URGENT - NCO17-FY23-320 JOFOC 36C257-23-AP-2805 HillRom EarlySense HCA Approved.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 5: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 11 Page 1 of 4 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C257-23-AP-2805 JOFCO Tracker: 2023-08-16T14:07:26

1. Contracting Activity: Department of Veterans Affairs, VISN 17, South Texas Health Care

System, Audie L. Murphy, 7400 Merton Minter Drive, San Antonio, Texas 78109 is looking to procure Hill-Rom 133 Centrella and 64 Progressa patient beds as well as the 169 EarlySense sensors hardware software support that accompany these beds purchase request number 671-23-4-196-0334.

2. Nature and/or Description of the Action Being Processed:

This requirement will provide preventive maintenance and corrective maintenance to med-surg beds that were purchased. This requirement will also serve the purpose of providing preventive and corrective maintenance for the EarlySense continuous bed monitoring system. The preventative maintenance shall also include the replacement of the Earlysense sensors annually. This action is to be awarded as a new contract at a firm fixed price.

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

This requirement will cover Hill-Rom beds- 133 Centrella beds and 64 Progressa patient beds as well as the 169 EarlySense sensors hardware software support that accompanies these beds. The estimated value of the requirement is $1,400,000.00 total for the base period and four, one-year options periods.

Base Year Estimated: $280,000.00 Estimated Option Year 1 $280,000.00 Estimated Option Year 2 $280,000.00 Estimated Option Year 3 $280,000.00 Estimated Option Year 4 $280,000.

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;

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( ) (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;

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 beds and sensors were originally purchased in December 2021. A need to have the beds and the sensors under a contract that will provide corrective and preventive maintenance services is requested. The maintenance of the beds and replacement of the sensors is a vital part of the hospital. The sensors were purchased as a preemptive measure of patient safety.

These sensors allow for a change in breathing or heart rate to be documented to medical professionals. After research, it was deduced that the EarlySense sensor was sold exclusively to Hill-Rom and they are the only ones that can provide the software updates and replacement of these sensors. During the research, it was also communicated that other companies cannot service the sensors past their current configuration or provide updates, upgrades, or replacements. Hillrom has introduced new technology that enables Hillrom beds to provide sensing capabilities. The new technology is proprietary to Hillrom Centrella Smart+ beds. Compared different alternatives to the sensor and bed maintenance.

When doing our research, we found that there weren’t any other companies that had a sensor of similar stature to the EarlySense. Most of the sensors with there were only used for motion monitoring, breathing, or heart rate. No others were found that have the same specifications and provide contact-free continuous monitoring. Vendors were asked and we were informed that the EarlySense can only be upgraded, updated, and replaced past their current configuration by the OEM/Hill-Rom. Based on these statements and a statement from Hill-Rom that they are the sole provider of contact-free continuous monitoring in acute care, Hill-Rom is the only provider of the services needed for the EarlySense system.

6. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer has determined the anticipated prices proposed for the requirement will be fair and reasonable. The Contracting Officer will compare prices of the same or similar services to the proposed prices to determine price is fair and reasonable.

7. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted IAW FAR PART 10. Pursuant to FAR 10.002, this requirement is found to be commercially available; in IAW FAR 8.002 and FAR 8.003, this requirement cannot be fulfilled through a mandatory source and is considered a Sole Source. VIP VETBIZ results from verified capable SDVOSBs and VOSBs. Searched VIP under keyword NAICS code 811210 database and zero (0) Capable SDVOSSDVOSBszero (0) Veteran Owned Small Businesses. GSA Advantage Searched GSA Advantage with the keyword Earlysense Maintenance and (0) zero business. FPDS produced historical information showing that 36C25719P1543 (Service-Disabled Veteran Owned Business) was awarded Contract Medical Beds and Stretchers Maintenance priced at $952,860.45 on 09/26/2019 however; this requirement does not have the EarlySense

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Maintenance portion and are not able to provide. DSBS results from DSBS showed zero (0) Women-owned small businesses, zero (0) 8 (a) Certified Small businesses and zero (0) Veteran own small businesses, zero (0) SDVOSB, zero (0) Hubzone certified showing capabilities under the keyword search chairs.

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

Hill-Rom provide a letter dated July 28, 2023, stating that they are the sole source provider of the EarlySense system for the Renewal of the OEM. This is new technology and San Antonio is one of the first to implement the Early Sense Software renewals.

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

N/A- This is the sole source.

10. 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:

For future competition and future acquisitions of these Hill Rom beds and software being acquired. Contracting will continue to monitor any changes in the market and post sources sought for future follow-on requirements.

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.

Brittney Brown Date

Biomedical Engineer, Engineering Services

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

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

James C. Easley Contracting Officer https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

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NCO 17

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.

Jeff Morris NCO 17 Division Chief

Contracting

c. Director of Contracting: I certify the justification meets requirements for other than full and open competition.

Mark Layman Director of Contracting

NCO 17

d. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition.

Curtis M. Jordan Executive Director, Regional Procurement Office West VHA Head of Contracting Activity (HCA)