Award to Steris Corporation for PMI of Sterilizers for VA Loma Linda, VA Long Beach, and VA Greater Los Angeles. Justification and Approval is attached.

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DEPARTMENT OF VETERANS AFFAIRS



Justification and Approval (J&A)

For

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



Acquisition Plan Action ID: VA262-17-AP-10001



Contracting Activity: The Department of Veterans Affairs, VISN 22 Network Contracting Office 22, VA West Los Angeles Healthcare System (VAWLAHS), VA Sepulveda Ambulatory, Care Center (VASACC), VA Long Beach Healthcare System (VALBHS), VA Loma Linda Healthcare System (VALLHS) is submitting a justification for other than full and open competition to enter into a firm fixed price (FFP) contract for maintenance and repair services in support of the Steris Sterilizers. Purchase Request Number 691-18-1-208-0037, 600-18-1-667-0015, 605-18-1-6027-0006, and the transaction for West Los Angeles and Sepulveda Research Department will be given later.



Nature and/or Description of the Action Being Processed: The Contractor shall provide maintenance and repair services for the Government owned Steris Sterilizers. A firm fixed price contract is contemplated for award to Steris Corporation, 5960 Heisley Road, Mentor, Oh 44060.



Description of Supplies/Services Required to Meet the Agency s Needs: This procurement is to provide maintenance and repair services for the Steris Sterilizers. The Government owned Sterilizers are used in multiple departments (Research and SPD) located at the VAWLAHS, VASACC, VALBHS, and VALLHS, and is vital for the treatment of patients. The Contractor is required to replace and calibrate the equipment, replace defective parts, maintain the equipment and ensure it is in optimum working condition. Sterilizers are vital to the Healthcare Facilities as they are needed to sterilize medical equipment for clinics and surgeries. A firm fixed price contract is needed to maintain the equipment to prevent delays in patient treatment and to comply with federal and state laws. The estimated cost of this contract for the period of performance of December 1, 2017 through November 30, 2021 (for a base year plus three (3) option years) is:



Year

WLA (Research)

WLA

SAAC

(Research)

Loma Linda

Long Beach













Base

$24,880.68

$16,985.39

$17,173.42

$81,734.63

$9,731.40

Option Year I

$24,880.68

$16,985.39

$17,173.42

$81,734.63

$9,731.40

Option Year II

$25,627.10

$17,494.95

$17,688.62

$84,186.67

$10,023.34

Option Year III

$25,627.10

$17,494.95

$17,688.62

$84,186.67

$10,023.34

Total

$101,015.56

$68,960.68

$69,724.08

$331,842.60

$39,509.48



Aggregate Total: $611,052.40



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;

( ) (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

( ) (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;



Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Steris Corporation is the original equipment manufacturer (OEM) of the Sterilizers holds the proprietary rights to all equipment parts and hardware. A third-party vendor exists, but are not capable of performing maintenance and repair of the equipment. Many of the third parties would subcontract the maintenance and repair portion of the contract to Steris or another large business and charge a 13% to 25% premium for program management (i.e. contract administration). Furthermore, third party vendors must be able to access parts within twenty-four (24) hours to ensure there is no delay in sterilizing the equipment. Any delay would impact patient care, by cancelling appointments and surgeries due not having sterilized equipment. Equipment must be sterilizers to comply with federal and state laws. If the Sterilizer is inoperable or breaks, it would cost an expensive amount of monies for a replacement, take up to twelve (12) months to install and more time to train staff. Furthermore, improper maintenance or repair by another vendor may lead to voiding any warranties, delay of patient treatment and an increase of patients trying to obtain appointments at clinics.



Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed: A sources sought notice (VA262-17-N-2002) was placed on www.fbo.gov (issued from September 13,2017 through September 25, 2017) requesting interested Service Disabled Small Businesses (SDVOSB), Veteran Owned Small Businesses (VOSB), Small Businesses and Women Owned Small Businesses (WOSB) and three (3) SDVOSB responded; Sustainment Technologies, VanDahl Engineering & Sales Ltd., and Janz Corporation. These three companies are verified on VetBiz, and stated that they can provide the service (although VanDahl Engineering &Sales declined to participate in the solicitation process). However, two of the companies will be subcontracting the maintenance and repair portion of the contract out. All three companies were notified that they must comply with the Limitations of Subcontracting Act and provide 51% of the service. They all stated that they will be providing the program monitoring (i.e. contract administration). However, contract monitoring (billing, and invoicing) does not equal 51% of the contract. The bulk of the contract is maintenance and repair of the sterilizers. Sterilizers are important to VISN 22 Healthcare System as they are utilized for sterilizing medical equipment for clinics and surgeries. It is not reasonable for taxpayers or the Department of Veterans affairs to pay a company a thirteen (13%) premium for contract administration of the service especially if the companies are going to subcontract the work to the OEM. Additionally,





VISN 22 requirement is for maintenance and repair of equipment, not program management (i.e. contract administration). This equipment must remain in optimum working condition to avoid delay in patient treatment. Any delay would cause cancellation of surgeries and clinic appointments. Contractors must be able to obtain the OEM parts with twenty-four (24) hours to ensure there is no delay in the event of equipment failure. This requirement is needed to ensure the equipment is sterilized for patient healthcare.



Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated total dollar amount of this procurement is $611,052.40 for a base plus three (3) option years. The Contracting Officer relied on the healthcare facilities Independent Government Estimate (IGE) and the informal quotes provided from the sources sought to determine fair and reasonable pricing. The IGE was significantly lower than the informal quotes, therefore the pricing from the OEM has been determined fair and reasonable to the Department of Veterans Affairs.



Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: As described in Section VI above, in accordance with FAR Part 10, market research was conducted through GSA, SBA, Vet Biz, by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. It was determined that contractors are not capable of providing the service besides the contract administration portion for the requirement.



Any Other Facts Supporting the Use of Other than Full and Open Competition: As this is a Steris proprietary system, no other sources are capable of meeting this need.



Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: See Section 6 above.



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: None. Overcoming barriers of competition is not feasible at this time, as no other vendors are able parts or servicing. The contracting officer will annually research additional systems other than the Steris Sterilizers and ensure that this is the best procurement method. In the future, the requesting service shall research similar systems from other companies who will have the ability to access licensing, software updates and parts; therefore, competition cannot be realized at this time.



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: Patricia Tang Date

Title: Medical Equipment Preparer

Facility: VA West Los Angeles Healthcare System







_____________________________ ________________________

Name: Jennifer Freeman Date

Title: Program Specialist

Facility: VA Greater Los Angeles Healthcare System







_____________________________ ________________________

Name: Jason Howard Date

Title: Bio-Engineer

Facility: VA Long Beach Healthcare System







_____________________________ ________________________

Name: David Grzechowiak Date

Title: Maintenance and Operations Chief

Facility: VA Loma Linda Healthcare System



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







_____________________________ ________________________

Name: Monica Griffin Date

Title: Contracting Officer

Facility: Network 22 Contracting Office





Director of Contracting /Designee (Required $150K and above): I certify the justification meets requirements for other than full and open competition.







_____________________________ ________________________

Name: Sandra Fusco Date

Title: Branch Chief, Services Team

Facility: Network Contracting Office 22