D--High Speed High Capacity Production Scanners Lease TAC-15-22842
Department of Veterans Affairs, VA Technology Acquisition Center | Published October 2, 2015
FOR OTHER THAN FULL AND OPEN COMPETITION
1. Contracting Activity: Department of Veterans Affairs (VA)
Office of Acquisition Operations
Technology Acquisition Center
23 Christopher Way
Eatontown, NJ 07724
2. Description of Action: The proposed sole source action is for a firm-fixed-price contract for Imaging Business Machines, LLC (IBML) High Speed Scanners and related maintenance with Alvarez and Associates.
3. Description of Supplies or Services: The proposed action is for the purchase of two IBML scanners that are currently installed and used by the Financial Services Center (FSC) under a leasing agreement. In addition, FSC requires 12 months of maintenance to ensure these items remain operational. FSC provides financial services on a fee-for-service basis to VA and other government agencies (OGA). The period of performance is 12 months from date of award for maintenance. The total estimated value of the proposed action is . In order to provide services to their customers, FSC has the requirement to scan various types of hard copy documents, which include:
a. Commercial Invoices: FSC processes over 1.1 million commercial payments for VA annually. 250 thousand invoices are received in hard copy format and scanned at the FSC. Of the 250 thousand, the majority of these invoices are for Veterans Health Administration and are related to ambulance services and utilities for VA medical centers (VAMC). FSC will be unable to pay these invoices, which will directly impact ambulance services received by Veterans and potentially result in the disruption of utility services relied upon by VAMCs.
b. Camp Lejeune Family Medical Program: FSC scans over 12 thousand supporting documents in order to process over 2 thousand medical claims for the families of Veterans suffering from medical conditions associated with water contamination while stationed at Camp Lejeune. FSC would be unable to fulfill these claims processing services provided to Veterans Health Administration (VHA) Chief Business Office (CBO), jeopardizing the fulfillment of Public Law 112-154, which entitles these family members to have their healthcare claims reimbursed by VA.
c. Commercial Canceled Checks: FSC receives 194 thousand hard copy documents from VA vendors and VHA staff in support of requests to trace payments issued to vendors. FSC is able to research and cancel 271 thousand payments annually, which returns funding to the VA obligation and allows our VA customers to reissue payment to the vendor. FSC would be unable to process payment cancelations, which would prevent VA organizations from reissuing payments to vendors that predominantly provide services in support of VHA and Veteran healthcare.
d. Medical Claims for OGAs: FSC receives 661 thousand hard copy documents in order to process 418 thousand medical claims for the Department of Homeland Security Immigration and Customs Enforcement health Service's Corps and the Department of Health and Human Service Office of Refugee and Resettlement. FSC would be unable to fulfil our agreements with these agencies and the healthcare providers providing care to refugees and detainees would not be paid for their services. This would lead to a stoppage of medical care for refugees/detainees and lead to a negative public relations impact for VA. In addition, FSC would lose $3.3 million in annual revenue by not being able to fulfil the terms of our service agreement with these departments.
e. Consolidated Patient Account Centers (CPAC) Records: FSC receives 3.9 million historical documents from VHA CPACs each year (Veteran explanation of benefits, waivers, write-offs, probates, bankruptcy documents). Per agreement with VHA CBO, FSC scans these documents, which enables CPAC staff to search electronic documents quickly and efficiently saving storage space and time. CPAC staff would have to store documents physically and physically search for paper records if FSC is unable to provide this service.
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) 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: The proposed source for this action is Alvarez and Associates, 8601 Georgia Ave STE 510, Silver Spring, MD 20910. VA previously entered into an Interagency Agreement with the Department of Interior (DOI) for the required services. DOI awarded a contract to Alvarez and Associates on August 30, 2013 to lease the two scanners. FSC scans over 5.1 million documents annually, which consists of over 88 different document types. The current high speed scanners are integrated with the FSC's Optical Character Resolution software and FSC's electronic content management systems. As paper documents come into the FSC, they are first scanned into one of the IBML high speed scanners. Through the integration of Optical Character Recognition software and scanners, the images are converted from text to electronic searchable type. The data is then ready to be stored in the Electronic Content Management systems for processing. If FSC were to replace the existing high speed scanning equipment with different brand, model, or even identical model, approximately in installation, configuration, and labor costs would be incurred. In addition, 30 days would be required to install and configure new scanners, which would cause FSC operations to cease for 30 days resulting in the unacceptable impact mentioned in section 3 above. For market research purposes, the Government obtained a quote provided from in the amount of for the purchase, installation and maintenance of new scanners, The total cost to buy out the current lease from Alvarez including 12 months of maintenance is . Processing a sole-source procurement and buying out the current lease will yield approximately in savings when compared to the quote obtained from
6. Efforts to Obtain Competition: Market research was conducted, details of which are in section 8 of this justification. Additionally, the proposed action will be synopsized on the Federal Business Opportunities (FBO) website in accordance with FAR 5.201. Any proposals that are received shall be evaluated.
7. Actions to Increase Competition: This is a one time buy out of the current lease agreement. In the future requirements for printer/scanners will be competed.
8. Market Research: VA's technical experts conducted market research on August 3, 2015 for the procurement of two IBML High Speed Scanners. The market research consisted of reviewing the National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement V, Governmentwide Acquisition Contract Provider look up tool, which yielded six IBML resellers. However, IBML no longer sells the 4500 model scanner that is currently in use by FSC. The current high speed scanners are integrated with the FSC's Optical Character Recognition software and FSC's electronic content management systems. Buying out the current lease would be more advantageous to the Government, based on the reasonableness of the price to buy out the lease and the efficiencies that would be maintained with keeping the current equipment in place. Further, based on the quote provided by another vendor, FSC would save approximately by buying out the currently leased scanners.
9. Other Facts: None.