P03 - SSJ - 36C252-25-AP-0195 - FY25 Ricoh Production Oct 2024 FINAL.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

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: 36C252-25-AP-0195

1. Contracting Activity: Department of Veterans Affairs, VISN 12, Great Lakes Acquisition Center, 115

S. 84th Street, Milwaukee, WI 53214-1476 for the VISN12 VA Medical Centers.

2. Nature and/or Description of the Action Being Processed: This procurement is for leasing and service of Production Multi-Functional Devices (MFD) (i.e. copying/printing/binding equipment) to support mission accomplishment for the VISN VA Medical Centers, Clinics and Business Offices in accordance with 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. This contract is for a six (6) month period will be firm fixed priced for the period November 1, 2024 – April 31, 2025. The North American Industry Classification System Codes for this acquisition is 532420.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The requirement being sole sourced is for leasing and service Production Printing (i.e. copying/printing/binding equipment) with VISN 12’s VA Medical Centers, Clinics and Hospitals with a value estimated at $486,084.00. The Period of Performance for this bridge effort is for six (6) months from 01 November 2024 through 30 April 2025 with all options.

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 ( ) 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):

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

VISN-12 currently has Ricoh USA production devices throughout its VA Medical Centers. The devices were acquired under an interagency agreement (IAA) with the Government Printing Office (GPO) using a FAR Part 17 IAA that expires October 31, 2024. During market research, it was found a potential savings to the government by using more robust services offered through GPO. Thus, the facilities with high use of the production devices warranted additional time to ensure the services offered would meet the facilities requirements. Since this is a VISN 12 contract, it is imperative that the future contract established properly fits the needs of not only the individual facilities, but as a VISN as a whole. In addition, production devices are built to order and have a roughly 120 day lead time on top of delivery, installation, commissioning, systems integration and training. Given the new opportunities discovered during market research, the timeframes shifted to complete a VISN-12 only, multiyear production device contract soliciting in Q1 of FY25. The existing Ricoh contract expiration date of October 31, 2024 is expected to generate an unacceptable delay in fulfilling the agency’s requirement of any new devices. A six (6) month contract will afford the government time to concurrently solicit a competitive action for award of production devices in the VISN and to allow for some stations to transition to GPO printing services and performance in FY 2025. The continued availability of production devices currently provided by RICOH during the bridge period is essential to the government’s requirements.

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 under notice ID 36C25225Q0036; no responses were received from the notice. A concurrent competitive solicitation will be published during the bridge period for a competitive award in early CY 2025. In examination of the VA Rule of Two, Ricoh USA confirmed that while they have partner relationships with SDVOSBs and VOSBs, those companies only provide invoicing and would not be capable of performing the actual effort including service and maintenance of the devices. In accordance with VAAR 852.219-10 (c) and the SBA’s limitation on subcontracting requirements found in 13 C.F.R. § 125.6, this supply and services contract cannot be performed by any SDVOSB or VOSB partner of Ricoh, USA. Their performance of only processing invoicing, as stated by the OEM above, would require them paying more than 50 percent of the amount paid by the government to non-SDVOSB subcontractors. As such, no other responsible source can perform during this period without interruption to the governments mission.

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

Pricing for the bridge period will be at or below prices offered during the previous contract amount for the prior period. Prices on the GPO GWAC have previously found fair and reasonable for inter-agency use. The Contracting Officer anticipates these bridge prices to be fair and reasonable for the effort considering the additional maintenance costs for the aging equipment at a no increased cost to the VISN.

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

Market Research Was Not Conducted:

Market Research was conducted. A sole source contract was determined to be the best course of action to allow for a follow-on competitive award. Examination of acquisition history for these devices shows that all other production equipment providers are large businesses and authorized SDVOSB or VOSB while in partnership, do not perform service and maintenance as is the

Effective Date: 02/01/2022 Page 3 of 4 governments requirement on the devices. A VIP/SBA check was performed. The Contracting Officer sought and confirmed with the OEM that no authorized SDVOSBs/VOSBs are partnered and capable of performing the efforts on these OEM devices. Any other substitute product provided from outside the OEM would not meet grey market items provisions. The devices are currently in place and provided by the OEM for lease and maintenance.

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

Any manufacturer has a multiple month production lead time for the implementation of new production printing devices based upon the Contracting Officer’s personal knowledge of the market.

Given the timeframe, a six month sole source contract is vital to prevent unexcusable delays while a concurrent competitive action is solicited and awarded affording all contractors time to build, produce, ship, implement and commission devices for VISN12.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Ricoh, USA Inc. No other responses were received from the Notice of Intent posted to Sam.Gov under notice ID 36C25225Q0036.

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:

A follow-on competitive acquisition is planned with a projected award date in Q2 of FY25. This date should afford a reasonable amount of time for a competitive contract to be solicited, awarded and devices in place to meet the goverments needs during the base period of this justification. Locations that will no longer need production equipment will be afforded time to transition to GPOs print services contracts.

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.

Robby Schopen Date Deputy Chief Supply Chain

VISN-12

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.

David Picchi Date Contracting Officer

NCO-12

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

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.

Scott Ivy Date Contracting Officer, Division Chief

NCO-12