P03 - PM_Part806.3_Atch5_FAR6_JA_OVER_SAT - COVID-19 - ICCA Rev H Upgrade and Expand ICCA 2C ICU - Martinsburg VAMC.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Request for Sole Source Justification >SAT

OFOC SOP Revision 11 Page 1 of 5 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

U.S. DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C245-21-AP-0841

1. Contracting Activity:

The U.S. Department of Veterans Af fairs (VA), VA Capitol Health Care Network (VISN 5), Martinsburg Veterans Af fairs Medical Center (VAMC) is fully responsible for the proposed Justif ication and Approval for Other Than Full and Open Competition (>SAT) for the proposed contract action purchasing ICCA Rev H Sof tware Upgrade and Expand ICCA 2C ICU in response to COVID-19 under purchase request number 613-21-2-3018-0098.

2. Nature and/or Description of the Action Being Processed:

This action is to provide licenses, equipment, upgrade, and implementation of the Philips ICCA intensive care unit clinical information system (ICU-CIS) for COVID-19/surge expansion and upgrade of current ICU and COVID-19 ICU systems. The proposed contractor must be responsible for implementation project management, training, and the conf iguration o f the servers – both physical and virtual. The proposed contractor must work with VA to ensure integration with the Philips Monitoring System and with our EHR. The system must be moved f rom REV F to REV H.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The agency is using hardware for the COVID/ICU areas for the Philips ICCA that has reached end of support and may have issues with the added end users utilizing due to COVID -19 expansion. The hardware needs to be replaced and upgraded to meet the patient care demands. In addition, the agency needs to expand to provide for surge capacity due to COVID -

19. The proposed contractor must provide replacement hardware to include servers and terminal servers. The proposed contractor must provide remote project management, technical consulting, and application consulting needed. The contractor meets the Agency ’s needs to the maximum extent practicable.

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;

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5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Only One Responsible Source (FAR 6.302-1) – A patent, copyright or proprietary data limits competition. The proprietary data is: the clinical sof tware that is being upgraded is regulated by the FDA. Per the FDA, only the manufacturers of equipment can provide upgrades to the equipment. Any other body updating the system would need to get FDA approval as a new medical device to do so.

Philips Healthcare f /k/a Philips North America LLC. is the original manufacturer and supplier of the IntelliSpace Critical Care and Anesthesia product that resides at several VISN 5 VA Medical Centers including Baltimore, Beckley, Clarksburg, Huntington, Martinsburg, and Washington DC.

This product is proprietary to Philips Electronic North America and the only authorized company to make the VAST conf iguration changes in ICCA because they are the original equipment manufacturer Philips can upgrade the hardware and sof tware accordingly and service the equipment. Philips requires that only certif ied parts be used that can meet our original equipment manufacturers specif ications. Philips also holds the proprietary license and related authorizations for this product as well as other Philips Monitoring products, supplies , and support.

The material/service must be compatible in all aspects (form, fit and functio n) with existing systems presently installed/performing. This is an upgrade of an existing software system. A new revision is being installed and data/ conf igurations will need to be transferred to the new revision. Only a compatible system f rom Philips will be able to do this seamlessly. The use of such descriptions in the acquisition is essential to the Government’s requirements, thereby precluding consideration of a product manufactured by another company.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

A Seeking Sources Notice was posted in GSAebuy via Request For Information (RFI) number 36C24521Q0209 referenced to GSAebuy RFI number 1475313 on February 4, 2021 and closed on February 9, 2021 at 10:00 am est. Only one response was received f rom the manufacturer, Philips GSA/FSS contract number 36F79720D0042. This Seeking Sources Notice was posted and sent to 978 vendors for market research purposes to see if there were any potential Service- Disabled Veteran Owned Small Businesses (SDVOSB) or Veteran Owned Small Businesses (VOSB) that could perform the work but no other company is qualif ied to do so. Therefore, the “VA Rule of Two” could not be applied to this acquisition.

A Sources Sought Notice was also posted on February 4, 2021 and closed on February 9, 2021 at 10:00 am est on SAM.gov Contract Opportunities via RFI number 36C24521Q0209 simultaneously with the aforementioned Seeking Sources Notice to further gain market research f rom industry to see if there were any potential SDVOSB or VOSB that could perform the work but no other company is qualif ied to do so and only one response was received by the manufacturer. Therefore, the “VA Rule of Two” could not be applied to this acquisition.

Other Actions: No other actions were taken since only one response was received and the manufacturer provided a Sole Source Proprietary letter which states they are the original manufacturer and supplier.

https://www.acquisition.gov/content/part-6-competition-requirements

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

The Contracting Off icer anticipates that the cost will be considered fair and reasonable. The Contracting Off icer and customer will continue to work in a collaborative ef fort to ensure appropriate steps will be taken to ensure the f inal contract price will be in the best interest and most advantageous for the Government.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Market research for this procurement was conducted in accordance with (IAW) FAR part 10, which describes the policies and procedures that govern the market research process . FAR part

10 assists requesting stations, program offices, and acquisition professionals in determining the most suitable approach for acquiring, distributing, and supporting supplies and services. FAR part 10 implements the requirements of 41 U.S.C. 3306(a)(1),41 U.S.C. 3307,10 U.S.C. 2377, and 6 U.S.C. 796.

The Washington DC VAMC has a need for the purchase of ICCA Rev H Sof tware Upgrade in response to COVID-19. A North American Industry Classif ication System (NAICS) code search of ICCA Rev H Sof tware Upgrade in response to COVID-19 was utilized and yielded a NAICS code of 541519, which includes corresponding index entries such as Other Computer Related

Services with a Product Service Code (PSC) search of R699, Support (Administrative Other).

The NAICS code size standard for 541519 is $30 million dollars.

In accordance with FAR Part 10.002 (2), methods used to conduct market research consisted of reviewing the results of recent market research/historical data in IFCAP undertaken to meet similar or identical requirements. The methods were conducted in a manner that sought to determine the best acquisition strategy to acquire the supplies or services requested by the customer and meet the needs of the Government in the specif ic timeframe.

The Contracting Off icer reviewed the Vendor Information Pages (VIP) for NAICS code 541519 and found 2,470 SDVOSB and VOSB total through the VIP query for market research as required. 2,054 (SDVOSB) | 416 (VOSB). Unfortunately, the Contracting Off icer is not able to apply the “VA Rule of Two” to this procurement since Philips is the original manufacturer and supplier and has provided proof to that extent.

As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries f rom interested parties.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

Already explained in Sections 5, 6, and 8 above.

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

The only source that expressed interest in the acquisition is the original manufacturer and supplier:

Philips Healthcare f /k/a Philips North America LLC. | DUNS number:153882816 Address: 3000 Minuteman Road Andover, MA 01810

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:

At this present time, there are no actions taken or to be taken to foster competition for future acquisitions of the supplies or services being acquired. However, when the entire system is replaced, not upgraded, the barriers to competition may be removed.

12. Requirements Certification: I certify that the requirement outlined in this justif ication is a Bona

Fide Need of the Department of Veterans Af fairs and that the supporting data under my cognizance, which are included in the justif ication, are accurate and complete to the best of my knowledge and belief .

2/10/2021

X Elyssa V Polomski

Signed by: Elyssa V. Polomski 986621 Elyssa Polomski Assistant Chief Engineer Martinsburg VA Medical Center

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 justif ication is accurate and complete to the best of my knowledge and belief .

David J. Valenciabonilla Contracting Off icer, NCO 5 https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

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b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justif ication meets requirements for other than full and open competition.

Donald Butler Branch Chief , NCO 5