Justification_and_Approval_Philips_Redacted.pdf

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

a. Project title. Preventive maintenance services for a government-owned clinical Philips Ingenia Elition 3.0T MRI scanner.

b. Project description.

• Requirement type.

Research & development (R&D) R & D support services Support services (non-R&D) Supplies/equipment Information technology (IT) Construction Architect-engineer (A & E) services Design-build Other (specify): ____________________

• Type of action. :

New requirement Follow-on Other (specify): ______________________

• Proposed contract/order type.

Firm-fixed-price Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee): __________ Cost-plus-fixed-fee Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee): ___________ Time and materials Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): ___________ Other (specify): ___________ Completion Form Term form

• Acquisition identification number. PCA-NCI-00120

c. Total estimated dollar value and performance/delivery period.

The total estimated price is $829,670.40. The period of performance shall consist of one (1) 12-month base period and three (3) 12-month option periods, as follows:

Base Period: May 10, 2026 – May 9, 2027 Option Period 1: May 10, 2027 – May 9, 2028 Option Period 2: May 10, 2028 – May 9, 2029

Option Period 3: May 10, 2029 – May 9, 2030

4. Identification of the statutory authority permitting other than full and open competition.

This acquisition is conducted under the authority of 41 United

States Code (U.S.C.)

[253(c)(1) as set forth in Federal Acquisition Regulation (FAR) 6.302-1. Only one responsible source and no other supplies or services will satisfy agency requirements.

This acquisition is conducted under the authority of section 4202 of the Clinger-Cohen Act of 1996. .

This acquisition is conducted under the authority of the Services

Acquisition Reform Act of 2003 (41 U.S.C. 428a).

5. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

a. Name and address of the proposed contractor(s). Philips Healthcare, 22100 Bothell Everett Hwy, MS 665, Bothell, WA 98041

b. Nature of the acquisition and proposed unique qualifications of the contractor(s).

Philips Healthcare is currently the only known authorized service provider for the Philips Ingenia Elition 3.0T MRI Scanner. Being the manufacturer and sole service provider, Philips Healthcare is the only provider able to maintain and service the equipment in accordance with Original Equipment Manufacturer (OEM) specifications and provide critical updates to the system as needed to address system issues, or updates.

Additionally, Philips Healthcare is the only company that has OEM authorized, and trained service technicians capable of performing required maintenance, repair, and support services for the Philips Ingenia Elition 3.0T MRI Scanner.

Additionally, due to intellectual property, proprietary diagnostic software, and hardware updates/upgrades, Philips is the only vendor that can provide maintenance for the scanner. Philips has also established a direct remote services network that monitors the scanner and can provide remote services capable of fixing issues, when possible, thus reducing scanner downtime.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a SAM.gov notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies. A Notice of Intent (NOI) to award a sole source purchase order was publicized on April 6, 2026, on SAM.gov announcing the Government’s intent to obtain renewal maintenance services for imaging equipment located at the MIB on a non-competitive basis. The announcement indicated the reasoning for awarding this requirement without competition. The notice closed and no responses to the NOI were received.

7. Determination by the Contracting Officer that the anticipated cost/price to the Government will be fair and reasonable.

The Contracting Officer will consider the independent government estimate and previous purchase order prices as a determining factor for reasonableness.

Based on the aforementioned there is no reason to believe that the price will not be fair and reasonable to the Government. The open market rates are comparable to rates on similar contracts and historical pricing for the same services. NCI will consider market research, comparison with similar items in the marketplace, and quoted prices found reasonable on previous purchases as a determining factor for price reasonableness. A final determination by the Contracting Officer will be conducted prior to award of this contract.

8. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

Market research was conducted in accordance with FAR Part 10. These efforts included a review of mandatory and suggested sources as defined in FAR Part 8.

As a result of these efforts the required services were identified as only being available via the Open Market. This determination was also supported by historical data related to past procurements conducted by NIH for previous services for the Philips Ingenia Elition 3.0T MRI Scanner. As a result of these efforts no other vendors were able to be identified as possessing the required resources to successfully perform maintenance services in accordance with the Governments requirements

9. Any other facts supporting the use of other than full and open competition.

The NCI MIB has a research collaboration with Philips Healthcare and specific research keys are activated as related to patient scanning because of this collaboration. If another vendor other than Philips serviced the scanner, the keys would be deactivated due to confidential intellectual property requirements. As a result, the clinic will be unable to scan clinical patients. The MIB also has a direct Remote Service Network connection to Philips. This allows Philips to monitor the