-14887.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >$700K

OFOC SOP Revision 06 Page 1 of 6 Original Date: 03/22/11 Revision 07 Date: 04/03/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

For Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 648-18-2-8889-0017 VA260-18-AP-2584

1. Contracting Activity: The contract action will be executed by the Department of Veterans Affairs, NCO20, for the VISN 20 Optical Fabrication Laboratory (OFL) located at the Boise VA Medical Center, Boise, ID 83702. IAW FAR13.104, COs must promote competition to the maximum extent practicable to obtain supplies and services from the source whose offer is the most advantageous to the Government, considering the administrative cost of the purchase. The base period for this requirement will be funded by purchase request 648-18-2-8889-0017.

2. Nature and/or Description of the Action Being Processed: The proposed action is to support Satisloh automated Surfacing, finishing, and Anti-Reflective Coatings lab equipment located at VISN 20 OFL. The maintenance contract shall include all corrective maintenance, preventive maintenance, parts, labor, and travel. The Government intends on awarding a new Firm Fixed Price (FFP) contract for a base period with four options on or before 09/01/2018. The proposed source is Satisloh North America, Inc. (CAGE: 07RZ4, DUNS: 049734833), N106 W13131 Bradley Way, Suite 200, Germantown, WI 53022-2484.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for automated Surfacing, finishing, and Anti-Reflective Coatings labs located at VISN 20 OFL in accordance with FAR

13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

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

The requirement is for OEM service and maintenance support of automated Satisloh Surfacing, finishing, and Anti-Reflective Coatings labs located at VISN 20 OFL and OEM training of up to 10 VISN 20 OFL staff annually. used in the manufacture of eyeglasses. Specific devices that require coverage are shown in the attached equipment list.

Equipment Qty. Price per

Month Annual Price

ART Blocker 2 1780 21360 VFT-Orbit generator 2 1990 23880

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DUO-Flex Polisher 3 1785 21420 AUTO MAGNA-Spin 1 695 8340 ART-De-Blocker A 1 890 10680 ART-De-Blocker M 1 595 7140 MC-380-X Coater Anti-Reflective Coater 1 2100 25200 ES-Curve Edger 1 950 11400 ES-4 Edger 2 1900 22800

EQUIPMENT TOTAL 12685 152220

Training Qty. Price per

Month Annual Price

Equipment Training 1 7791.67 93500.04

TRAINING TOTAL 7791.67 93500.04

GRAND TOTAL 20476.67 245720.04

Support for the automated Surfacing, finishing, and Anti-Reflective Coatings labs shall include telephone support, on-site corrective maintenance, preventative maintenance, and system hardware/software updates, in accordance with the performance work statement. Support will be provided at a firm, fixed price, including all parts, labor, and travel. Support shall be provided for a period of performance spanning one year, initiating in fiscal year 2018 on 09/01/2018; four (4) option years shall be available.

Vendor shall be an Original Equipment Manufacturer (OEM) authorized maintenance contractor for the proposed equipment/systems, such that OEM warranty and service are provided and maintained by the OEM. All software licensing, warranty, and service associated with the equipment/system shall be in accordance with the OEM terms and conditions.

Funds in the amount of $245,720 will be used to fund the request annually for a five-year total of $1,228,600. FAR 52.217-8 option may be exercised if needed for an additional 6-month period.

Base Year OPT YR 1 OPT YR 2 OPT YR 3 OPT YR 4 TOTAL $245,720 $245,720 $245,720 $245,720 $245,720 $1,228,600

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(1), as implemented by FAR 6.302-1.

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4 mailto:=@sum(C2:C10) mailto:=@sum(C2:C10) mailto:=@sum(c11+c15) mailto:=@sum(c11+c15)

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( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2).

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

a. Only One Responsible Source (FAR 6.302-1) – Satisloh North America, Inc. (Satisloh) is the original equipment manufacturer (OEM) of the automated Surfacing, Finishing, and Coating Lab equipment. Satisloh field service engineers directly service the above listed equipment. Satisloh does not provide the most updated OEM training to any individuals outside of Satisloh employees.

Parts required for repairs are proprietary and highly specialized equipment and services; there are no authorized, third-party distributor provides OEM parts. Further, Satisloh has access to technology and software upgrades required to keep equipment fully functional and to meet all applicable standards, including cybersecurity requirements. Only Satisloh North America, Inc. can provide software licensing, warranty, and service associated with the Satisloh equipment, in accordance with the OEM terms and conditions, under a maintenance agreement. The Optical Fabrication Lab would be severely impacted without these unique and highly specialized proprietary services.

