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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 1 ... 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 1 of 9 DEPARTMENT OF VETERANS AFFAIRS SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5 Acquisition Plan Action ID:___36C260-23-AP-2986_______________________________________ Contracting Activity: The contract action will be executed by the Department of Veterans Affairs, Network Contracting Office 20 (NCO20), for the VISN 20 Optical Fabrication Laboratory (OFL) located at the Boise VA Medical Center, Boise, ID 83702. In accordance with (IAW) FAR13.104, COs must promote competition to the maximum extent practicable to obtain supplies and services from the source whose offer is the most advantageous to the Government, considering the administrative cost of the purchase. The base period for this requirement will be funded by purchase request 648-23-4-8889-0128. Nature and/or Description of the Action Being Processed: The proposed action is to support Satisloh automated Surfacing, Finishing, and Anti-Reflective Coatings lab equipment located at the VISN 20 OFL. The maintenance contract shall include all corrective maintenance, preventive maintenance, parts, labor, and travel. The Government intends to award a five-year Firm-Fixed-Price Indefinite Delivery Indefinite Quantity contract (IDIQ) on or before 09/01/2023. The proposed source is Satisloh North America, Inc. (CAGE: 07RZ4, UEI: TBDUHLXWMPG7), N106 W 13131 Bradley Way, Suite 200, Germantown, WI 53022-4442. FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for automated Surfacing, Finishing, and Anti-Reflective Coatings labs located at the VISN 20 OFL 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: The requirement is for OEM service and maintenance support of automated Satisloh Surfacing, Finishing, and Anti-Reflective Coatings labs located at the VISN 20 OFL and OEM training of up to 10 VISN 20 OFL staff annually. The equipments are used in the manufacture of eyeglasses. Specific devices that require coverage are shown in the equipment listed below. Equipment Qty. Price per Month Annual Price ART Blocker 2 $1,764.75 $21,177.00 VFT-Orbit generator 2 $2,067.00 $24,804.00 DUO-Flex polisher 3 $2,066.25 $24,795.00 ART-De-Blocker A 1 $975.00 $11,700.00 ART-De-Blocker M 1 $800.00 $9,600.00 MC-380-X Coater Anti-Reflective Coater 1 $2,300.00 $27,600.00 ES-4 Edger 2 $1,901.25 $22,815.00 Magna Spin Coater 1 $520.00 $6,240.00 LensMark III Laser Engraver 1 $725.00 $8,700.00 EQUIPMENT TOTAL $13,119.25 $157,431.00 Training Qty. Price per Month Annual Price Equipment Training 1 $112,595.00 TRAINING TOTAL $112,595.00 GRAND TOTAL $270,026.00 Support for the automated Surfacing, Finishing, and Anti-Reflective Coatings labs shall include telephone support, on-site corrective maintenance, preventative maintenance, and system hardware/software updates, in accordance with the statement of work. Support will be provided at a firm fixed price, including all parts, labor, and travel. Support shall be provided for a period of performance spanning five years, initiating in fiscal year 2023 on 09/01/2023. Vendor shall be an Original Equipment Manufacturer (OEM) authorized maintenance contractor for the proposed equipment/systems, such that OEM warranty and service are provided and maintained by the OEM. All software licensing, warranty, and service associated with the equipment/system shall be in accordance with the OEM terms and conditions. The Independent Government Estimate for the five-year period of performance as well as the six month extension if FAR 52.217-8 option is exercised is $1,485,143.00. Ordering Period 1 $270,026.00 Ordering Period 2 $270,026.00 Ordering Period 3 $270,026.00 Ordering Period 4 $270,026.00 Ordering Period 5 $270,026.00 FAR 52.217-8 option $135,013.00 TOTAL $1,485,143.00 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): a. Only One Responsible Source - Satisloh North America, Inc. (Satisloh) is the original equipment manufacturer (OEM) of the automated Surfacing, Finishing, and Coating Lab equipment. These are major highly specialized systems used in the manufacturing of eyeglasses. Satisloh field service engineers directly service the above listed equipment. Satisloh does not provide the most updated OEM training to any individuals outside of Satisloh employees. Parts required for repairs are proprietary and highly specialized equipment and services; there are no authorized third-party distributors providing OEM parts. Further, Satisloh has access to technology and software upgrades required to keep equipment fully functional and to meet all applicable standards, including cybersecurity requirements. Only Satisloh North America, Inc. can provide software licensing, warranty, and service associated with the Satisloh equipment, in accordance with the OEM terms and conditions, under a maintenance agreement. The Optical Fabrication Lab would be severely impacted without these unique and highly specialized proprietary services. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A search on VetCert was conducted using NAICS code 811210 Electronic and Precision Equipment Repair and Maintenance. The search revealed 41 SDVOSB/VOSB registered under this NAICS code. However, Satisloh provided a proprietary letter, which states that Satisloh is the only business capable of providing the most up-to-date training on this proprietary service. Current contract 36C26018P3426 and previous contract VA260-17-P-2269 also indicate Satisloh is the only capable vendor. However, in order to promote competition to the maximum extent practicable, and to ensure that the marketplace remains the same, Sources Sought Notice 36C26023Q0695 was posted to Contract Opportunities on 06/14/2023. Sources Sought Synopsis: Sources Sought Notice 36C26023Q0695 was issued to Contract Opportunities on 06/14/2023, for Satisloh Total Equipment Protection Maintenance of Optical Fabrication Lab (OFL) Equipment Service. The Sources Sought Notice closed on 06/22/2023 with two responses, Satisloh and Carr & Associates. Supervisory Program Specialist of Veteran Support Services/Chief VISN 20 Optical Fabrication Laboratory (OFL) reviewed the technical capability of Carr & Associates but they do not appear to be capable for Satisloh Equipment Maintenance program. Therefore, only one large business has been found that performs the proprietary services, there is no reasonable expectation of at least two SDVOSB/VOSBs for this service, and only one source is deemed acceptable. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer shall determine the anticipated cost to the Government of the supplies/services covered by this Justification and Approval to be fair and reasonable by conducting a price analysis before an award is made. In addition, the Government anticipates that the negotiated contract price will reflect a discount from the vendor s commercial price list and will be determined fair and reasonable. 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) by the service line in February and March 2023 and reperformed by Contracting in June 2023. The service line search included a search of the Internet using Google, Bing, FedBizOpps, and the ECRI Sourcebook. The contracting search included a thorough search of mandatory and non-mandatory sources, in addition to commercial sources. Satisloh North America, Inc. maintains proprietary control over OEM-certified service providers of their automated Surfacing, Finishing, and Coatings lab equipment. No equipment technicians employed by third-party entities are OEM-certified to service Satisloh automated equipment. Further, no authorized, official OEM part distributors were found in market research nor noted by the representative of Satisloh. Thus, Satisloh North America, Inc. is the only vendor capable of meeting the Government requirement. As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. Satisloh North America, Inc. (Satisloh) is the original equipment manufacturer of the above listed equipment. Satisloh field service engineers directly service this equipment. The only OEM certified technicians with requisite knowledge to provide service on this equipment are those employed by Satisloh. Parts required for repairs are proprietary; no authorized, third-party distributor provides OEM parts. Further, Satisloh has access to technology and software upgrades required to keep equipment fully functional and meet all applicable standards, including cybersecurity requirements. Only Satisloh North America, Inc. can provide software licensing, warranty, and service associated with the Satisloh Surfacing, Finishing, and Coatings labs, in accordance with the OEM terms and conditions, under a maintenance agreement. Any Other Facts Supporting the Use of Other than Full and Open Competition: Sources Sought Notice 36C26023Q0695 was issued to Contract Opportunities on 06/14/2023, for Satisloh Total Equipment Protection Maintenance of Optical Fabrication Lab (OFL) Equipment Service. The Sources Sought Notice closed on 06/22/2023 with two responses, Satisloh and Carr & Associates. Supervisory Program Specialist of Veteran Support Services/Chief VISN 20 OFL reviewed the technical capability of Carr & Associates but they do not appear to be capable for Satisloh Equipment Maintenance program. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Two vendors(Satisloh and Carr & Associates) responded to the Sources Sought Notice. Supervisory Program Specialist of Veteran Support Services/Chief VISN 20 OFL reviewed the technical capability of Carr & Associates but they do not appear to be capable for Satisloh Equipment Maintenance program. 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: Future requirements will be synopsized in accordance with FAR 5.203. A sole source effort is required for more than one year, as a continuing need for proprietary services is anticipated. 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. //signed// _____________________________ ________________________ Daina M. Sites Date Supervisory Program Specialist V20 OFL 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. //signed// _____________________________ Ross Byrne Contracting Officer Network Contracting Office 20 (NCO 20) 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. //signed// _____________________________ Brian M. Corey Chief, Division 1 Network Contracting Office 20 (NCO 20) c. Director of Contracting/Designee (Required above $700K): I certify the justification meets requirements for other than full and open competition. //signed// _____________________________ S. Dale Allen Director of Contracting Network Contracting Office 20 (NCO 20) 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. //signed// _____________________________ Curtis M. Jordan Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA) JOFOC # 2023-07-10T07:41:53