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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 Last Updated: 02/01/22 Page 1 of 4... 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 Last Updated: 02/01/22 Page 1 of 4 DEPARTMENT OF VETERANS AFFAIRS SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5 Acquisition Plan Action ID: 36C259-24-AP-0345 Tracking #: FY24-NCO19-1709 Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19 (NCO 19), 6162 South Willow Drive, Suite 300, Greenwood Village, Colorado, 80111 Organizational Activity: Department of Veterans Affairs, VISN 19, Montana Health Care System, Fort Harrison VA Medical Center, 3687 Veterans Drive, Fort Harrison, Montana, 59636 2237: 436-24-1-124-0071 Nature and/or Description of the Action Being Processed: The Ft. Harrison VA Medical Center has a requirement for the lease of Stryker endoscopic video equipment along with an equipment service agreement. This action will be solicited as unrestricted to the authorized distributors of the large business manufacturer, Stryker Corporation, as the limitations of subcontracting cannot be met. The authorized distributors of Stryker Corporation are able to offer the leasing option needed by the station while the manufacturer itself cannot. Description of Supplies/Services Required to Meet the Agency s Needs: The procurement is to lease Stryker endoscopic video equipment along with an equipment service agreement. The contractor shall provide all required leased equipment, loaner equipment upon request, and incidentals necessary to perform maintenance and repairs of Stryker Video System for leased equipment. The estimated period of performance is as follows: Base Year: 6/15/2024 6/14/2025 Option Year 1: 6/15/2025 6/14/2026 Option Year 2: 6/15/2026 6/14/2027 Option Year 3: 6/15/2027 6/14/2028 Option Year 4: 6/15/2028 6/14/2029 The estimated cost of this procurement is $XXXXXX. 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 Brand Name for Stryker equipment & service agreement Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Stryker is the only brand that has equipment compatible with existing Fort Harrison VA owned equipment. The facility has surgical booms, surgical ceiling lights, and other Stryker equipment installed within each operating room (OR) that limits compatibility to brand name Stryker equipment. Specifically, the VA owned surgical booms are an integral, fixed component of the operating rooms and are designed to be utilized with Stryker equipment. Removal of the currently installed equipment would result in the operating rooms closing for several days. Other companies such as Steris and Baxter/Hill-Rom that offer surgical booms report lead times up to 16 weeks. Once the replacement brand equipment is available for installation several additional days would be needed to complete the project. Additional time would also be needed for providers and auxiliary staff to learn and practice with the new equipment. The facility s operating rooms could be closed an approximate period of up to five months for removal of current equipment and implementation of a new system. An average of 30 procedures per month occur between the two operating rooms with an average cost per procedure of $XXXXX. Both operating rooms being closed for a minimum of up to five months would cost the facility an estimate of $XXXXXX minimum. This cost would be in addition to the approximate $XXXXXXX it would cost to fully replace all items currently owned by the facility in the Stryker brand as well as potential construction costs to configure the OR ceilings for a new brand s surgical boom equipment. Stryker equipment currently owned by the facility is valued at approximately $XXXXXXX and the cost to lease the rest of the necessary Stryker equipment and support services is valued at $XXXXXXXX. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: An RFI was sent to the manufacturer, Stryker Corporation, requesting a list of small business distributors. Three (3) distributors, Four Points, TrillaMed, and Beacon Point, have been identified at this time as SDVOSB vendors. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The price will be determined fair and reasonable based on the adequate price competition the Government anticipates receiving on this procurement. Additional price analysis techniques such as comparison of proposed prices found on previous purchases, comparison with similar items and comparison to the Independent Government Estimate may also be used to substantiate reasonableness. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: A Request for Information was sent to Stryker Corporation for a list of all small business distributors. A representative responded with three (3) SDVOSB vendors: Four Points, Beacon Point, and Trillamed. Two of the three authorized distributors (Four Points and Beacon Point) confirmed they were capable of offering the lease option for the requested Stryker products. A response from TrillaMed was received via email indicating TrillaMed does not anticipate participating in the solicitation of this requirement due to it being for a lease. TrillaMed currently only facilitates the purchase of Stryker products. Steris Corporation and Baxter Healthcare Corporation sales representatives were contacted via phone for current lead times on surgical booms. Baxter Healthcare Corporation reported approximately 4-6 weeks lead time Steris Corporation reported approximately 12-16 weeks lead time A search on VIP using the NAICS 532490 and word search Stryker Video System found 17 SDVOSB and VOSB results. However, none (0) of the vendors listed were identified as an authorized distributor of Stryker products. A search on VetCert verified all three authorized distributors of Stryker (Four Points, Beacon Point, and TrillaMed) as certified SDVOSBs. A search in FPDS for Stryker Video System yielded only two (2) base contracts awarded over the past two years totaling $875,497.11. Both contracts were awarded to Stryker Corp, a large business concern. A DSBS search using keywords Stryker Video generated zero (0) small business results. A search of GSA advantage using keywords Stryker Video provided a number of Stryker products but only Stryker was listed in the vendors list for each item. A search of SCMC using keywords Stryker Video System found there are no mandatory contracts in place for the products requested in this acquisition. An FSS contract, V797D-60743, was identified from Stryker when specific part numbers such as 1688-210-122 were searched. Any Other Facts Supporting the Use of Other than Full and Open Competition: Any delay in execution of this contract may lead to cancellation of approximately 30% of the surgical capacity which will delay Veteran care, which can lead to unsafe outcomes and additional costs to the facility if Community Care is utilized. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Beacon Point Associates, LLC - SDVOSB Four Points Technology, LLC - SDVOSB 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: It is recommended this acquisition be solicited as unrestricted in order to obtain the maximum competition available for this brand-specific requirement. 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. 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. 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. 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.