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FBO DAILY - FEDBIZOPPS ISSUE OF AUGUST 12, 2017 FBO #5741
DOCUMENT

J -- Nuance PS360 Support Intent to Sole Source Also Seeking SDVOSB/VOSB - Attachment

Notice Date

8/10/2017
 

Notice Type

Attachment
 

NAICS

541519 — Other Computer Related Services
 

Contracting Office

Department of Veterans Affairs;VISN/18PHX;777 E. Missouri, Suite 300;Phoenix AZ 85014
 

ZIP Code

85014
 

Solicitation Number

VA25817N0746
 

Archive Date

10/31/2017
 

Point of Contact

Michael Cordeiro
 

Small Business Set-Aside

N/A
 

Award Number

VA258-17-C-0067
 

Award Date

10/1/2017
 

Description

Chapter VI: Other Than Full and Open Competition (OFOC) SOP Attachment 3: Request for Sole Source Justification Format >$150K OFOC SOP Revision 05 Original Date: 03/22/11 Revision 05 Date: 05/02/2016 Page 1 of 3 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>$150K) Acquisition Plan Action ID: VA258-17-AP-3335 Contracting Activity: Department of Veterans Affairs, VISN 18, New Mexico VA Health Care System (NMVAHCS), Phoenix VA Health Care System (PVAHCS), Northern Arizona VA Health Care Systems (NAVAHCS) and Southern Arizona Health Care Systems (SAVAHCS) proposes entering into a contract using Other than Full and Open Competition for the Preventative Maintenance (PM), support and licensing of the PowerScribe 360 to include ancillary equipment for the dictation of radiological reviews located throughout VISN 18. Nature and/or Description of the Action Being Processed: The NCO 18 Contracting Office proposes sole source, firm-fixed priced requirements contract with Nuance Communications for the service s, support and licensing of voice recognition software in which to provide Radiologist with the equipment and information necessary to dictate the results of radiological images and information of patients medical care. The services are required throughout VISN 18 Medical Facilities and outlying Community Based Outpatient Clinics (CBOC). Description of Supplies/Services Required to Meet the Agency s Needs: This procurement is for the provision of a full service contract for services, support and licensing of annual agreements needed to provide the voice recognition services as requested. The contractor will be providing unlimited licensing based on the number of radiologist within VISN 18 and will provide full coverage support of all equipment and servers as needed. Nuance Communications is currently the only contractor that can provide the needed services (See Attachment 1) for every facility and CBOC no matter of location. The services requested are required for Radiologist to document the results of the patient's care ensuring accurate and timely treatment is provided. 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; Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Nuance Communications is the original equipment manufacturer (OEM), and sole firm which is capable of servicing, repairing, and licensing physicians on the dictation equipment utilized throughout VISN 18 that involves voice recognition. Nuance Communications has provided a written statement (See Attachment 1) confirming that they are the only source certified to perform any maintenance or repair services on their equipment. The software provided is proprietary to Nuance Communication and unique to individual physicians that use it. Nuance Communication has had the licensing software for VISN 18 facilities for at least the past five (5) years which provides an environment in which other contractors will be able to compete. Furthermore, the VISN Contracting Office has awarded a contract that is in support of a VISN wide upgrade of all current equipment in use from Powerscribe 5.0 to Powerscribe 360 which creates the sole source environment for only OEM support. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A search of GSAAdvantage has brought up two others contractors (EC America and Microtechnologies LLC) that are capable of providing equipment only. Both these contractors are authorized to provide all equipment but not proprietary licensing and support services. