SPE2D1-17-D-0023-081.pdf

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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)(C) – Logical Follow-on

FAR 16.505(b)(2)(i)(B) – Only one capable source

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

This Justification for an Exception to Fair Opportunity is on behalf of VISN 23, Sioux Falls VA Health Care System located in Sioux Falls, SD and will be executed by the Department of Veterans Affairs National Acquisition Center (NAC – 36A797) located in Hines, IL.

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

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

(“Siemens”) to upgrade the existing Computed Tomography (“CT”) system at the Sioux Falls VA Health Care System.

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

The Sioux Falls VA Health Care System needs an upgrade to the current system to reduce patient exam times, improve image quality, and add additional capabilities to the current system. The original CT system was procured and installed in 2013, and the life cycle of this system is approximately seven years. An upgrade at this time will prolong the life of the current system by several years and avoid the need to purchase an entirely new system at a much higher cost to the government. This order includes an upgrade from Somatom Definition AS 64-slice configuration to Somatom Definition AS+ 128-slice configuration with Stellar Detector which provides higher coverage, faster acquisition speed, and allows for more clinical capabilities. The Stellar Detector allows an acquisition with a spatial resolution of up to 0.30 mm in daily clinical routine without changing the radiation dose to the patient.

Additional hardware and software are also provided to add or improve preprocessing and reconstruction of the CT raw data. The total estimated value of this order is $319,018.00.

(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).

This order will be issued on a sole-source basis in accordance with Federal Acquisition

Regulation (FAR) 16.505(b)(2)(i)(C) in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract and FAR 16.505(b)(2)(i)(B) as only one source can provide the supplies and services at the level of

2 | P a g e quality required. Only Siemens, the original equipment manufacturer (OEM) of the existing CT system, can provide the necessary hardware and software for this upgrade.

As stated in section 3 above, the CT system was originally procured and installed in 2013, and only minor updates have been made to the system over the past six years. The OEM is the only vendor able to provide the upgrade due to the proprietary nature of the system. The OEM is the only organization capable of owning trade information on the system and therefore is the only one qualified to provide and perform the upgrade.

(5) A determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

All equipment to be purchased as part of this upgrade is currently on contract SPE2D1-17-D- 0023. The quoted price for each item is at or below the contract price, and pricing has been determined fair and reasonable by a contracting officer at the contract level.

(6) Any other facts supporting the justification.

None

(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.

All prospective delivery orders are competed among all contract holders. Once an order is placed for proprietary equipment, it is generally not possible to compete follow-on acquisitions for upgrades because the system to be upgraded is proprietary in nature. 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.

(8) 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 justifications are accurate and complete to the best of their knowledge.

(9) 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 requiring activity hereby certifies that the justification is accurate and complete to the best of their knowledge.

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(10) 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 exceptions at FAR 16.505(b)(2)(i)(C) and FAR 16.505(b)(2)(i)(B) since it is a logical follow-on to an order already issued under the contract and only one source can provide the supplies and services at the level of quality required. All awardees were given 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.

Angela L. Mulinix VISN 23 Biomedical Engineer

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.

Michael A. Sands Contracting Officer VA National Acquisition Center – Hines High-Tech Medical Equipment Ordering Division

Reagan P. Criddle VA National Acquisition Center – Hines Chief, High-Tech Medical Equipment Ordering Division