J--Maintenance - Nuance Dictation System

DEPARTMENT OF VETERANS AFFAIRS Justification and Approval For Other Than Full and Open Competition 1. Contracting Activity: Great Lakes Acquisition Center, NCO12, Milwaukee, WI 53214, Department of Veterans Affairs, Justification for Other Than Full and Open Competition for Zablocki VA Medical Center, Milwaukee, WI 53214, 695-14-2-4610-0050. 2. Nature and/or Description of the Action Being Processed: Approval is being requested to award a new firm fixed price contract for upgrades, patches, maintenance, troubleshooting and repair of the Nuance dictation System. The current contract VA69D-P-1775 expires on March 31, 2014. The estimated award date is April 1, 2014. 3. Description of Supplies/Services Required to Meet the Agency's Needs: The Zablocki VA Medical Center in Milwaukee, WI has a continued need for a service contract for the maintenance and repair of the Nuance Dictation System. The cost of these services is estimated at $238,507 for a base plus two option year contract. The approximate yearly value is $95,403.10. The period of performance is from 4/1/14 through 9/30/16. 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; 5. Demonstration that the Contractor's Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The Nuance Dictaphone software is integrated with the VA's Vista System. The Dictaphone system is merged with the specific dictation from the physician or other clinical staff by the transcriptionist. Once transcribed by the transcriptionist, the veteran's information is uploaded to the specific location in CPRS, as indicated by the work type. This integration currently does not exist with any other vendor. The requirement for the maintenance and support with Nuance is crucial to sustaining the timely communication among healthcare providers and the delivery of the appropriate healthcare to our veteran's. Due to the possibility of system phase out within the next three years, it was determined that a base plus two option year contract would be issued to cover critical services until technology for the new requirement can be identified. 6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: An intent to sole source was posted to Federal Business Opportunities (FBO) on March 20, 2014 through March 26, 2014 to allow for any potential newcomers that may have entered the market place. No responses were received. 7. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable: A cost comparison was made with the quoted yearly price provided by the vendor for $95,403.10. This pricing is less than 2% increase from the last option year pricing ($93,889.44) of contract VA69D-P-1775 that expired on September 30, 2013. It was also deemed fair and reasonable by the contracting officer prior to contract award. The small economic adjustment is within current US inflation rates. 8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: As described in Section VI above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. However, Amphion Medical Solutions and Medical Transcription Services, INC. were contacted for verification of any possible changes of newcomers in the market. It was discovered that Amphion Medical Solutions utilizes a different speech-recognition technology that is not supported by the VA System. Medical Transcription Services, Inc. utilizes a software technology that is incompatible with the VA System. 9. Any Other Facts Supporting the Use of Other than Full and Open Competition: A statement of work for full and open competition will not be developed at this time. New technological advances are being evaluated for possible future phase out of current system within the next three years. Competition will be considered for new requirements. 10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Nuance Communications Inc., 3984 Pepsi Cola Drive, Melbourne, FL 32934, +1 (555) 000-0000. 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: Future acquisitions for services will be undertaken through competition. This current system may be phased out in the near future.