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: The prices proposed by Nuance Communications for the licensing and support will be in line with line with those previously paid by VISN 18 for the same work on current requirements. The Contracting Officer will seek pricing strategies that provide the Government with costs that take into consideration the demand of the services needed, the market environment at time of award and any/all sources of supply to ensure that the costs are prudent to what is available for the commercial market. These factors reinforces the assertion that the anticipated cost of this procurement is considered to be fair and reasonable in accordance with (IAW) Federal Acquisition Regulation (FAR) Part 13.106-3(a)(2)(ii) and 15.404-1(b)(2)(ii). This FAR part states that in order to ensure a fair and reasonable price, a comparison of the proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items...may be used for commercial items. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The customer indicated that Nuance Communications is the sole source capable of providing the required licensing and support services stated for this requirement. No SDVOSB/VOSB s listed in VetBiz are able to provide the services. No VA FSS/GSA vendor that is able to provide the services as requested but two vendors can provide initial equipment to upgrade systems. Nuance Communications is the only entity found in an internet search that can provide the services. The contractor provided documentation (See Attachment 1) self-identifying Nuance Communications as the only source that can provide these services due to proprietary reasons. Vista Proposed price(s) found to be fair and reasonable compared to previous purchase orders. Any Other Facts Supporting the Use of Other than Full and Open Competition: OEM provided documentation (See Attachment 1) stating proprietary reasoning. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None 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: Not Applicable 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. KEVIN J. CULLEY Digitally signed by KEVIN J. CULLEY 326584 326584 DN: dc=gov, dc=va, o=internal, ou=people, 0.9.2342.19200300.100.1.1=kevin.culley@va.go v, cn=KEVIN J. CULLEY 326584 Date: 2017.07.05 11:50:13 -07'00' 07/05/2017 Kevin Culley Date Contracting Specialist NCO18 Approvals in accordance with the VHAPM, Volume 6, Chapter VI: OFOC SOP. Contracting Officer or Designee s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. _________________ Digitally signed by NATHAN A MCCOY 1358052 DN: dc=gov, dc=va, o=internal, ou=people, 0.9.2342.19200300.100.1.1=nathan.mccoy@ va.gov, cn=NATHAN A MCCOY 1358052 Date: 2017.07.05 12:38:08 -07'00' 07/05/2017 Nathan A, McCoy Date Contracting Officer Branch Manager Service Contracting Director of Contracting /Designee (Required over$150K but not exceeding $700K): I certify the justification meets requirements for other than full and open competition. Daniel C. Thiel 187654 Digitally signed by Daniel C. Thiel 187654 DN: dc=gov, dc=va, o=internal, ou=people, 0.9.2342.19200300.100.1.1=daniel.thiel@ va.gov, cn=Daniel C. Thiel 187654 Date: 2017.07.27 07:52:21 -07'00' Dan Thiel Contracting Officer Division Chief 1 Network Contracting Office 18 Market Research Report Note: This template is not required to be uploaded into eCMS for actions under $1M. However, COs must ensure supporting documentation is uploaded to support a decision not to set-aside an action for SDVOSB/VOSB. Date: 7/5/2017 Purchase Request/2237 Number: 501-18-1-053-0001, 644-18-1-260-0002, 649-18-1-039-0002, 678-18-1- 221-0001 Description of requirement: Support Services for Powerscribe 360 Dictation System Period of Performance: Base Plus 2 Year Estimated Value: $658,068.36 Product Service Code (PSC) - Federal Supply Codes (FSC): J070 NAICS Code: 541519 Size Standard for NAICS: $27.5 Million Market Research Findings: Per PPM 2016-05 Implementation of the Veterans First Contracting Program as a Result of the U.S. Supreme Court Decision: 38 U.S.C. § 8127 is mandatory, not discretionary and its text requires the Department to apply the Rule of Two to all contracting determinations; The Rule of Two contracting procedures in 38 U.S.C. § 8127(d) are not limited to those contracts necessary to fulfill the Secretary s goals under § 