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FBO DAILY - FEDBIZOPPS ISSUE OF OCTOBER 07, 2016 FBO #5432
DOCUMENT

65 -- MSPV BPA MED EQUIP & SUP - Justification and Approval (J&A)

Notice Date

10/5/2016
 

Notice Type

Justification and Approval (J&A)
 

NAICS

339113 — Surgical Appliance and Supplies Manufacturing
 

Contracting Office

U.S. Department of Veterans Affairs;Strategic Acquisition Center;10300 Spotsylvania Ave;Fredericksburg VA 22408
 

ZIP Code

22408
 

Solicitation Number

VA11916Q0530
 

Archive Date

12/2/2016
 

Point of Contact

LINDA COLEMAN
 

E-Mail Address

linda.coleman@va.gov
(linda.coleman@va.gov)
 

Small Business Set-Aside

N/A
 

Award Number

VA119-16-A-0395
 

Award Date

10/3/2016
 

Description

VA Internal Use Only Working Draft/Pre-Decisional/Deliberative Document LIMITED SOURCE JUSTIFICATION Medical Surgical Prime Vendor - Next Generation (MSPV-NG) Blanket Purchase Agreements (BPA) for Medical Equipment and Supplies 1. Contracting Activity:Department of Veterans Affairs (VA) Office of Acquisition Operations Strategic Acquisition Center 10300 Spotsylvania Avenue, Suite 400 Fredericksburg, VA 22408 2. Description of Action: The proposed action is for medical equipment and supplies, under the authority of Federal Acquisition Regulation (FAR) 8.405-6, "Limited Sources." The required items are supplied by Olympus America Inc., a Large Business, located at 3500 Corporate Parkway, Center Valley, PA 18034-0610. These items will be procured via the VA Federal Supply Schedule (FSS) V797P-2065D to populate the MSPV-NG formulary with mandatory health care supplies. The MSPV-NG formulary is a list of approved healthcare commodities including medical, surgical, dental, laboratory, facilities/cleaning products, and textiles. This LSJ will supply the MSPV-NG formulary with medical equipment and supplies distributed by Olympus America Inc. on a not-to-exceed 12-month period of performance until these items can be competed in accordance with FAR 8.405-3. As the identified required items are competed, they will no longer be acquired under the LSJ; thus, bringing the MSPV-NG formulary in compliance with the FAR 8.405-3, "Blanket Purchase Agreements". 3. Acquisition History: VHA manages the largest integrated healthcare system in the United States. In 2013, the system consisted of 21 Veterans Integrated Services Networks with approximately 150 medical centers, 820 outpatient clinics, and various other facilities to include Community Living Centers, Veteran Centers and Domiciliaries. Together, these health care facilities, and the more than 53,000 independent licensed health care practitioners who work within them, provide comprehensive care to about 9.3 million enrolled Veterans. The MSPV Program is the primary means to obtain medical and surgical supply support for the VA healthcare system through contract support. VHA, in cooperation with VA's National Acquisition Center (NAC), initiated contract support for the MSPV program in 2005. The result was the first generation of seven prime vendor distributor contracts that not only support VHA, but also support the Department of Health and Human Services, Department of State, Indian Health Service, and the Federal Bureau of Prisons. Since that time, VHA and NAC have successfully executed two long-term, multiple-award 5-year contracts in support of the MSPV program. In 2015, upon expiration of the second MSPV program, a set of bridge contracts were executed by the NAC extending the period of performance to April 19, 2016. Those bridge contracts were as follows: VA797N-15-C-0003, VA797N-15-C-0004, VA797N-15-C-0005, VA797N-15-C-0006, VA797N-15-C-0007, VA797N-15-C-0008, and VA797N-15-C-0009. In preparation for the continuation of the MSPV Program, the Strategic Acquisition Center (SAC) assumed