Intuitive Surgical Robot Maint. VA PA

DEPARTMENT OF VETERAN AFFAIRS

PALO ALTO HEALTH CARE SYSTEM

3801 MIRANDA AVENUE

PALO ALTO, CALIFORNIA 94304









JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION



Upon the basis of the following Justification and Approval, the proposed contract described below may be established through other than full and open competition pursuant to the authority of 38 U.S.C. 8127(c) as implemented by IL 049-07-08, 41 U.S.C. 253(c)(5), and FAR 6.302-1, Only One Responsible Source and No Other Supplies Or Services Will Satisfy Agency Requirements.



1. CONTRACTING AGENCY: The Department of Veterans Affairs, VISN 21, Consolidated Contracting Agency is responsible for the contracting action as described herein and will enter into a contract that requires justification for other than full and open competition. The solicitation number is VA-261-10-RP-0021.



2. DESCRIPTION OF ACTION: The request is being procured exclusive of competition, for a specific vendor, on a sole-source basis. The award will be made to Intuitive Surgical, Inc., 1266 Kifer Rd., Sunnyvale, CA 94086, as a firm fixed price contract. The projected period of performance is a basic year plus four option years. Intuitive Surgical designs and builds the da Vinci Surgical System. It's a breakthrough platform for robotically assisted minimally invasive surgery and was purchased on a sole source basis from them for $1,430,000.00 in 2006. At the time of purchase it was known that only Intuitive Surgical could provide the maintenance on this highly sophisticated piece of surgical equipment. Intuitive Surgical does hold the proprietary information and is the only company that can provide the high level of maintenance required to keep the system working properly. They have not authorized any other company to provide the maintenance and are therefore the only source capable of providing the maintenance.



3. DESCRIPTION OF SUPPLIES/SERVICES: This procurement is for maintenance of the surgical robot located at VA Palo Alto Health Care System. The estimated price of the contract is $675,000.00.



4. AUTHORITY CITED: This service is being procured pursuant to FAR 6.302-1. The preceding cited authority provides for purchase from a sole source whenever only one source is available and no other type of supplies or services will satisfy agency requirements. It should be noted that the intended awardee holds the proprietary information necessary to repair and maintain this equipment.



5. ANNOUNCEMENT OF REQUIREMENT: This solicitation will be advertised in Fedbizopps in case any interested firm has a query, however the intent will be to award to Intuitive, in accordance with #4 above.



6. EFFORTS TO OBTAIN COMPETITION: A presolicitation notice detailing the intended procurement was posted on Oct. 29, 2009, however no responses were received. It should be noted that a review of the VISN 22 Justification For Other Than Full And Open Competition dated September 29, 2009, revealed that no responses were received from a recent 10 day Fedbizopps posting for the same requirement.



7. FAIR AND REASONABLE DETERMINATION: A Price Negotiation Memorandum will be prepared which will detail the actions taken by the Contracting Officer to ensure fair and reasonable pricing.

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Page 2



Subject: VA-261-10-RP-0021/VA Palo Alto Surgical Robot Maintenance



8. MARKET RESEARCH: GSA was queried however no results were returned in searching for surgical robot maintenance. Intutive is not on the Federal Supply Schedule and there is currently no intention to establish any such contract, per conversation with Joelle Burg, Intuitive Contracts Dept. See Item Numbers 2 and 6 above.



9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN COM PETITION: None. See Item Numbers 2 and 6 above.



10. INTERESTED SOURCES: There are no other sources that expressed an interest in the service. Award to be made to Intuitive Surgical of Sunnyvale, CA.



11. AGENCY ACTIONS TO INCREASE COMPETITION: VA Palo Alto Biomedical Engineering and Intuitive both confirm the life expectancy of the equipment will be beyond the five year period as contemplated by this RFP. When the surgical robot has reached a point of obsolescence or is deemed to be at the end of its useful life, the VA will then research all available sources to determine what competitive means are available to fulfill its requirement.



12. CONTRACTING OFFICERS'S CERTIFICATION: I hereby determine that the facts and representations under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.





_______________________ ______________________

William L. Ulibarri Date

Contracting Officer

90 CCA/VISN 21



Recommend approval/disapproval





_______________________ _______________________

Josefina Ledezma Date

Network Contract Manager







Recommend approval/disapproval





_______________________ _______________________

Delia A. Adams Date

Director SAO-West





Recommend approval/disapproval





_______________________ _______________________

Joseph A. Williams, Jr. RN, BSN, MPM Date

VHA Head of Contracting Activity