Description
VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >$150K to $700K OFOC SOP Revision 06 Page 4 of 5 Original Date: 03/22/11 Revision 06 Date: 08/30/2017 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>$150K to $700K) Acquisition Plan Action ID: VA260-18-AP-1676 Contracting Activity: Department of Veterans Affairs, VISN 20 Network Contracting Office, Portland Health Care System (HCS) Station 648, requesting office: Portland VA Medical Center (PVAMC) Biomedical Engineering (P2FMS). Purchase request number 648-18-1-105-0009. Nature and/or Description of the Action Being Processed: This is a request for Other Than Full and Open Competition for a Firm Fixed Price contract with Stryker Corporation. The procurement request is for a Full-Service Contract to maintain Stryker Neptune II Surgical Waste Collection Systems currently in use at the PVAMC. This request is the initial request for Full-Service maintenance on this inventory of High Tech Medical Equipment (HTME) and is being requested on PR # 648-18-1-105-0009. This procurement for a Full-Service Maintenance contract is in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2. Description of Supplies/Services Required to Meet the Agency s Needs: This Full-Service Maintenance contract is to support the PVAMC s current inventory of Stryker Neptune II Rovers and Dockers. The equipment provides surgical waste collection and is classified as an HTME item. This contract will provide Full-Service Maintenance for this HTME for a Period of Performance (POP) Base Period + 4 Option Periods beginning on 3/1/2018 - 2/30/2023. This contract is a Firm Fixed Price procurement with an annual cost of $31,350.00 per year. The total cost for the Base Period + 4 Option Periods is $156,750.00. Specific services that will be rendered by Stryker Corporation at the PVAMC include: All parts, labor and travel associated with scheduled on-site preventive maintenance inspections/procedures. This Preventative Maintenance contract is to cover two visits per year by a Stryker Authorized Service Technician. The Neptune Rovers and Neptune2 docking station will be maintained in good working order, and meet all manufacturer specifications for operation. Replacements of the vacuum hose w/charcoal filter, HEPA filter w/charcoal (as needed), vacuum pump charcoal filters and cleaning and disinfection of the canister will be included for each Rover and offload pump impeller. Fresh water screen replacements will be covered for each Docking Station. Repair parts and service are covered under this contract Statutory Authority Permitting Other than Full and Open Competition: The Authority permitting Other than Full and Open Competition is 41 USC §3304(a), as implemented by FAR 6.302-1. ( 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; The authority for applying the Simplified Procedures for Commercial Items exceeding the Simplified Acquisition Threshold (SAT) of FAR 13.5 is 41 U.S.C. 1901 (a)(2) and is implemented by restricting competition on this procurement via FAR 13.106-1(b)(2) only one source available. Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The Stryker Neptune line of surgical waste collection medical equipment is classified as a High Tech Medical Equipment (HTME) and, as such, is technologically complex. Given the nature of the equipment and the need for reliability in providing patient care in a surgical procedure environment it is necessary to utilize only OEM certified technicians to test, calibrate, maintain and repair this line of HTME. The PVAMC office of Biomedical Engineering has determined that these services can only be rendered by the OEM Stryker Corporation. In addition Stryker Corporation has submitted documentation stating that Stryker does not provide any certifications to third-party technicians. In addition, OEM replacement parts required as part of this maintenance agreement are not made available to non-certified third party technicians and Stryker will not provide any certification that the systems operational integrity has been maintained when Non-OEM replacement parts are utilized in Stryker equipment. The Authority permitting Other than Full and Open Competition is 41 USC §3304(a), as implemented by FAR 6.302-1. This authority allows for sole source procurement when it is determined that there is only one source available. In this procurement, the only source that is OEM Certified to provide the Full-Service Maintenance contract is the Manufacturer Stryker Corporation. Stryker has the proprietary, highly technical, information to provide the Certified Technicians and can provide all OEM Certified replacement parts required to keep the inventory of Stryker Neptune systems currently in operation at PVAMC operational. This procurement is in accordance with FAR 13.106(b) which grants the authority to sole source procurements that exceed the Simplified Acquisition Threshold when it is determined that there is only one source available. In this procurement, the only source that is OEM Certified to provide the Full-Service Maintenance contract is the Original Equipment Manufacturer, Stryker Corporation. Stryker has the proprietary, highly technical, information to provide the Certified Technicians and can provide all OEM Certified replacement parts required to keep the inventory of Stryker Neptune systems currently in operation at PVAMC. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: This action is exempt from solicitation as outlined in FAR 6.302-1 (b)(2) due to patent rights and control of basic raw materials and secret processes. Stryker Corporation has provided a proprietary letter stating that only their Certified Technicians can work on the HTME and only their technicians have access to OEM replacement parts. FAR6.302-1 (b)(2) The existence of limited rights in data, patent rights, copyrights, or secret processes; the control of basic raw material; or similar circumstances, make the supplies and services available from only one source. In addition, due to the proprietary letter received from Stryker Corporation and information received from the VA Chief of Biomedical engineering the exemption found in FAR 6.302-1 (b)(4) also applies to this proposed action. FAR 6.302-1 (b)(4) When the agency head has determined in accordance with the agency s standardization program that only specified makes and models of technical equipment and parts will satisfy the agency s needs for additional units or replacement items, and only one source is available Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The contracting officer anticipates price will be considered fair and reasonable in accordance with FAR 13.106 1(b) and based on FAR 13.106 3(a)(2), using market research and comparison to the proposed prices listed in the Independent Government Cost Estimate (IGCE). The price will be determined to be fair and reasonable prior to award and documented in accordance with FAR requirements. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted to satisfy the requirements of the FAR 10.002(a) and is in the included in the briefcase for this requested action. As part of the market research the Vendor Information Page (VIP) database looking for SDVOSBs/VOSBs capable of providing the requested service. Due to the proprietary nature of the service being purchased there was no reasonable expectation that any capable contractors under VHAPM Part 810.001 Veterans First Contracting Program would be available. The results of the VIP Database queries are recorded in the briefcase as required by VAAR 810.002. As described in Section 6 above, this procurement is exempt from synopsis under FAR 6.302-1 because the services are confirmed to be only available from Stryker Corporation. Through the market research process, it was determined that the services required can only be supplied by Stryker Corporation. As such Stryker is the Sole Source provider for this service contract. This is due to the proprietary nature of both the Certified Technicians and Stryker Corporation being the Sole Source supplier of required OEM replacement parts. The Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future actions to be competed. Any Other Facts Supporting the Use of Other than Full and Open Competition: N/A Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: N/A 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: In an effort to encourage competition in the future, the VA will review the requirements periodically to ensure that all the requirements of the contract reflect the minimum requirements to perform the services covered in this contract. This contract includes option years to avoid a potential break in service as there is a continuous need for this type of service. 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: Gordon Hosoda Date: Title: Chief, Biomedical Engineering Facility: PVAMC Approvals in accordance with the VHAPM, Part 806.3 OFOC SOP. Contracting Officer's Certification (Required for All Approval Less Than $150K): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. _____________________________ ________________________ Name: Lisa Spiral O Neal Date: Contracting Officer VISN 20 (NCO20) Acquisitions Team One Level Above the Contracting Officer (Required over $150K Approval to $700K): I certify the justification meets requirements for other than full and open competition. ______________________ ________________________ Name: Karen Dailey Date: Branch Chief, Services 2 Branch Network Contracting Office 20 (NCO 20)