responsibility to award the new MSPV-NG contracts in 2014. Due to a protest and continued technical evaluations, the SAC Contracting Officer determined that a second set of bridge contracts would be required to ensure continuity of services and the continuance of healthcare support throughout the VA community beyond the bridge contracts' expiration on April 19, 2016. In February 2016, the SAC awarded the second set of bridge contracts. They are as follows: VA119-16-D-0007, VA119-16-D-0008, VA119-16-D-0009, VA119-16-D-0010, VA119-16-D-0011, VA119-16-D-0012, and VA119-16-D-0013. The period of performance for the second SAC bridge contracts began April 20, 2016, and will expire no later than April 19, 2017. Leveraging the NAC's lessons learned, VHA and SAC developed a procurement strategy for a complete VA-wide MSPV formulary of approved supplies by April 2016. To execute this plan, VHA and SAC formed a team in February 2015, to initiate development of the MSPV-NG formulary. The goal of this team was to solicit and award approximately 7,000 individual line-items, identified as an optimal initial level, for the pending MSPV-NG formulary. The team developed a streamlined approach to solicit and award these items, which involved VHA providing salient characteristics for all 7,000 line-items, and SAC awarding competitive BPAs based on those salient characteristics. Between April 2015 and January 2016, VHA forwarded to SAC approximately 4,400 individual procurement packages consisting of both single and multiple line-items, of which approximately 3,500 were solicited and 900 returned to VHA for inclusion in future grouping efforts. Although SAC issued multiple Requests for Quotations (RFQs), vendor response rates averaged less than 30 percent. Due to lack of response, SAC and VHA sought input from industry via a series of MSPV-NG Industry Days. When queried, industry partners indicated two main problems: (1) VHA's salient characteristics were flawed and/or insufficient. They did not appear to be based on clinical input, and often cited unnecessary manufacturer-specific features. This prohibited timely and quality responses, or no responses at all in many cases; (2) Industry also indicated the administrative burden of providing quotes for single-item BPA awards was not cost effective enough for them to provide quotes. In order to obtain a better success rate, and work on completing new MSPV-NG contracts, two possible strategies were identified: (1) VHA created supply-line commodity teams, and began seeking clinical input for the development of salient characteristics. Additionally, logical commodity groupings were developed; and (2) moving forward, VHA's Program Management Office was to group line-items by supply-line categories, or by United Nations Standard Products and Services Codes. Supply-line categories were found to be the most favored by industry. In an effort to validate this, a Request for Information (RFI) was issued to industry in February 2016. The RFI results confirmed the supply-line category approach as the most appropriate method to solicit BPAs for item inclusion in the approved formulary. On February 24, 2016, awards were made to four MSPV-NG distributors, with an estimated performance starting 120 days after notice to proceed. The period of performance under these contracts are scheduled to begin on October 20, 2016. It was anticipated the distributors would have a full-line of 7,000 competitively awarded BPA formulary line-items to populate their electronic catalogs (e-catalog). Due to lack of vendor response, the formulary fell short of the necessary items required to complete the Prime Vendor's e-catalog. In an attempt to resolve the shortfall identified above, numerous changes in VA's strategy for populating the formulary were considered. This directly resulted in the need to establish additional MSPV bridge distribution contracts to ensure continuation of service. The MSPV bridge contracts were awarded with a start date of April 20, 2016. This included a 3-month base period of performance, and three 3-month option periods. The final period of performance expiration date is not-to-exceed 12 months. 4. Description of Supplies/Services: The MSPV-NG formulary will consist of two tiers: 1) the 1,600 line items previously competed by the SAC and NAC, which is being automatically populated into the MSPV-NG formulary and estimated to be ready for use by October 20, 2016; and 2) the additional VA FSS items identified by VHA to be procured under this LSJ. This group includes various types of medical equipment and supplies distributed by Olympus America Inc. Examples of items covered under this category include various types of scopes, medical with accessories and replacement parts, includes but is not limited to duodenoscopes, endoscopes and surgical microscopes and equipment maintenance and repair. Laboratory microscopes are excluded. The full list of items covered under this LSJ is as follows: Part NumberItem DescriptionEstimated Quantity WA22302DELECTRODE UROLOGY CUTTING LOOP 24FR STANDARD 12 DEG STERILE DISPOSABLE F/RICHARD WOLF40 WA22306DELECTRODE UROLOGY CUTTING LOOP 24FR STANDARD 30 DEG STERILE DISPOSABLE F/RICHARD WOLF105 WA22355CELECTRODE UROLOGY NEEDLE TIP 24-28FR 45 DEG STERILE DISPOSABLE F/RICHARD WOLF10 WA22557CELECTRODE UROLOGY VAPORIZATION HIGH FREQUENCY BUTTON 30 DEG F/OLYMPUS55 60-HP10TUBING INJECTOR 10IN W/LUER LOCK326 SCF02FILTER INSTRUMENT CONTAINER ROUND 7.5IN DISPOSABLE W/GAS OR STEAM INDICATOR912 8888301705TUBING SUCTION NON-CONDUCTIVE 7MMDIA 6FT STERILE FEMALE CONNECTOR304 MH-948ADAPTER ENDOSCOPIC CHANNEL CLEANING F/OES/EVIS1,085 MAJ-1351APPLICATOR BALLOON ENDOSCOPIC ULTRASOUND F/OLYMPUS BF-UC16F-OL8404 MAJ-891ATTACHMENT WATER BIFURCATED F/CYSTO-NEPHROSCOPE CYF-4445 WA22621CBAND FOR 12 DEGREE TELESCOPE, WITH CABLE, FOR SP, 5/PKG19 A20972ABRIDGE ALBARRAN DEFLECTING DOUBLE CHANNEL OLYMPUS OES PRO24 A20977ABRIDGE CYSTOURETHROSCOPE DOUBLE CHANNEL OLYMPUS OES PRO70 A20976ABRIDGE CYSTOURETHROSCOPE SINGLE CHANNEL OLYMPUS OES PRO68 BW-7BBRUSH CLEANING F/FIBEROPTIC BRONCHOSCOPE 230CML PLASTIC DISPOSABLE1,032 BW-7LBRUSH CLEANING F/FIBEROPTIC BRONCHOSCOPE 230CML TEFLON COATED REUSABLE793 BC-202D-2010BRUSH CYTOLOGY BRONCHOSCOPY 2.0MM DIA 115CML316 BW-400LBRUSH,ENDO CLEANING,SINGLE END CHANNEL BRUSH,1 TO 1.5 MM,LENGTH 165 CM,DISPOSABLE436 BW-400BBRUSH,ENDO CLEANING,SINGLE END CHANNEL BRUSH,1 TO 1.5 MM,LENGTH 95 CM,DISPOSABLE526 Y1064SPBULB XENON 300 WATT F/OLYMPUS LIGHT SOURCE81 WA22657CBUTTON FOR VAPORIZATION, FOR 12 AND 30 DEGREE TELESCOPES, WITH CABLE, FOR SP, 5/PKG98 WA03210ACABLE FIBEROPTIC 5MM 10FT AUTOCLAVABLE OLYMPUS LIGHT SOURCE END58 WA03200ACABLE FIBEROPTIC 5MM 9.8FT LIGHT SOURCE/SCOPE ADAPTER AUTOCLAVABLE F/OLYMPUS CLV-180 LIGHT SOURCE END84 MAJ-1430CABLE VIDEO GASTROENTEROLOGY ENDOSCOPE CONNECTS SCOPE TO PROCESSOR F/EXERA 265 D-201-12704CAP DISTAL GASTROSCOPE 4MMDIA 13MML HARD STRAIGHT DISPOSABLE221 D-201-15004CAP DISTAL GASTROSCOPE 4MMDIA 15.3MML HARD STRAIGHT DISPOSABLE255 MH-553CAP WATER RESISTANT ENDOSCOPE F/EVIS140/130/100/160/200/240305 MAJ-1469CAPSULE VIDEO ENDOSCOPIC A-MAJ-1469 DESIGN EC-1 TYPEX5 ANTENNA LEAD COVER X 50 ACTIVATOR49 WA05970ACASE INSTRUMENT PERFORATED 21INLX10.6INWX5.5INH MAT71 ST-SB1CATHETER BALLOON 81CC VOLUME SINGLE CHAMBER DILATION 16FR 18MM BALLOON DIA 130CML CATHETER HYDROPHILIC COATING RADIOPAQUE MARKERX4245 MAJ-1817CLV-190 REPLACEMENT BULB92 03664CONNECTOR ELLIK EVACUATOR W/TUBE310 MAJ-233CUFF BALLOON ENDOSCOPIC ULTRASOUND F/ GF-UM20/JF-UM20/GF-UM130/Q130230 MAJ-249CUFF BALLOON ENDOSCOPIC ULTRASOUND F/GFUM30P/GF-UC30P/GF-UC140P-DO5/GF-UCT140-DO5197 