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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 2 ... 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 2 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: 36C250-23-AP-0836 Contracting Activity: Department of Veterans Affairs, VISN 10, Station 583, Richard L. Roudebush VA Medical Center (VAMC) submits to Network Contracting Office (NCO) 10, located at 24 Frank Lloyd Wright Drive, Suite M2200, Ann Arbor, MI 48105, a procurement request for preventative maintenance on Mar Cor Purification equipment. The funding request for this requirement is through PR-IFCAP 583-23-1-169-0059 in the amount of $88,539.36. Nature and/or Description of the Action Being Processed: The contractor shall provide a comprehensive preventative maintenance plan for portable Water Reverse Osmosis (RO) WRO 300 and the WRO 300 H, portable Millenium HX Reverse Osmosis (MHX), and nonportable Central Water Plant (CWP) equipment located at the Richard L. Roudebush VA Medical Center. Services shall be provided by OEM-certified technicians and shall use certified OEM parts. Services shall include monthly performance reviews, cleaning and disinfecting of each system monthly, inspection and replacement of RO pre- filters monthly, and inspection and replacement of one (1) carbon block PTG-520 or posiclear filter per system quarterly. The preventative maintenance services include repair parts, on-site repair labor, and travel. The expected dollar value (including all options) for this requirement is $626,634.31. Description of Supplies/Services Required to Meet the Agency s Needs: All services provided under this contract shall be performed in conformance with the Original Equipment Manufacturer and Occupational Safety and Health Administration (OSHA) standards and specifications. Work shall meet all facility regulations and codes as applicable and shall be coordinated with Biomedical Engineering/Healthcare Technology Management (HTM). In addition, services shall be provided by OEM- certified technicians and shall use certified OEM parts. 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): The incumbent, Mar Cor Purification, Inc., is a Large Business. Evoqua Water Technologies, LLC., acquired Mar Cor Purification, Inc. business on January 2, 2022. Evoqua Water Technologies, LLC., is the sole source provider for service on this equipment because of the proprietary nature of the system. Evoqua Water Technologies, LLC., retains sole data rights on equipment and proprietary software. This is highly specialized hospital equipment. No third-party repair contractors are authorized. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Market research conducted by searching VetCert, SBA DSBS SD/VOSB, SBA DSBS, GSA database, NAC database, SAC database, HTME database, FPDS, and AbilityOne. In addition, past procurement history was considered. More in-depth details are found in the market research section of this document. These efforts, based off the circumstances surrounding the procurement, did not yield any other sources that can meet the need of the Government as there are no other authorized companies to perform these services. IAW FAR 5.201, this action will be synopsized at award on www.SAM.gov Contracting Opportunities section of the website and the justification will be made publicly available. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: It is anticipated that the cost to the Government will be fair and reasonable. The contracting officer will use the price analysis techniques at FAR 13.106-3(a)(2)(ii) and any other price analysis techniques necessary to determine the prices to be fair and reasonable. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: VetCert database search was completed using NAICS 811310, yielding 516 contractors returned from this search of which the first 10 were captured. As it produced numerous results, the ability to examine or analyze them further is restricted by its single search parameter within a limited menu of options. The VA Rule of Two is not met. SBA DSBS search for SD/VOSB was completed using NAICS 811310 and the key search term Purification Portables . No results were returned from that search. SBA DSBS for other socioeconomic as well as non-socioeconomic small businesses was completed using NAICS 811310 and the key search term Purification Portables . No results were returned from that search. A GSA search was completed using the key search term Purification Portables . Category 325998W Water Treatment Solutions was reviewed which contains 72 contractors. None of the contractors possess the authorization from the OEM to provide preventative maintenance service. A NAC MedSurg Catalog Search was completed using Schedule search 65 II A (Medical Equipment.) and key search term Purification Portables . A total of 12 results were returned however the contracts were all for Air Purification services which does not satisfy the need. SAC contract webpage review was completed The CS searched for any pre-existing contracts with Mar Cor Purification, Inc. and Evoqua Water Technologies, LLC. No contracts were discovered. HTME contract webpage review was completed The CS searched for any pre-existing contracts with Mar Cor Purification, Inc. and Evoqua Water Technologies, LLC. No contracts were discovered. An FPDS search was completed using the search term Purification Portables and Contracting Agency Name Veterans Affairs, Department of (1) . One (1) contractor, Mar Cor Purification, Inc., returned from that search. An AbilityOne services webpage review was completed The service types available do not match the services needed for this procurement. Any Other Facts Supporting the Use of Other than Full and Open Competition: Below are the previous contracts for these services: Contract 36C10G20D0038, Task Order 36C25022F0223 covered portable equipment. Task Order 36C25022F0223 expired 12/29/2022. This task order had a period of performance for one (1) base year for a total of $36,987.90. This task order was awarded to Mar Cor Purification, Inc. Contract No.36C25022C0090 covers nonportable equipment and expires 04/05/2023. This contract has a period of performance for one (1) base year. The total for Contract No.36C25022C0090 is $58,480.20. This contract was awarded to Mar Cor Purification, Inc. Mar Cor Purification, Inc., was acquired by, Evoqua Water Technologies, LLC., who provided a letter stating they are the only contractor authorized to provide preventative maintenance services. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Company Name Evoqua Water Technologies, LLC. Contractor Address 210 6th Ave Pittsburgh, PA 15222 Contractor POC David Weix Contractor Email david.weix@evoqua.com Contactor Phone Number (216) 440-7436 Unique ID HA3GWLK3JK58 Business Size Large Business 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: The CO will maintain informal market research during the option year to determine competitive standards. In addition, the CO will confirm there are no other third-party contractors authorized to perform these services with the OEM in the future. 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. Alan G. Shepardson TCF/Biomedical Engineer Richard L. Roudebush VA Medical Center 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. Andrea J. McKinney Sally L. Leitch Contract Specialist Contracting Officer Network Contracting Office (NCO) 10 Network Contracting Office (NCO) 10 Services Team 3 Services Team 3 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. Toni Waggoner-Boykin Branch Chief, Supervisory Contracting Officer Network Contracting Office (NCO) 10 Services Team 3