ICVAHCS Siemens Biograph 64 PET/CT

Added: May 31, 2017 2:59 pm Modified: Jun 20, 2017 11:59 amTrack Changes Chapter VI: Other Than Full and Open Competition (OFOC) SOP

Attachment 3: Request for Sole Source Justification Format >$150K



OFOC SOP Revision 05 Page 3 of 3

Original Date: 03/22/11

Revision 05 Date: 05/02/2016

DEPARTMENT OF VETERANS AFFAIRS



Justification and Approval (J&A)

For

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



Acquisition Plan Action ID: VA263-17-AP-



Contracting Activity: Department of Veterans Affairs, Network Contracting Office 23 (NCO 23), Station 636A8. 636-17-4-4045-0045.



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 Biograph 64 PET/CT system at the Iowa City VA Health Care System.



This procurement is being conducted in accordance with procedures found in FAR Part 12 for Commercial Items and FAR Part 13 for Simplified Acquisition Procedures.



Description of Supplies/Services Required to Meet the Agency s Needs: Service contract for preventive and emergency maintenance of Siemens Biograph 64 PET/CT system at the Iowa City VA Health Care System. The current warranty expires 08/26/17. The new contract needs to include the provision for one option year. The vendor providing the required services must be capable of performing preventative and emergency maintenance on the Biograph 64 PET/CT system according to the original manufacturer s specifications. The new contract must be awarded effective 08/27/17 to avoid a lapse in coverage. The estimated cost of these services is $212,000/year or $424,000 for the base year plus one option year.



Statutory Authority Permitting Other than Full and Open Competition:



In accordance with 41 U.S.C 3304(a)(1), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1.



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 that is accessible for off-site troubleshooting through a VA National Site to Site VPN connection. These connections must be approved by national ISO s and the companies trying to make these connections must have certain levels of security clearance. The proprietary software keys used for troubleshooting are only accessible to Siemens/Cassling Diagnostic Imaging personnel.



Also, Cassling Diagnostic Imaging is the sole Siemens authorized service provider in the state of Iowa.



Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: In an effort to ensure as many potential sources are considered, the intent to sole source was posted to FBO on 5/31/17 as required by FAR 5.201.



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 $2,631,233 so a fair contract cost should be anywhere from $131,562 to $263,123 per year.



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. I also confirmed that Cassling Diagnostic Imaging is the sole Siemens authorized service provider in the state of Iowa.



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, Lori Graff, lgraff@cassling.com, 402-334-5000 x1152.



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.















































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.





_____________________________ ________________________

Katherine Beardsley Date

Chief, Biomedical Engineering

Iowa City VA Health Care System



Approvals in accordance with the VHAPM, Volume 6, Chapter VI: OFOC SOP.



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.







_____________________________ ________________________

Sandra McAnany Date

Contracting Officer

NCO 23, Minneapolis





Director of Contracting /Designee (Required over$150K but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.







_____________________________ ________________________

Kelly Nussbaum Date

Branch Chief

NCO 23 Sioux Falls Services