70B03C23Q0061-A00-SSJ-redacted_03032023.pdf

U.S. Customs and Border Protection Sole Source Justification

Simplified Procedures for Commercial Items Procurements Exceeding the Simplified Acquisition Threshold (SAT) Pursuant to FAR Subpart 13.5

Date: March 3, 2023

Pursuant to the requirements under the authority of the simplified acquisition procedures for commercial items at 41 U.S.C. § 1901, or the special emergency authority at 41 U.S.C. § 1903, as implemented by Federal Acquisition Regulation (FAR) Subpart 13.501 and consistent with the content requirements of FAR 6.303-2, U.S. Customs and Border Protection (CBP) intends to modify the existing DHS Medical Supplies Blanket Purchase Agreements (BPA) in support of an urgent need as described herein.

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP), Procurement Directorate.

2. Nature and/or description of the action being approved.

(a) Nature of action: CBP intends to extend the Medical Supplies Strategic Sourcing Vehicle for a period of one month.

(b) Name and address of the contractors:

Contractor Address Current BPA Number NAR Medical Depot, LLC 35 Tedwall CT

Greer, SC 29650

HSBP10-15-A-00032

Bound Tree Medical 5000 Tuttle Crossing Blvd.

Dublin, OH 43016

HSBP10-15-A-00034

Atlantic Diving Supply Inc. dba

ADS

621 Lynnhaven Pky, Ste 160 Virginia Beach, VA 23452

HSBP10-15-A-00035

The Janz Corp 275 Outerbelt St.

Columbus, OH 43213

HSBP10-15-A-00040

Altitude Technologies Inc., dba Chinook Medical Gear

54 Girard St., Unit A Durango, CO 81303

HSBP10-15-A-00041

Tri-Tech Forensics, Inc.

dba Rescue Essentials

8770 Trade St. NE Leland, NC 28451

HSBP10-15-A-00042

Tactical Medical Solutions Inc.

(TacMed)

1250 Harris Bridge Rd Anderson, SC 29621

HSBP10-15-A-00043

(c) Order type - Firm Fixed Price.

Simplified Procedures for Commercial Items Procurements Exceeding the Simplified Acquisition Threshold (SAT) Pursuant to FAR Subpart 13.5

(d) Background information about the requirement – The strategic sourcing vehicle is made up of multiple Blanket Purchase Agreements, which are set to expire February 24, 2023. DHS and its components rely upon these BPAs to meet critical needs for medical supplies used by DHS personnel to render first aid to individuals in the field and to address other medical necessities and surgeries for individuals in DHS custody.

3. Description of Supplies/Services. Describe the supplies or services to be acquired. Provide the estimated total value (including options, if any).

The Medical Supplies vehicle is a strategic sourcing vehicle available for use by all DHS agencies. The DHS agencies order a variety of medical supplies such as medicines, first aid supplies, automatic electronic defibrillators, and personal protective equipment (PPE) through these BPAs. The total value of orders under this BPA varies, but the collective spending over all the BPAs, based on recent spending data, is estimated to be between and during the period of February 25, 2023 to March 24, 2023.

4. Identification of the authority.

This action is being taken under the authority of 41 U.S.C. 3304(c) - Property or Services Needed with Unusual and Compelling Urgency.

5. Demonstration that the nature of the acquisition requires use of the authority cited.

The Medical Supplies BPAs provide the avenue for DHS components to acquire medical supplies in a more cost effective and efficient manner compared to the other procurement methods. These vehicles are used by multiple agencies within DHS, provide expeditious access to medical supplies related to both COVID-19 and ordinary agency medical needs, and provide pre-negotiated terms and deeper discounted prices.

The current BPAs will expire in late February and a new set of competitively awarded BPAs will not be in place any earlier than the third quarter of fiscal year 2023. As a result, DHS/CBP intends to extend the period of performance to ensure critical supplies remain available. In support of the follow-on competition, DHS components have provided input on the future requirements and a solicitation is expected in the second quarter of fiscal year 2023.

The solicitation is currently on hold due in part to the implementation of the Make PPE in America Act, which has introduced new legal requirements regarding the procurement of PPE and any items containing PPE, such as medical kits. Questions regarding compliance with these requirements, and their impact on this procurement, were recently resolved. However, the agency must update certain internal acquisition documents prior to release of the solicitation. The agency intends to issue a

Simplified Procedures for Commercial Items Procurements Exceeding the Simplified Acquisition Threshold (SAT) Pursuant to FAR Subpart 13.5 solicitation as soon as practicable following the finalization of all presolicitation elements.

If these BPAs are not extended and available for use while the new acquisition is solicited, the DHS mission would be jeopardized, and the components would lose the ability to execute medical care effectively and reasonably to those in need. This may result in life/safety concerns for those in need of medical care. The supplies and equipment are used in the day-to-day operations to provide medical training to DHS medical staff, for treatment to DHS employees and individuals in the agency’s care, who may require triage-type medical treatment while in a field setting as well as medical treatments for those in DHS clinical settings. The Medical Supplies vehicle, which is used by multiple agencies within DHS, provides expeditious access to medical supplies related to ordinary agency and COVID-19 medical needs. It allows DHS components to quickly access the medical supply market with pre-negotiated terms and pre-vetted contractors and products, and to leverage DHS’s total spending for better pricing. If these medical supplies are not available, it could result in direct injury to Government or the public.

