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FBO DAILY - FEDBIZOPPS ISSUE OF DECEMBER 22, 2017 FBO #5873
DOCUMENT

J -- Siemens Service Agreement - Justification and Approval (J&A)

Notice Date

12/20/2017
 

Notice Type

Justification and Approval (J&A)
 

NAICS

334517 — Irradiation Apparatus Manufacturing
 

Contracting Office

Department of Veterans Affairs;Network Contracting Office 2;James J. Peters VA Medical Center;130 West Kingsbridge Road;Bronx NY 10468-3904
 

ZIP Code

10468-3904
 

Archive Date

2/20/2018
 

Point of Contact

Janice Brooks Campbell
 

E-Mail Address

Janice.Brooks@va.gov
(Janice.Brooks@va.gov)
 

Small Business Set-Aside

N/A
 

Award Number

SPE2D1-17-D-0023 36C24218N0835
 

Award Date

12/22/2017
 

Description

DEPARTMENT OF VETERANS AFFAIRS Justification and Approval For Exception to Fair Opportunity Memo Acquisition Plan Action ID: VA242-18-AP-0766 Contracting Activity: Department of Veterans Affairs, VISN 02, New Jersey Healthcare System (NJHCS), East Orange Campus, 385 Tremont Avenue, East Orange, NJ 07018. Purchase request number: 561-18-1-668-0045 Description of Action: This is a request for approval of a task order under VA NAC contract SPE2D1-17-D-0023 for full service maintenance coverage on the Siemens Medical Solutions, USA imaging equipment currently in use at the New Jersey Healthcare System (NJHCS), East Orange Campus. This procurement will be conducted in accordance with FAR Part 16. The purpose of the service agreement is to reduce service costs and improve equipment turn-around time and reliability. The anticipated period of performance is from December 22, 2017 to December 21, 2018 with the provision of four (4) option years. An estimated total cost of $1,608,970.18. Base Year 12/22/2017 to 12/21/2018 $373,325.96 Option Year 1 12/22/2018 to 12/21/2019 $373,325.96 Option Year 2 12/22/2019 to 12/21/2020 $287,439.42 Option Year 3 12/22/2020 to 12/21/2021 $287,439.42 Option Year 4 12/22/2021 to 12/21/2022 $287,439.42 Description of Supplies or Services: The New Jersey Healthcare System (NJHCS) requires a service maintenance plan for the Siemens Medical Solutions, USA imaging equipment currently in use at the East Orange Campus to include replacement parts coverage, remote service support, telephone support, operating system software and hardware reliability reports, as well as, continuing education and support service. The contractor will be responsible for full maintenance coverage by providing all replacement parts, labor, travel expenses, tools, test equipment and other incidentals necessary to maintain or restore the listed equipment to operating specifications according to the manufacturer s recommendations throughout the term of the contract. Covered equipment includes the following: Item # System Name Functional Location Service Agreement Contract Duration 1 AXIOM Artis dTC 400-161050 Gold contract 12/22/2017 - 12/21/2022 2 Symbia T6 400-294714 Gold contract 12/22/2017 - 12/21/2022 3 Symbia.Net Single-User 400-410833 Gold contract 12/22/2017 - 12/21/2022 4 OCS Chiller Model KPC107 400-204354 OEM contract 12/22/2017 - 12/21/2022 5 Oncor Impression Plus 400-204353 Gold contract 12/22/2017 - 12/21/2022 6 syngo RT Therapist Assist 400-397542 Gold contract 12/22/2017 - 12/21/2022 The purpose of the service agreement is to reduce service costs and improve equipment turn-around time and reliability. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section 41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) Subpart 16.505 Subpart 16.505(b)(2)(i): ( )FAR Subpart 16.505(b)(2)(i)(A): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays. (X) FAR Subpart 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized. ( ) FAR Subpart 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order. ( ) FAR Subpart 16.505(b)(2)(i)(D): It is necessary to place an order to satisfy a minimum guarantee. ( ) FAR Subpart 16.505(b)(2)(i)(E): For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source. The statutory authority permitting an exception to fair opportunity for this action is 38 U.S.C. 8127(c), known as the Veterans First Contracting Program which provides the authority to directly contract with a Service-Disabled Veteran-Owned Small Business (SDVOSB) or a Veteran-Owned Small Business (VOSB). ( ) FAR Subpart 16.505(b)(2)(i)(F) In accordance with section 1331 of Public Law 111-240 (15 U.S.C. 644(r)), contracting officers may, at their discretion, set aside orders for any of the small business concerns identified in 19.000(a)(3). When setting aside orders for small business concerns, the specific small business program eligibility requirements identified in part 19 apply. Rationale Supporting Use of Authority Cited Above: Siemens Medical Solutions, USA is the only company that can provide all the necessary OEM parts and perform all the necessary repairs for the Siemens Medical Solutions, USA HTME medical equipment described above due to patents and copyrights on the equipment. This prevents other possible contractors from accessing the diagnostic software, possessing necessary tooling and providing OEM parts to the Government. To ensure that services performed on the equipment meets OEM requirements as per Title 21 Part 820, Subpart N, Section 820.200, Servicing in order to mitigate any liability as a result of equipment failure due to improper servicing of modification of equipment. These maintenance services are considered highly specialized and thus there is only one responsible source. 