A.02 Sole Source Justification FAR Part 6 Final_Redacted.pdf

Control No: 20 – RHCO-C-334 Contractor: Steris Corporation

Program/Equipment: Steris Maintenance & Repair Services

Version – September 2018 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

FAR PART 6 JUSTIFICATION AND APPROVAL FOR OTHER THAN

FULL AND OPEN COMPETITION

Program/Equipment: Medical Maintenance & Repair Services for Steris Sterilizing Units at Evans Army Community Hospital (EACH), Fort Carson, Colorado.

Authority: 10 U.S.C. 2304(c)(1) as implemented by FAR Part 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: $

Prepared by:

Contracting Officer:

Technical:

Requirements:

Program/Equipment: Steris Maintenance & Repair Services

Version – September 2018 FOR OFFICIAL USE ONLY

FAR Part 6 Justification and Approval for Other than Full and Open Competition

1. Contracting Activity: Regional Health Contracting Office – Central, Fort Carson Health Contracting Cell, 1681 Specker Ave. Bldg. 1011, Fort Carson, CO 80913

2. Description of Action: The Department of Logistics at Evans Army Community Hospital (EACH) requests a firm-fixed-price follow-on contract to with . The Government projects award for August 2020 and fiscal year 2020, DHP funds will be used.

This action is a follow-on to contract . That contract was not competed under authority 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements: 10 U.S.C. 2304(c)(1).

Paragraph, “Actions to Increase Competition” of the previous justification, stated:

As technology becomes available, research will be performed to consider other products that may meet or exceed the current requirements at EACH. However, until then, as long as the STERIS equipment is being used at EACH, Steris will be the only vendor that can service the equipment. The previous sole source justification and approval can be found in PCF.

3. Description of Supplies/Services:

The requirement is for maintenance and repair services of Steris manufactured medical equipment for the Sterile Processing Department, Dental Clinics, and Veterinarian Clinics located at EACH. Ensuring properly sanitized medical instruments are in serviceable condition, and maintained according to OEM standards. The maintenance agreement must include preventative maintenance-according to OEM safety standards, scheduled maintenance, repair/replacement parts-as required, travel, labor, 24/7 technical support, customer care, and detailed service documentation for the Steris equipment during normal business hours. This requirement is for a base plus four option years as follows:

Base Period: 1 Aug 2020 to 31 July 2021 Value: $ Option Period 1: 1 Aug 2021 to 31 July 2022 Value:

Option Period 2: 1 Aug 2022 to 31 July 2023 Value: $ Option Period 3: 1 Aug 2023 to 31 July 2024 Value: $ Option Period 4: 1 Aug 2024 to 31 July 2025 Value: $ FAR Clause 52.217-8 option: 1 Aug 2025 to 31 Jan 2026 Value: $

Total: $

4. Authority Cited: 10 U.S.C. 2304(c)(1), as implemented by FAR 6.302-1, Only one responsible source and no other supplies or services will satisfy agency requirements.

Program/Equipment: Steris Maintenance & Repair Services

Version – September 2018 FOR OFFICIAL USE ONLY

5. Reason for Authority Cited: Steris Corporation is the authorized supplier of parts and services for Steris equipment. The equipment located at EACH is proprietary and Steris has to perform maintenance services to ensure warranty provisions are not voided. A Dynamic Small Business Search (DSBS) under NAICS 811219 and using keywords “steris maintenance”, revealed zero (0) small business. Failure to procure a follow-on for this requirement will result in a break in service and adversely impact hospital and patient care.

6. Efforts to Obtain Competition: Market research was completed to include a sources sought notice that was posted to beta.SAM.gov from 5 to 11 May 2020. The results of the sources sought can be found in paragraph 10. The Contracting Officer shall publish the notices required by FAR 5.201.

a. Effective Competition: Because this is a sole source action, effective competition is not applicable.

b. Subcontracting Competition: IAW FAR 19.702(b)(1), a subcontracting plan is not required for small business concerns.

7. Actions to Increase Competition: Competition may remain limited until the Steris equipment becomes obsolete or is no longer utilized at EACH. However, the requiring activity and contracting office will publish the notice of proposed contract action IAW

5.201 to ensure we have reached as many potential competitors now and in the future.