The ability to acquire and distribute medical supplies continues to be challenging due to extensive manufacturing and supply chain backlogs. The use of these BPAs expedites this process to support the DHS mission, thereby avoiding disruption when ordering necessary medical supplies.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

A competitive solicitation for a successor medical supplies vehicle is expected to be issued in the second quarter of Fiscal Year 2023. All interested, eligible vendors will be permitted to bid. The solicitation is expected to be issued as a partial small business set-aside as of the date of this justification.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The contracting officer has determined that the anticipated costs are fair and reasonable based on current market conditions, and through catalog price discounts offered by the contractors.

8. Description of market research.

Addition ongoing market research conducted for the past 6 months, resulted in the DHS Subject Matter Experts (SMEs) concentrating on information for:

package/quantity sizes, new and innovative supplies/equipment, product capabilities, and the ability to deploy certain equipment based on weight, size, functionality, and how the accessories for these units will enhance/ease their use.

Simplified Procedures for Commercial Items Procurements Exceeding the Simplified Acquisition Threshold (SAT) Pursuant to FAR Subpart 13.5

Two Requests for Information (RFI) were issued in March 2021 and February 2022.

Market research included researching whether vendors have product warranties, the length of those warranties, and an assessment of item pricing, and revealed little to no changes relative to current agreement terms. A survey of available alternative vehicles was conducted, including DHS strategic sourcing vehicles, the General Services Administration Federal Supply Schedules, and the Veteran Administration Federal Supply Schedules. Market research also indicated that all required items are available as commercial items. The market research reveals that the current BPA holders can provide domestically manufactured PPE for the kits and other PPE not covered by the DHS Safety Stock Contract.

9. Any other facts supporting the justification.

While a recent modification to the BPAs removed certain PPE items from the BPAs, some PPE products remain among the items available, such as PPE included in medical kits. It is of the utmost importance for DHS to maintain these reliable supply chain vendors until a new contract can be awarded, particularly considering the continuing COVID-19 pandemic that has created a high demand for PPE. This exceptional demand has resulted in increased product counterfeits/misrepresentations for certain items, making these BPAs even more critical in protecting our DHS workforce.

The current market conditions indicate geopolitical volatility, energy crises, health concerns, and several other factors have inhibited the continuous supply of raw materials to the medical device industry. As the demand for medical devices continues to increase, manufacturers also face major disruptions and long lead times.

Additionally, alloy shortages have resulted from the Ukrainian/Russian war. Finally, the industry supply side has been impacted from a chip shortage due to a production decrease from China related to COVID as well as COVID related labor shortages.

The BPA holders, though also impacted by these supply production issues and supply chain challenges, continue to prove themselves capable of successfully mitigating these issues to meet DHS’ medical supply needs. The current holders have proven themselves to be fiscally responsible and capable of mitigating multiple supply disruptions while also maintaining successful performance for DHS customers. The current BPA holders still comply with delivery and performance schedules set forth by DHS. The current holders have developed a depth of experience relative to DHS requirements which has enabled them to anticipate and meet the Agency’s needs, despite supply chain shocks. They also continue to provide fair and reasonable pricing relative to the market with across-the-board percentage discounts (approximately 30%) from commercial pricing. Shipping is also included as part of the existing BPA, which also contributes to price transparency and reasonableness.

Simplified Procedures for Commercial Items Procurements Exceeding the Simplified Acquisition Threshold (SAT) Pursuant to FAR Subpart 13.5

Due to present market conditions the sources of supply are severely limited.

This action will ensure that, despite high demand, medical supplies and PPE remain accessible to the DHS components. If this BPA vehicle expires, it will disrupt the ability of DHS to carry out its mission efficiently. The day-to-day procedures carried out by staff performing training, first aid, routine medical care, and surgeries using these medical supplies will be negatively impacted if adequate amounts of necessary medical supplies cannot be maintained in a timely manner, the risk of which would be increased in the absence of BPAs that facilitate efficient procurement.

Moreover, as noted above, DHS needs to ensure that the BPAs are compliant with Make PPE in America Act requirements, including identifying alternate multi-year contract vehicles for obtaining covered PPE from domestic sources. Based on the foregoing, the CO deems it in the best interest of the Government to maintain these established sources until a new competitive award is executed.

10. A listing of the sources, if any that expressed, in writing, an interest in the acquisition.

An initial RFI issued in 2021 revealed 43 vendors and a second RFI issued in February 2022 revealed 40 vendors that are interested in this acquisition. In addition, the Contracting team has identified an additional 9+ vendors who have expressed interest in this acquisition. The upcoming competition will identify if even more sources can provide these medical supplies.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for supplies or services required.

There are no barriers to competition on the upcoming acquisition. This extension will prevent a gap in access to readily available products that can be obtained efficiently and economically while the new DHS-wide BPA acquisition is competitively solicited and awarded. The current BPAs were competed under a partial small business set-aside.

12. Posting Requirement.

DHS intends to post the requirement to the Government Point of Entry at www.sam.gov pursuant to: FAR 13.501(a)(1)(iii) and 6.305(a).

J&A CERTIFICATIONS

13. REQUISITION/PROGRAM OFFICE CERTIFICATION

I certify that the foregoing justification is accurate, meets the Government’s minimum needs and contains complete information necessary to support the action described in this document and the authority cited.