P03 JOFOC Varian TrueBeam HCA Signed.pdf

Rev: 13 Effective Date: 02/01/22 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C249 22 AP 2388

1. Contracting Activity: Department of Veterans Affairs, NCO 09, VAMC Memphis, Tennessee, 38104.

PR# 614 23 1 069 0002; Network Contracting Office (NCO) 9.

2. Nature and/or Description of the Action Being Processed: This procurement will be awarded as a new firm fixed price contract for maintenance and repair service and support of the Varian TrueBeam Linear Accelerator, accessories and software support located at the Memphis VAMC. This procurement is in accordance with 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. A firm fixed price, twelve (12) month base with four (4) one (1) year options contract will be awarded.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This contract will provide full service and support of the Varian TrueBeam Linear Accelerator and accessories, including the TrueBeam Linear Accelerator H191511, MLC 120 – HML0354, MV Imager – HXM2442, KV Imager – HXK2442, Rapid Arc – HRD2359 and Optical Imager – HOI2442, which shall provide routine preventative and corrective maintenance in order to ensure optimal working condition and lessen the likelihood of down time. Also, the Varian TrueBeam system has a dedicated VPN connection that allows the OEM to remotely connect into the system to diagnose user specified issues, push security patches, allow for error log retrieval, and assist users and service engineers from a remote location. The total estimated value is $1,523,460.00. The period of performance is 10/01/2022 through 09/30/2027.

Period of Performance Base: 10/01/2022 through 9/30/2023 $304,692.00 Option Year One: 10/01/2023 through 09/30/2024 $304,692.00 Option Year Two: 10/01/2024 through 09/30/2025 $304,692.00 Option Year Three: 10/01/2025 through 09/30/2026 $304,692.00 Option Year Four: 10/01/2026 through 09/30/2027 $304,692.00 Total Contract Value: $1,523,460.00

4. Statutory Authority Permitting Other than Full and Open Competition:

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302 1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302 2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302 3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302 4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302 5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302 6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302 7;

Effective Date: 02/01/22 Page 2 of 4

Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Varian Medical Systems is the only source for required preventive maintenance, inspections, repairs and urgent service. A letter was received from Varian’s service department which states that Varian does not authorize third party vendors to service Varian equipment due to proprietary hardware and software, to include software updates. This contract also requires remote access to perform diagnostics for expedited service/repair of the linear accelerator, which is a highly specialized system. All software patches, upgrades, updates, revisions are available only by the manufacturer. The proprietary service support software can only be accessed by Varian.

Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Previous and current procurement action include a notice of intent to sole source on Contracting Opportunities to inform the public of the Department of Veteran Affairs procurement intent. For this procurement an Intent to Sole Source (36C24922Q0360) was posted on www.sam.gov Contracting Opportunities from 5/16/2022 through 6/16/2022.

One response was received from The Remi Group LLC, a vendor who is not authorized by Varian to perform service requirements as defined in the Statement of Work.

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

Price reasonableness is based on comparison of quoted prices for the same or similar services historical prices and the Independent Government Cost Estimate. Both the validity of the comparisons and basis for price reasonableness found in historical award prices has been established.

Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted for service on the Varian TrueBeam Linear Accelerator and software support. This revealed that other VA Hospitals who utilized Varian equipment and software awarded on a sole source basis for these services only to Varian Medical Systems, Inc. A search was conducted on the Veterans Information Pages (VIP) using NAICS 811219 and keyword "TrueBeam" resulted in 0 (Zero) SDVOSB and VOSB Vendors. However, due to Varian's proprietary equipment, hardware software systems and support services, no vendors listed are capable to provide the needed service. Through market research, it has been determined that the requested commercial preventive mainenance and repairs services are available from only one source. An Intent to sole source notice (36C24922Q0360) was posted to Contracting Opportunities from 5/16/2022 through 6/16/2022. It has been determined that any vendor other than Varian Medical Systems cannot provide the required services due to the lack of accessibility through the requirements that protects this specialized equipment and lack of access to Varian’s proprietary software access and updates. A letter was received from Varian Medical Systems, Inc. services department which stated that Varian Medical Systems, Inc. is the OEM and the sole source provider of this equipment, service, parts, and software systems upgrades and there are no 3rd party vendors that are trained, authorized, or have access to software support to perform the required service.

Any Other Facts Supporting the Use of Other than Full and Open Competition: This procurement for preventative maintenance and repair services provided only by Varian Medical Systems, Inc. will adhere to the mandated equipment maintenance standards.

Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Varian Medical Systems, Inc. (other than small business) The Remi Group LLC.(other than small business).

Effective Date: 02/01/22 Page 3 of 4

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: There is currently only one source for the required preventative maintenance and repair services. The Contracting Officer will continue to conduct market research and synopsize future requirements for these same services to see if any additional vendors can provide these services to the Government.

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.

Sheena House Date Chief, Engineering Service, VAMC Memphis

7/22/2022

Sheena L.

House 250567

Digitally signed by Sheena L. House 250567 Date: 2022.07.22 12:03:26 -05'00'

Effective Date: 02/01/22 Page 4 of 4

Kenneth N.

Hooks 498714

Digitally signed by Kenneth N.

Hooks 498714 Date: 2022.08.30 15:01:56 -05'00' 8/30/2022

c. 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 recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition.

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