with VHAPM Part 816.505 Indefinite Delivery Contracts: Ordering.

a. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

S. Dale Allen Director of Contracting Network Contracting Office 20 (NCO 20)

HIGHER LEVEL APPROVAL (Required for orders over $700,000):

b. VHA RPO WEST HCA REVIEW AND APPROVAL (over $700,000 to $13.5 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for other than full and open competition.

Curtis M. Jordan Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA) https://vaww.pclo.infoshare.va.gov/PCLO/PMWeb/VHAPM_Part_816.505.aspx