A.02 Limited Source Justification Joyce - THD HRStation (B+4) UPDATED.pdfREDACTED.pdf

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Attached to
HR STATION LEASE Federal contract opportunity
Solicitation number
W81K0425QA008
Issued by
Department of the Army Medical Command

About this file

This document is a Justification for Limiting Competition at or below the Simplified Acquisition Threshold for the Department of Defense Health Agency (Army). The Health Readiness Contracting Office (HRCO) at Womack Army Medical Center intends to award a lease agreement to THD America, Inc. for the THD 4K HRStation equipment, a specialized medical device for screening and treating anal precancerous lesions. The contract is a sole-source procurement justified by the equipment's unique capabilities and being the only device of its kind in the medical market.

The lease agreement covers a 60-month period from 1 August 2025 to 31 July 2030, with an initial payment period and four option periods. The contract will be a fixed-price purchase order using Defense Health Program (DHP) FY25 funds. Market research conducted using NAICS code 532490 found no small business contractors capable of providing the required services. The justification emphasizes the equipment's critical role in maintaining patient care standards, its multi-functional capabilities for testing, diagnosing, and treating precancerous lesions, and its ability to provide on-site equipment ready to support the Womack Army Medical Center mission.

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Text version

Control No:25-HRCO-242

CUI//SP-PROCURE

Source Selection Information – See FAR 2.101 and 3.104-4

Version – February 2017

Limiting Competition at or below the Simplified Acquisition Threshold

1. Contracting Activity:

2. Health Readiness Contracting Office (HRCO), East Services Branch (ESB), Womack

Army Medical Center, Fort Bragg, NC 28310

3. Description of Action:

Womack Army medical Center (WAMC) has a requirement to obtain the THD HRStation equipment for the Department of Surgery in support of patient care. It is the intent of the Defense Health Agency Contracting Office, on behalf of WAMC to award a lease Agreement for the performance period of 60 months.

Nature: ☒ New Requirement ☐ Follow-on Requirement

Contract Vehicle: ☒ Purchase Order Number TBD-W81K0425QA008 ☐ Blanket Purchase Agreement (BPA) Number ☐ Order/BPA# against FSS Contract #

☐ Order # against Multiple Award IDIQ Contract Name or #

☐ Order # against a single award IDC Contract

☐ Modification # to existing PO/TO/DO/Call Order

Pricing/Contract Type: ☒ Fixed Price ☐ Time & Materials/Labor Hours ☐

Cost Reimbursable ☐ Hybrid

Funds: ☐ Operations & Maintenance, Army (OMA) ☒ Other Funds: _DHP FY:25

Name of Proposed Contractor(s) and Address:

THD America, Inc.

1731 SE Oralabor Road Ankeny, IA 50021

Brand Name Buy: ☐ Yes ☒ No

Controlled by: USAHCA CUI Category: SP-PROCURE Limited Dissemination Control: FEDCON POC: Cynthia A. Richardson-Rhone 910-907-9010

4. Description of Services or Supplies: The Department of Defense Health Agency (Army) is pursuing the rental / lease of the THD HRStation equipment, the ultimate system for the screening and treatment of anal precancerous lesions. According to the sole source letter dated 16 May 2025, the THD 4K HRStation, is the only device in the medical market that is solely indicated for a video/photo integrated high resolution anoscopy. THD is the manufacturer and the only distributor of this system and technology. Period of Performance: 1 August 2025 to 31 July 2030.

Total Value: XXXXXXX

Initial Payment: 0001 1 August 2025 to 31 July 2026 CLIN 0002 1 February 2026 to 31 July 2026 Value:

Option Period 1: 1 August 2026 to 31 July 2027 Value:

Option Period 2: 1 August 2027 to 31 July 2028 Value:

Option Period 3: 1 August 2028 to 31 July 2029 Value:

Option Period 4: 1 August 2029 to 31 July 2030 Value: 6

• The initial payment consists of delivery of equipment and two quarters of lease.

FAR Clause 52.217-8 option: 1 August 2030 to 28 February 2031 Value

Total:

5. Authority:

☒ FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

6. Reasons for Authority Cited:

(a) In accordance with FAR 13.106-1(b)(1): 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.

(b) It is necessary to acquire THD HRStation equipment due to the well-adopted use of equipment within the market local to WAMC. This multi-functional equipment minimizes treatment time with the capability of testing, diagnosing, and treating precancerous lesions. It is imperative that the standard of patient care be maintained in order to ensure vulnerable patients are provided the best possible opportunity for screenings and treatment.

(c) THD HRStation will afford the Government the flexibility for patient care with onsite stationed equipment ready to respond to critical patient needs required to support the WAMC mission.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 ☐ do not apply due to the $ threshold, ☒ apply and will be followed, or ☐ do not apply due to an exception at

5.202 .

Requirement to post justification in accordance with FAR 8.405-6(b)(3), FAR 13.105(c), or FAR 16.505(a)(4)(iii)(A)

☐ Action is NOT a brand name restriction and is under $150K, no posting required ☐ Action is a brand name restriction, under $25K, no posting required ☐ Action is a brand name restriction, over $25K. It will be redacted and posted with the solicitation.

☐ Action is a brand name restriction over $25K but will not be posted due to exception:

☐ FAR 6.305(f) ☐ FAR 8.405-6(b)(3)(iii)(A) ☐ FAR 8.405-6(b)(3)(iii)(B) ☐ FAR 8.405-6(b)(3)(iii)(C) ☐ FAR 16.505(a)(4) (iii)(C)

7. Market Research: Market Research conducted in accordance with FAR Part 10. I researched by using the General NAICS code 532490 and was unable to find any small business contractors having the capability to provide the services. On 29 April 2025, an on-line search was conducted using the Small Business Administration (SBA) Quick Market Research, and nothing was revealed using the words “HR Station” or “Diagnosing System” within NC.

8. Other Facts: Please see sole source letter dated 16 May 2025, PCF A.02.

9. Technical/Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief. Ms. Montana Lowery provided the data for the project.

10. Contracting Officer Certification/Approval:

I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the Government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.

Signature:

Typed Name:

Title: Contracting Officer

Limiting Competition at or below the Simplified Acquisition Threshold
3. Description of Action:
Womack Army medical Center (WAMC) has a requirement to obtain the THD HRStation equipment for the Department of Surgery in support of patient care. It is the intent of the Defense Health Agency Contracting Office, on behalf of WAMC to award a lease Ag...
5. Authority:
6. Reasons for Authority Cited:
10. Contracting Officer Certification/Approval:
2025-08-12T14:26:50-0400
BLOSSOM.DONNA.L.1102273970

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