Limit_Competition_Under_SAT_CEEP_redacted.pdf

Dimension EXL LM Control No: 19-RHCO-C-638

Version – February 2017

Memorandum for Record – Limiting Competition at or below the Simplified Acquisition Threshold

1. Contracting Activity: REGIONAL HEALTH CONTRACTING OFFICE-C.

36001 Darnall Loop Room 248 Fort Hood, Texas 76544

2. Description of Action:

Nature: ☒ New Requirement ☐ Follow-on Requirement

Contract Vehicle: ☒ Purchase Order Number 0011373190

Pricing/Contract Type: ☒ Fixed

Funds: ☐ Operations & Maintenance, Army (OMA) ☒ Other Funds: DHP FY 19 Super Capital Equipment Expense Program (SuperCEEP)

Name of Proposed Contractor(s) and Address:

Siemens Healthcare Diagnostics, Inc.

115 Norwood Park, South Norwood, MA 02062 1-714-655-3235

Brand Name Buy: ☐ Yes ☒ No

3. Description of Services or Supplies: The item requested is the supply purchase of the Dimension EXL LM chemistry analyzer for use at Munson Army Health Center (MAHC), Fort Leavenworth, Kansas. The estimated cost of the analyzer is $108,000.00. This action is funded with FY19 Super Capital Equipment Expense Program (SuperCEEP) funds. The lease versus buy analysis shows the purchase of this analyzer will be more economical to the Government.

4. Authority:

☒ FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reasons for Authority Cited:

Currently the laboratory at MAHC buys reagents from Siemens for use in their leased Dimension EXL LM. Siemens manufactures the Dimension EXL LM. The LM is an integrated chemistry system attachment. The Dimension EXL with LM system is a chemistry and immunoassay integration positioned on a single platform. The performance and technology is expected to provide more reliable results and increase the output of the laboratory. Chemistry and immunoassay integration allows simultaneous processing. The laboratory at MAHC has been custom fit with a water supply line, a dedicated emergency backup electricity and an in-floor waste drain specifically for the currently leased Dimension EXL analyzer and the accompanying Sigma Millipore Water Purification System. The hospital is currently configured for the Dimension EXL LM. A different analyzer would require a refit

Dimension EXL LM Control No: 19-RHCO-C-638 of those items. The laboratory also has four months of reagents for the Dimension EXL LM. Purchase of this chemistry analyzer will maximize workflow and increase productivity. Siemens does not sell any of its products or services through a reseller or distributor and does not have third party sellers. The cost of the reagent supply purchase and Dimension lease is $149,806.44. The cost of the Dimension chemistry analyzer is $108,000.00. The buy versus lease analysis shows purchasing the machine and then purchasing the reagents separately over future years is more economical to the Government. This action is funded with FY19 Super Capital Equipment Expense Program (SuperCEEP) funds.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 apply and will be followed. On future requirements the Government will try to procure these items through full and open competition on the Government Point of Entry should the services be offered by new and emerging businesses. Right now, this is not the case.

When the current equipment reaches the end of its life cycle, becomes obsolete or when equivalent equipment becomes available every effort shall be made to increase competition. MAHC will continue to evaluate the capabilities of other vendor's products and re-procure the products that provide the best value to the Government. The Government will continue to seek new resources that will satisfy these requirements through continued market research, requests for Statements of Capability, and telephonic inquiries. Telephonic and world-wide-web inquiries resulted in no other vendors that could provide the Dimension EXL LM. A sources sought was posted from 22 August until 27 August 2019. A notice of intent to award sole source will be posted upon approval of this J&A.

7. Market Research: A sources sought was posted to FedBizOps from 22 August until 27 August 2019 with no responses to the notice and no interested vendors. A notice of intent to award sole source will be posted upon approval of this J&A. The Government currently leases the Siemens manufactured Dimension EXL LM at MAHC. The Government currently buys reagents and leases the Dimension EXL LM chemistry analyzer at MAHC. The contract specialist conducted a dynamic small business search (DSBS) with the keywords “dimension analyzer” which revealed no small businesses that fit within these guidelines. A quick market search (QMS) on “dimension analyzer” showed the same results. The contract specialist conducted a second DSBS search the keywords "chemistry analyzer" which resulted in five small businesses. A review of their capabilities narrative showed one (1) small business provides “extensive experience in science and research, information technology, and management consulting solutions.” One (1) small business provides “expertise in pain management, urine drug testing and health and wellness blood testing. One (1) small business provides “best-in-class medical devices, drugs and biologics to federal agencies.” One (1) small business provides for “clinical chemistry and hematology systems, reagents” but only has partnerships with Diatron and HR Pharmaceuticals. They do not have a partnership with Siemens which corresponds to Siemens’ statement of not having distributors or resellers.

The final small business references providing “analyzers and reagents for the testing of blood chemistries, drugs, hematology and coagulation testing.” This final small business also does not have a partnership with Siemens which again go to Siemens’ assertion of no distributors or resellers. The manufacturer, Siemens, confirmed there were no authorized distributors for the dimension EXL LM. A quick market search (QMS) on the chemical analyzer showed the same results. Based on the research, the Contracting Officer has determined there are not two (2) or more small businesses that can fill this requirement. The KO has determined that there is no justification to use a set aside and is recommending a sole source award to Siemens, a large business.

8. Other Facts: There is no previous contract for the purchase of the Dimension EXL LM. There is a previous contract, W81K00-18-F-0177, for buying the reagents and leasing the Dimension EXL LM. It was for a twelve (12) month base with no options ending 30 September 2019. It was written through

GSA.

Dimension EXL LM Control No: 19-RHCO-C-638

9. Technical/Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Gina M. Summers Date: 3 September 2019 Title: Supply Technician Email: gina.m.summers.civ@mail.mil

Signature:

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10. Contracting Officer Certification/Approval:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon current market research.

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition and provided that the services or supplies herein described have otherwise been authorized for acquisition. This action is funded with FY19 Super Capital Equipment Expense Program (SuperCEEP) funds.

Typed Name: Randall P. Cummins Date: 3 September 2019 Title: Contracting Officer Email: randall.p.cummins.civ@mail.mil

Signature:

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