ARTIS ZEE BI-PLANE Maintenance Agreement 11/1/2016 - 10/31/2017 +2

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

For

Other Than Full and Open Competition (>$150K)



Acquisition Plan Action ID:__ VA263-16-AP-6562_______________________



Contracting Activity: Department of Veterans Affairs, NCO 23, Sioux Falls Services Team 636-17-1-4045-0003.



Nature and/or Description of the Action Being Processed: Service contract for preventative and emergency maintenance, including parts, glassware, and detector coverage of the Siemens Artis Zee Bi-Plane Interventional Radiology system at the Iowa City VA Health Care System.



Description of Supplies/Services Required to Meet the Agency s Needs: Service contract for preventive and emergency maintenance of the Siemens Artis Zee Bi-Plane Interventional Radiology system at the Iowa City VA Health Care System. The current contract expires 10/31/16. The new contract needs to include the provision for 2 option years. The vendor providing the required services must be capable of performing preventative and emergency maintenance on the Siemens Artis Zee Bi-Plane Interventional Radiology system according to the original manufacturer s specifications. The new contract must be awarded effective 11/1/16 to avoid a lapse in coverage. The estimated cost of these services is $135,000/year or $405,000 for the base year plus two option years.



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 FAR 6.302-1; 41 U.S.C. 3304(a)(1)



Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): This system has proprietary software. The proprietary software keys used for troubleshooting are only accessible to Siemens/Cassling Diagnostic Imaging personnel.



Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: To my knowledge, there are no other companies that are able to offer this service due to the unavailability of software maintenance access. I have performed internet searches, checked the HISD website which houses the approved Site to Site agreements, and also checked with peers in the VA.



Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: Based on industry standards, software support for medical equipment typically is charged at a rate anywhere from 5-10% of the acquisition price of the asset. The assets included in this contract are worth $1,893,000, so a fair contract cost should be anywhere from $92,000 to $183,000.



Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: To my knowledge, there are no other companies that are able to offer this service due to the unavailability of software maintenance access, and the level of security clearance and approvals needed for the VPN connection. I have performed internet searches, checked the HISD website which houses the entire approved Site to Site agreements, and also checked with peers in the VA.





Any Other Facts Supporting the Use of Other than Full and Open Competition: There are no other actions the VA can take to increase competition for this scenario. Any potential companies wishing to qualify for this procurement would have to obtain national site to site agreements with VA OI&T.



Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Cassling Diagnostics Imaging/Siemens Medical



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: When replacement equipment is procured, the process will once again be done competitively.