A.02_Justification and Approval_W91YTZ25C0003_Redacted.pdf

This is a Justification and Approval (J&A) document for a bilateral modification to an existing firm-fixed-price, commercial Cost-Per-Reportable-Result (CPRR) contract.

The Defense Health Agency (DHA), through its Contracting Activity in the Southeast, is modifying contract W91YTZ25C0003 awarded to Abbott Laboratories, Inc. to expand pathology laboratory services at Moncrief Army Health Clinic, Fort Jackson, South Carolina. The modification is an out-of-scope change that increases the contract ceiling for Option Year 1 and establishes new pricing for Option Years 2, 3, and 4. The contract delivers pathology laboratory supplies, reagents, analyzer usage, and maintenance services. The base contract runs November 1, 2024 through October 31, 2025, with option years extending through October 31, 2029. The action addresses mandatory testing requirements that cannot be met within the existing contract scope, with modifications establishing a baseline ceiling and corresponding funding amounts across all contract periods. The modification executes immediately for Option Year 1 while establishing pricing for subsequent option years based on current contract rates applied to anticipated testing volumes.

The J&A cites RFO 6.103-1(c)(2)(i) authority for sole-source acquisition, determining that Abbott Laboratories is the only responsible source capable of fulfilling the requirements without substantial duplication of cost or unacceptable delays. The justification emphasizes that the CPRR model requires specific Abbott analyzer systems, and introducing a second contractor would necessitate separate equipment, validation, physical space modifications, and IT infrastructure integration—creating unrecoverable costs. Market research confirmed no other commercial pathology vendors can provide the required test assays for the specific analyzer platforms currently installed. The original base contract was competitively solicited via SAM.gov. The Contracting Officer determined anticipated costs are fair and reasonable based on commercial price analysis and current contract rates. A Notice of Intent to Sole Source will be posted concurrently with this justification, allowing a reasonable opportunity for industry response.