SPE2D1-17-D-0022 36C25222F0113_1.docx

SUBJECT*

Service Acquilion CT Scanner-

GENERAL INFORMATION

SET-ASIDE

Great Lakes Acquisition Center (GLAC) 115 S 84th Street, Suite 101

Milwaukee WI 53214-1476

POINT OF CONTACT*

Contract Specialist Lori Eastmead lori.eastmead@va.gov 414-844-4840

AWARD INFORMATION

LINE ITEM NUMBER

AWARDEE ADDRESS LINE 1*

AWARDEE ADDRESS LINE 2*

AWARDEE ADDRESS LINE 4*

ADDITIONAL INFORMATION

AGENCY’S URL

URL DESCRIPTION

AGENCY CONTACT’S EMAIL ADDRESS

EMAIL DESCRIPTION

Award Notice Award Notice

DESCRIPTION

*= Required Field Award Notice Award Notice DepartmentofVeteransAffairs Office of Acquisition and LogisticsNationalAcquisitionCenter P.O. Box 76Hines,IL60141

ClassJustificationforanExceptiontoFairOpportunity FAR16.505(b)(2)(i)(B)–Onlyonecapablesource

(1) Identificationoftheagencyandthecontractingactivity.

This class justification for an exemption to fair opportunity (JEFO) is on behalf of theEquipment Lifecycle Management (ELCM) program within the Veteran’s HealthcareAdministration (VHA) and will be executed by the Department of Veteran’s Affairs (VA)NationalAcquisitionCenter(NAC)locatedinHines,IL.

(2) Natureand/ordescriptionoftheactionbeingapproved.

This activity proposes to issue sole source delivery orders against Indefinite Delivery,Indefinite Quantity (IDIQ) contract SPE2D1-17-D-0022 awarded to Canon MedicalSystems for the purchase of annual service maintenance to existing equipment located atindividual VHA medical facilities.Requirements that are executed by VHA localcontracting offices can be processed under the authority of the class JEFO.A copy of theclass JEFO must goin the award file for all requirements processed under authority of thisclass JEFO. This class JEFO will apply to all service maintenance agreement orders placedunder the subject contract commencing with the date of approval of this class JEFOthrough February7th,2027attheendofthecontractperiodofperformance.

(3) Adescriptionofthesuppliesorservicesrequiredtomeettheagency’sneeds,includingtheestimatedvalue.

TheVHAhas ongoingrequirements forpost-warrantymaintenanceservices forpreviouslyacquiredandinstalledCanonMedicalSystemsRadiologyandImagingSystems.ServiceMaintenanceAgreement(SMA)ordersareawardedannually,andcoverhightechmedicalequipment (HTME) which includes, but is not limited to,Computed Tomography (CT)scanners, Magnetic Resonance Imaging (MRI) systems, radiographic systems (X-Ray),nuclear medicine, ultrasounds, computed radiography, magnetoencephalography, PositronEmission Tomography (PET)-CT, PET-MR scanners, cyclotrons, angiography, cardiaccatheterization,andmammographysystems,etc.There are approximately170medical facilities across the VHA and facilities house high tech medical equipment.Each SMAwill be awarded on its own delivery order or in certain instances when needed, such as,multipleagreementsononedeliveryorder.Pastpricinghas shownthatSMAsrangefrom $50K-$1M.Theexactneedofthemedicalfacilitydiffersbasedonitsspecificradiologyserviceandmaintenancerequirementpurchasesbutwillnotexceed 12 months.

(4) An identificationof the exception to fair opportunity (see 16.505(b)(2)) and thesupporting rationale,including a demonstration that the proposed contractor’suniquequalificationorthenatureoftheacquisitionrequiresuseoftheexception

Page 1 of cited.Ifthecontracting officerusesthelogicalfollow-onexception,therationaleshall describe why the relationship between the initial order and the follow-on islogical(e.g.intermsofscope,periodofperformance,orvalue).

Orderswillbe issued as solesource in accordance withFAR16.505(b)(2)(i)(B).AllorderswillbeissuedunderIDIQSPE2D1-17-D-0022.

Underthe auspices of theVA-DLAJoint RadiologyImagingSystemsProgramIDIQinitialdelivery orders for new radiology and imaging system requirements arecompetedamongst the IDIQ holders, and all HTME requirements include a warranty with therequirement purchase.After the warrantyisexhaustedaservicemaintenanceagreementis requiredtocover thelifecycle of the equipment purchase.Becausetherequirementsarealreadypurchased andhavenot exhaustedtheir lifecycle, purchasingtheservicemaintenanceinsupportof theequipment after post warrantyensures theequipment iscompliantwithVHAtechnologystandards and policies. Thecontractor’sRadiology& ImagingSystemsareproprietary;therefore, anyfollow-onmaintenanceshouldbe performeddirectlyby theoriginalequipment manufacturer(OEM)andnot outsourcedtoa third-partytomaintainthe integrityof the equipmentandtoavoidservicersnot familiarwiththeproducts causingdamagetotheequipment.Ifdamageis caused by a third-partiesinthe course of repairs,then theGovernmentcouldbeheldliableforadditionalcostsassociatedwithrepairs performedbytheOEMafterdamagehasoccurred.Assuch,theworkcanonlybecompletedbyonesource,whichistheOEMoftheequipment.

