# Presentation: 499853

## United We Stand:

**VA/DoD Joint Acquisition Strategies**
**For High Tech Biomedical Equipment**

## Agenda

**Agenda**

## Presented by: James L. Booth

## VANAC DIRECT DELIVERY AND SPECIAL PURCHASE BRANCH

**PERSONNEL MAKEUP**
- Assistant Director (1)
- Senior Contracting Officers (2)
- Contract Specialists (6)
- Equipment Specialists (3)
- Purchase Agent (1)
- Procurement Technicians (2)

## VANAC DIRECT DELIVERY AND SPECIAL PURCHASE BRANCH

**WORK ASSIGNMENTS**
- Radiology Equipment
- Radiation Therapy Equipment
- Laundry Equipment
- Glassware (X-ray Tubes)
- Maintenance Service (Delegation of Authority)
- Special Purchases
**Consolidated Bulk Buy Process**
**Non-consolidated Procurement Process**

## Background

**Congressional Mandate**
- Streamline the acquisition process by eliminating duplication of efforts
- Implement joint contracting between agencies
- Leverage Government spending for high tech Medical Equipment
**VA Procurement Reform Task Force (PRTF)**
**Memorandum of Agreement between VA and DoD**
**VA/DoD Quarterly Meetings**

## VA/DoD Joint/Shared Procurements

**Thirty-four (34) shared contracts exist for high tech medical equipment commodities **
**Radiation Oncology Equipment contracts (10)**
**Radiology (imaging) Equipment contracts (24)**
**Equipment Maintenance Service**

## VA/DoD Joint/Shared Procurements

**Joint Acquisition FY 2008 YTD Sales **
- NAC sales through 3rd Quarter totaled $402,057,378
- DSCP sales through 3rd Quarter totaled $164,949,055

## VA/DoD Joint/Shared ProcurementsRadiology (Imaging) Equipment Solicitation

**Notes:**
Joint solicitation for radiology (imaging) equipment 
Issued May 2006
Twenty-six (26) proposals received
Thirteen (13) assigned to NAC
Thirteen (13) assigned to DSCP
Open Season in July 2007
Eight (8) proposals received
Four (4) assigned to NAC
Four (4) assigned to DSCP

## Miscellaneous

- VA NAC Workload Prioritization
- VHA Directive – Latest Update

## Presented by: Andrew Wechter

## VA/DoD Joint/Shared Procurements

**Vendor Benefits **
- One Government contract, one price book
- Lessens contract administration effort
- Easier product and price updates
- Common terms and conditions (where possible)
**Government Benefits**
- Eliminates duplication of contracting work
- Easier to leverage purchases for both agencies to obtain volume pricing

## VA/DoD Joint/Shared Procurements

**Features of Joint solicitation for radiology (imaging) equipment**
- Joint Solicitation includes two numbers
- M6-Q8-06 for NAC
- SPO200-06-R8005 for DSCP
- Resultant joint contracts will be prefixed as
- V797P for NAC
- SPM for DSCP

## VA/DoD Joint/Shared Procurements

**Features of Joint solicitation for radiology (imaging) equipment**
**Contract Term: 8 years**
- Base term of 1 year with 7 option years (Original and Open Season I proposals)
- Base term of 1 year with decreasing option years (Open Season II & beyond)
- Annual Open seasons
**Economic Price Adjustment Clause in lieu of pre-priced option years**

## VA/DoD Joint/Shared Procurements

**NEMA issues regarding joint solicitation for radiology (imaging) equipment**
- NAC and DSCP continue to work with representatives from Industry and the National Electrical Manufacturers Association (NEMA)
- Nine (9) of the fourteen (14) issues have been resolved
- Four (4) of the fourteen (14) issues are pending resolution
- One (1) of the fourteen (14) issues is not within the jurisdiction of NAC or DSCP