6. Efforts to Obtain Competition: Past procurement history indicates that this procurement was sole sourced to the joint DSCP/VA contract SPM2D1-09-D-8314 V797P-6029B due to patents and copyrights precluding other contractors from being able to meet all of the service requirements. A search of GSA elibrary for Siemens Medical Solutions, USA in Schedule 65 II A resulted in no potential vendors that could provide the necessary services. A search in the VA MedSurg Catalog for a Siemens Imaging maintenance plan produced several potential vendors, however, further research showed that these vendors could not provide a service maintenance plan and only offered minor replacement parts not required for the imaging equipment in use at the New Jersey Healthcare System (NJHCS). A search of the Ability One and UNICOR websites under keyword Siemens Medical failed to produce any results. A search under the VetBiz revealed 73 potential SDVOSB and/or VOSB contractor under NAICS code 811219 with keyword Siemens Medical. The SBA website under NAICS code 811219 with keyword Siemens Medical produced zero matches. A Notice of Intent to Sole Source #36C24218Q0114 was posted to FedBizOpps from November 28, 2017 through December 6, 2017 seeking information from contractors who could potentially provide the required maintenance service. Contracting Officer s knowledge and past history with Siemens, no available contractor will be able to meet requirements. 7. Actions to Increase Competition: In situations involving complex medical equipment, it is difficult to remove barriers to competition because the OEM is the only qualified company capable to provide the repair and maintenance of its own specialized medical equipment. This is especially true where proprietary software, specific diagnostics tools, and specialized electronics are used to maintain the HTME (High tech Medical Equipment) in accordance with OEM specifications. Unless the manufacturer chooses to license its software and authorize local service providers to maintain the Siemens Medical equipment, the only alternative would be to replace the existing Siemens Medical equipment with a more generic brand. At this time, NJHCS is satisfied with the quality and operation of the installed equipment, its maintenance and repair. VA New Jersey Healthcare System currently does not have the sufficient budget to replace the Siemens Medical equipment. Considerations for new equipment will be made when the existing equipment reaches the end of its life cycle span. 8. Market Research: Due to the proprietary nature, Siemens Medical Solutions, USA is the only company than can access its systems remotely and offer certified parts that meet the original equipment manufacturer s specifications. Siemens Medical technicians are the only OEM trained and certified personnel authorized to perform work on this HTME (High Tech Medical Equipment). However, GSA Advantage/e-buy, VetBiz, SBA, Ability One, UNICOR and the VA NAC MedSurg websites were used to determine if there were any other sources of providing service maintenance agreements on the Siemens Medical equipment. Additionally, a Notice of Intent to Sole Source was posted to FBO (FedBizOpps) from November 28, 2017 through December 6, 2017 seeking information from contractors who may be capable of providing the required maintenance service. Contracting Officer s knowledge and past history with Siemens, no available contractor will be able to meet requirements. It has been determined that Siemens Medical Solutions, USA is the only company capable of providing these services on this highly specialized equipment to the agency. 9. Other Facts: This contract is in support of the VA-DoD Direct Sharing Agreement with the DSCP in consolidation with four of the DoD s HTME contracts, namely SPE2D1-17-D-0023. The use of these consolidated HTME contracts after first considering mandatory sources is strongly encouraged by the NAC.
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/notices/988f28c3fdf73bd38640c4c42574504d)
 

Document(s)

Justification and Approval (J&A)
 

File Name: SPE2D1-17-D-0023 36C24218N0835 SPE2D1-17-D-0023 36C24218N0835_1.docx (https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=3977921&FileName=SPE2D1-17-D-0023-021.docx)

Link: https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=3977921&FileName=SPE2D1-17-D-0023-021.docx

 

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

Record

SN04772108-W 20171222/171220231016-988f28c3fdf73bd38640c4c42574504d (fbodaily.com)
 

Source

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

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