ENDOQUICKDETERGENT,MEDICAL,2 LITER,LIQUID,FOR MEDICAL AND SURGICAL PARTS AND ACCESSORIES OF ENDOSCOPES,ENDOQUICK,GROUND TRANSPORT ONLY432 NA-201SX-4021DEVICE TRANSBRONCHIAL ASPIRATION NEEDLE 21GA 40MML ECHOGENIC TIP 1.9MMOD 70CM WORKING LENGTH F/EBUS SCOPE498 NA-201SX-4022-ADEVICE TRANSBRONCHIAL ASPIRATION NEEDLE 22GA 40MML ECHOGENIC TIP 70CM WORKING LENGTH LOCKABLE SYRINGEX5 BX VALVEX5 F/EBUS SCOPE794 FB-224UDISP BIOPSY FORCEPS ALLIGATOR JAW WITH NEDL 3.2MM CHNL 230CM146 WA22603DELECTRODE RESECTION LOOP 24FR89 A22201CELECTRODE UROLOGY CUTTING LOOP 24FR NON-STERILE REUSABLE F/OLYMPUS191 A22205CELECTRODE UROLOGY CUTTING LOOP 24FR NON-STERILE REUSABLE F/OLYMPUS44 A22251CELECTRODE UROLOGY ROLLER BALL 24-28FR NON-STERILE REUSABLE F/OLYMPUS37 55423FILTER SUCTION MACHINE BACTERIAL F/OLYMPUS KV1-5/SSU-2283 FB-19SX-1FORCEP BIOPSY CHOLEDOCHOFIBERSCOPE BASKET FENESTRATED 2MM 700MM F/OLYMPUS CHF-P2067 FG-53SX-1FORCEP BRONCHOSCOPE GRASP SHARK TOOTH 165CM 2.6MM PASS 4.7MM OPENING WIDTH152 00121FORCEP CYSTOURETHROSCOPE FOREIGN BODY FLEXIBLE 7FR DOUBLE ACTION59 A20714AFORCEP CYSTOURETHROSCOPE RIGID OPTICAL GRASPING 21-25FR SHEATH 12 DEG TELESCOPE17 A20710AFORCEP CYSTOURETHROSCOPE RIGID OPTICAL GRASPING 21-25FR SHEATH 12 DEG/30 DEG TELESCOPE18 A20712AFORCEP CYSTOURETHROSCOPE RIGID OPTICAL SPOON 21-25FR SHEATH 12 DEG TELESCOPE28 A20713AFORCEP CYSTOURETHROSCOPE RIGID OPTICAL SPOON 21-25FR SHEATH 30 DEG TELESCOPE61 FB-211D.AFORCEP ENDOSCOPY BIOPSY ALLIGATOR JAW 2.0MMDIA 115CML DISPOSABLE STERILE97 FD-210UFORCEP ENDOSCOPY BIOPSY ALLIGATOR JAW STEP 2.8MMDIA 230CML DISPOSABLE333 FB-222UFORCEP ENDOSCOPY BIOPSY ALLIGATOR JAW W/NEEDLE 3.7MMDIA 230CML DISPOSABLE STERILE1,075 FD-230UFORCEP ENDOSCOPY BIOPSY OVAL CUP 2.8MMDIA 230CML DISPOSABLE429 FB-220U.AFORCEP ENDOSCOPY BIOPSY OVAL CUP SERRATED W/NEEDLE 2.8MMDIA 230CML DISPOSABLE1,221 G-240-2545SGUIDEWIRE,ENDO,LENGTH 450 CM,DIAMETER 0.025 INCH,STRAIGHT TIP,RADIOPAQUE,VISIGLIDE,STERILE,DISPOSABLE362 A5976INNER TRAY ENDOSCOPIC INSTRUMENT CASE 18.8INLX8.8INWX2.7INH F/RESECTOSCOPE72 WA05991AINNER TRAY ENDOSCOPIC INSTRUMENT CASE F/ FLEXIBLE ENDESCOPE51 K-201KIT ENDOBRONCHIAL BIOPSY FORCEP GUIDE SLIDER CYTLOGY BRUSH DISPOSABLE F/2MM WORKING CHANNEL SCOPE232 WA22607DLARGE LOOP FOR 30 DEGREE TELESCOPE, WITH CABLE, FOR SP, 5/PKG78 HX-400U-30LIGATOR ENDOSCOPIC HEMORRHOID POLYLOOP 30MM DIA 2.8 CHANNEL 230CML235 WA91502ALIGHT SOURCE ENDO LED, FOR FLEXIBLE ENDOSCOPES19 MAJ-1916MAJ-1916 CV INTERFACE CONVERTE DEVICE29 WA22602DMEDIUM LOOP FOR 12 DEGREE TELESCOPE, WITH CABLE, FOR SP, 5/PKG178 WA22606DMEDIUM LOOP FOR 30 DEGREE TELESCOPE, WITH CABLE, FOR SP, 5/PKG187 B-V243Q-AMULTI-3V PLUS 15 MM, DISTALLY WIREGUIDED ABOVE INJECTION383 B-V233P-AMULTI-3V PLUS 15 MM, OVER THE WIRE, ABOVE INJECTION471 WA22655CNEEDLE 45 DEGREE, FOR 12 AND 30 DEGREE TELESCOPE,WITH CABLE, FOR SP, 5/PKG20 A22071AOBTURATOR RESECTOSCOPE VISUAL 24FR63 MAJ-823OER-PRO AIR FILTERS415 MAJ-824OER-PRO INTERNAL 0.2 MICRON WATER FILTER152 OFP-2OFP-2 FLUSHING PUMP14 MH-974PART REPLACEMENT GASTROENTEROSCOPY LAVAGE PUMP TUBE CONNECTING CHANNEL CLEANING DSD-10512 HX-202UR.AQUICKCLIPRO SINGLE USE 230CM 2.8MM CHANNEL ROTATABLE 10/BX422 HX-202UR.BQUICKCLIPRO SINGLE USE 230CM 2.8MM CHANNEL ROTATABLE 5/BX797 A42091ARESECTOSCOPE HYSTEROSCOPE WORKING ELEMENT PASSIVE 194MML F/OES 4000/OES PRO40 WA22651CROLLER FOR 12 AND 30 DEGREE TELESCOPES, WITH CABLE, FOR SP, 5/PKG18 MAJ-902SET WATER CONTAINER ENDOSCOPE BOTTLEW/LID O-RINGX2 HOSE RUBBER BUMPER BUMPER PROTECTOR F/CV SERIES48 A20911ASHEATH CYSTOURETHROSCOPE 17FR W/OBTURATOR F/OLYMPUS OES PRO47 A20913ASHEATH CYSTOURETHROSCOPE 21FR W/OBTURATOR F/OLYMPUS OES PRO48 A20914ASHEATH CYSTOURETHROSCOPE 22.5FR W/OBTURATOR F/OLYMPUS OES PRO86 A22040ASHEATH INNER RESECTOSCOPE 24FR W/STRAIGHT OBTURATOR F/OLYMPUS26 A22040TSHEATH INNER RESECTOSCOPE 24FR WTIMBERLAKE OBTURATOR F/OLYMPUS29 