J065--Maintenance and repair services for CT Scanner

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items

Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022

Page 1 of 3

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C25622AP4560

Contracting Activity: Department of Veterans Affairs, Network Contracting Office 16, Gulf Coast Veterans Health Care System, Biloxi, MS. 2237: 520-23-1-233-0006

Nature and/or Description of the Action Being Processed: This procurement is for maintenance and repair services for one Acquilion 64 Computed Tomography Scanner located at the Joint Ambulatory Care Center (JACC), Pensacola, FL. This is a new contract to include a base plus four option years. It will be awarded as a firm-fixed-price contract.

Description of Supplies/Services Required to Meet the Agency s Needs: The JACC requests Canon Medical Systems USA, Inc., to update and maintain proprietary high tech medical equipment. The contractor shall provide preventive maintenance and inspections on one Acquilion 64 Computed Tomography (CT) Scanner, to include glassware. The estimated base period is $115,368.96. The total estimated costs, including option years, is $576,844.80. The estimated period of performance is on or about 10/01/2022 through 09/30/2023, with four 12-month option years.

Statutory Authority Permitting Restricted Competition:

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

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency

( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services

( ) International Agreement

( ) Authorized or Required by Statute ( ) National Security

( ) Public Interest

Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): This is a follow-on contract for continued maintenance of highly specialized services. The CT Scanner is used to perform emergency cardiac and neurological scans to determine the course of treatment for patients. There are no other systems with equal diagnostic capabilities. Prolonged downtime of this system could result in prolonged suffering of patients and/or costly outsourcing of diagnostic studies to other facilities. Canon Medical Systems USA, Inc., has maintained this equipment for over five years. There are no other vendors who can offer manufacturer updates to software, hardware and firmware for this equipment. The equipment and software is proprietary to Canon Medical Systems USA, Inc., and

can only be maintained by them. Any other company would require installation of new equipment and software; therefore, it would be a substantial duplication of cost to the government that is not expected to be recovered through competition, as well as unacceptable delays in fulfilling the agency s requirements, if it is not sole sourced to Canon Medical Systems USA, Inc.

Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Market research was conducted via VetBiz Registry, beta.SAM.gov Contract Opportunities, FPDS-NG and SBA Dynamic Small Business System. There are no other companies capable of providing the requested services. Canon Medical Systems USA, Inc., is the original equipment manufacturer, who provides the proprietary software to maintain the CT scanner. They do not have any authorized vendors to provide this service.

Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Based on the IGCE submitted by the service, and Canon Medical Systems USA, Inc., quote, the anticipated cost is considered fair and reasonable. These services were previously competed by National Acquisition Center (NAC), High Tech Medical Equipment (HTME) Division, and prices were established and deemed fair and reasonable.

Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted using VetBiz Registry, beta.SAM.gov, FPDS-NG, SBA Dynamic Small Business System, and the NAC HTME website. Canon Medical Systems USA, Inc., has a NAC contract in place with HTME Division (SPE2D1-17-D-0022). The referenced equipment is covered under this contract. This contract has previously been competed, and the pricing is considered fair and reasonable.

Any Other Facts Supporting the Use of Other than Full and Open Competition: A search of FPDS- NG resulted in 12 contracts that were done by the Department of Veterans Affairs, sole sourced to Canon Medical Systems USA, Inc., for maintenance requirements.

Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None.

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: No actions may be taken to overcome barriers to this acquisition. The NAC HTME Division has already taken this action by creating this contract to write contracts against at the most reasonable price available. However, should it be determined that NCO16 has a future requirement for this type of request, the Contracting Officer will conduct a market survey to determine Toshiba has acquired any SDVOSB or VOSB counterparts authorized to complete the task.

Jay D. Tripp 130431

Digitally signed by Jay D. Tripp 130431

Date: 2022.08.02

16:06:40 -05'00'

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.

August 2, 2022

Jay Tripp Date

Chief Engineering Station 520

Approvals in accordance with the VHAPM Part 806.3 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.

Danette R.

Digitally signed by Danette R. Impey 224540

Impey 224540 Date: 2022.08.04

13:38:58 -05'00'

08/04/2022

Danette Rene Impey Date

Contracting Officer NCO16, Station 520

One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Windell L. Lance 123245

Digitally signed by Windell L. Lance 123245

Date: 2022.08.08 12:51:02 -05'00'

Windell Lance Date

Chief, Div I , Service Team C NCO16, Station 520 Awarded contract 36C25623P0014 to CANON MEDICAL SYSTEMS USA, INC. for unknown amount on 2022-10-01.