SPECIAL NOTICE
J -- Notice of Intent to Sole-source Medtronic Stealthstation S8 service contract B+4 POP: 11/19/21-11/18/26
- Notice Date
- 11/9/2021 8:00:27 AM
- Notice Type
- Special Notice
- NAICS
- 811219
— Other Electronic and Precision Equipment Repair and Maintenance
- Contracting Office
- 260-NETWORK CONTRACT OFFICE 20 (36C260) VANCOUVER WA 98662 USA
- ZIP Code
- 98662
- Solicitation Number
- 36C26022P0102
- Archive Date
- 12/09/2021
- Point of Contact
- Charles Hartwick, Contract Specialist, Phone: 360-852-9896
- E-Mail Address
-
charles.hartwick@va.gov
(charles.hartwick@va.gov)
- Awardee
- null
- Description
- VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 5: Request for Sole Source Justification Format >SAT OFOC SOP Revision 11 Page 1 of 9 Original Date: 03/22/11 Revision 11 Date: 02/11/2021 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT) Acquisition Plan Action ID: 36C260-21-AP-5178 JOFOC Log Number: 2021-10-26T12:19:00 Contracting Activity: Department of Veterans Affairs, VISN 20 NCO20, 648 Portland VA Medical Center Boimedical Engineering Dpt. This requirement is funded on 2237 648-22-1-105-0019. Nature and/or Description of the Action Being Processed: This procurement is for a service contract of base year plus 4 option years on the Medtronic Stealth S8 stereotactic surgical navigation system used in the OR. The service contract is required to ensure proper operation of the system, and to avoid the risk of patient incidents.. Only the OEM (Original Equipment Manufacturer), Medtronic is authorized to repair the units, has the OEM specified parts, and can provide warranty on their parts and labor. In addition, only Medtronic has access to the proprietary system for troubleshooting, testing, calibration and performance verification. Description of Supplies/Services Required to Meet the Agency s Needs: The service contract will provide all parts, labor, travel costs, preventive maintenance, technical support, and system updates to ensure the two Stealth S8 units operate according to the manufacturer s specifications. Unit 1 - Medtronic Stealthstation S8: SN-N30072021 EE 183859 Unit 2 - Medtronic Stealthstation S8: SN-N30072629 EE 183858 Base Yr POP: 11/19/21 - 11/18/22 $139,060.00 Option Yr 1 POP: 11/19/22 - 11/18/23 $139,060.00 Option Yr 2 POP: 11/19/23 - 11/18/24 $139,060.00 Option Yr 3 POP: 11/19/24 - 11/18/25 $139,060.00 Option Yr 4 POP: 11/19/25 - 11/18/26 $139,060.00 TOTAL $695,300.00 Statutory Authority Permitting Other than Full and Open Competition: ( X ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1; Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Medical equipment is highly specialized and all vendor technology is proprietary. No equipment manufacturer shares their information with other competing manufacturers, particularly in the surigical arena. Only the OEM (Original Equipment Manufacturer) Medtronic has access to the proprietary parts, service capability, troubleshooting access and software, and access to the operational software. Only Medtronic can perform software updates and upgrades and only Medtronic is the only service vendor authorized to work on the Stealth S8 units. As a result, there is only ONE responsible source capable of performing the required services to ensure proper operation. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Market research included efforts to ensure that offers are solicited from as many potential sources as practicable. This includes reviewing the acquisition history of similar procurements at other Government agencies listed on the Federal Procurement Data System. In addition, searches of the following resources for conducting market research were searched: Acquisition history reviewed Other recent MR reports VA Vendor Information Portal Interviewed knowledgeable individuals in the Government GSA EBuy search Required sources search Finally, a sources sought was issued to provide potential sources an opportunity to respond and provided needed information substantiating capability to meed the requirement. Sources sought notification 36C26021Q1005 was issued via the Fed Biz Opps website on 09/29/2021 and closed on 10/08/2021. Responses were required to provide OEM certification as authorized distributors of Medtronic replacement parts, OEM certified technicians, and OEM access to proprietary software required to perform system updates, calibration and certification. There were two responses as listed in Section 9. However, both responses to sources sought failed to provide certification as Medtronic authorized distributors as required. Due to the need for OEM replacement parts award is required to include VAAR Clause 852.212-72 prohibiting grey market products. Therefore, only contractors providing documentation as an OEM authorized distributor can be considered for award. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Medtronic Stealthstation S8 equipment is new equipment and is currently under warranty services and repair until November 18, 2021. Therefore, there is no history for the same service to compare exactly for the establishment of price reasonableness. However, award 36C24922C0003 Awarded 10/01/2021 for the same equipment was reviewed to establish price reasonableness. The price per unit on this similar award is $69,530.00 per year. This price per unit is the same as pricing offered under this procurement action and can therefore establish the quoted price as 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 collaboratively with NCO 20 Contracting and the Portland VAHCS Biomedical Engineering Department IAW FAR Part 10, VA Acquisition Regulation (VAAR) 810.001-70 Market Research Policy, and PPM 2016-05(Revised Aug 2019). Searches conducted of the commercial marketplace conclude that this requirement can only be met by the original equipment manufacturer, Metronic, Inc. In addition, a sources sought notice was issued on 9/29 to identify available SD/VOSBs capable of meeting the requirement IAW VAAR 810.001-70 and PPM 2016-05. No SD/VOSBs responded to the sources sought notification. A search of the VIP database identified 341 registered contractors for NAICS code 811219. However, due to the sole source nature of the requirement and no responses to the sources sought. There is no expectation that an SD/VOSB will be able to meet the requirement. Any Other Facts Supporting the Use of Other than Full and Open Competition: This requirement provides for full-service maintenance and repair services for subject equipment. This equipment is classified as High-Tech Medical Equipment (HTME). As such, the commercial market place often retains the right to provide preventative maintenance and repairs, proprietary software support and upgrades, training services, replacement parts, technical support, certified technicians to ensure the equipment is maintained to OEM specifications and to preserve value of associated intellectual property investments in bringing HTME to market. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: The Remi Group, LLC DUNS 136662215 Large Business Cen-Med Enterprises DUNS 878241728 Small Business Medtronic, Inc. -OEM DUNS Large Business 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: Due to the proprietary nature of the requirement it is anticipated that manufacturers of HTME will continue to retain the rights to be the sole source providers of required annual preventative maintenance, calibration, repairs and certification to OEM specifications. It is anticipated that Medtronic, Inc. will continue to be the sole source provider of required services for the Medtronic Stealthstation S8 equipment on future procurements. However, if there is a recurring need beyond this award the marketplace will be reassessed to ensure the promotion of competition and engage any available SD/VOSB or SB sources.
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