2018.08.22_NAIHS_JEFO_Redacted.pdf

CLASS JUSTIFICATION FOR EXCEPTION TO FAIR OPPORTUNITY (JEFO)

GE HEALTHCARE CORPORATION

CONTRACT SPE2D1-17-D-0015

1. Defense Logistics Agency (DLA) Troop Support, Medical Supply Chain, Capital Equipment Division, is the contracting activity.

2. The action submitted for approval is a Class JEFO for the purchase of annual radiology maintenance, service and support programs under GE Healthcare’s VA-DLA Troop Support Joint Radiology and Imaging Systems Contract SPE2D1-17-D-0015, for the Navajo Area Indian Health Service (NAIHS). This Class JEFO will apply to all Service Maintenance Agreement (SMA) orders placed under the subject contract commencing with the date of approval of the class JEFO through February 17, 2027, when the five-year base and five-year option periods expire.

3. NAIHS has ongoing requirements for maintenance services for previously acquired and installed GE Healthcare Radiology and Imaging Systems for which the initial one-year warranty period has expired. SMA orders are placed annually thereafter. The maximum dollar value of the sole source SMA orders to be issued under contract SPE2D1-17-D-0015 .

4. The authority waiving the competition requirements is FAR 16.505(b)(2)(i)(B), only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized. GE Healthcare is the only vendor who is able to perform maintenance on its GE Healthcare Radiology and Imaging Systems and ensure that the installed systems’ performance and cybersecurity accreditation is maintained.

The VA-DLA Troop Support Joint Radiology and Imaging Systems Program is in its second generation of the multiple award contract program. Contracts are awarded for a vendor’s complete commercial product offering usually consisting of radiology and imaging systems, subsystems and components along with maintenance services, training and incidental services related to the purchase of the equipment. Radiology and imaging systems include, but are not limited to: Computed Tomography (CT) scanners, Magnetic Resonance Imaging (MRI) systems, radiographic systems (X-Ray), nuclear medicine, ultrasounds, computed radiography, magnetoencephalography, Positron Emission Tomography (PET)-CT, PET-MR scanners, cyclotrons, angiography, cardiac catheterization, and mammography systems.

Delivery orders for new radiology and imaging systems are highly competitive, with all vendors being given a fair opportunity to compete for all initial requirements; however, all follow-on NAIHS radiology and imaging system SMAs require the same vendor receiving the award for the original device or system to maintain the Business Partnership Information Security Agreement (BPISA) for the covered device or system and ensure this device or system is in compliance with the Indian Health Service (IHS) Information Technology Policies and requirements. IHS requirements are established in IHS Information Technology Manuals and Policies, and address the requirements for managing the life-cycle cybersecurity risk to IHS Information Technology. The BPISA defines procedures of reciprocal cooperation and coordination between IHS and a business partner. This type of agreement is required if the business entity has direct access to IHS information resources. No third-party vendor is capable of obtaining a BPISA on GE Healthcare Radiology and Imaging Systems, as only the