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SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5 Acquisition Plan Action ID: 36C248-22-AP-3465 Contracting Activity: Department of Veteran... SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5 Acquisition Plan Action ID: 36C248-22-AP-3465 Contracting Activity: Department of Veterans Affairs, VISN 08, Veteran Affairs Caribbean Healthcare System (VACHS). Contracting agency responsible for the proposed contracting action is Network Contracting Office (NCO) 8, under Regional Procurement Office (RPO) East. 2237 No. 672-22-4-2563-0130. Nature and/or Description of the Action Being Processed: The proposed procurement is a Firm Fixed Price (FFP) contract for a vendor to provide preventive and corrective maintenance of Siemens Digital Imaging System at the VA Caribbean Healthcare System (VACHS) at Puerto Rico, in accordance to the Original Equipment Manufacturer s (OEM) specifications. The detailed estimate amount per period of performance is as follows: Base Period (09/01/2022 08/31/2023): $203,148.00 First Option Period (09/01/2023 08/31/2024): $203,148.00 Second Option Period (09/01/2024 08/31/2025): $203,148.00 Third Option Period (09/01/2025 08/31/2026): $203,148.00 Fourth Option Period (09/01/2026 08/31/2027): $203,148.00 Description of Supplies/Services Required to Meet the Agency s Needs: The contractor shall provide all labor, equipment, transportation, tools, materials, software, access codes, and supervision necessary to perform the maintenance of the Siemens Digital Imaging Systems at the VACHS. The estimated value of this procurement is $1,015,740.00. The resulting contract action will be for a 12-month base period estimated to begin on 09/01/2022, and four 12-month option periods. There are 16 Line Item Numbers (LINs) per each period of the proposed contract; one for each Siemens digital imaging system that will be serviced. The quantities for each LIN vary, depending on the amount of preventive maintenance services needed for each respective system, per year. LINs for the base period can be seen below: 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): Diagnostic Imaging Supplies & Services, Inc. (DISS) is the only vendor authorized by the original equipment manufacturer to provide this type of service on this equipment in this region. Original Manufacturer Parts must be used to replace any defective components if needed at the time of the preventive maintenance in order to maintain the manufacturer specifications in accordance with FDA Class I, II, and III devices intended for human use. Improper maintenance or calibration by non-certified technicians could cause misdiagnosis or harm to patients. Additionally, equipment, replacement parts, service keys, and manuals from the Original Equipment Manufacturer (Siemens) are proprietary and not available to third party vendors. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Queries were conducted in the Veterans Information Pages (VIP), as well as the Small Business Administration (SBA) Dynamic Search Tool. But, as confirmed by the OEM of the equipment to be maintained at VACHS, Diagnostic Supplies & Services, Inc. (DISS) is the only authorized vendor that can provide preventive maintenance and repair services to Siemens digital imaging equipment, and allow such equipment to perform as per OEM specifications. Furthermore, if this equipment is repaired or maintained by any other vendor, any warranties that are currently in place will be immediately void. An intent to procure these services through a Single Source will be posted in Contract Opportunities following the approval of the 2268, to further confirm if the services being procured can be provided by any other vendor. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated estimated price of this long-term procurement is $1,015,740.00, for one 12-month Base Period, plus four 12-month option Periods. This includes the preventive and corrective maintenance services of 16 Siemens Digital Imaging Systems. The previous contract was awarded to Siemens, as a Sole-Source Contract on 09/01/2017, in the total amount of $967,366.63 (Contract No. VA248-17-C-0156). Price fair and reasonableness analysis will be conducted after the receipt of the vendor s quote, and prior to contract award, which is currently estimated on 08/01/2022. The quote received from the vendor that can provide maintenance services to Siemens digital imaging systems in the region of Puerto Rico (DISS) will be compared to the maintenance rates from the OEM, using any available price listing from such. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by conducting VIP/SBA queries using the NAICS Code and PSC of this procurement, in addition to the keyword siemens . There were no SDVOSB, VOSB, or Small Businesses found that could fulfill these requirements. The contracts found in GSA did not include the services being procured at VACHS. Additionally, a query was conducted in the System for Award Management (SAM) using the same keyword, and the service contracts found there were on a single-source basis, and for the respective facility where the equipment was located (e.g. Notice IDs N0016422Q0100, FA4507Q220005). While searching the High Tech/High Cost National Contract database, a contract for Siemens Medical USA, Inc. was found. However, such contract (contract no. SPE2D117D0022) included service agreements, and not preventive maintenance. Such service agreements did not constitute preventive maintenance, as confirmed with Mr. Thomas Carr, Siemens Senior Federal Contracts Manager. Finally, a call was made to the contractor who was awarded the previous contract for Siemens Digital Imaging Systems preventive and corrective maintenance at VACHS, Siemens Medical Solutions USA, Inc., and they told us to contact the vendor that currently has exclusivity rights for the maintenance and repair of Siemens equipment in the Commonwealth of Puerto Rico, DISS. DISS proceeded to provide a letter from Siemens, stating that they are the only authorized distributor for sales and service of Siemens equipment in the region of Puerto Rico. As also described in Section 6 above, an intent to procure these services through a Single Source will be posted in Contract Opportunities following the approval of the 2268, to further confirm if the services being procured can be provided by any other vendor. Any Other Facts Supporting the Use of Other than Full and Open Competition: The vendor that provides the preventive maintenance services being procured must be certified by the OEM, to ensure systems will operate in accordance with the original specifications, and to avoid voiding any warranties. 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: N/A 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. __________________________________ Contract Specialist 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. __________________________________ Contracting Officer 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. __________________________________ Branch Chief VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition. __________________________________ VHA Head of Contracting Activity