PM_Part808.405-6_Atch2_Limiting_Sources_Justification_OVER_SAT - Redacted_Redacted.pdf

VHAPM Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPM Part 808.405-6 Limiting Sources Page 1 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C261-20-AP-6299

(1) Contracting Activity: Department of Veterans Affairs, VISN 21, NCO21, VA Palo Alto Health Care System (VAPAHCS), 3801 Miranda Avenue, Palo Alto, CA 94304, Purchase Request Number 640-21-1-221-0003

(2) Description of Action: This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). NCO 21 anticipates the award of a firm fixed price delivery order to deliver and install a turnkey high-density racking system to VAPAHCS. The following are the delivery and installation addresses:

-Palo Alto Campus: 3801 Miranda Avenue Palo Alto, CA 94304 – BLDG 50 -Menlo Park Campus: 795 Willow Road Menlo Park, CA 94025, BLDG 371 -Livermore Campus: 4951 Arroyo Road Livermore, CA 94550, BLDG 65 -Monterey Campus: 201 9th Street Marina, CA 93933 – 1-B910 Marina Warehouse -San Jose Campus: 5855 Silver Creek Valley PL San Jose, CA 95138 -Palo Alto IV Solution Room: 3801 Miranda Avenue Palo Alto, CA 94304 – BLDG 50

The proposed action is for a limited source justification under FAR Part 8.

Order against: FSS Contract Number: 36F79718D0287

Name of Proposed Contractor: Pegasus Medical

Street Address: 905 East Rose Street

City, State, Zip: Lakeland, FL 33801

Phone: 954-288-4560

(3) Description of Supplies or Services:

The estimated value of the proposed action is

As prescribed by the VHA Procurement and Logistics Office (P&LO) and executive leadership, all Supply Chain programs across VHA, are to comply with the guidance and requirement to move from the current 15 Days of Stock On-Hand (DSOH) to 30 DSOH for all Primary inventory locations; and from 30 DSOH to 60 DSOH, for all contingency inventory points in order to ensure effective and sufficient pandemic support for their respective VA medical centers.

VHAPM Part 808.405-6 Limiting Sources Page 2 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

Currently, all VAPAHCS warehouses and clean/sterile storage locations are challenged with space.

In order to meet P&LO’s requirement, the VAPAHCS requires a contractor to deliver and install a turnkey high-density racking system to VAPAHCS. The following are the delivery and installation addresses:

-Palo Alto Campus: 3801 Miranda Avenue Palo Alto, CA 94304 – BLDG 50 -Menlo Park Campus: 795 Willow Road Menlo Park, CA 94025, BLDG 371 -Livermore Campus: 4951 Arroyo Road Livermore, CA 94550, BLDG 65 -Monterey Campus: 201 9th Street Marina, CA 93933 – 1-B910 Marina Warehouse -San Jose Campus: 5855 Silver Creek Valley PL San Jose, CA 95138 -Palo Alto IV Solution Room: 3801 Miranda Avenue Palo Alto, CA 94304 – BLDG 50

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized; Pegasus Medical Concepts offers a turnkey racking system that is required for Palo Alto to comply with the guidance and requirement to move from the current 15 Days of Stock On-Hand (DSOH) to 30 DSOH for all Primary inventory locations; and from 30 DSOH to 60 DSOH, for all contingency inventory points. Pegasus Medical is the sole manufacturer of the custom color-coded racks that are constructed from strong and durable 1” tubular, galvanized, powder‐coated steel and interconnect with existing equipment. The racks include horizontal basket rails only, permanently angled basket rails do not allow for maximum storage capacity which is required IAW PL&O guidance in order to ensure effective and sufficient pandemic support. Pegasus Medical’s support rails allow for baskets to be placed on an angle of 30 degrees or more for easy access and enhanced viewing of supplies once the baskets are extended out at full length. The support rails are capable of supporting heavy consumable medical supplies. The baskets have ergonomic grip handles that accommodate insertable, exchangeable color-coded plastic strips. The handles are constructed of injection molded acrylonitrile butadiene styrene (ABS) and fit securely across the front ledge (lip) of each basket for easily gripped to assist in the movement of the basket in and out. These characteristics of the turnkey racking system produce an efficient Kanban supply chain system which are required to improve visibility, maximize space, boost efficiency, increase productivity, reduce waste, and increase flexibility of our supply chain program for pandemic support.

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order

VHAPM Part 808.405-6 Limiting Sources Page 3 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020 was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination: The VA has procurement history for the same racking system and comparison can be made of the proposed price with prices found reasonable on previous purchases. The racking systems have been previously procured as task orders against 36F79718D0287 36C26220F0504 and 36C26220P1947.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

A sources sought was posted to Federal Business Opportunities which is open to all contractors including FSS schedule holders. The following companies responded to the sources sought:

VIP was queried for SDVOSB only, utilizing NAICS 337215 and keywords “high density” which resulted in one SDVOSB. Advanced Filing Systems website was reviewed and found that they offer mobile high-density systems. The VA’s requirement is not for a mobile system.

VIP was queried for VOSB only, utilizing NAICS 337215 and keywords “high density” which resulted in one VOSB. Mobile Media Inc. does not offer systems for the medical industry.

VHAPM Part 808.405-6 Limiting Sources Page 4 of 5 Original Date: 08/30/2017

There are no known VOSBs. Pegasus Medical is the manufacturer and supplier of the product and is a small business who offers this product under a FSS contract. Even though there are two known small business-types (original end manufacturer and distributor), I don’t foresee that there will be price competition so that award could be made at a fair and reasonable price. Pegasus Medical is willing to offer their brand name to other small businesses, however, the price through any other company would be open market prices with a retailer mark-up. For these reasons I have determined that this be procured using a limited source justification under FAR Part 8.

(7) Any Other Facts Supporting the Justification: There are no other applicable facts at this time.

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made: As new technology becomes available, review of the current system will be done to see if it can be replaced. This will be done in sufficient time to facilitate full and open competition.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

DATE

Chief, Business and Procurement Planning NAME: Ismael Barrera TITLE

VA Palo Alto Health Care System

FACILITY

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

VHAPM Part 808.405-6 Limiting Sources Page 5 of 5 Original Date: 08/30/2017

DATE

Megan Barr, Contracting Officer VA Sierra Nevada Health Care System, NCO 21

NAME AND TITLE FACILITY/NCO/PCO

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K):

I certify the justification meets requirements for other than full and open competition.

DATE

Nicholas Kluch, Division Chief, NCO 21 Contracting Office

NAME, DUTY TITLE