Philips Except to Fair Opp_Redacted.pdf

Exception to Fair Opportunity

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 1 of 4 Original Date: 08/30/2017

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID: VA241-18-AP-0365

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 1, 200 Springs Rd, Bedford, MA 07130.

2. Description of Action: This is a request for a noncompetitive, firm fixed price task order with Philips

Healthcare, 22100 Bothell Everett Highway, P.O. Box 3003 98041-3003, Bothell, Washington, USA 98021-8431, under NAC contract VA797H-17-D-0022 to service Philips Imaging Equipment for VISN 1 Veterans Affairs Medical Centers (VAMC). The total estimated amount is for a Base Period of one year and Two (2) One Year Option Periods specified in the attached equipment list.

These systems are located throughout medical centers in VISN 1.

3. Description of Supplies or Services: The Contractor shall provide maintenance, repairs and service support for the following Philips imaging equipment at the following VISN 1 facilities:

Boston VAMC Allura Xper FD10/10

(4) Allura Xper FD20 (w/ (1) Maquet OR table) BrightView XCT Brilliance CT Big Bore

(8) Extended Brilliance Workspace NM GEMINI TF Big Bore

DigitalDiagnost

(4) MobileDiagnost wDR

(2) EasyDiagnost Eleva Juno DRF Pinnacle Professional System

Connecticut Allura Xper FD10 Allura Xper FD20 Ambient Experience for MR Extended MR Workspace Ingenia 3.0T

(3) Extended Brilliance Workspace

Precedence SPECT/CT DigitalDiagnost Dual Detector

(2) MobileDiagnost wDR Release 2 EasyDiagnost Eleva

(2) X8-2t Compact Transducer

Manchester DigitalDiagnost Classic Dual-Detector EasyDiagnost Eleva DRF, Release 5

White River Junction Forte Jetstream AZ DigitalDiagnost Classic Dual-Detector

EasyDiagnost Eleva DRF, Release 5

Togus Allura Xper FD20 DigitalDiagnost 4.1 High Performance

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 2 of 4 Original Date: 08/30/2017

Digital Diagnost Single Detector

(4) MobileDiagnost wDR Release 2 Digital Diagnost Dual Detector

DigitalDiagnost Release 3 EasyDiagnost Eleva DigitalDiagnost 4 Chest/Emergency

Providence

(2) DigitalDiagnost Classic, Dual Detector MobileDiagnost wDR Release 2

EasyDiagnost Eleva

Central Western Massachusetts BuckyDiagnost Ceiling System MobileDiagnost wDR Release 2

4. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section

41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) Subpart 16.505 Subpart 16.505(b)(2)(i):

( )FAR Subpart 16.505(b)(2)(i)(A): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

( X ) FAR Subpart 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

( ) FAR Subpart 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

( ) FAR Subpart 16.505(b)(2)(i)(D): It is necessary to place an order to satisfy a minimum guarantee.

( ) FAR Subpart 16.505(b)(2)(i)(E): For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source”. The statutory authority permitting an exception to fair opportunity for this action is 38 U.S.C. 8127(c), known as the Veterans First Contracting Program which provides the authority to directly contract with a Service-Disabled Veteran-Owned Small Business (SDVOSB) or a Veteran-Owned Small Business (VOSB).

( ) FAR Subpart 16.505(b)(2)(i)(F) In accordance with section 1331 of Public Law 111-240 (15 U.S.C.

644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns identified in 19.000(a)(3). When setting aside orders for small business concerns, the specific small business program eligibility requirements identified in part 19 apply.

5. Rationale Supporting Use of Authority Cited Above: Philips is the original manufacture of the equipment and is the sole provider of necessary parts and software needed to properly maintain the system. The OEM has provided a sole source letter to stating the following; equipment is extremely specialized and highly technical in nature and services/maintenance should only be performed by

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 3 of 4 Original Date: 08/30/2017 individuals affiliated with Philips and capable of maintaining OEM specifications. Philips is the only vendor that can provide what the VAMC services require: a 4-hour response time, a 98% uptime and 24X7 monitoring on selected equipment. Should this equipment work improperly due to third party support, the health of a patient could be at risk.

6. Efforts to Obtain Competition: There is no competition anticipated for this acquisition. In accordance with FAR 5.301 and 16.505(b)(2), this action will be synopsized at award on the Federal Business Opportunities Page (FBO) and the justification will be made publicly available.

7. Actions to Increase Competition: The Philips imaging equipment owned by the VAMC is highly specialized and requires an uptime of at least 98% for patient care, a response time for service of no more than 4 hours on selected equipment and requires 24X7 monitoring for various pieces of equipment. These standards are currently not available from third party vendors. However, the Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

8. Market Research: The OEM is the only capable provider for the current equipment on site.

There are third Party vendors that have shown interest; however, their capabilities are limited to sub-contracting the services out to the OEM which limits direct contact with the OEM resulting in increased risk to the patients and delays in response times. The Philips Healthcare systems are operated by proprietary software/hardware that can only be replaced or expanded upon by the OEM. Third party providers do not have the technical knowledge or levels of support to maintain these critical systems. As the sole OEM provider of this equipment, all parts and labor will be acquired from Philips.

9. Technical and Requirements Certifications: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Michael Ambrosi Date VISN 1 Clinical Engineering

NCO1

10. Determination that Anticipated Cost is Fair and Reasonable: A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

Pricing was considered fair and reasonable at the time of the award of the NAC contract. The NAC Price list is in line with commercial Pricing. To ensure the final contract price will be fair and reasonable Contracting will be meeting with the vendor to finalize additional discounted services.

12. Contracting Officer's Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

8/12/2020

MICHAEL

AMBROSI 1577562

Digitally signed by MICHAEL

AMBROSI 1577562

Date: 2020.08.12 09:19:21 -04'00'

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 4 of 4 Original Date: 08/30/2017

Harold Nice Date Contracting Officer

13. Approvals in accordance with VHAPM Part 806.3 Other Than Full and Open Competition SOP;

a.One Level Above the Contracting Officer (Required over $150K but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Tammy Fox Date Contracting Division Chief

NCO1

HIGHER LEVEL APPROVAL (Required for orders over $700,000):

b. VHA SAO HCA REVIEW AND APPROVAL (over $700,000 to $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve the exception to fair opportunity for the VA NAC High Tech Medical Equipment (HTME) Multiple Award Contracts.

Joseph P. Maletta DATE Executive Director Regional Procurement Office – East (RPO-E)

8/13/2020

HAROLD W.

NICE 405602

Digitally signed by

HAROLD W. NICE 405602

Date: 2020.08.13 16:17:37 -04'00'

Tammy A Fox 706200

Digitally signed by Tammy A Fox 706200 Date: 2020.08.17 20:28:07 -04'00'

JOSEPH MALETTA

1347841

Digitally signed by JOSEPH

MALETTA 1347841

Date: 2020.08.18 16:40:57 -04'00'