P03-Sole Source-BrandName- Justification-GuldmannCeilingLift-Rev1-FS_Redacted.pdf

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: __36C249-24-AP-0831__

Effective Date: 02/01/2022 Page 1 of 5

1. Contracting Activity: Department of Veterans Affairs (VA), Veterans Integrated Service Network (VISN) 09, Network Contracting Office (NCO) 9, in support of Tennessee Valley Healthcare System (TVHS), Murfreesboro Alvin C. York (ACY) Campus. PR/2237: 626-24-1-313-0035

2. Nature and/or Description of the Action Being Processed: This procurement is for additional brand name products/services set forth in section 3 below to be awarded under a firm-fixed price contract in accordance with (IAW) 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: Eighteen (18) Guldmann brand, model GH3+ ceiling lifts with equipment management software miscellaneous accessories and turnkey installation services followed by four one-year options for preventive maintenance services.

Estimated delivery dates/period of performance is as follows:

Base year:

Delivery should be completed within forty-five (45) days from date of award or later, if necessary, due to Ward 1B construction timeline. Installation and post-installation testing/ certification shall be completed within forty-five (45) days of equipment delivery or later, if necessary, due to Ward 1B construction timeline. The total period of performance (POP) is 90 days

Start of preventive maintenance services, depends on final completion of installation and acceptance of work date then covers a one-year period. Current estimate is 9/1/2024 through 8/31/2025.

Option Years 1 through 4, are dependent on initial base year start of service coverage. Estimate for option years 1 through 4 are:

Option Year 1: 9/1/2025 through 8/31/2026 Option Year 2: 9/1/2026 through 8/31/2027 Option Year 3: 9/1/2027 through 8/31/2028 Option Year 4: 9/1/2028 through 8/31/2029

The estimated value of the proposed action including options is .

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:

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: __36C249-24-AP-0831__

Effective Date: 02/01/2022 Page 2 of 5

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

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 supplies and services called for in section (3) are unique to Guldmann Inc. (Guldmann) because market research given in section (8) found Guldmann is the sole manufacturer of those products. Consideration of other brand and model ceiling lifts confirmed that mixing and matching ceiling lift systems and accessories between the various brands is not an acceptable common industry practice. Each brand adds their own unique features that no other lift manufacturer possesses. TVHS has made a significant investment in procurement of Guldmann ceiling lift products and services in the last two years as part of their modernization efforts to both the Nashville and Murfreesboro campuses.

The unique core features of the Guldmann product are the ceiling tracks, the trainer module, position locks, and Carelift Management software.

Of the three domestic manufacturer ceiling brands queried - EZ Way, Handicare, and Amico - only Amico’s ceiling lift was found to work with other competitor brand ceiling tracks through their specially designed trolley track adapter. All brands have various track design differences relative to width, overall height, channel width, continuous or fixed recharging, etc. This makes it challenging to mix and match systems. Unfortunately, that is where Amico’s ability to support existing Guldmann ceiling lift system stops. Putting in Amico’s ceiling lift system or any other brand than Guldmann would hinder TVHS from using the dynamic off-loading feature from Guldmann’s GH3+ trainer module and position locks.

The GH3+ trainer module and position locks offer the unique feature of dynamic off-loading with or without clinical supervision or equipment control so clinicians can provide bed bound patients with unique rehabilitation services not offered by any domestic or other foreign ceiling lift system manufacturer. The trainer module along with supporting trainer slings, allows clinicians to provide the patients with up to 220lb of weight relief (dynamic off- loading) for up to 30 minutes. This allows patients to conduct uninterrupted gait training, balance training, joint extension training, and sitting and or standing exercise training without the medical provider having to constantly make height adjustments to the ceiling lift to minimize stress on the patient while also trying to monitor the patient’s form and performance throughout the rehabilitation session.

The GH3+ ceiling lifts are both used and actively being installed throughout TVHS York and Nashville campuses. It is normal for staff to switch between wards and campuses; thus, making standardization between the two campuses crucial. For example, clinical staff state that moving a patient from a room to another part of the facility which has a different brand of ceiling lift system would require the patient to go through multiple harness changes.

he initial harness that is designed for the ceiling lift system in their room to the harness that is for the other ceiling lift system in another ward of the facility increases both risk of further injury to the patient and subsequent liability to the facility.

Effective Date: 02/01/2022 Page 3 of 5

TVHS also uses Guldmann’s proprietary Carelift Management software (CLM) to keep instant and continuous track of when and how often any ceiling lifts within the facility is used, and the operational status of any of the ceiling lift systems throughout the facility. This crucial piece of standardized workflow management helps enhance safe patient handling to reduce risk and work-related injuries, optimizes resource planning to prevent equipment down time, and ensures healthcare compliance with applicable accreditation standards to avoid liability issues.