A22041TSHEATH RESECTOSCOPE 24FR DEFLECTING OBTURATOR CONTINUOUS FLOW ROTATING37 A22042TSHEATH RESECTOSCOPE 26FR DEFLECTING OBTURATOR CONTINUOUS FLOW ROTATING17 A22026ASHEATH RESECTOSCOPE 26FR STOPCOCKX2 ROTATING46 A22021ASHEATH RESECTOSCOPE 27FR STOPCOCKX2 ROTATING45 A22022ASHEATH RESECTOSCOPE 28.5FR STOPCOCKX2 ROTATING18 A70941ASINUSCOPE 4MM 30 DEG 157MML8 SD-230U-20SNARE POLYPECTOMY DISPOSABLE 20MM SPIRAL 2.8MM OD 230CML OLYMPUS289 75USTOPCOCK CYSTOSCOPE UNIVERSAL LUER-LOCK732 MAJ-172TRAY ENDOSCOPIC PROCEDURE CART INSTRUMENT POLYMER OLYMPUS LTF-VH17 WB920137TUBE IRRIGATION ENDOSCOPE SILICONE 3.2MMDIA 50CML DISPOSABLE F/OLYMPUS AFU-100 PUMP124 72-00163-0TUBING INSUFFLATION 10FT FILTER LUER-LOCK HI FLOW STERILE207 MH-438VALVE AIR OR WATER ENDOSCOPE F/EVIS160/140/240/OES-401,148 MB-358VALVE BIOPSY ENDOSCOPIC ULTRASOUND F/OLYMPUS1,044 MAJ-210VALVE BRONCHOSCOPE BIOPSY DISPOSABLE STERILE F/160-200-240 VIDEOSCOPE SERIES OLYMPUS1,315 MAJ-209VALVE BRONCHOSCOPE SUCTION DISPOSABLE STERILE1,596 MH-443VALVE SUCTION ENDOSCOPE EVIS160/140/240/OES-40730 MAJ-1443VALVE SUCTION ENDOSCOPE SMALL EVIS160/140/240/OES-40376 MAJ-1444VALVE ULTRASOUND GASTROINTESTINAL SCOPE AIR/WATER AUTOCLAVABLE F/OLYMPUS GIF SERIES506 G-240-2527SVISIGLIDE GUIDEWIRE.025, 270 CM, STRAIGHT TIP252 The reprieve offered by this LSJ will allow VHA to continue placing orders under the MSPV-NG contracts on a temporary basis, and avoid an interruption in the healthcare supply chain while SAC pursues competitive procurements for the MSPV-NG formulary items. The proposed types of medical equipment and supplies will be ordered under the authority of this LSJ. These items have been identified as high-use medical items vital to the successful implementation of the MSPV-NG program. VHA analyzed the fiscal year (FY) 2015 Medical Products Data Bank, focusing on the top high-volume purchases and identified types of critical medical equipment and supplies distributed by Olympus America Inc. Until the MSPV-NG formulary is completed, VHA's ordering officers will be allowed to place orders for the required medical equipment and supplies. The anticipated total value of the proposed BPA over the life of the agreement is $4,453,728.21. The period of performance is not to exceed 12 months. 5. Statutory Authority and Supporting Rationale: The statutory authority permitting other than full and open competition is in accordance with FAR 8.405-6(a)(1)(i)(A), an urgent and compelling need exists, and following the procedures would result in unacceptable delays. 6. Rationale Supporting the Authority Cited Above: Urgent and compelling circumstances which significantly affect the interest of the Government will not permit competition in accordance with FAR 8.405-3, "Blanket Purchase Agreements (BPAs)". Significant adverse consequences will occur if the LSJ is not approved as the VA health care supply chain will be negatively impacted. Continuance of the MSPV Distribution Program is vital; any delay of distribution will directly impair the delivery of healthcare and services to approximately 9.5 million Veterans currently receiving care through the VA Healthcare System. A break in the health care supply chain will hinder or halt the delivery of essential medical, surgical, dental, and laboratory supplies and other contracted medical/surgical, cleaning, rescue and safety supplies and services used in the direct delivery of patient care. The VA Healthcare System receives approximately 40% of its medical and surgical supply support through the national MSPV Program. Many of these items are standardized throughout the VA Healthcare System, and are a part of the formulary being developed for use in the VA. The formulary drives efficiency and familiarity in clinical practice which leads to improved patient outcomes and safety. It also