8127(a); and 38 U.S.C. § 8127(d) applies to orders placed against the Federal Supply Schedules (FSS). Supplies (Mandatory IAW FAR 8.002): Results from Market Research: (1) VA inventories including the VA supply stock program (41 CFR 101- 26.704) and VA excess: Not Available (2) Excess from other agencies (FAR 8.002): Not Available (3) *Federal Prison Industries (FPI) (See VAAR 808.603 Purchase Priorities) *VA COs may purchase supplies and services produced or provided by FPI from eligible service disabled veteran-owned small businesses and veteran-owned small businesses, in accordance with procedures set forth in subpart 819.70, without seeking a waiver from FPI, in accordance with 38 U.S.C. 8128, Small business concerns owned and controlled by veterans: Contracting priority Not Available (4) Supplies from Ability One - (VA AbilityOne Procurement List for Supplies/Services) (FAR 8.002): However, VA COs shall, prior to adding any new VA requirements to the Procurement List, conduct market research, apply the VA Rule of Two to consider Vendor Information Pages (VIP) verified service- disabled veteran-owned small businesses (SDVOSBs) and veteran- owned small businesses (VOSBs) as required in 38 U.S.C. 8127 and implemented in subpart 819.70. Not Available (5) Wholesale supply sources such as stock programs of the GSA (see 41 CFR 101-26.3), the Defense Logistics Agency (see 41 CFR 101-26.6), the Department of Veterans Affairs (see 41 CFR 101-26.704 (VA Subsistence Items), and military inventory control points. Not A Supply Item (6) Prime Vendor and National Contracts/BPAs: Reference CPL&O Memo dated 23Aug16, Subj: Mandatory Use of Prime Vendor Distribution Contracts and National Contracts): It is VHA's policy that any item(s) that is/are available in prime vendor formularies/catalogs, it is mandatory in VHA that any such item(s) will be ordered /acquired through the prime vendor. It is also VHA s policy that items available on national contracts/BPAs that are not available via prime vendor distribution networks will be acquired by placing appropriate orders against these national contracts. Such orders will only be placed by properly warranted COs or properly trained Ordering Officers appointed by the appropriate CO. In cases Not Available where an Ordering Officer has been appointed, orders placed are not competitive contracting actions subject to the requirements of 38 U.S.C. 8127. In cases where OO appointments are NOT available, the appropriate CO must make a determination as to whether the Rule of Two applies (see the Decision Tree Tool to assist with the determination). Services (Mandatory IAW FAR 8.002): Results from Market Research: (1) Services that are on the Procurement List maintained by the Committee for Purchase From People Who Are Blind or Severely Disabled (see subpart 8.7). Note: VA COs shall, prior to adding any new VA requirements to the Procurement List, conduct market research, apply the VA Rule of Two to consider VIP verified SDVOSBs) and VOSBs as required in 38 U.S.C. 8127 and implemented in subpart 819.70. Not Available (2) Unusual and compelling urgency. The contracting officer may use a source lower in priority than as specified in 808.002-70 when the need for supplies or services is of an unusual and compelling urgency (see FAR Subpart 6.302-2 and FAR Subpart 8.405-6). Not Available Use of Other Mandatory Sources (FAR 8.003): Results from Market Research: Agencies shall satisfy requirements for the following supplies or services from or through specified sources, as applicable: Public utility services (see part 41). Printing and related supplies (see subpart 8.8). Leased motor vehicles (see subpart 8.11). Strategic and critical materials (e.g., metals and ores) from inventories exceeding Defense National Stockpile requirements (detailed information is available from the DLA Strategic Materials, 8725 John J. Kingman Rd., Suite 3229, Fort Belvoir, VA 22060-6223. Helium (see subpart 8.5 -- Acquisition of Helium). Not Available Mandatory Sources for VA Ref. 38 U.S.C. 8127 and 8128: Results from Market Research: Search the Vendor Information Pages (VIP) database at https://www.vip.vetbiz.gov/ and document their findings to ensure compliance with 38 U.S.C. 8127 s Rule