Inactive

VHAPM Part 816.5 Indefinite-Delivery Contracts Attachment 1: Request for Exception to Fair Opportunity Memo Format VHAPM Part 816.5 Indefinite-Delivery Contracts Page 1 of 6 Original Date: 08/30/2017 ... VHAPM Part 816.5 Indefinite-Delivery Contracts Attachment 1: Request for Exception to Fair Opportunity Memo Format VHAPM Part 816.5 Indefinite-Delivery Contracts Page 1 of 6 Original Date: 08/30/2017 Date: 03/11/2019 Rev 02 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval For Exception to Fair Opportunity Memo Acquisition Plan Action ID:________36C250-20-AP-3666_____________ Contracting Activity: Department of Veterans Affairs, VISN 10, Ann Arbor VA Healthcare System Description of Action: This is an exception to fair opportunity for a task order to provide preventative maintenance and repair services to Philips radiology equipment located at the Ann Arbor VA Healthcare System, Ann Arbor, Michigan. The services will be provided by Philips Healthcare. The task order will be firm fixed price under an IDIQ contract that has been awarded by the Defense Logistics Agency (DLA) under contract VA797H-17-D-0022. This contract is in support of a joint effort by the DLA Troop Support Medical and the VA National Acquisition Center (VA-NAC). The period of performance of the DLA contract is December 22, 2016 December 21, 2021. The DLA and VA are the only activities authorized to place delivery orders under this IDIQ contract except as otherwise delegated in writing by the DLA or VA NAC. Both the VA NAC and DLA will place orders directly against any IDIQ contract under the program, regardless of which agency is the designated administering agency. Also, individual procuring activities of the Department of Veterans Affairs are hereby delegated authority to place task orders for their respective facility, for required maintenance services at any value under this contract. The agency which issues an order will be responsible for all administration functions for the given order. Description of Supplies or Services: The proposed action is to provide preventive maintenance services and repairs to Philips radiology equipment located at the Ann Arbor VA Healthcare System, 2215 Fuller Road, Ann Arbor, Michigan 48105. Philips has remote connectivity to this equipment and proprietary service software that is necessary to perform the services. The total estimated value of the proposed action is $695,853.99 for a one-year period of performance from October 1, 2020 September 30, 2021 and one option year, exercisable solely at the discretion of the Government, for the period of October 1, 2021 December 21, 2021. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section 41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) Subpart 16.505 Subpart 16.505(b)(2)(i):. ( ) FAR Subpart 16.505(b)(2)(i)(A): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays. ( x ) FAR Subpart 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized. ( ) FAR Subpart 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order. ( ) FAR Subpart 16.505(b)(2)(i)(D): It is necessary to place an order to satisfy a minimum guarantee. ( ) FAR Subpart 16.505(b)(2)(i)(E): For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source . The statutory authority permitting an exception to fair opportunity for this action is 38 U.S.C. 8127(c), known as the Veterans First Contracting Program which provides the authority to directly contract with a Service-Disabled Veteran-Owned Small Business (SDVOSB) or a Veteran-Owned Small Business (VOSB). ( ) FAR Subpart 16.505(b)(2)(i)(F) In accordance with section 1331 of Public Law 111-240 (15 U.S.C. 644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns identified in 19.000(a)(3). When setting aside orders for small business concerns, the specific small business program eligibility requirements identified in part 19 apply. 5. Rationale Supporting Use of Authority Cited Above: Software updates and upgrades to these systems are only available from Philips. They are the original equipment manufacturer and these updates and upgrades will not be available from any other source. Additionally, Philips will provide manufactured parts and labor necessary to service and maintain the equipment according to Philips published operating specifications. Compliance with the specifics of the warranty and the service agreement is required. Services attempted or performed by any person or company not authorized to perform such service will constitute a breach of the agreement and will consequently void the warranty on the systems currently in operation at the Ann Arbor VA Healthcare System. Thus, acquiring a service contract with a potential contractor other than the suggested source can potentially prove too costly and injurious to the Government. If the VA were not to obtain this particular service, the Agency would not be able to safely and effectively treat patients. There will be a substantial duplication of cost to the government due to the purchasing of additional equipment or out-sourcing this service, if the equipment is not adequately maintained for use. 6. Efforts to Obtain Competition: Market research was conducted, details of which are in the market research section of this document. This effort did not yield any additional sources that can meet the Government s requirements. There is no competition anticipated for this acquisition. In accordance with FAR 5.301 and 16.505(b)(2), this action will be synopsized at award on the Federal Business Opportunities Page (FBO) and the justification will be made publicly available. 7. Actions to Increase Competition: Currently Philips is the only vendor authorized to provide this service. If Philips authorizes other vendors to provide these services, other vendors will be considered on future preventative maintenance services on this equipment. The contracting office may survey the market again and solicit sources as necessary. In order to overcome barriers to competition, more sources supplying equivalent equipment/services must be available. Since Philips has the proprietary knowledge, parts, and licensed software, overcoming the barriers for competition cannot be realized at this time. 8. Market Research: In accordance with the PPM 2016-05 implementation of the Veterans First Contracting Program to meet the Rule of Two requirements, market research was conducted and Philips is the original equipment manufacturer (OEM) and the only authorized contractor who is capable of providing the services. Philips will provide manufactured parts and labor necessary to service and maintain the equipment according to Philips published operating specifications. Only Philips can provide preventative maintenance and repairs to this equipment and the Rule of Two cannot be met. Therefore, the Contracting Officer does not have a reasonable expectation that two or more small business concerns owned and controlled by veterans will submit offers and that the award can be made at a fair and reasonable price that offer best value to the Department of Veterans Affairs. The preventative maintenance services are found on an existing DLA contract for high tech medical equipment, VA797H-17-D-0022 and the VA is authorized to issue orders under this contract. The line items in the DLA contract have already been determined to be fair and reasonable when contract VA797H-17-D-0022 was awarded, and this ordering vehicle has been established based on the large-scale volume that both the DLA and VA would be ordering under the contract. 9. Other Facts: In section 5 it was explained that these services are only available from one source. Compliance with the specifics of the warranty and the service agreement is required. Services attempted or performed by any person or company not authorized to perform such services will constitute a breach of agreement and will consequently void the warranty on the systems currently in operation at the Ann Arbor VA Healthcare System, Ann Arbor, Michigan. 10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief. Signatures on file