P03_LSJ_Chemistry Immunoassay_fully signed.pdf

Effective Date: 02/01/2022 Page 1 of 6

VHAPG Part 808.405-6 Limiting Sources Request for Limited Sources Justification >SAT

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C249-24-AP-

(1) Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 9 in support of Veterans Integrated Service Network (VISN) 9, 1801 West End Ave., Ste 600, Nashville, TN 37203.

2237 # Location 596-24-3-029-0039 Lexington 596-24-3-030-0305 Lexington 603-24-2-068-0448 Louisville 614-24-2-025-0075 Memphis 621-24-2-337-0044 Knoxville 621-24-3-037-0455 Mt. Home 626-24-3-066-0445 Nashville 626-24-3-2039-0178 Chattanooga 626-24-3-2065-0234 Murfreesboro

(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).

The contemplated action is a logical follow-on to an original Federal Supply Schedule (FSS) Blanket Purchase Agreement (BPA) and the subsequent orders placed against that

BPA.

BPA: 36C24919A0001 with numerous orders placed against the BPA throughout the life of the agreement to fulfill the need for the items throughout VISN 9.

Order against: FSS Contract Number: 36F79719D0024 Name of Proposed Contractor: Abbott Laboratories, Inc.

Street Address: 100 Abbott Park Road, Dept. 0943-CPI-4 City, State, Zip: Abbott Park, IL 60064 Phone: 224-668-1883

Request for Limited Sources Justification >SAT

Effective Date: 02/01/2022 Page 2 of 6

(3) Description of Supplies or Services:

The expected value of this action is $6,988,339.60 over the one-year PoP.

Base Ordering Period: 1 April 2024 – 30 September 2024 $3,494,169.80 Ordering Period 2: 1 October 2024 – 30 March 2025 $3,494,169.80

Total: $6,988,339.60

The contemplated action is a order for chemistry analysis placed via a six-month base period, and six-month period. “Chemistry Analysis” means that VA laboratory technicians order an array of tests to be performed on collected biological samples. The samples are then placed on an automation line, which routes the sample from station to station to perform the test and generate results.

The test equipment is housed in the VA facilities, but ownership, maintenance, etc., is retained by the vendor. VA does not purchase or lease the equipment. VA pays only for the results of each test ordered.

(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.

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

Following procedures to compete the requirement will result in unacceptable delays. As the requirement was initially sent over late and incomplete, funded 2237s for this effort were not received with sufficient time to compete. Also, since the equipment for this requirement is Vendor-supplied, there is not enough time to go to any other source and have the equipment switched by the need date. VISN-9 and NCO 9 Service/Supply Branch is seeking an additional 12-months (as this is the shortest period of performance acceptable to the Vendor) to investigate a replacement long term vehicle (potentially greater than 5-years with HCA approval) to fully capitalize on the expected equipment service life.

Conversations with industry [FAR 10.002(b)(2)(i)] found that equipment similar to that installed at the various VISN 9 facilities has a standard life cycle of 6-8 years.

Future actions for these items can avoid similar urgency by leveraging the entire life cycle.

Substantiating actions, such as virtual industry day, have already occurred to ensure these delays are not seen on future requirements for these items. Additional local procedures will be put in place to avoid future last minute LSJs (Weekly review of current open requirements that are on their last option).

Effective Date: 02/01/2022 Page 3 of 6

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:

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:

The limited sources action represents best value to the government because the life-cycle for equipment installed still has time remaining. Conversations with industry [FAR 10.002(b)(2)(i)] found that equipment like that installed at the various VISN 9 facilities has a standard life cycle of 6-8 years. Throughout the ordering period of BPA 36C24919A0001, different facilities have had different types of equipment installed to fit their facility need; consequently, there is not a standardized lifecycle for all VISN 9 equipment. The up-front pricing paid by the Government reflected cost-per-results for investment and use through the entire life-cycle. Continued use of the current equipment will allow the Government to reap the full value of the equipment throughout the life-cycle.

Because of the findings of these conversations, it is contemplated that future actions for these items should investigate the benefit of exempting the action from the five-year standard limit.

(6) Describe the Market Research Conducted

1. The VA Rule of Two is not met.

a. VIP review for NAICS with keyword “chemistry” found zero firm. Please see file

“P02.1_VIP Pull_334516 6630 Chemistry_0 findings” in contract file.

Effective Date: 02/01/2022 Page 4 of 6

b. Sources Sought Notice posted to Contract Opportunities at SAM.gov 12/14/2023 received zero responses from interested/capable SD/VOSB firms.

2. Acquisition History and Sources Sought findings support use of MAS 66 III contracts.

a. Review of previous action to procure these items found that these items are historically procured via MAS 66 III contract holders.

b. Source Sought Notice 36C24924Q0099 was posted to Contract Opportunities at SAM.gov 12/14/2023, seeking sources interested in and capable of performing the work as described in the applicable Statement of Work (SOW).

The notice received responses from five interested and capable firms:

1. Beckman Coulter

2. Siemens Healthcare

3. Abbott Laboratories

4. QuidelOrth (OthoClinical)

5. Roche Diagnostics

All of the responding firms are categorized as “other than small business,” and all five also hold MAS 66 III contracts.

3. Though the above responses were received, only Abbott currently has equipment at the VISN 9 facilities, which limits logical follow-on and life-cycle benefits to Abbott in accordance with Abbott’s schedule noted above.

(7) Any Other Facts Supporting the Justification:

None noted.

(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:

It is contemplated that future actions for similar items will be competed and should investigate the benefit of exempting the action from the standard five-year limit.

Effective Date: 02/01/2022 Page 5 of 6

(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.

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K):

I certify the justification meets requirements for other than full and open competition.

DATE Debbie Thompson VISN 9 Health Systems Specialist

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

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

DATE Scott Dickey Contracting Officer Network Contracting Office 9 (NCO 9)

SCOTT DICKEY

Digitally signed by SCOTT

DICKEY

Date: 2024.03.27 13:12:44 -05'00'

DEBBIE THOMPSON

Digitally signed by DEBBIE

THOMPSON

Date: 2024.03.27 13:08:46 -05'00'

John McComas Branch Chief, Supply East Network Contracting Office 9 (NCO 9)

JOHN MCCOMAS

Digitally signed by JOHN

MCCOMAS

Date: 2024.03.20 13:10:07 -05'00'

c. Division Chief (Recommended): I concur/non-concur that the justification meets requirements for other than full and open competition.

__________ROBERT KELLNER___________________

Robert M. Kellner Division Chief Network Contracting Office 9 (NCO 9)

Digitally signed by ROBERT

KELLNER

Date: 2024.03.21 12:25:09 -05'00'

Effective Date: 02/01/2022 Page 6 of 6

d. Di rector of Contracting Concurrence: I concur/non-concur that the justification meets requirements for other than full and open competition.

Tara L. Pe tersen Director of Contracting Network Contracting Office 9 (NCO 9)

HIGHER LEVEL APPROVAL (Required for orders over $750,000):

e. VHA RPO HCA Review and Approval (over $750,000 to $75 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 restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Daryl A. Berg Head of Contracting Activity Regional Procurement Office Central (VHA)

TARA PETERSEN Digitally signed by TARA PETERSEN Date: 2024.03.27 16:42:06 -05'00'

03/28/2024

DARYL

BERG

Digitally signed by

DARYL BERG

Date: 2024.03.28 06:50:56 -05'00'