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FBO DAILY - FEDBIZOPPS ISSUE OF MARCH 11, 2016 FBO #5222
DOCUMENT

J -- MAINTENANCE AND EMERGENCY REPAIR ON STERIS STERILIZER EQUIP - Justification and Approval (J&A)

Notice Date

3/9/2016
 

Notice Type

Justification and Approval (J&A)
 

NAICS

811219 — Other Electronic and Precision Equipment Repair and Maintenance
 

Contracting Office

Department of Veterans Affairs;Network Contracting Activity 8;Commerce Building;300 E. University Ave. Ste. 180;Gainesville FL 32601-3460
 

ZIP Code

32601-3460
 

Archive Date

12/19/2015
 

Point of Contact

Tamela Grandberry
 

Small Business Set-Aside

N/A
 

Award Number

VA248-16-C-0018
 

Award Date

10/20/2015
 

Description

DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>$150K) 1.Contracting Activity: Department of Veterans Affairs-North Florida/South Georgia- Veterans Health System. 2.Nature and/or Description of the Action Being Processed: The Malcolm Randall VA Medical Center maintains an annual service contract on the maintenance for Steris equipment. This is a request for the sole-source purchase of reoccurring maintenance, repair and software support for all SPS Steris Equipment. The incumbent vendor is Steris Corporation, (DUNS#177360039). The period of performance of the contract will be from time of award for a period of 12 months (Base Year) with two twelve month option periods. This proposed action will be a firm fixed price contract for a total estimated amount of $511,408.51. This action will be funded by purchase request 573-16-1-192-0009. FAR 52.217-08 clause will be included in this proposed award. This sole source acquisition is justified under the statutory authority contained in U.S.C. 253 (c) (1) and the following authority contemplated by FAR 6.302-1(a) (2). "When the supplies or services required by agency are available from only one responsible source and no other type of supplies or services will satisfy agency requirements, full and open competition need not be provided for." 3.Description of Supplies/Services Required to Meet the Agency's Needs: The Malcom Randall VA medical Center, Biomedical Department is requesting that the contractor, Steris Corporation provide repair and preventative maintenance services on the sterilizer equipment in the Sterile Processing Service at the NF/SG VAMCs (The Villages VA OPC, VA Tallahassee OPC, VA Jacksonville OPC, and Lake City VA Medical Center) maintain an annual full service contract on all SPS Steris equipment. This required action will be awarded as a new contract (FFP). Pricing breakdown for each location/service for 12 month base term SERVICE/REPAIR/PREVENTATIVE MAINTENANCE ON 18 UNITS AT THE MALCOM RANDALL VA MEDICAL CENTER QUOTED AGREEMENT#: 1-3-184581790/1 Cost: 12 months $61,122.47 SERVICE/REPAIR/PREVENTATIVE MAINTENANCE ON 9 UNITS AT THE LAKE CITY VA MEDICAL CENTER QUOTE AGREEMENT#: 1-3184581790/1 Cost: 12 months : $37,624.53 SERVICE/REPAIR/PREVENTATIVE MAINTENANCE ON 6 UNITS AT THE VILLAGES OUTPATIENT CENTER QUOTE AGREEMENT#: 1-3184581790/1 Cost: 12 months : $28,355.08 SERVICE/REPAIR/PREVENTATIVE MAINTENANCE ON 5 UNITS AT THE JACKSONVILLE OUTPATIENT CENTER QUOTE AGREEMENT#: 1-3184581790/1 Cost: 12 months : $22,911.32 SERVICE/REPAIR/PREVENTATIVE MAINTENANCE ON 5 UNITS AT THE TALLAHASSEE OUTPATIENT CENTER QUOTE AGREEMENT#: 1-3184581790/1 Cost: 12 months : $17,091.72 Total for base year: $167,105.12 The Independent Government Cost Estimate (IGCE) for a Base and two (2) option year requirement is $511,408.51; a break-down of the cost per year and period of performance is listed below. Estimated Cost Estimated Delivery Date/Period of Performance Base Year: $167,105.12-------------------------------Oct 15, 2015 thru Oct 14, 2016 Option Year 1: 170,447.22---------------------------Oct 15, 2016 thru Oct 14, 2017 Option year 2: 173,856.17---------------------------Oct 15, 2017 thru OCT14, 2018 Total Estimated Cost: Base plus 2 Option Years: $511,408.51 The proposed price will be compared to the estimated price prior to award and re-examined as necessary to ensure the price remains fair and reasonable for award. This Service Contract is an annual full service contract to keep all SPS Steris equipment in good operating condition, previous contract VA248-13-P-3147 expires Sep 30, 2015. Service is now needed. The service includes scheduled maintenance and emergency repairs to ensure all medical equipment is operating within the manufacturer's specifications and functioning at the maximum efficiency. This service includes 24/7/365 year emergency support and 9am-8pm support for non-emergencies. The preventative maintenance for these units is due in October 2015. If the maintenance is not completed before the end of the month than the Medical Center will not make their Joint Commission performance measure of 90% non-life support completion rate. 4.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 FAR 6.302-1; ( ) (2) Unusual and Compelling Urgency per FAR 6.302-2; ( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3; ( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5; ( ) (6) National Security per FAR 6.302-6; ( ) (7) Public Interest per FAR 6.302-7; 5.Demonstration that the Contractor's Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Steris, Corp. is the original equipment manufacturer (OEM) and has proprietary rights on all hardware, software, services, and repairs therein for the Steris Sterilizers unit currently used at the NF/SG VA Healthcare System and the Outpatient Clinics. The sterilization equipment has software available that Steris has proprietary rights to and do not allow third party access. Without these services utilizing Steris sterilization techniques accordingly, surgeries could be delayed; possible contaminations occur; or, worse yet, potential of infection/death as a result. The Steris Corporation also provided a sole source proprietary letter on Steris letterhead, stating that they do not share proprietary software with any third party vendors. The Government is not capable of providing these resources in-house. Steris Corporation is the sole vendor that can meet the service requirement for a reasonable price. Furthermore, Steris is a proprietary vendor and has specific passwords and software upgrades/updates that other servicing parties would not have access to. Accordingly, Steris Corporation is the only firm capable of providing the supplies and services described in Section III above without the Veteran's Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements. It is in the best interest and most advantageous to the government to receive repair and preventative maintenance services to provide continued and uninterrupted support for the Sterile Processing Service and all of the clinical services that utilize reusable equipment requiring sterilization. 