P03 Sole Source Justification_SIGNED.pdf

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C252-23-AP-1153

1. Contracting Activity:

Department of Veterans Affairs

VISN 12

Jesse Brown VA Medical Center 695-23-1-133-1120 $60,287.00 (Base Year) $301,435.00 (Aggregated Total)

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

Boston Scientific EP Full-Service Maintenance and Emergency Repairs for the Jesse Brown VA Medical Center located in North Chicago, IL in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items. A new follow-on purchase order will be awarded as Firm-Fixed Price with a base year and four (4) one-year option periods.

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

Labsystem Pro, Maestro 4000, MetriQ, MicroPace, and Rhythmia Maintenance and Emergency Repairs.

Boston Scientific EP Full-Service Maintenance and Emergency Repairs for Jesse Brown VA Medical Center will be a Firm-Fixed Price purchase order with a start date of 02/01/2023, which will include a base year and four (4) one-year option periods with an ultimate completion date of 01/31/2028.

To properly maintain the equipment to the OEM specifications, a service agreement is required. The purchase order value for this procurement is estimated at $60,287.00 for the base year and $301,435.00 for the entire value of the purchase order.

Base Year: 02/01/2023-01/31/2024 $60,287.00 Option Year 1: 02/01/2024-01/31/2025 $60,287.00 Option Year 2: 02/01/2025-01/31/2026 $60,287.00 Option Year 3: 02/01/2026-01/31/2027 $60,287.00 Option Year 4: 02/01/2027-01/31/2028 $60,287.00

Aggregated Total: $301,435.00

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:

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

( ) Unusual and Compelling Urgency

Effective Date: 02/01/2022 Page 2 of 4

( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services

( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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

Boston Scientific is the sole authorized service provider for Boston Scientific’s EP Capital Equipment Systems.

An authorization letter provided by Greg WIlson, Director, CETS Americas for Boston Scientific on 12/22/2022 states “Please allow this letter to serve as Boston Scientific’s confirmation that Boston Scientific is the sole authorized service provider for Boston Scientific’s EP Capital Equipment Systems.”

It is in the Government’s best interest to award a service purchase order to Boston Scientific to ensure scheduled maintenance is completed and to prevent the deterioration of the equipment to limit the replacement rate, along with providing the most up-to-date software. If a purchase order to provide service was not issued, the equipment would go into disrepair and would need to be replaced more often. Installation of new equipment would create unnecessary downtime within the EP Lab, an essential department for the VAMC and ultimately affecting patient care.

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

A Notice of Intent to Sole Source was published on 01/20/2023 with a response date of 01/23/2023 in Contract Opportunities requesting capability statements from interested vendors. One vendor responded, Remi Group. When asked to provide an authorization letter from the OEM, Remi Group could not provide the letter.

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

Reasonable:

The CO has determined that the anticipated cost to the Government is fair and reasonable. A similar service contract with Boston Scientific out of NCO 20 (36C26020P0657) for service on a Labsystem Pro and MicroPace was awarded April 21, 2020. The award amount was for $37,700.00 for the base year. The recent quote received from Boston Scientific (including discounts) for the EP Labsystem Pro EssentialCare and EP MicroPace EssentialCare has a price of $24,092.00. The total quoted price for the base year is $60,287.00 which includes service on three additional pieces of equipment(Maestro 4000, MetriQ, and Rhythmia). The price remains the same throughout all of the option years even with the current rate of inflation. The price has been determined to be fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted:

A FPDS search was conducted using keywords “Labsystem Pro”, the results yielded three vendors, Boston Scientific, Veterans Healthcare Supply Solutions, Inc., and C.R. Bard, Inc. Boston Scientific acquired C.R. Bard, Inc. in November 2013. Veterans Healthcare Supply Solutions, Inc. is a supplier of Boston Scientific but is not authorized to work on equipment. A FPDS search was conducted using keyword “Maestro 4000”, the results yielded two vendors, Bostin Scientific and Veterans Healthcare Supply Solutions. A FPDS search was conducted using keyword “MetriQ”, the results yielded two

Effective Date: 02/01/2022 Page 3 of 4 vendors, Bostin Scientific and Veterans Healthcare Supply Solutions. A FPDS search was conducted using keyword “MicroPace”, no relevant results. A FPDS search was conducted using keyword “Rhythmia”, the results yielded two vendors, Bostin Scientific and Veterans Healthcare Supply Solutions.

An Authorized Service Provider Letter for Boston Scientific dated December 21, 2022, from Mr. Greg Wilson states “Please allow this letter to serve as Boston Scientific’s confirmation that Boston Scientific is the sole authorized service provider for Boston Scientific’s EP Capital Equipment Systems.”

Notice of Intent to Sole Source was posted to Contract Opportunities on January 20, 2023 and closing on January 23, 2023.

Remi Group responded to the Notice of Intent to Sole Source with a capability statement stating that they are capable of performing the service needed. I responded to the inquiry asking for an authorization letter from Boston Scientific which states that Remi Group is authorized to perform the service. Remi Group could not provide the letter.

When confirming with Boston Scientific if Remi Group is an authorized service vendor, they replied “We are the only ones authorized to repair and service our EP equipment. Attached is our sole source letter.”

Based on the market research conducted, no two or more VIP verified and capable SDVOSBs or VOSBs were identified and appeared capable of performing the requirement. In addition, no small business in any of the other targeted socio-economic groups appeared to qualify for a set-aside or sole source procurement. This market research information is not more than 12 months old.

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

Utilizing any non-authorized vendors would void any warranties and current service agreements

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

Boston Scientific (incumbent, OEM) Remi Group (Not an authorized service provider for Boston Scientific EP Capital Equipment Systems)

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 time, only one source, Boston Scientific is qualified for the service on the Labsystem Pro, Maestro 4000, MetriQ, MicroPace, and Rhythmia equipment and software and has shown to be reasonable and authorized. The Contract Specialist and Contracting Officer will continue to survey the marketplace during the purchase order period taking under consideration any new and innovative methods for the above listed equipment. Continual market research and purchase order administration will assist in determining the next purchase order’s procurement strategy.

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.

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

Akram Jabeer Biomedical Engineer Jesse Brown 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 justification is accurate and complete to the best of my knowledge and belief.

Ashley Johnson Contracting Officer

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.

Erika Cannaday Services Team 1 Branch Chief https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx