Single Source Justification OVER SAT_Redacted.pdf

VHAPG Part 806.3 OFOC Page 1 of 4

Revision: 03 Effective Date: 04/15/24

Acquisition ID#: 36C248-25-AP-2393

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C248-25-AP-2393

1. Contracting Activity: Department of Veterans Affairs, VISN 08, C.W. Bill Young Medical

Center. 2237: 516-25-2-5105-0604

2. Nature and/or Description of the Action Being Processed: This document serves to justify the procurement of a firm-fixed-priced, one-time upgrade to the existing TransLogic

Pneumatic Tube System from Swisslog Healthcare on a sole-source basis. The contract will be awarded to Translogic Corporation.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The C.W. Bill

Young VAMC requires an upgrade to the existing TransLogic Pneumatic Tube System to ensure improved operational efficiency, reliability, and security for the transport of medical items within the facility. Currently the facility has a complex pneumatic tube delivery system that is aged and needing updating of 10 blower air shifters, 28 vacuum bypass valves, 89 send/receive stations, and 70 distributions stations.

The TransLogic Pneumatic Tube System is a type of automated material transport system used primarily in healthcare facilities, including hospitals and clinics. This system utilizes a network of tubes and carriers propelled by compressed air to quickly and efficiently transport medical items such as lab specimens, medications, documents, and other small items between different locations within the facility.

The estimated value of the procurement exceeds the Simplified Acquisition Threshold

(SAT). Estimated Total

4. Statutory Authority Permitting Other than Full and Open Competition:

( X ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR

6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR

6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

VHAPG Part 806.3 OFOC Page 2 of 4

Acquisition ID#: 36C248-25-AP-2393

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 TransLogic Pneumatic Tube System by Swisslog Healthcare, OEM, uses proprietary control software and hardware components that cannot be sourced from another vendor without compromising system integrity and functionality.

The upgrade must integrate seamlessly with the existing infrastructure to ensure full functionality and minimize downtime. Only Swisslog Healthcare can provide components and software updates that are fully compatible with the current system. Swisslog Healthcare's upgrades offer enhanced security features and improved reliability, which are critical for ensuring the safe and timely transport of medical items.

The existing TransLogic system has demonstrated high performance and reliability in our facility. Swisslog Healthcare has a proven track record of providing excellent technical support, ensuring continuous operation with minimal disruption. Swisslog Healthcare provides specialized technical support and maintenance for their systems. Only Swisslog

Healthcare possesses the expertise required to support the TransLogic system effectively, ensuring long-term reliability and performance.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Given the proprietary nature of the TransLogic system, efforts to solicit offers from other vendors will not yield practical or viable alternatives.

Market research has confirmed that other vendors cannot provide compatible or equivalent upgrades that meet the specific requirements of our facility.

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

Reasonable: The Contracting Officer has reviewed the pricing provided by Swisslog

Healthcare for the upgrade and determined it to be fair and reasonable based on historical data, market research, and the unique nature of the proprietary components and services.

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

Reasons Market Research Was Not Conducted: The contracting officer conducted market research to identify potentially capable VOSBs and SDVOSBs that can provide the required upgrade services for the TransLogic system using the Veterans Small Business Certification

(VetCert) database and the Dynamic Small Busines Search (DSBS).

When using the VetCert database to identify certified SDVOSBs and VOSBs, there were 320 identified when using the NAICS Code 811210. Also, when using the (DSBS) to identify certified capable SDVOSBs and VOSBs, there were 81 Business with SBA Government

Certifications and 222 Business with Self Certifications.

A search in the Federal Procurement Data System (FPDS) under “Pneumatic Tube System” and “Department of Veteran Affairs”, and (247) results were returned. (See P02 – FPDS in the eCMS briefcase).

Translogic Corporation, dba Swisslog Healthcare has a Multiple Award Schedule

(47QSMS24D003G) that includes components and kits related to the Pneumatic Tube

System. However, none of the parts required fall under a direct GSA list, as that list is typically for new/expanded systems such as adding hardware/piping.

VHAPG Part 806.3 OFOC Page 3 of 4

Acquisition ID#: 36C248-25-AP-2393

Extensive market research was conducted to identify potential alternatives. Research included reviewing other pneumatic tube system vendors and upgrade options and the posting of an Intent to Sole Source. The intent rendered (2) responses, Colombo Sales &

Engineering Inc and Pevco Systems International, Inc.

While both vendors provide Pneumatic Tube Systems, compatibility is a significant consideration when upgrading an existing system. Both companies offer advanced pneumatic tube systems, they are separate manufacturers with their proprietary technologies and components. As such, compatibility between the systems is not guaranteed and will vary depending on the specific components and configurations used. Per the Swisslog Heathcare

Sole Source letter, any work performed on a TransLogic tube system or individual piece of equipment could void any existing warranty or service agreements.

Also, the existing TransLogic Pneumatic Tube System has been operational in our facility with high reliability and performance. Swisslog Healthcare has consistently provided excellent technical support and maintenance services.

Based on the unique capabilities, seamless integration, proven track record, and overall cost-effectiveness, it is recommended that the TransLogic Pneumatic Tube System upgrade from

Swisslog Healthcare be procured through a single-source acquisition.

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

The critical nature of the pneumatic tube system in ensuring timely and secure transport of medical items justifies the need for a solution that guarantees full compatibility and support.

Switching to a different vendor will result in significant downtime, increased costs, and potential disruption to patient care. Also, only Sales Representatives, Field Service

Engineers, or designated employees of TransLogic are authorized to service, sell, install, or upgrade TransLogic tube systems, per the Sole Source Letter.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

As stated above, the intent rendered (2) responses, Colombo Sales & Engineering Inc and

Pevco Systems International, Inc. While both vendors provide Pneumatic Tube Systems, compatibility is a significant considerations when upgrading an existing system. While both companies offer advanced pneumatic tube systems, they are separate manufacturers with their proprietary technologies and components. As such, compatibility between the systems is not guaranteed and can vary depending on the specific components and configurations used.

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: The agency will continue to review market developments and alternative solutions to foster competition in future procurements. Efforts will be made to identify potential competitive products and to evaluate if technological advances might provide alternatives to proprietary systems.

VHAPG Part 806.3 OFOC Page 4 of 4

Acquisition ID#: 36C248-25-AP-2393

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.

C.W. Bill Young VAMC

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Network Contracting Office - 08

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.

Network Contracting Office - 08