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FBO DAILY - FEDBIZOPPS ISSUE OF OCTOBER 03, 2014 FBO #4696
DOCUMENT

J -- Spokane Blood Contract - Justification and Approval (J&A)

Notice Date

10/1/2014
 

Notice Type

Justification and Approval (J&A)
 

NAICS

621991 — Blood and Organ Banks
 

Contracting Office

Department of Veterans Affairs;Network Contracting Office 20;5115 NE 82nd Ave, Suite 102;Vancouver WA 98662
 

ZIP Code

98662
 

Archive Date

10/31/2014
 

Point of Contact

Dean A Umathum
 

E-Mail Address

6-2786<br
 

Small Business Set-Aside

N/A
 

Award Number

VA260-15-D-0049
 

Award Date

10/1/2014
 

Description

DEPARTMENT OF VETERANS AFFAIRS Justification and Approval Under Simplified Acquisition Procedures for Restricting Competition 1.Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 20, 8115 NE 82nd Ave. Vancouver, WA for the Spokane VA Medical Center (SVAMC). 2.Nature and/or Description of the Action Being Processed: for PR # 668-14-3-038-0007. This procurement is for blood and blood products for the Spokane VA Medical Center. In accordance with FAR 13.5 Test Program 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. The proposed action will be a new Indefinite Delivery Indefinite Quantity contract. 3.Description of Supplies or Services Required to Meet the Agency's Needs: This procurement is for blood and blood supplies. The suggested vendor is Inland Northwest Blood Center (INBC). They are currently providing blood products and performing blood tests for the Spokane VA Medical Center. The estimated value of this procurement is $330,000.00 for the base year, and $1,650,000.00 for the entire base plus four option year periods. The type of blood and the amounts of blood will vary based on the number of patients that require blood and the type of blood and tests they require. The period of performance will be from 07/01/2014 - 06/30/2015 with four (4) one year option periods. The regularly needed, however inconclusive, different types of blood and testing that are expected to be needed are various Red Blood Cells (RBC), Cyro, Fresh Frozen Plasma (FFP), Plateletpheresis, Crossmatch (Electronic and full), ABO and Rh type, Antibody Screen, Direct and Indirect Antiglobulin test, Antibody Identification, and Transfusion Reaction Investigation. 4.Statutory Authority Permitting Restriction in Competition: The authority for applying the Commercial Test Program of FAR 13.5 is (Section 4202 of the Clinger-Cohen Act of 1996) and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2). 5.Demonstration that the Contractor's Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): INBC is the only contractor certified by the Food and Drug Administration (FDA) capable of supplying blood to the Spokane VAMC. There are no other established blood banks close enough to the Spokane VAMC campus to fulfill this requirement. The contractor delivers volunteer donor blood only and in accordance with the Food and Drug Administration (FDA) rules and regulations. They have an identifying numbering schematic approved by the FDA. The FDA also has stringent collection, certifications, licensing, monitoring, storage, and shelf life requirements. INBC has been able to maintain all of these certifications and licensing as well as follow all other FDA rules regarding the collection and delivery of blood. 6.Description of Efforts Made to Ensure that Offers are Solicited from As Many Potential Sources as Deemed Practicable IAW FAR 13.104: Blood supply is an oligopoly, only a limited number of businesses are able to provide blood supply. An FDA webinar, "The Safety of Blood Supplies" on 02/15/2011 states that 90% of blood products in the United States come from the American Red Cross or America's Blood Centers. America's Blood Centers are made up of a network of independent not-for-profit community blood centers across the United States. It is further stated on an American Association of Blood Banks (AABB) joint statement before the blood products advisory committee, "maintaining a safe and adequate supply of donated blood during a severe emergency" that the American Red Cross (ARC) supplies over 40% of blood to the United States and American Blood Centers supply over half of blood to the United States. AABB is a not-for-profit association that assists with developing blood standards and is an accreditation organization for educational programs relating to relating to blood, transfusion, and cellular therapies. A search on the American Red Cross's website on April 2nd, 2014 shows that they currently do not have a blood center in Spokane and cannot service the Spokane VAMC; there is only INBC, which is part of America's Blood Centers. Previous contracts VA260-13-P-1519 and VA668-C11648 were for the same requirement and were also sole sourced to INBC; therefore, it is determined that there are no capable contractors besides INBC that can fulfill this requirement, so no other sources were solicited. 7.Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable - IAW FAR 13.106-3: The anticipated price of blood for this proposed contract is considered fair and reasonable. A blood research study from the US National Library of Medicine National Institutes of Health showed that the average price for a unit of blood in 2011 was $343.63. The anticipated average price for a unit of blood under this proposed contract is $157.67. This is derived from the mean price of each regularly anticipated unit of blood that will be needed. These individual units of blood prices are the estimated cost to the Spokane VA Medical Center based on prices paid under contract VA260-13-P-1519 with a period of performance 07/01/2013 - 06/30/2014; also, previous contract VA668-C11648 had an option year period of performance from 07/01/2012 - 06/30/2013. The value of that option year was $304,566.00. The option year price on the previous contract was determined to be fair and reasonable based on a comparison with the Independent Government Cost Estimate. The new proposed contract, valued at $330,000.00, is for the same price for each unit of blood. The only reason for the price increase is because the quantity of each of the units required has increased. 8.Description of the Market Research Conducted and the Results, or Statement of Reasons Market Research was not Conducted (FAR 10): As stated in section 6, based on an FDA webinar, and an AABB statement, market research shows that the supply of blood to hospitals is an oligopoly and generally only available from two sources. The American Red Cross and America's Blood Centers are the two main providers of blood in the United States. A search on the American Red Cross's website on April 2nd, 2014 showed that they do not serve the Spokane area. A search on America's Blood Center's website showed they have two blood banks within 30 miles of Spokane, both of which are INBC blood banks; therefore, INBC, part of America's Blood Centers, is the only contractor that can fulfill this blood requirement for the Spokane VAMC. Market research also revealed this is a commercial item (See P02 Market Research in the eCMS action briefcase). 9.Any Other Facts Supporting the Restriction of Competition: There are no other facts supporting the restriction of competition. 10.Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: No other sources in the Spokane area expressed an interest in providing this requirement. 11.Statement of 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: There is no action the agency is taking to remove or overcome any barriers for competition of blood in the Spokane area at this time. If at least one other blood donation and distribution center is setup in Spokane, or close to Spokane, a competitive solicitation will be posted to FedBizOps (FBO) for competition between the two businesses. The blood products market in the Spokane, WA area will be surveyed six months prior to the exercising of each option period to determine if competition is available. If competition is available, the following option period will not be exercised; however, if competition is still not available, the following option period will be exercised. 12.Requirements Certification - IAW FAR 13.501: I certify that the requirement outlined in this justification is a bonafide 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. _____________________________ ________________________ Eric BoylesDate Hematology Supervisor 13.Approvals in accordance with FAR 13.501: a.Contracting Officer's Certification: (required) I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. _____________________________ ________________________ Ross Byrne Date Contracting Officer NCO 20 Services Team b.Acquisition Manager's 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 recommend approval for other than full and open competition. ______________________ ________________________ Nicholas M. JenkinsDate Director of Contracting Network Contracting Office 20 (NCO 20) c.SAO 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 recommend approval for other than full and open competition. ______________________ ________________________ Delia A. Adams, MBA, CPCMDate Director, SAO West d.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 recommend approval for other than full and open competition. ______________________ ________________________ Norbert S. DoyleDate Head of Contracting Activity (HCA) Chief of Procurement and Logistics Veterans Health Administration
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/notices/51cc4ed09caec08429120c500ef63023)
 

Document(s)

Justification and Approval (J&A)
 

File Name: VA260-15-D-0049 VA260-15-D-0049_1.docx (https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=1661689&FileName=VA260-15-D-0049-000.docx)

Link: https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=1661689&FileName=VA260-15-D-0049-000.docx

 

Note: If links are broken, refer to Point of Contact above or contact the FBO Help Desk at 877-472-3779.
 

Record

SN03539269-W 20141003/141001234530-51cc4ed09caec08429120c500ef63023 (fbodaily.com)
 

Source

FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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