From: Federal Government(Federal)
Sep 08, 2017 1:08 pm
Topcon Retinal Imaging Systems Maintenance and Upgrades
Justification for Other than Full and Open Competition
1. Contracting Activity:
Department of Veterans Affairs (VA)
Office of Acquisition Operations
Strategic Acquisition Center- Frederick
321 Ballenger Center Drive, Suite 125,
Frederick, MD 21701
2. Description of Action:
The proposed sole source action is for a new five-year firm-fixed price (FFP) Indefinite Delivery Indefinite Quantity (IDIQ) contract for maintenance, service, and hardware replacement for over 800 Topcon Non-Mydriatic Retinal (Teleretinal) Cameras in eighteen (18) VISNs at over 400 sites. This justification supports a non-competitive award of an IDIQ contract, with annual task orders, to Topcon Medical Systems INC, 111 Bauer Rd., Oakland, NJ 07436.
3. Description of Supplies or Services:
In Fiscal Year 2000, Congress directed VA to implement deferential imaging to screen for diabetic retinopathy. Since then, VA has purchased via a National Contract (awarded via competitive solicitation) over 800 Topcon Non-Mydriatic Retinal Cameras from Topcon Medical Systems, which come with three year maintenance and service when purchased. Following the three year period after purchase, these units require a separate service and support contract to ensure continued seamless operation. The current maintenance support contract with Topcon Medical Systems (VA119A-13-D-0036) expires on September 29, 2017 after four years of successful support to VA s fleet of Topcon Non-Mydriatic Retinal Cameras. A typical TRC-NW8 Imaging system is shown in Figure 1 below.
The proposed action is to provide continued maintenance and service on the more than 800 Non-Mydriatic Camera Systems in use throughout the VA. The contractor will provide all management, supervision, labor, materials, and supplies needed to provide the required maintenance and services. Maintenance and services will include ongoing maintenance of existing systems and on-site replacement of hardware. Contractor will extend the warranty (covering all parts and labor) on all components - including TRC-NW8S - for 3 full years as well as provide unlimited phone/VPN support to troubleshoot all system issues.
The total estimated 5-year value of the proposed action is $4,240,333.00.
4. Statutory Authority:
The statutory authority permitting other than full and open competition is 41 U.S.C.3304(a)(1) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-1 entitled, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.
5. Rationale Supporting Use of Authority Cited Above:
As stated in Section 3 above, through a national contract, VA has purchased over 800 Non-Mydriatic Retinal Cameras from Topcon Medical Systems (between 2005 and today).
The hardware and software for the above purchased Teleretinal camera systems is proprietary to Topcon Medical Systems and no other vendor aside from Topcon Medical Systems can or will provide maintenance, service, and warranty to the equipment. Aside from the proprietary nature, Topcon is the manufacturer of the equipment and is uniquely positioned to provide the expertise needed to provide continued maintenance and service of the large number of systems in service across the VA.
6. Efforts to Obtain Competition:
Market research was conducted, details of which are in the market research section of this document. This effort did not yield any additional sources that can meet the Government s requirements. There is no competition anticipated for this acquisition. Additionally, the proposed action will be synopsized on the Federal Business Opportunities page in accordance with FAR 5.201. If as a result of this synopsis, capable and interested vendors express an interest, they will be permitted to respond with capability statements.
7. Actions to Increase Competition:
The Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future actions to be competed.
8. Market Research:
IAW FAR Part 10, market research was conducted to determine suitable approaches to acquiring the required Topcon Imaging Systems Maintenance and Service. Previous market research confirmed that only Topcon can provide the needed maintenance and repairs, as well as extend the warranty as required by VHA. For this reason, the previous contract was awarded on a sole-source basis as supported by an approved Justification for Other than Full and Open Competition. The environment has not changed since the last award as evidenced through the Topcon Medical Systems Terms of Sale for EZ Lite 2 (retinal imaging system software) language which indicates warranty does not cover damage due to servicing not authorized by Topcon ...failure to perform required maintenance, and/or problems caused by use of parts and components not supplied by Topcon.
A Veterans Information pages (VIP) search using the key words Topcon yielded two firms, Buy Ophthalmic Instruments, LLC and Frederick Youna. While both sell Topcon equipment, their ability to respond to any solicitation for service and hardware upgrades is limited by the manufacturer s constraints. Topcon confirmed via a conversation with the Contracting Officer that it has not provided this authorization to other firms to service VA s systems.
A search of VA FSS schedules (65 II A and 66) was conducted for companies capable of providing Topcon equipment/ parts. The following companies (aside from Topcon) were noted as providing Topcon equipment: Lombart Brothers, Opthalmic Instruments, Inc., Optics, Inc., The Walman Optical Company, Universal Opthalmic Instruments, and Holman s Inc. A review of each schedule revealed that although parts and hardware were offered, none offered the needed maintenance and service. Topcon confirmed this during its conversation with the Contracting Officer.
The information identified through market research indicate that Topcon is uniquely positioned to provide the necessary maintenance, services, upgrades, and warranty extension as required by VHA. To meet the requirement, VA will negotiate a non-competitive award to Topcon Medical Systems for Maintenance and Repair of the 800+ Retinal Imaging Systems originally purchased off the Mandatory VA FSS National Schedule.
9. Other Facts:
Full and open competition is precluded by the fact that VA has purchased and owns more than 800 Non-Mydriatic Retinal Cameras that were manufactured by and that have software proprietary to Topcon Medical Systems. Telehealth Services have established a robust Teleretinal Imaging Program throughout the VA and active in all 18 VISNs. By competing the purchase of these systems on the mandatory National VA Contract and awarding to Topcon Medical Systems, these retinal imaging systems were made the de-facto standard in VA. The medical and practical benefits of continuing this service and maintenance contract is important for continued standardization and reliability, from both a business and medical standpoint.
10. Fair and Reasonable Cost Determination:
The anticipated price to the Government for this contract action will be determined to be fair and reasonable based on previous purchases for similar/same services and published commercial pricing.
*****Remainder of Document Intentionally Left Blank*****