The need for standardizing procedural equipment is critical, as different models have different capabilities, operating procedures, and user interfaces and require additional end user training. A mixture of different models in the patient care area increases the risk of user error, significantly increasing the risk to patient safety. Standardizing patient care equipment is a recognized best practice for reducing the risk of errors, increasing uniformity of practice and patient safety. See Zhang, J. et al., Evaluating & Predicting Patient Safety: From Research to Implementation, Vol 2:

Concepts and Methodology (Kerm Henriksen et al. eds., Agency for Healthcare Quality and Research 2005).

Previous contract actions did not consider this requirement within scope of previous procurements based on not being a bona fide need. The Government’s $3.5 million purchase/investment within the last two years for Guldmann brand ceiling lifts, the increased workflow efficiencies from the unique features offered by the GH3+ system, and the enhanced resource management capabilities offered by Guldmann’ s CLM software makes it evident that it is essential to acquire only Guldmann brand products and services, and acquiring another brand of similar products and services would be a substantial and unnecessary duplication of cost that could not be expected to be recovered through full and open competition.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Used market research of past purchases which included a sources sought synopsis 36C24923Q0264 issued from 4/14/2023 through 4/28/2023 for similar products and services that found two small business manufacturers and three nonmanufacturer small business concerns owned and controlled by veterans interested in this procurement. The Government also spoke with industry, acquisition personnel, and customers to assess response from potential domestic sources. Federal Acquisition Regulation (FAR) 10.002(b)(1) allows reuse of market research within the last 18 months before award of any order if the information is still current, accurate, and relevant.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Competition amongst responsive and responsible offerors will be the primary basis for determining fair and reasonable contract price to the Government. Use of past purchase price to support potential for negotiations should only one responsive and responsible offer be received is also considered. Certified cost or pricing data not required as all products and services can be met in the commercial marketplace.

Effective Date: 02/01/2022 Page 4 of 5

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research conducted pursuant to FAR Part 10, VAAR Part 810 and PPM 2016-05(REVISED AUG 2019 consisted of the following methods: reviewed VA’s VIP database; reviewed recent and relevant market research for past buys by TVHS; queried government-wide databases of contracts and other procurement instruments such as FPDS.gov, GSA eLibrary and Advantage, and sam.gov to assess relevant information to agency acquisitions;

communicated with industry, acquisition personnel, and customers, and posted a sources sought notice on GSA eBuy [RFQ 1674045 from 1/16-24/2024] and a presolicitation notice [36C24924Q0137 from 2/13-27/2024] on sam.gov.

Results of market research confirmed no domestic or other foreign made products and services could meet or be modified to meet this requirement, and that procuring additional Guldmann products and services is in the government’s best interest. Communication with representatives from domestic manufacturer brands EZ Way, Inc., Handicare Inc., and Amico found that it is common commercial practice to not mix and match brands as each brand has their unique design and performance features that are not interoperable with other brands.

Market research supports a brand name competitive small business set-aside solicitation as it found one small business manufacturer, Guldmann Inc., and two veteran-owned small businesses (VOSB) authorized to resell Guldmann products and services, namely Interior Fusion and Premier Medical Distributors, to meet this requirement. Neither VOSBs keep any product on hand or in their inventory, rather they use the drop-ship business model. However, only Premier Medical Distributors has employees who are trained to install, maintain, and inspect Guldmann brand ceiling lifts other than the original equipment manufacturer, Guldmann.

The Government considered sole source IAW 38 USC 8127(c) and VAAR 819.7008 to Interior Fusion under their VA FSS contract but found it was not in the Government’s best interest as Interior Fusion’s FSS quote of was 23-percent higher than the Government’s estimate and higher than their FSS pricelist that expires 11/30/2024. The government does have reservations on fair and reasonable pricing and primacy of contract actions for the option years for preventative maintenance services from Interior Fusion.

Consideration of the Buy American Act (BAA)/Trade Agreement Act (TAA)/Exceptions to BAA/TAA (See FAR 25) found the ceiling lift itself is not made in the United States but rather Denmark. The materials and supplies to install the primary ceiling lift product would be from the United States.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None.

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

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

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 Government will continue to reassess future procurements for ceiling lifts that are in the best interest of the Government. Competitive procedures to replace ceiling lift systems at TVHS may be available in the future that are dependent upon introduction of new technology and changes in facility standards.

Approval is sought for more than one year because the preventative maintenance services can only be provided by Guldmann trained, authorized, and certified personnel.

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.

X Sarah E. Ingerick TVHS, Interim Biomedical Chief

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

X Sascha Hertslet, CFCM NCO9, Contracting Officer, Supply East

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.

X John McComas III NCO9, Branch Chief, Supply East

SARAH

INGERICK

Digitally signed by

SARAH INGERICK

Date: 2024.05.09 14:40:13 -05'00'

SASCHA

HERTSLET

Digitally signed by SASCHA

HERTSLET

Date: 2024.05.09 14:52:26 -05'00'

JOHN

MCCOMAS

Digitally signed by

JOHN MCCOMAS

Date: 2024.05.13 07:25:35 -05'00'