# Presentation: 151423

## Embracing VA/DoD Joint Procurement Strategies For High Tech Medical Equipment

## 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
**Memorandum of Agreement between VA and DoD**
**VA/DoD Quarterly Meetings**
**VA Procurement Reform Task Force (PRTF)**

## VA/DoD Joint/Shared Procurements

**Forty-five shared contracts exist for high tech medical equipment commodities **
- Nine (9) radiation oncology equipment contracts
- Thirty-one (31) radiology (imaging) equipment contracts
- Five (5) imaging maintenance contracts

## VA/DoD Joint/Shared Procurements

**Joint Acquisition FY 2007 YTD Sales **
- NAC sales through 3rd Quarter totaled $327,969,936
- DSCP sales through 3rd Quarter totaled $164,949,055

## VA/DoD Joint/Shared Procurements

**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

## 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
- 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)
- Eight (8) of the fourteen (14) issues have been resolved
- Five (5) 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

**Pre-solicitation Posting**
- Pre-solicitation notice was issued with timeline

**Common Definition for “Commercially Available”**
- Pending further NAC/DSCP coordination

**Standardized and Uniform Contract Terms and Conditions **
- NAC and DSCP are working to standardize as many terms and conditions as possible.

**VA/DoD Joint/Shared Procurements**

## VA/DoD Joint/Shared Procurements

**VA Specific Performance Specifications**
- VA Inspectors reviewed and updated the VA specifications.

**Operator and Service Manuals in Paper Form**
- Revised language was incorporated in Amendment Three to Solicitation

**Web-based Database for Vendor Access to Information**
- NAC and DSCP are working independently through their respective IT departments

**VA/DoD Joint/Shared Procurements**

## VA/DoD Joint/Shared Procurements

**Uniform Set of Security Requirements**
- This IT/Security issue is not within group’s control

**Line Item Billing Mechanism for VA NAC**
- Pending further coordination with Fiscal and VHA Logistics

**No-charge Updates for Certain Types of Software**
- Pending further clarification with VA Customers and DSCP

**VA/DoD Joint/Shared Procurements**

## VA/DoD Joint/Shared Procurements

**Extended Installation Order Limitation**
- NAC has changed its internal practice.  The 10%, $100,00 rule is merely guidance

**Site Preparation Drawings – “Suitable for Construction”**
- Revised language was incorporated in Amendment Three to the solicitation

**Current Inspection Process**
- This issue was combined with Issue #14

**VA/DoD Joint/Shared Procurements**

## VA/DoD Joint/Shared Procurements

**Government Acceptance Process**
- Pending bilateral confirmation of revised Acceptance Procedures to include in solicitation

**Electronic Submittal and Return of all Documentation**
- Adopted as an internal practice

**VA/DoD Joint/Shared Procurements**

## VA Consolidation Bulk Buy Process

**VISION - **To provide centralized acquisition strategies on behalf of Federal customers in order to reduce procurement lead-time and leverage government spending through consolidated bulk purchasing.

## VA Consolidation Bulk Buy Process

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

## 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 Tech, 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 under review

## VA Consolidation Timeline

## VA Consolidation Bulk Buy Process

**Consolidation Ordering Process**
- Schedule Timelines Issued/Adherence
- Government as one customer
- Leverage Government spending for like quantity buys
- Commercial Sales Disclosure (Purpose)

## OTHER INTERESTS

**VA’S STEVE WEXLER WILL COPRESENT WITH JAMES “MICKEY” GWYN REGARDING THE BUSINESS ASSOCIATE AGREEMENT (BAA)/HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA).**
**INCLUDED IN THE ABOVEMENTIONED SESSION THAT WILL ALSO BE REPEATED, MR. WEXLER WILL SPEAK TO THE ONGOING PATIENT DATA SANITIZATION ISSUE.  BOTH PRESENTATIONS WILL BE HELD ON 10/10/07.**
**NATIONAL CONTRACT SERVICE WILL HOST AN OPEN FORUM TOWN HALL SESSION ON 10/10/07 FROM 10:30AM – 11:30AM. **

## Points of Contact:

**James L. Booth**                                                                     Assistant Director, Direct Delivery Branch
- 	National Acquisition Center
- 	708/786-5258
- 	_[james.booth@va.gov](mailto:james.booth@va.gov)_
**Andrew Wechter**                                                                     g Chief, Capital Equipment Division
- 	Defense Supply Center, Philadelphia
- 	215-737-4114
- 	_[andrew.wechter@dla.mil](mailto:andrew.wechter@dla.mil)_
**Eric Lee**
- Senior Contract Specialist, Direct Delivery Branch
- 	National Acquisition Center
- 	708/789-5251
- 	_[eric.lee3@va.gov](mailto:eric.lee3@va.gov)_

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