V797P-4434B-045.pdf

VHAPM Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPM Part 808.405-6 Limiting Sources Page 1 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C776-20-AP-2078

(1) Contracting Activity: The Contracting Activity for this requirement is the Department of Veterans Affairs, Program Contracting Activity Central (PCAC), 6150 Oak Tree Blvd., Suite 300, Independence, OH 44131

(2) Description of Action: This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). PCAC plans to execute a firm-fixed price contract for stretchers in support of COVID-19 National Emergency. This contract will be in direct support of the COVID-19 response for VAMCs nationally.

FSS Contract Number: V797P-4434B Name of Proposed Contractor: Hill-Rom, Inc.

Street Address: 1069 State Rte 46 City, State, Zip: Batesville, IN 47006-7520 Phone: 812-363-2197 (Paul Tucker)

(3) Description of Supplies or Services:

The estimated value of the proposed action is $5,850,000.00

The Veterans Healthcare Administration (VHA), Procurement and Logistics (10NA2), Medical Supply Program Management Office (MPSO) has an urgent requirement for 1000 Hill-Rom P8000 transport stretchers with an option of 500 additional units. Although the additional 500 is not an immediate need, the market is saturated with orders and if orders aren’t placed immediately, the market may not be able to accommodate later. Delivery is required as soon as possible but the demand for medical equipment is high so the contractor shall deliver as many units as possible before July 30, 2020. These stretchers are required to expand capacity to support the VA’s response to COVID-19.

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays: This acquisition is in direct support of the COVID-19 National Emergency and the requirement came directly from the COVID-19 response team for VHA. The supplies described in paragraph 3 are an immediate need to deal with the COVID-19 pandemic.

While VHA’s primary mission is providing coordinated healthcare to Veterans, VHA is also a critical component of the national federal response framework. The VA’s “fourth mission” is to

VHAPM Part 808.405-6 Limiting Sources Page 2 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020 absorb non-Veteran civilian or military patients in the event that hospitals overflow in an emergency, such as a pandemic.

Since starting in China in late 2019, COVID-19 is now present on every continent except Antarctica, and as of the time this justification was written, there were more than 245,000 cases worldwide and over 10,000 deaths. On March 1, 2020, there were approximately 100 confirmed cases in the United States (US). As of April 5, 2020, that number is now 304,826 cases, including 7,616 deaths, with an upward trajectory that is now on track to peak at catastrophic levels in approximately 30 days.

COVID-19 has over-whelmed the medical systems of every country unable to “flatten the curve” of infections. This resulted in global competition for countries seeking resources (e.g., clinical personnel, medical equipment, and personal protective equipment – PPE). VHA requires a deployment ready capability to support life-and-death decision-making today.

The immediate impact of VHA not having the stretchers now and in the immediate future would be a catastrophic failure of our ability to perform our mission which is unacceptable.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination: Given the short amount of time and emergency nature of the procurement, the Contracting Officer performed a minimal amount of price analysis however, the price provided by Hill-Rom was the best available and identical with the established prices on their GSA schedule. GSA already determined the price on the schedule to be fair and reasonable. Additionally, the quote was in-line with IGE provided by VHA leadership.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted. Market research was conducted using GSA eLibrary using the keyword “stretchers” under 65 II A, Medical Equipment and Supplies, subcategory A77. The search resulted in a total of fifty (50) vendors, one of which was the OEM, Hill-Rom. Due to the nature and urgency of the requirement, going directly to the manufacturer saves invaluable time and procures the necessary supplies in response to an emergency most expeditiously.

Market research using the NAICS 339113 and PSC 6530 has revealed there are VIP verified companies within the NAICS that could potentially fulfill the requirement. This requirement is for a large amount of units that requires coordinated just in time delivery from an OEM authorized distributor. The urgency, added level of uncertainty in the quantity available, and ability to provide the items in a timely coordinated effort across the country within a short amount of time, is a huge undertaking for any business.

The requirement that a Non-Manufacturer supply the product of a small business concern is referred to as the Non-Manufacturer Rule (NMR). When the acquisition is for a specific

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VHAPM Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT product (or a product in a class of products) for which the SBA has determined that there are no small business manufacturers or processors in the Federal market, then the SBA may grant a class waiver so that a non-manufacturer does not have to furnish the product of a small business. There is no existing class waiver for NAICS 339113 and PSC 6530. Due to the criticality and urgency of this requirement, an NMR Waiver Request to set-aside for SDVOSB or VOSB, per VA Class Deviation (VAID 7762400), will not be submitted. Based on the market research conducted and because the sole sources the OEM, the NMR does not apply.

(7) Any Other Facts Supporting the Justification: N/A

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made: The emergent nature of this requirement given it’s for a specific National Emergency does not lend itself to further action to remove future barriers as there will most likely not be future requirements.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

SIGNATURE DATE

Elizabeth Omiatek Regional Biomedical Engineer Procurement & Logistics__

NAME TITLE SERVICE LINE/SECTION

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

CONTRACTING OFFICER/DESIGNEE’S SIGNATURE DATE

Megan Dohm / Contracting Officer PCAC ______________________________

NAME AND TITLE FACILITY/NCO/PCO

Megan A. Dohm 1683809 Digitally signed by Megan A. Dohm 1683809 Date: 2020.04.05 20:48:46 -04'00'

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b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K):

I certify the justification meets requirements for other than full and open competition.

Richard Dahmen DATE Director, Program Contracting Activity Central

HIGHER LEVEL APPROVAL (Required for orders over $700,000):

c. VHA RPO HCA Review and Approval (over $700,000 to $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Terry L. Spitzmiller DATE Executive Director Regional Procurement Office Central Veterans Health Administration