decreases variation, thus reducing time to train and results in fewer errors when providing care. Standardization provides healthcare system benefits that are maximized because standardized items are interoperable. Facilities can then reinvest the savings earned into equipment and personnel that further enhance patient care. Estimated cost reduction for purchase of individual items through the MSPV formulary is approximately $4M over the course of the twelve months proposed under this LSJ. The $4M estimate does not account for efficiencies in the ordering and inventory management processes. Overall annual inventory reduction specifically attributable to MSPV is estimated at approximately $40M. Disapproval of the LSJ will result in a disruption in the health care supply chain and negate these potential savings as facilities source supplies through other means. Workload, man-hours, and cost of operations will increase as already depleting resources are lost and the agency will revert to the inefficient means of sourcing medical supplies as before the introduction of the national MSPV program in 2005. Those inefficient methods include use of purchase cards and local VHA contracting. Use of purchase cards as an ordering method has shown to be more than 5 times the workload burden of using the delivery order method under the MSPV program. In addition, there is approximately 2000 contracting staff in VHA, processing 576,134 formal contracting actions annually. If the MSPV Ordering Officers were unable to place orders via MSPV, and those transactions were added to the workload of an already overburdened contracting staff, the result would be catastrophic. Lead times to procure these items through contracting for other than emergency orders are 45 days; emergency orders require action within three days. All orders would become emergencies to ensure timely delivery of healthcare to Veterans. C canceled surgeries due to lengthy supply lead times would possibly become the norm, and thus, adversely affecting timely access to care. Items critical to provide immediate care will be jeopardized, and will directly impact the safety and lives of Veterans. VA has a critical role in the comprehensive emergency response to support local, regional, or national emergencies or disasters. VA is charged with the delivery and coordination of support missions for VA facilities affected by disasters, and also performs missions assigned to VA by FEMA or US Dept. of Health & Human Services for response to and recovery from nationally-declared emergencies and disasters. The Prime Vendor Program is critical to ensure VA provides a full range of support to healthcare facilities to ensure resiliency, continuity and rapid recovery of healthcare services during disasters and other potential disruptions to healthcare service delivery. VAMCs and other select Federal facilities are designated Federal Emergency Medical Facilities with significant contingency and emergency response roles. Accordingly, the MSPVs provide emergency supply support during major catastrophic events. Any interruption in the health care supply chain significantly jeopardizes the ability of VA to ensure minimum disruption to delivery of critical services in a contingency situation. This would directly impact healthcare delivery to our nation's Veterans. Other alternatives were considered, including using both the legacy bridge contracts, and the MSPV-NG contract concurrently until all of the required items can be competitively awarded. The confusion this would create in the field is insurmountable, as field staff will face the uncertainty of which contracts to use and when. A well-coordinated supply chain is necessary to ensure facilities are supported, and Veterans are cared for timely. There are no reasonable alternatives that would