Additionally, the Contracting Officer shall publish the Notice of Intent to Sole Source as required by FAR 5.201.

8. Market Research: Market research was conducted from 5 – 12 May 2020. A search of AbilityOne and the Federal Prison Industries websites found that neither source could support this requirement. The GSA e-Library search under FSS Supply Schedule 65 II A, Medical Equipment and Supplies, Category A-89, Sterilizer and Sanitizer Equipment resulted in several vendors. A search through the Small Business Administration’s (SBA) Dynamic Small Business Search (DSBS) using NAICS 811219 and using keywords “steris maintenance” showed zero vendors.

In accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 206.302-1(d,) and DFARS Procedures, Guidance and Information (PGI) 206.302-1(d), a request for information or sources sought was posted to beta.SAM.gov on 5 May 2020 for 6 days and the results generated two (2) responses. LE3 Engineering stated they have the “potential capacity” to support this requirement. A review of the vendor’s website indicate LE3 supports maintenance and repair of equipment used to “administer radiation therapy.” Steris provided a sole source letter stating the vendor is the “sole factory-authorized supplier of parts and services.” The KS reviewed other awarded contracts for the same or similar services on 21 May 2020 and requested further information from Steris Corporation. The vendor confirmed a partnership with Sustainment Technologies, a SDVOSB on 26 May 2020. After further review of Steris

Program/Equipment: Steris Maintenance & Repair Services

Version – September 2018 FOR OFFICIAL USE ONLY

Corporation and the proprietary equipment located at EACH; additionally, to ensure the warranty provisions are not voided, Steris has to perform the maintenance services.

Steris is the authorized supplier of parts and services for Steris equipment.

9. Interested Sources: See Paragraph 6 for the synopsis information. LE3 Engineering (a veteran owned small business) and STERIS Corporation (a large business) expressed an interest in this requirement. Paragraph 8 includes additional information regarding these vendors. To date, no other sources have written to express interest in the acquisition.

10. Other Facts:

a. Procurement History

(1) Contract numbers and dates of the last several contracts for these same requirements.

- Contract

(2) The competitive status of these actions.

– Sole Source

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

- IAW FAR 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements: 10 U.S.C. 2304(c)(1)

(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.

- As technology becomes available, research will be performed to consider other products that may meet or exceed the current requirements at EACH. However, until then, as long as the STERIS equipment is being used at EACH, Steris will be the only vendor that can service the equipment.

(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. – N/A

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

(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.

Program/Equipment: Steris Maintenance & Repair Services

Version – September 2018 FOR OFFICIAL USE ONLY

The requirement was for maintenance and repair services for Steris equipment, there are no significant changes

Program/Equipment: Steris Maintenance & Repair Services

Version – September 2018 FOR OFFICIAL USE ONLY

11. Technical 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.

Typed Name:

Title: Signature:

12. 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.

Typed Name:

Title: Signature:

Program/Equipment: Steris Maintenance & Repair Services

Version – September 2018 FOR OFFICIAL USE ONLY

13. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using the following: price analysis, IGCE and current contract pricing.

As a part of this basis, certified cost or pricing data:

will be required.

will not be required and the following exception applies (FAR 15.403):

Prices that will be agreed upon are based on adequate price competition.

Prices that will be agreed upon are based on prices set by law or regulation.

A commercial item is being acquired.

A waiver has been granted by the head of the contracting activity (HCA) in accordance with DFARS PGI 215.403-1.

The contract action is a modification to a contract or subcontract for commercial item(s).

The estimated cost of the contract action is less than the threshold for certified cost or pricing data.

Typed Date:

Title: Signature:

14. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Date:

Title: Signature:

Program/Equipment: Steris Maintenance & Repair Services

Version – September 2018 FOR OFFICIAL USE ONLY

Approval

Based on the foregoing justification, I hereby approve the procurement of maintenance and repair services for Steris medical equipment for the estimated amount of $ on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1) as implemented by FAR Part 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, subject to availability of funds, and provided that the services or property herein described have otherwise been authorized for acquisition.

Typed Name: Date:

Signature: