VA797H-17-D-0022-059.pdf

Exception to Fair Opportunity

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID: VA241-18-AP-0365

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 1, 200 Springs Rd, Bedford, MA 07130.

2. Description of Action: This is a request for a noncompetitive, firm fixed price task order with Philips under NAC contract VA797H-17-D-0022 to service Philips Imaging Equipment for VISN 1 Veterans Affairs Medical Centers (VAMC). The total estimated amount is $6,534,810.37 for a base period of seven months and two (2) one year option periods.

3. Description of Supplies or Services: The Contractor shall provide maintenance, repairs and service support for the following Philips imaging equipment at the following VISN 1 facilities:

Boston VAMC

(4) Allura Xper FD20

(2) BrightView XCT Brilliance CT Big Bore

(8) Extended Brilliance Workspace NM GEMINI TF Big Bore

(4) DigitalDiagnost

Central Western Massachusetts Bucky Diagnost Ceiling System MobileDiagnost wDR Rel2

Providence Digital Diagnost Classic, Dual Detector Digital Diagnost Dual Detector MobileDiagnost wDR Release 2

Togus Allura Xper FD20 DigitalDiagnost 4.1 High Performance Digital Diagnost Dual Detector

Manchester Forte Jetstream AZ Jetstream Workspace DigitalDiagnost Classic Dual-Detector

VHAPM Part 816.5—Indefinite-Delivery Contracts Original Date: 08/30/2017

(4) MobileDiagnost wDR

(2) EasyDiagnost Eleva Juno DRF EPIQ 7C Ultrasound System X7-2t Compact Transducer (MTEE) Pinnacle Professional System

BuckyDiagnost CR System EPIQ 7G Ultrasound System

DigitalDiagnost Release 3 Digital Diagnost Single Detector

(2) MobileDiagnost wDR Release 2

(2) EPIQ 7G Ultrasound System X8-2t Transducer (MTEE) Service Only

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Connecticut Allura Xper FD10 Ambient Experience for MR Extended MR Workspace Ingenia 3.0T

(3) Extended Brilliance Workspace NM Precedence SPECT/CT DigitalDiagnost Dual Detector

(2) MobileDiagnost wDR Release 2 Easy Diagnost Eleva

(4) EPIQ 7C

(2) IE33

(7) IU22

(3) SPARQ

(2) S7-2 Omni TEE Transducer Affiniti 70 X7-2t Compact Transducer (MTEE) RoHS

(4) X7-2t Transducer (MTEE) Service Only

White River Junction Forte Jetstream AZ EasyDiagnost Eleva DRF, Release 5 DigitalDiagnost

DigitalDiagnost Classic Dual-Detector BuckyDiagnost Ceiling System

4. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section 41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) Subpart 16.505 Subpart 16.505(b)(2)(i):

( )FAR Subpart 16.505(b)(2)(i)(A): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

( X ) FAR Subpart 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

( ) FAR Subpart 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

( ) FAR Subpart 16.505(b)(2)(i)(D): It is necessary to place an order to satisfy a minimum guarantee.

( ) FAR Subpart 16.505(b)(2)(i)(E): For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source”. The statutory authority permitting an exception to fair opportunity for this action is 38 U.S.C. 8127(c), known as the Veterans First Contracting Program which provides the authority to directly contract with a Service-Disabled Veteran-Owned Small Business (SDVOSB) or a Veteran-Owned Small Business (VOSB).

( ) FAR Subpart 16.505(b)(2)(i)(F) In accordance with section 1331 of Public Law 111-240 (15 U.S.C.

644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns identified in 19.000(a)(3). When setting aside orders for small business concerns, the specific small business program eligibility requirements identified in part 19 apply.

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/19.htm#P3_64

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5. Rationale Supporting Use of Authority Cited Above: Philips is the original manufacture of the equipment and is the sole provider of necessary parts and software needed to properly maintain the system. This equipment is extremely specialized and highly technical in nature and service and/or maintenance should only be performed by individuals affiliated with Philips and capable of maintaining OEM specifications. Philips is the only vendor that can provide a 4 hour response time for services, a 98% uptime guarantee and 24X7 monitoring on selected equipment. Should this equipment work improperly due to third party support the health of a patient could be at risk.

6. Efforts to Obtain Competition: There is no competition anticipated for this acquisition. In accordance with FAR 5.301 and 16.505(b)(2), this action will be synopsized at award on the Federal Business Opportunities Page (FBO) and the justification will be made publicly available.

7. Actions to Increase Competition: The Philips imaging equipment owned by the VAMC is highly specialized and requires an uptime of at least 98% for patient care, a response time for service of no more than 4 hours on selected equipment and requires 24X7 monitoring for various pieces of equipment. These standards are currently not available from third party vendors. However, the Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future actions to be competed.

8. Market Research: The OEM is the only capable provider for the current equipment on site. There are third Party vendors that have shown interest; however, their capabilities are limited to sub-contracting the services out to the OEM which limits direct contact with the OEM resulting in increased risk to the patients and delays response times.

9. Other Facts: None

10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Date

Michael Ambrosi Biomedical Engineer

11. Determination that Anticipated Cost is Fair and Reasonable: Pricing was considered fair and reasonable at the time of the award of the NAC contract VA797H-17-D-0022. The NAC Price list is in line with commercial Pricing.

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

2/15/2018

VHAPM Part 816.5—Indefinite-Delivery Contracts Page 4 of 4 Original Date: 08/30/2017

Paul Marvin Date Contracting Officer

13. Approvals in accordance with VHAPM Part 806.3 Other Than Full and Open Competition SOP.

a.One Level Above the Contracting Officer (Required over $150K but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

William Nalls Date Division Chief

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

b. VHA SAO 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 the exception to fair opportunity.

Maletta, Joseph DATE VHA Head of Contracting Activity (HCA)