adequately address the circumstances presented. Any financial costs incurred by the Government to execute the BPAs under the authority of the LSJ, and any potential costs or cost avoidance not realized through competition would not outweigh the benefits received through continuance of the health care supply chain. Approval of the LSJ is in the best interests of the Government and is justified by the urgency of the circumstances. The cost to the Government if the LSJ is not approved would not be primarily financial, although it is significant. The non-monetary costs of the health, welfare and safety of millions of Veterans cannot be quantified. Every effort was made to compare these costs, benefits and other options; the VA cannot rationally find any other reasonable or timely alternative. VA considered the cost to the integrity of the procurement system and VA acknowledges the importance of protecting the integrity of the procurement system. However, VA feels this is an extraordinary situation, and maintains that due to an already constricted schedule, and the significant impact of these BPAs on the delivery of medical and surgical supplies and services to millions of Veterans, the facts of this case justify the unusual measure proposed under this LSJ. VA considered the balance of the integrity of the procurement system, and the interest of the Government and determined that the issuance of the BPAs under the authority of this LSJ is mitigated and justified. A break in the health care supply chain will be costly and detrimentally disruptive to VA operations and delivery of critical healthcare services to 9.5 million Veterans. Items procured under the authority of this LSJ will be included in the MSPV supply chain for a maximum period of twelve months until the item can be competitively awarded. At such time the item will be removed from the supply chain and replaced with the competitively awarded functional equivalent. This action is vital to support VA's nationwide healthcare system and prevent disruptions to Veteran care. The identified medical items represent supplies collectively determined essential by VHA medical centers to meet VA patient care needs. Continued use of these products and source of supply will ensure timely delivery and minimize VA supply chain interruptions. The vendor for these items was selected through use of data analytics tools and the Medical Product Data Bank (MedPDB). The MSPV-NG program is the primary means to obtain medical supplies; these items are regarded as critical to patient care. These items are currently available under the legacy MSPV contracts. Failure to make them available under MSPV-NG would have catastrophic effects on the field's ability to support medical centers. Each item would have to be purchased individually either via purchase card, or through local VHA Contracting Offices, with lead times of up to 45 days. VHA Logistics and Contracting do not have the capacity to meet the constant throughput of high cost/high volume daily individual orders required to meet clinical care needs. Bottlenecks resulting from capacity issues would result in insufficient inventory to meet critical needs for Veteran patients, and will have a significant patient safety impact. It is imperative that VA transition from the present way of doing business under the current MSPV program to the new and revised mandatory MSPV-NG program. In executing this change the following improvements will be realized: a.The MSPV-NG distributors shall not ship any medical/surgical or any other supplies that are not on the Government-provided MSPV-NG formulary of approved medical/surgical supplies. b.The MSPV-NG distributors shall not charge any VA formulary approved suppliers to handle their product in conjunction with the contract. c.The Government mandates all distributors to be Electronic Data Interchange compliant and it is in the BPAs/contracts. d.The MSPV-NG distributors shall not require product suppliers to carry liability insurance in excess of $1,000,000, charge tracking fees, and/or require additional discounts from product suppliers. 