of Two. VA must set aside procurements for VOSBs when market research determines that two or more VOSBs are able to meet the procurement requirements at a fair and reasonable price that offers the best value to the United States. NOTE: A determination of price fair and reasonableness does not have to be done during market research phase BUT is required prior to contract award. NOTE: In the paragraph above, VOSBs includes SDVOSBs. If market research reveals there are one SDVOSB and one VOSB, the action should be set aside for VOSB because a SDVOSB is also a VOSB../ Conduct Market Research by NAICS in VIP./ Verify Companies are VOSBs for Size Standard for NAICS in the System for Award Management (SAM) Reps and Certs./ Verify in VIP./ SDVOSB or VOSB set-aside is subject to the Limitations on Subcontracting clauses VAAR 852.219-10. Any SDVOSB or VOSB that proposes to furnish an end product it did not manufacture (a nonmanufacturer ) must meet the requirements in FAR 19.102(f) to receive a benefit under the Veterans First Contracting Program. Does the CO have a reasonable expectation that two or more verified SDVOSBs/VOSBs in VIP is capable of providing the item will submit offers, and that the award can be made at a fair and reasonable price that offers the best value to the United States? Yes, action can be set-aside two or more eligible SDVOSB/VOSBs can provide item(s) at reasonable price No, there are NOT two or more eligible VOSBs that can provide the items. COs should attach supporting documentation (excel spreadsheet with VIP search results or screen shots with search results) under (P02) 808.004-70 Use of Non-Mandatory Sources by VA. Results from Market Research: (1) IDIQ Contracts awarded by VISN, Region, or Local VA Contracting Officers for FSC Groups 65 and 66../ If two or more verified SDVOSBs/VOSBs in VIP is on the VISN/Regional/Local IDIQ contracts, use competitive set- aside procedures Not Available (2) GSA FSS and Pre-Existing Contracts, including Interagency and Intra- agency Contracts../ If two or more verified SDVOSBs/VOSBs in VIP is on the GSA FSS/Pre-Existing Contracts including IAs, use competitive set-aside procedures Not Available (3) Open Market Purchases, including Educational and Non-Profit Institutions../ If two or more verified SDVOSBs/VOSBs in VIP is on the open market, including educational/non-profit contracts, use competitive set-aside procedures Not Available Eligible Beneficiaries: A CO may authorize an acquisition from the Veterans Canteen Service or a commercial source when a VA healthcare official (e.g., social worker, physician) determines that personal selection of shoes, clothing, and incidentals will result in a therapeutic benefit to an eligible beneficiary. The CO must cite FPI, Inc., clearance No. 1206 in the purchase document for any purchase of dress shoes from the Veterans Canteen Service or a commercial source similar to FPI, Inc., Style No. 86-A. Not Available Three contracts for desktops and laptops have been established as mandatory: NASA Solutions for Enterprise-Wide Procurement (SEWP) GSA IT Schedule 70 National Institutes of Health Information Technology Acquisition and Assessment Center Chief Information Officer Commodities and Solutions (CIO-CS)./ If two or more verified SDVOSBs/VOSBs in VIP is on the SEWP, GSA IT Schedule 70 contracts or others in this category, use competitive set-aside procedures Not Available Use of Other Sources (FAR 8.004) Results from Market Research: If an agency is unable to satisfy requirements for supplies and services from the mandatory sources listed in 8.002 and 8.003, agencies are encouraged to consider satisfying requirements from or through the non- mandatory sources listed in paragraph (a) of this section (not listed in any order of priority) before considering the non-mandatory source listed in paragraph (b) of this section. When satisfying requirements from non- mandatory sources, see 7.105(b) and part 19 regarding consideration of small business, veteran-owned small business, service-disabled veteran- owned small business, HUBZone small business, small disadvantaged business (including 8(a) participants), and women-owned small business concerns (see VAAR 819.7004). VA COs must comply with