P03 SSJ - Over SAT - 36C259-24-AP-3476 - GE Echo Pacs Support - PDF_Redacted.pdf

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

Effective Date: 02/01/2022 Page 1 of 3

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C259-24-AP-3476 JOFOC Tracker No.: FY24 – NCO19-2371

1. Contracting Activity: Department of Veterans Affairs, VISN 19, Network Contracting office 19, 6162

South Willow Drive, Suite 300 Greenwood Village, CO 80111.Department of Veterans Affairs, VISN

Organizational Activity: Department of Veterans Affairs, VISN 19, Eastern Colorado Healthcare System (ECHCS), Rocky Mountain Regional VA Medical Center (RMR VAMC) 1700 N. Wheeling St, Aurora, CO 80045.

2237 #: 554-24-4-450-0222

2. Nature and/or Description of the Action Being Processed: The Eastern Colorado Health Care System is requesting new firm-fixed price base plus four (4) option year contract for licensing and software support of their GE Healthcare Centricity ECHO PACS System 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.

The action being reviewed and approved is a Single Source Justification for a firm-fixed price contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The GE Centricity PACS system is already in place and implemented at ECH, this is a contract to support and maintain this system. This is a follow on to contract 36C25919P1153 and includes the required annual software and maintenance to operate the PACS system that is already in place.

The anticipated period of performance is:

Base Period: September 18, 2024 – September 17, 2025 Option Period 1: September 18, 2025 – September 17, 2026 Option Period 2: September 18, 2026 – September 17, 2027 Option Period 3: September 18, 2027 – September 17, 2028 Option Period 4: September 18, 2028 – September 17, 2029

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

Effective Date: 02/01/2022 Page 2 of 3

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): The ECHCS is requesting a follow-on software, support and maintained contract to the already in place GE Centricity ECHO PACS System. GE Healthcare IITS USA Corp. is the sole software manufacturer and distributor for the requested centricity software, support, and maintenance. No other companies are authorized to provide for this requirement. The system went through a recent upgrade and obtaining a new PACS system is expected to or more just to implement a new system.

Therefore, it is determined that a follow-on contract is the most advantageous option to the government as replacing this system would result in unnecessary costs to the government.

Additionally, the PACS system must be compatible with the GE vivid ultrasound units that are already in place at the station and interface with VistA.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: GE Healthcare was contacted on June 3, 2024 and in an email dated June 6, 2024 from Tom Kilkelly, Sr. Sales Manager – Digital Sales Operations at GE Healthcare it was conveyed that only GE Healthcare is able to provide the requested services. A Sole Source Letter was also included in this email. Installing a new system would not be cost effective, as determined in paragraph 5. This would cause unnecessary costs to the government as a new system is anticipated to cost an additional $500,000.00 or more.

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

Reasonable: The price will be analyzed for fair and reasonableness in accordance with FAR 13.106- 3(a)(2). The quoted price will be compared to previous prices paid by the Government for comparable requirements. The quoted price will also be compared to the Independent Government Cost Estimate (IGCE).

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

Market Research Was Not Conducted: Market Research searches on VetCert, SBA, GSA, NAC Contracts, SAC Contracts indicate that this requirement is only available from the Large Business manufacturer, GE Healthcare IITS USA Corp. Manufacturer was contacted, and confirmation is in “P03 Manufacturer confirmation of sole manufacturer.” This requirement is for software imaging and falls under BAA exception 25.103(e) Information Technology. Additionally, maintenance services