Sole Source Justification_Redacted.pdf

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

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID:

JOFOC Tracker #:

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19, 6162 South Willow Drive, Suite 300, Greenwood Village, CO 80111

Contracting Activity: Department of Veterans Affairs, VISN 19, Rocky Mountain Network, 4100 E Mississippi Ave, Denver, CO 80246

2237#s:

2. Nature and/or Description of the Action Being Processed: This is a new firm-fixed-price, single source requirement for Welch Allyn Connex Vital Sign Monitors (CVSM) parts and services. This requirement is for the services and project hours that are required to replace, upgrade, and install servers and vital sign monitors for Medical Centers within VISN 19. The vendor shall include all equipment, accessories, materials, installation, and training for specified items in the Statement of Work (SOW) document. This acquisition will allow the VA's clinical end-users to seamlessly take vitals and send vitals data to Vista/CPRS using a uniform standard. Healthcare Technology Management (HTM) and Clinical Services have worked together in determining the critical technological and system requirements of needed vital signs monitors. Welch Allyn vital sign monitors are currently used at all medical centers and their clinics within the VISN 19 Network.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This acquisition is for Welch Allyn Connex Vital Sign Monitors (CVSM) equipment and services. This request is for equipment, services, and project hours that are required to replace, upgrade, and install servers and vital sign monitors within VISN 19. The acquisition also includes wireless card installation and upgrades for existing devices, Electronic Health Record (EHR) connection, and training by Welch Allyn. Welch Allyn Connex Server application is a proprietary system that must be installed and configured by an OEM (Original Equipment Manufacturer) certified engineer.

The anticipated period of performance is as follows:

Base Year: September 15, 2023 – September 14, 2024

Option Year 1: September 15, 2024 – September 14, 2025

Effective Date: 02/01/2022 Page 2 of 4

Option Year 2: September 15, 2025 – September 14, 2026

Option Year 3: September 15, 2026 – September 14, 2027

Option Year 4: September 15, 2027 – September 14, 2028

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): Welch Allyn vital sign monitors are the majority brand that is currently deployed at all VISN 19 sites. Some of the sites also have existing Welch Allyn Connex servers and one site, VA Eastern Colorado Healthcare System (ECH), is sending patient vital sign data to the VISTA/EHR at the site. As part of this requirement, VISN 19 needs the remaining 6 sites to be connected into the VISTA/EHR, using the Welch Allyn Connex Server Application. This upgrade will include installation and/or replacement servers so VISN 19 can upgrade to a newer operating system, software version upgrades, and vital sign monitor replacement. Currently, only Welch Allyn is the sole provider of the Connex Server Application system, and it is proprietary. Installation and configuration of this system must be done by an OEM certified Engineer. The Welch Allyn Connex application is also approved for Cerner integration, which is a requirement for the upcoming implementation. Cerner integration has a cost of per interface, so it is less complex and more economical to maintain only one vendor for vital sign monitoring across the VISN. There are three sites that would need interfaces so the ultimate cost would be for the VISN. Therefore, the acquisition strategy to utilize Welch Allyn will save the Government

A letter from Welch Allyn dated January 5, 2023 has been provided by , Senior Director, Government Contract Solutions, confirms that their technology is proprietary. The letter has been uploaded to the eCMS briefcase for reference.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Welch Allyn is the sole provider of Welch Allyn Connex Vital Sign Monitors (CVSM) equipment and services. The Welch Allyn Connex application is a proprietary system that must be installed by an Original Equipment Manufacturer (OEM) certified engineer. Since this

Effective Date: 02/01/2022 Page 3 of 4 requirement is proprietary to the manufacturer, no other efforts were made to solicit from other potential sources.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The price will be analyzed in accordance with FAR 13.106-3(a)(2). The price will be compared to the Independent Government Cost Estimate (IGCE) as well as previous prices paid by the Government by searching the Federal Procurement Data System (FPDS) for similar requirements.

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

Market Research Was Not Conducted: Market Research indicates this requirement is only available from Welch Allyn, the large business manufacturer. This was determined by contacting Welch Allyn and asking them if they have any small business authorized distributors that are capable of fulfilling this requirement. Welch Allyn responded by providing a letter stating the Connex connectivity technology is proprietary to their company and only available directly from them. A letter confirming this information is uploaded to the eCMS briefcase for reference.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: This requirement will comply with the Nonmanufacturer Rule (NMR) and Limitations on Subcontracting (LOS). The requirement will be provided by the manufacturer and the manufacturer does not subcontract this equipment and service. The Welch Allyn Connex Server application is a proprietary system that must be installed and configured by an OEM certified engineer.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Welch Allyn, Inc. 4341 State Street Road, Skaneateles Falls, NY 13153.

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: No actions are planned as this requirement is only available from the manufacturer.

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.