PPM 2016-05 Implementation of the Veterans First Contracting Program as a Result of the U.S. Supreme Court Decision. (a)(1) Supplies. Federal Supply Schedules, Governmentwide acquisition contracts, multi-agency contracts, and any other Not Available procurement instruments intended for use by multiple agencies, including blanket purchase agreements (BPAs) under Federal Supply Schedule contracts (e.g., Federal Strategic Sourcing Initiative (FSSI) agreements accessible at http://www.gsa.gov/fssi (see also 5.601)). (2) Services. Agencies are encouraged to consider Federal Prison Industries, Inc., as well as the sources listed in paragraph (a)(1) of this section (see subpart 8.6). (b) Commercial sources (including educational and non-profit institutions) in the open market../ If two or more verified SDVOSBs/VOSBs in VIP is on any of the categories above, use competitive set-aside procedures Customary Commercial Terms and Conditions: Per FAR 10.002, market research is conducted to determine if commercial items or nondevelopmental items are available to meet the Government s needs or could be modified to meet the Government s needs. Information specific to the item being acquired, including but not limited to: Whether the Government s needs can be met by (1) Items of a type customarily available in the commercial marketplace: Customary practices regarding customizing, modifying or tailoring of items to meet customer needs and associated costs: Not Applicable for this procurement Customary practices, including warranty, buyer financing, discounts, contract type considering the nature and risk associated with the requirement, etc., under which commercial sales of the products are made: Not Applicable for this procurement The requirements of any laws and regulations unique to the item being acquired: Not Applicable for this procurement The availability of items that contain recovered materials and items that are energy efficient: Not Applicable for this procurement Results from VIP--are there two or more verified SDVOSB/VOSBs that can meet the procurement requirements? Not Available Summary of Market Research Results: MARKET PRICE: Pricing will be based on the market proposed prices in accordance with FAR 12.209 and 13.106-3(a)(2)(vii). Determination of price reasonableness will be based on previous knowledge of awarded contracts. The quoted price for the service are fair and reasonable based on a comparison of previous awarded contracts. ACQUISITION HISTORY: The Past Performance Information Retrieval System IPPIRS) reveals Nuance Communication has many VISN-wide contracts. The information below is a sample of the Nuance s acquisition history: Location Contract No. POP Price Phoenix VA244-12-C-0009 12/20/14 to 12/19/2015 $97,342.00 Phoenix, Tucson, Prescott, Albuquerque, Big Spring, El Paso and Amarillo VA258-15-P-0086 04/01/2015 to 09/30/2015 $150,346.86 Phoenix, Tucson, VA258-16-P-2925 10/01/2016 to $211,831.15 Prescott, Albuquerque 09/30/2017 OTHER PERTINENT INFORMATION: Nuance Communications Inc. Sole Source Justification for Maintenance Services provided. See attached. RECOMMENDATION: Based on the above information, the recommendation is Sole Source award since there are no other small business or large type business that were qualified to fulfill the requirement. Program Office Point of Contact: Name: Donald B Sedlacek Phone: (505) 265-1711 Prepared by: Name: Nathan McCoy Date: 7/5/2017 Digitally signed by NATHAN A MCCOY 1358052 DN: dc=gov, dc=va, o=internal, ou=people, 0.9.2342.19200300.100.1.1=nathan.mccoy@va.gov, cn=NATHAN A MCCOY 1358052 Contracting Officer Date: 2017.07.05 12:39:14 -07'00'
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/spg/VA/PhVAMC/HMC/VA25817N0746/listing.html)
 

Document(s)

Attachment
 

File Name: VA258-17-N-0746 VA258-17-N-0746.docx (https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=3725475&FileName=VA258-17-N-0746-000.docx)

Link: https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=3725475&FileName=VA258-17-N-0746-000.docx

 

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Record

SN04622585-W 20170812/170810231927-f1e60fa61f6d725a6d5189a43266b7df (fbodaily.com)
 

Source

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