(5) AdeterminationbytheContractingOfficerthattheanticipatedcosttotheGovernmentwillbefairandreasonable.

Allitemsarecurrently onCanonMedicalSystemsIDIQcontractSPE2D1-17-D-0022andhavepreviouslybeendeterminedfairandreasonableattime ofaward.Likewise,pricingisreviewed during the modification process and line items modified to be added are alsodeterminedtobefairandreasonableduringthemodificationprocess.

Market research was conducted by ELCM by performing an analysis of historical pricing,which includedservices,trainingandincidentalservicesrelatedto theequipmentpurchases.Additionally, a business case analysis (BCA) was conducted supporting the benefitsassociated with VHA local contacting stations awarding the SMA delivery orders to theOEM, which highlighted the seamless coordination with VHA technology standardizationafterequipmentinstallationandestablishedcybersecurity.

(6) Anyotherfactssupportingthejustification.

As notated in the ELCM BCA, issuing this class JEFO would reduce the administrativeburden the VHA local contracting offices assume when issuing the SMAs.The nationalcontracting office, VA NAC, issues approximately 1000 equipment delivery orders eachyearandeachpieceofequipmenthasapost-warrantyserviceagreementfor approximatelyfiveyears(yearlymaintenanceagreements).The issuance ofthisclassJEFOallowsthe

Page 1 of local contracting offices to save time and this will create a seamless process for thecontractingspecialist/officertotimelyawardtheSMA withoutinterruptiontoon-goingpatientcare.

(7) Astatementoftheactions,ifany,theagencymaytaketoremoveorovercomeanybarriers that led to the exception to fair opportunity before any subsequentacquisitionforthesuppliesorservicesismade.

Atthistime,thereareno actionsthatcanbetakentoremoveorovercomebarriersthatleadto the exception to fair opportunity. The Government will continue to conduct marketresearchtoascertainiftherearechangesinthemarketplacethatwouldenablefutureactionto becompeted;however,allfuturerequirementswillbehandledonacase-by-casebasistodetermineanyfutureacquisitionstrategy.

(8) Thecontractingofficer’scertificationthatthejustificationisaccurateandcompletetothebestofthecontracting officer’sknowledgeandbelief.

Bysigningthisjustification,theContractingOfficerherebycertifiesthatthejustificationsareaccurateandcompletetothebestoftheirknowledge.

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

By signingthisjustification,theNAC/HTMandELCMagreethejustificationisaccurateandcompletetothebestoftheirknowledge.

(10) Awrittendeterminationbytheapprovingofficialthatoneofthecircumstancesin(b)(2)(i)(A)through(F)ofthissectionappliestotheorder.

Based on the information contained herein, a determination has been made that thisrequirement meetsthe exception at FAR 16.505(b)(2)(i)(B).Only one source canprovidetherequiredsuppliesandservices.Allawardeesweregivenfairopportunitytobeconsideredfortheoriginalorder.

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CERTIFICATIONANDAPPROVAL

TECHNICAL/REQUIREMENTSCERTIFICATION:

Pursuant to FAR 16.505(b)(2)(ii)(B)(9), I certify that any supporting data that is myresponsibilityandwhichformsabasisforthejustificationiscompleteandaccuratetothebestofmyknowledgeandbelief.

DANIELCRESPO260355

DigitallysignedbyDANIELCRESPO260355 Date:2020.12.1713:33:08-06'00'

12/17/2020

DanielC.Crespo Date Deputy ProgramManager–EquipmentLifeCycleManagement

CONTRACTINGOFFICERCERTIFICATION:

PursuanttoFAR16.505(b)(2)(ii)(B)(8),Icertifythatthejustificationiscompleteandaccuratetothebestofmyknowledgeandbelief.

AnnEnglish 217355 DigitallysignedbyAnnEnglish217355 Date:2020.12.17 14:15:51-06'00' AnnEnglish Date ContractingOfficer VANationalAcquisitionCenter–Hines HighTechMedicalEquipmentContractAdministration

DigitallysignedbyMonicaE.Mende MonicaE.Mende17204161720416 Date:2020.12.1811:03:31-06'00'

MonicaE.Mende Date SupervisoryContractingOfficer VANationalAcquisitionCenter–Hines Chief–High-TechMedicalEquipmentContractAdministration

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HEADOFCONTRACTINGACTIVITYAPPROVAL:

CRAIGROBINSON254508

Digitally signed by CRAIG ROBINSON254508 Date:2021.01.1908:28:34-06'00'

CraigRobinson Date AssociateExecutiveDirector VANationalAcquisitionCenter–Hines Head of Contracting Activity (orders > $13.5M up to $68M)Pursuantto16.505(b)(2)(ii)(C)) Page 1 of image1.png