signed 501B10045 Justification NMVAHCS Hybrid OR rgb signed.pdf

DEPARTMENT OF VETERAN AFFAIRS

Office of Acquisition and Logistics National Acquisition Center

P.O. Box 76 Hines, IL 60141

Justification for an Exception to Fair Opportunity FAR 16.505(b)(2)(i)(B) – Only One Source

(1) Identification of the agency and the contracting activity.

This Justification for an Exception to Fair Opportunity is on behalf of VISN 22, Albuquerque VA Healthcare System and will be executed by the Department of Veterans Affairs National Acquisition Center (NAC – 36A797) located in Hines, Illinois.

(2) Nature and/or description of the action being approved.

This activity intends to issue a sole-source delivery order against Indefinite Delivery Indefinite Quantity (IDIQ) contract SPE2D1-17-D-0023 awarded to Siemens Medical Solutions USA, Inc.

(3) A description of the supplies or services required to meet the agency’s needs, including the estimated value.

The Albuquerque, New Mexico VA Health Care System requires a new Hybrid OR system to include hardware and software to be installed in a Hybrid OR space that is currently being renovated within the Medical Center.

The estimated total value of this equipment is $1,783,970.00

(4) An identification of the exception to fair opportunity (see 16.505(b)(2)) and the supporting rationale, including a demonstration that the proposed contractor’s unique qualification or the nature of the acquisition requires use of the exception cited. If the contracting officer uses the logical follow-on exception, the rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g. in terms of scope, period of performance, or value).

The order will be issued on a sole-source basis in accordance with FAR 16.505(b)(2)(i)(B) as 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.

The Albuquerque VA Healthcare System originally intended the effort to procure a Siemens Artis Pheno VE10 Surgery under delivery order 36A79718F0577 (PO# 501- B60029/501-B70036). Order 36A79718F0577 was competed in the September FY17 Consolidation and was awarded to Siemens on May 24, 2018. The station began contracting locally for design plans under NRM project 501-CSI-116. Siemens strict design plans and specifications were required prior to the beginning of site prep construction to ensure the room could accommodate the installation of the Artis Pheno

VE10 Surgery System. In addition, there were moderate construction delays caused by staffing and swing-space limitations due to the COVID-19 global pandemic. The complications with site-prep construction resulted in the purchase order reaching expiration prior to the deployment of the system. As a result, purchase order 36A79718F0577 was terminated and funds de-obligated September 30, 2021.

The Albuquerque VA Healthcare System began the currently ongoing site prep construction in FY 2021. It is currently expected to conclude in March of 2022 and the installation of the equipment to begin. To date, $219,854.00 was spent on designs that were then used to award site-prep construction priced at $965,000. Any change in manufacturer or equipment model will result in an estimated cost increase of $350,000 due to the vendor’s differing specifications for electrical, mechanical, structural, RF shielding and vendor-specific requirements (e.g., equipment layout & vendor-specific features). It would also require demolition of the newly constructed area, excessive redesign work and additional time to reconstruct the space for a different piece of equipment. This will delay the facility’s ability to utilize the renovated space and delay patient care. Therefore, it is in the VA’s best interest to continue with the current NRM project and to purchase the Siemens Artis Pheno VE10 Surgery system.

(5) A determination by the Contracting Officer that the anticipated cost to the

Government will be fair and reasonable.

The contracting officer for the resultant order has determined the prices offered to be fair and reasonable for this justification for an exception to fair opportunity. All items are priced at or below the contract price, which was previously determined fair and reasonable at time of contract award, and there have been no significant changes to the industry or market conditions that would result in changes to the reasonableness of the underlying contract prices.

(6) Any other facts supporting the justification.

To cancel the current construction project and restart the process to accommodate a different vendor’s equipment would add excessive rework at a high cost, and further delay the ability of the facility to provide up-to-date, clinically acceptable services to patients. Furthermore, this will cause additional delays with the overall construction timeline as the NRM process will have to restart. It would take at least 12 additional months for a new acquisition package to be processed. Therefore, it is in the best interest of the VA to continue with the current NRM project and purchase the Siemens Artis Pheno VE10 Surgery. Any other approach would negate the work and funding already invested in the current room design where construction is already in progress.

(7) A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made

Future requirements will be handled on a case-by-case basis and all attempts will be made to provide fair opportunity to all schedule holders when appropriate.

The contracting officer’s certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

By signing this justification, the Contracting Officer hereby certifies that the justification is accurate and compete to the best of their knowledge.

Evidence that any supporting data that is the responsibility of the technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

By signing this justification, the Facility Biomedical Engineer hereby certifies that the justification is accurate and compete to the best of their knowledge.

A written determination by the approving official that one of the circumstances in (b)(2)(i)(A) through (F) of this section applies to the order. Based on the information contained herein, a determination has been made that this requirement meets the exception at FAR 16.505(b)(2)(i)(B) as only one contract holder 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. All awardees were given a fair opportunity to be considered for the original order.

CERTIFICATION AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION:

Pursuant to FAR 16.505(b)(2)(ii)(B)(9), I certify that any supporting data that is my responsibility and which forms a basis for the justification is complete and accurate to the best of my knowledge and belief.

Brennon P. Cucullu Date Chief Biomedical Engineer New Mexico VA Health Care System

1/10/2021

Brennon P.

Cucullu 1090551

Digitally signed by Brennon P.

Cucullu 1090551 Date: 2022.01.10 11:23:07 -07'00'

CONTRACTING OFFICER CERTIFICATION:

Pursuant to FAR 16.505(b)(2)(ii)(B)(8), I certify that the justification is complete and accurate to the best of my knowledge and belief.

Date

Date

Date

Contracting Officer VA National Acquisition Center – Hines High-Tech Medical Equipment Ordering Division

Regina Blair Chief HTME Ordering Division/Chief HTME Contracting Division VA National Acquisition Center – Hines High-Tech Medical Equipment Ordering Division

COMPETITION ADVOCATE APPROVAL:

Craig Robinson Competition Advocate (orders > $700,000 up to $13,500,000) VA National Acquisition Center – Hines Associate Executive Director Pursuant to 16.505(b)(2)(ii)(C))

1/13/2022