Accordingly, Satisloh is the only firm capable of providing the services described above without the Veteran’s Health Administration experiencing unacceptable delays in fulfilling its requirements for Veteran optical eyewear.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

A search on Vetbiz.gov was conducted using NAICS code 811219 Other Electronic and Precision Equipment Repair and Maintenance. The search revealed 252 SDVOSB/VOSB registered under this NAICS code. However, the End User provided a proprietary letter from Satisloh, which states that Satisloh is the only business capable of providing the most up-to-date training on this proprietary service. Current Bridge PO VA260-17-P-2269 also indicates Satisloh is the only capable vendor, which was demonstrated via competition under Prior Contract 531-A10044. However, in order to promote competition to the maximum extent practicable, and to ensure that the marketplace remains the same, RFI 36C26018Q9607 was posted to FBO 07/18/2018 as set-aside for Total Small Business, with SDVOSB and VOSB included. The RFI closed on 07/23/2018 with no responses.

Sources Sought Synopsis: Sources sought RFI 36C26018Q9607 was issued to FBO on 07/18/2018, for STEP Preventative Maintenance of Optical Fabrication Lab (OFL) Equipment Service as a Small Business set-aside, with SDVOSB and VOSB included. There were no responses.

https://www.acquisition.gov/?q=/browse/far/6

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Therefore, with no responses to the RFI, and only one large business found that performs the proprietary services, there is no reasonable expectation of at least two SDVOSB/VOSBs for this service, and only one source is deemed practicable.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer shall determine the anticipated cost to the Government of the supplies/services covered by this Justification and Approval to be fair and reasonable by conducting a price analysis before an award is made, which will include comparison with previous prices paid.

In addition, the Government anticipates that the negotiated contract price will reflect a discount from the vendor’s commercial price list and will be determined fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted to satisfy the requirements of the FAR 10.002(a) by the service line in August 2016 and reperformed by Contracting in July 2018.

The results of the Market Research are in the Contracting briefcase. The service line search included a search of the Internet using Google, Bing, FedBizOpps, and the ECRI Sourcebook. The contracting search included a thorough search of mandatory and optional-use sources, in addition to commercial sources. Satisloh North America, Inc. maintains proprietary control over OEM-certified service providers of their automated Surfacing, Finishing, and Coatings lab equipment. No equipment technicians employed by third-party entities are OEM-certified to service Satisloh automated equipment. Further, no authorized, official OEM part distributors were found in market research nor noted by the representative of Satisloh. Thus, Satisloh North America, Inc. is the only vendor capable of meeting the Government requirement.

A search on Vetbiz.gov was conducted using NAICS code 811219 Other Electronic and Precision Equipment Repair and Maintenance. The search revealed 252 SDVOSB/VOSB registered under this NAICS code. However, the End User provided a proprietary letter from Satisloh, which states that Satisloh is the only business capable of providing the most up-to-date training on this proprietary service. Current Bridge PO VA260-17-P-2269 also indicates Satisloh is the only capable vendor, which was demonstrated via competition under Prior Contract 531-A10044. However, in order to promote competition to the maximum extent practicable, and to ensure that the marketplace remains the same, RFI 36C26018Q9607 was posted to FBO 07/18/2018 as set-aside for Total Small Business, with SDVOSB and VOSB included. The RFI closed on 07/23/2018 with no responses.

Therefore, with no responses, and only one large business found that performs the proprietary services, there is no reasonable expectation of at least two SDVOSB/VOSBs for this service. As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.

Satisloh North America, Inc. (Satisloh) is the original equipment manufacturer of the above listed equipment. Satisloh field service engineers directly service this equipment. The only OEM certified technicians, with requisite knowledge to provide service on this equipment, are those employed by Satisloh. Parts required for repairs are proprietary; no authorized, third-party distributor provides OEM parts. Further, Satisloh has access to technology and software upgrades required to keep

OFOC SOP Revision 06 Page 5 of 6 equipment fully functional and meet all applicable standards, including cybersecurity requirements.

Only Satisloh North America, Inc. can provide software licensing, warranty, and service associated with the Satisloh Surfacing, Finishing, and Coatings labs, in accordance with the OEM terms and conditions, under a maintenance agreement.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: To date, no other sources have written to express an interest.

11. 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: Future requirements will be synopsized in accordance with FAR 5.203. A sole source effort is required for more than one year, as a continuing need for proprietary services is anticipated.

12. 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.

Name: Daina Sites Supervisor Program Specialist, Boise VA Medical Center

13. 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.

Name: Lisa Spiral O’Neil Contracting Officer NCO20 Services Team 2 http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

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b. Division Chief (Required $150K and above – Approval to $700K): I certify the justification meets requirements for other that full and open competition.

Thomas Ebenhoh Acting Division Chief NCO20 Division 1

c. Director of Contracting/Designee (Required above $700K): I certify the justification meets requirements for other than full and open competition.

S. Dale Allen Director of Contracting Network Contracting Office 20 (NCO 20)

c. HCA Review and Approval: (Required above $700K – Approval to $13.5M): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and for other than full and open competition.

Curtis M. Jordan Acting Executive Director, SAO West Head of Contracting Activity (HCA)