## VA/DoD Joint/Shared Procurements

## VA/DoD Joint/Shared Procurements

**VA/DoD Joint/Shared Procurements**

## VA/DoD Joint/Shared Procurements

**VA/DoD Joint/Shared Procurements**

## VA/DoD Joint/Shared Procurements

**VA/DoD Joint/Shared Procurements**

## VA/DoD Joint/Shared Procurements

**VA/DoD Joint/Shared Procurements**

## Presented by: Eric W. Lee

## VA Consolidation Bulk Buy Process

**VHA Directive 2003-006 (High Cost Equipment)**
- Established due to Secretary of Veterans Affairs’ Procurement Reform Task Force (PRTF)
- Delineates the goal to consolidate the acquisition of high cost medical equipment
- Defines VHA acquisition process
- Outlines VISN and NAC roles/responsibilities

## VA Consolidation Bulk Buy Process

**VA Consolidation Bulk Buy Process**

## VA Consolidation Bulk Buy Process

**Purpose of Consolidation**
- Promotes advanced planning and budgeting to the maximum extent possible
- Minimize end-of-fiscal-year rush
- Maximize the VA’s leverage with industry to obtain the lowest possible prices
- Ensure Full and Open Competition
- Provide competitive pricing and technical information
- Eliminate duplication of negotiation effort with vendors

## VA Consolidation Bulk Buy Process

**VHA Directive 2003-006 (High Cost Equipment)**
- 3 consolidation cutoff dates
- December 1st
- March 1st
- June 1st
- September consolidation cutoff date
- Added to meet VHA’s funding and budget issues**  **
- Current process is pending VACO/OA&L review

## Consolidation Workflow

|  | MAR 08 | JUN 08 | SEPT 08 |
| --- | --- | --- | --- |
| Total Line Items | 128 | 214 | 277 |
| VISN Selections Received | 128 | 214 | 0 |
| Awarded Delivery Orders | 100 | 16 | 0 |
| # Line Items
to Process | 28 | 198 | 277 |

**Consolidation Workflow**

## LIFE CYCLE OF A DELIVERY ORDER

**Notes:**
A perfect delivery order is handled at least four more times before it is closed out.  

(1) At the delivery due date, the contracting officer must usually request a Receiving Report from the medical center.  
(2) Once the Receiving Report is obtained, the contracting officer signs a memo to Fiscal authorizing the 80% payment of the order.  
(3) Once installation is completed the contractor requests inspection.  The CO prepares an inspection request memo either to IRIS, Somerville, or the customer depending on the equipment type.  
(4) The inspector's report is received and the CO must prepare an acceptance letter to the contractor and authorize Fiscal to pay the remaining balance.

Outside of ultrasound, we don’t get a lot of orders without problems, delays, or changes.  The life cycle described above does not include any modifications for configuration changes, requests by the station to delay delivery because the site prep construction isn’t done, or the rejection/re-inspection cycle when the system doesn’t pass inspection the first time.  It also doesn’t address contract-level administration actions like exercising options or approving annual small business subcontracting plans.

When the Ship-To address differs from the address of the facility cutting the order, NAC will send a copy of the delivery order to all parties. 

## New Initiatives

- Mutual Ordering Authority for DIN-PACS
- Next Generation DIN-PACS
- Addressed by Andrew Wechter
- Vendor Portal (eCMS)
- Presented by William Eytel

## Points of Contact:

**James L. Booth**                                                                     Assistant Director, Direct Delivery Branch
- 	National Acquisition Center
- 	708/786-5258
- 	_james.booth@va.gov_
**Andrew Wechter**
- Chief, Capital Equipment Division
- 	Defense Supply Center, Philadelphia
- 	215-737-4114
- 	_andrew.wechter@dla.mil_
**Eric W. Lee**
- Senior Contract Specialist, Direct Delivery Branch
- 	National Acquisition Center
- 	708/789-5251
- 	_eric.lee3@va.gov_

## Thank You!

**Thank You!**