7. Efforts to Obtain Competition: MSPV-NG distribution contracts were awarded on February 24, 2016, and performance is scheduled to begin on October 20, 2016. The MSPV-NG distributors require VA's formulary in order to fulfill the medical requirements at VA hospitals and clinics. As stated previously, the Government intends to compete all line items within the next 12 months. Market research shows there is adequate competition in support of the new requirements. In accordance with FAR 5.301 and 8.405-6(a)(2), these actions will be synopsized on Federal Business Opportunities Page (FBO). 8. Determination of Best Value: In accordance with FAR Subpart 8.404(d), the prices for supplies offered on FSS have already been determined to be fair and reasonable by NAC Contracting Officers. Given VHA's critical need for the previously identified formulary supplies, and the short turn-around time until the MSPV-NG formulary is fully implemented, VA intends to select the lowest published FSS vendor and seek additional discounts. To compete these items would result in unacceptable delays, and potential mission failure. In the future, additional discounts will be sought through competition for these products as part of the transition to the MSPV-NG formulary. 9. Market Research: The market research conducted for the MSPV-NG requirement showed there are multiple suppliers capable of providing medical products however; performance is required by October 2016, and VA does not have adequate resources for timely completion of the required items. VA has a need to have consistent, uninterrupted sources of supply that meets system-wide requirements without compromising direct patient care to VA medical centers and/or related facilities. VA has a plan to compete these items and market research supports this acquisition strategy. 10. Any Other Facts Supporting the Justification: SAC is currently establishing competitive single-award BPAs that are beginning to populate the MSPV-NG formulary. Competition is on-going; however, at the onset of MSPV-NG's period of performance, the formulary will not have sufficient breadth of medical products to meet the operational needs of VA. It is anticipated the MSPV-NG distributors will begin accepting and delivering orders on approximately October 20, 2016, for all items covered in this LSJ. 11. Actions to Increase Competition: As described above, VA will compete future requirements and continuously add necessary products to the MSPV-NG formulary. SAC will work with VHA's program office to remove or overcome barriers to competition in future acquisitions. VA has and will continue to meet with industry on a periodic basis for continued input and feedback on acquisition strategies. All future acquisitions of MSPV-NG BPAs will be solicited and awarded in a manner that promotes competition to greatest extent practicable.
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/notices/8f9d8b76998ebb29255fddf9bda572a8)
 

Document(s)

Justification and Approval (J&A)
 

File Name: VA119-16-A-0395 VA119-16-A-0395_1.docx (https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=3042569&FileName=VA119-16-A-0395-000.docx)

Link: https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=3042569&FileName=VA119-16-A-0395-000.docx

 

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

Record

SN04298396-W 20161007/161005234237-8f9d8b76998ebb29255fddf9bda572a8 (fbodaily.com)
 

Source

FedBizOpps Link to This Notice
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