6.Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Every action was reviewed to determine its feasibility for competition. When evaluating previous Maintenance Service for Steris equipment, Steris Corp was selected in FY09 to provide services, since then there have been direct efforts to identify and purchase a vendor that could provide this service. Other vendors were considered during the market research and equipment procurement process, only to find out that the Steris Equipment installed can only be serviced by Steris Corp. A special notice/sources sought was posted to FBO website (https://www.fbo.gov/) from September 10. 2015 through September 21, 2015, zero interested parties provided feedback and/or response. Other actions taken: Sterile Processing does re-exam the use of similar products periodically to determine if the current contractor is still the best solution. However, until the contractor's proprietary rights and processes change, or the Steris Sterilizer Equipment is replaced with another vendor, the government will be unable to seek efficient competition. 7.Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated cost to the Government is $511,408.51, for a Base and 2 Option Year Contract. The previous year's pricing is indicated below: FY15 (6 months) service requirement awarded to Steris Corporation $94,967.65 FY14 Service requirement awarded to Steris Corporation $225,969.24 FY13 service requirement awarded to Steris Corporation $225,969.32 The anticipated Base Year is $167,105.12, this is considered fair and reasonable to the Government based on previous VA pricing for this same service. The estimated price per year according to the current IGCE is $215,200.00 without a base and option year contract. With a Base and 2 year option contract, the government will save $134,191.49 over the course of 3years. The price has been reviewed and is appropriate for the complexity and uniqueness of this type of service. Based on this, the estimated price is considered fair and reasonable. The current year's Independent Government Cost Estimate (IGCE) for this requirement for a Base Year with two 12month option years is as follows: Base Year: $167,105.12 Option Year 1: 170,447.22 Option year 2: 173,856.17 Total: Base plus 2 Option Years: $511,408.51 The proposed price will be compared to the estimated price prior to award and re-examined as necessary to ensure the price remains fair and reasonable for award. 8.Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Thorough market research pursuant to FAR Part 10 was conducted, as well as contacting Steris Corporation POC, Debra Huya, who advised that Steris does not share the proprietary software with any third party vendors, period. An internet search for any potential vendors did not reveal anything beyond Steris, Corp., and a Sources Sought posting provided no responses of any vendor capable of performing this service (Sources sought notice #VA24815N20171 posted 9/10/15 thru 9/21/2015). A search was also made against current FSS contracts, NAC Contract search tool, GSA Advantage and VetBiz - resulting in zero sources. 9.Any Other Facts Supporting the Use of Other than Full and Open Competition: Other vendors are not able to get Steris equipment parts and are not trained to work on Steris equipment. Steris has been providing the required maintenance, support, and services since the equipment was installed at each of the NF/SG Veterans Health Systems locations with no problems in performance. Due to the contractor's proprietary rights to service and maintain the Steris sterilizers, no other vendor can provide this service and the Government is currently unable to seek efficient competition. This is a critical Service Contract covering Sterile Processing (SPS) Equipment throughout NF/SG. Since all SPS equipment in NF/SG is Steris, SPS needs all equipment up and running to meet hospital and Emergency Room needs. Steris is the only vendor that can get parts and repair its equipment in the short time needed. Additionally, this service has been awarded sole-source at other VAMCs. Market research revealed the most recent sole source award, VA258-16-C-0001. 10.Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: See paragraph 6 above for explanation. 11.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: Continue to seek ways to see how we can open competition to more than a single source. The SPS Service department continuously evaluates the market availability of comparable products and may replace this equipment and associated service in the near future as needed. 12.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. Original signed: 10/07/2015
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/notices/e35b7daf7a1e2eed751fc13a60c94c23)
 

Document(s)

Justification and Approval (J&A)
 

File Name: VA248-16-C-0018 VA248-16-C-0018-2.docx (https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=2606336&FileName=VA248-16-C-0018-000.docx)

Link: https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=2606336&FileName=VA248-16-C-0018-000.docx

 

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

Record

SN04044787-W 20160311/160309235739-e35b7daf7a1e2eed751fc13a60c94c23 (fbodaily.com)
 

Source

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

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