A.02.04_Sole_Source_Justification_Notice_of_award_Sole_Source.pdf

Control Number: 1 6 - R H C O - C - 6 4 6

Sole Source Justification and Approval Under

FAR 13.501

1. Contracting Activity: U.S. Army Medical Command, U.S. Army Health Contracting Activity (Provisional)., Regional Health Contracting Office -Central (Provisional), Fort Carson Health Contracting Cell, 4886 Barkeley Ave, Fort Carson, Colorado 80913.

2. Description of Action: A sole source requirement for Evans Army Community Hospital (EACH).

Intuitive Surgical, Inc. is the only vendor able to provide maintenance services, software, hardware and repair parts for the da Vinci Surgical Robotics System. This is a Firm Fixed Price Contract and a new requirement.

3. Description of Supplies/Services: EACH requires a maintenance service agreement to include parts, labor, travel and shipping for the da Vinci Surgical Robotics System located in the Operating Room of EACH. This is for a base year plus two options using approved F i s c a l Year (FY) 16 Defense Health Program (DHP) funds. Estimated dollar amount is $495,000.03.

4. Authority Cited: 41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501 (a)(l )(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items.

5. Reason for Authority Cited: Market research revealed no other companies can provide maintenance on the da Vinci Surgical Robotics System. This is a complex system that only one vendor (Intuitive Surgical, Inc.) can perform on.

6. Efforts to Obtain Competition: A sources sought notice was submitted on FBO for 11 days.

This resulted zero responses . The requiring activity and Fort Carson Health Contracting Cell conducted extensive, detailed market research for this requirement. Several phone calls were made to GSA contractors and no vendor was able to provide maintenance services to the da Vinci Surgical Robotics System.

a. Effective competition. None.

b. Subcontracting competition. None .

7. Actions to Increase Competition: Enhancing competition is always a priority when doing purchases; therefore, market research is done extensively on all sole source buys. Future purchases for maintenance services for the da Vinci Surgical Robotics System will be handled in similar manner; extensive market research and sources sought notice actions to FBO will be published to seek other vendors who can provide similar services.

8. Market Research: A review of mandatory sources to include GSA/VA Schedules and an on-line review of the open market place indicate that the da vinci maintenance agreement is only available through a sole source environment to Intuitive Surgical, Inc. Based on the market

For Official Use Only (See FAR 2.101 and 3.104-4)

(25 February 2016) research results, this acquisition will be a sole source to Intuitive Surgical, Inc. Extensive

Control Number: 1 6 - R H C O - C - 6 4 6 searches were conducted on Federal Prison Industries, Ability One, GSA, SAM and the SBA's Dynamic Small Business Search. A Sources Sought notice was published in FBO. Additionally, several vendors with GSANA schedules were contacted to ask if they could provide maintenance services to the system. Market Research was conducted within the past three months.

9. Interested Sources: Intuitive Surgical, Inc. is the sole manufacturer for the da Vinci Surgical Robotics System. A sources sought notice was posted to FBO from 7 July 2016 to 18 July2016 and no interested sources responded to the sources sought notice. Several vendors with GSA schedules were contacted and none of those vendors were able to perform maintenance on the said machine. Intuitive Surgical, Inc. is a sole-source vendor for the da Vinci Surgical Robotics System.

10. Other Facts:

a. Procurement history: EACH purchased the da Vinci Surgical Robotics System in July 2015 under contract SPE2Dl-15-D-0006. Included with the purchase was a one year maintenance agreement. This agreement expired in Aug 2016.

(1) Contract number and dates: SPE2Dl-15-D-0006, July 2015.

(2) Competitive status of these actions: Unknown

(3) Authority previously cited if less than full and open competition was used: Unknown

(4) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results: Unknown

(5) If any prior contract for this requirement was accomplished using full and open competition, include a detailed explanation of the changed circumstances causing this action to now limit the sources: Unknown

(6) An explanation of any unusual patterns that may be revealed by the history, e.g., several consecutive, urgent buys: Unknown

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the procurement and whether there have been any significant changes: Unknown

b. Other facts. Previous purchased was acquired under DLA in July 2015. Item was delivered in October 2015, existing maintenance service agreement expired August 31, 2015.

For Official Use Only (See FAR 2.101 and 3.104-4)

KWIATKOWSKI.JOHN.A.1

231355592

Digitally signed by KWIATKOWSKI.JOHN.A.1231355592 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, ou=USA, cn=KWIATKOWSKI.JOHN.A.1231355592 Date: 2016.09.14 15:14:19 -06'00'

14 Sep 2016

Digitally signed by KWIATKOWSKI.JOHN.A.1231355592 DN: c=US, o=U.S. Government, ou=DoD, ou=PKI, .1231355592 ou=USA, cn=KWIATKOWSKI.JOHN.A.1231355592 Date: 2016.09.14 15:14:36 -06'00' 14 Sep 2016

KWIATKOWSKI.JOHN.A

For Official Use Only (See FAR 2.101 and 3.104-4)