A.02.04_USAHCA_LSJ_16-RHCO-P-138-R.pdf

Control Number: 16-RHCO-P-138

SOURCE SELECTION INFORMATION

(See FAR 2.101 and 3.104-4)

Page 1 of 4 (15 October 2015)

Limited Sources Justification for Other Than Full and Open Competition

1. 1. Contracting Activity: U.S. Army Medical Command Regional Health Contracting Office – Pacific, Bldg 339 Clark Road Fort Shafter, Hawaii 96858

2. Nature and/or Description of Action:

The action being approved is for a Firm-Fixed Price Delivery Order under the General Supply Schedule (GSA) FSS Contract number V797P-2024D with Lane Enterprises LLC for Overhead Lift Systems. Joint Incentive Funds will be used for this effort.

3. Description of Supplies/Services:

The items being procured are (33) overhead Lift systems, as well as associated equipment to properly operate them. Overhead lift systems installed with an effective education and training program have been shown to decrease Staff and Patient injuries associated with patient transfers and lifts. Additionally, Safe Patient Handling (SPH) equipment has been shown to significantly reduce the occurrence of skin shears and pressure ulcers, as well as the length of inpatient stays.

The total estimated price of the proposed action is $286,945.00.

4. Authority Cited and Reason: FAR 8.405-6(a)(1)(i)(B), Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

5. Best Value Determination. I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Prices are available on competitively published price lists, and available on FSS Schedule. Certified cost and Pricing information in accordance with FAR Part 15.403 will not apply. Price reasonableness will be determined using the proposal analysis techniques of FAR Part 15.404-1.

This item is on the VA FSS V797P-2024D and available for use by the DoD Army. The availability of the item and the associated terms and conditions of the VA FSS meet the needs of Tripler Army Medical Center. Under FAR Part 8, the Regional Health Contracting Office –Pacific (RHCO-P) is authorized to utilize VA contracting vehicles.

This established contracting vehicle has pricing which has already been reviewed.

Therefore the procurement under FAR Part 8 is deemed to be in the best interest of the Government as it accounts for administrative cost savings from using an already existing contract having no additional administrative fees; lower prices/ discounts; greater number of

Patient Lift System

SOURCE SELECTION INFORMATION

(See FAR 2.101 and 3.104-4)

Page 2 of 4 (25 February 2016) vendors. Moreover there will be less indirect costs for RHCO-P as there are fewer labor hours associated with issuing an order against an existing VA contract than there is with advertising, competing, and awarding an open market contract award.

Additionally, contract W81K02-14-F-0001 was issued by RHCO-P for a similar procurement of 41 lift systems. The major components are exactly the same as the current requirement.

The (33) Lift systems of this requirement shall be compatible with (41) existing Government-owned equipment, existing parts, and assemblies which are exclusively for Tripler Army Medical Center. It would not be practical or cost effective to purchase other than the recommended Handicare overhead lift systems in order to meet our mission requirements.

6. Market Research: Market research reveals that this is a commercial item and is readily available on the open market. There are no known DoD/MEDCOM contracts available to meet this requirement. An E-Buy RFQ will be issued to current FSS/GSA schedule holders that can offer the exact make and model of the existing Government-owned equipment, existing parts, and assemblies. The Government will consider all statements of interest and capability received.

If a system other than Handicare is selected, TAMC faces the incurred cost of retraining healthcare and maintenance staff, over 1,000 civilian and military personnel, on the new system. This cost would equate to over 1,500 man hours, costing TAMC an estimated $150,000. Additionally, a new lift system provider may require TAMC to purchase additional equipment such as slings, specialty tools and repair and replacement parts.

This cost could increase TAMC’s bottom line an additional $200,000 - $300,000.

More importantly than the financial impact the Phase II lifts will be on units where Phase I lifts have already been installed. The staff is now familiar with the existing lifts and slings. Placing two different lift systems with differing ways of operating the lifts, different maintenance and different emergency actions on a unit may result in staff confusion and possibly patient or staff injuries which is the opposite of the intended program outcome. Different manufacturers make different styles of slings which may not be compatible with other systems. The potential exists for improper sling selection, application and use due to user error or system incompatibility.

Additionally, since the completion of Phase 1 for a total of (41) lifts, the Critical Care Area renovation has begun for an additional (31) ceiling lifts. Handicare lifts are the selected vendor for the Critical Care Area renovation, and separate from this procurement. This results in a total of (72) Handicare lifts throughout TAMC not including the (33) requested for this installation.

Patient Lift System

SOURCE SELECTION INFORMATION

(See FAR 2.101 and 3.104-4)

Page 3 of 4 (25 February 2016)

Market research conducted in 2016 reveals that this is a commercial item and is readily available on the open market. (see budgetary estimate attachments) There are no known DoD/MEDCOM contracts available to meet this requirement. An E-Buy RFQ will be issued to current FSS/GSA schedule holders that can offer the exact make and model of the existing Government-owned equipment, existing parts, and assemblies.

The Government will consider all statements of interest and capability received.

7. Other Facts Supporting the Justification:

a. Procurement history.

(1) Similar procurement W81K02-14-F-0001 was awarded on 04 Feb 2014.

(2) The similar procurement was a competitive action awarded to the lowest priced technically acceptable quote.

(3) Authority previously used for less than full and open competition. N/A

(4) No Justification was prepared to support the prior procurement.

(5) The significant change in circumstance from the prior procurement is based on the need for compatibility with the (41) existing Government-owned equipment, existing parts, and assemblies which are exclusively for Tripler Army Medical Center.

(6) No unusual patterns were revealed by the history, e.g., several consecutive, urgent buys.

(7) No justification was prepared to support the prior procurement.

b. Acquisition data availability. These parts, and assemblies are proprietary to the manufacturer Handicare whose sole distributor is Lane Enterprises LLC.

(GSA) FSS Contract number V797P-2024D

c. Unusual and compelling urgency. N/A

d. Subcontracting competition. The suggested source is a small business.

8. Actions Taken to Remove/Overcome Barriers to Competition: We will continue to conduct on-going research of the industry market place to determine if there are new