A01 LimitingCompetitionUnderSAT X-ray RWBAHC (2)(COR Signed).pdf

Control No: JA-21-Hua-059

Version – February 2017 1

Memorandum for Record: Limiting Competition at or below the Simplified Acquisition Threshold - Purchase Service/Maintenance Agreement for Philips X-ray Machine S/N 40942A247888 located at Raymond W. Bliss Army Health Center (RWBAHC)

1. Contracting Activity: Army Contracting Command Aberdeen Proving Ground (ACC-APG) Huachuca Division

ATTN: CCAP-CCH

2133 Cushing Street, Building 61801 Fort Huachuca, AZ 85613-7070

2. Description of Action:

Nature: ☒ New Requirement ☐ Follow-on Requirement

Contract Vehicle: ☐ Purchase Order # ☐ Blanket Purchase Agreement (BPA) # ☐ 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: FY: 2021

Estimated Value: $133,920.00

Name of Proposed Contractors and Address:

Philips Healthcare 22100 Bothell Everett Highway P.O Box 3003 98041-3003 Bothell, WA 98021-8431

Brand Name Buy: ☐ Yes ☐ No

3. Description of Services or Supplies:

Philips’ RightFit Service Agreement for equipment S/N 40942A247888

Priority scheduling for service calls and access to spare parts inventory.

Priority Remote Service response.

All labor and travel during standard hours of coverage - Mon-Fri 8am - 5pm, excluding holidays.

One hour initial response with four hour on-site response.

All spare parts that fail during normal use. (Excluding consumables) Parts Delivery 10:30AM Next Day.

Equipment Planned Maintenance services per Philips manufacturer specifications performed during standard hours of coverage.

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Proprietary operating system software enhancements.

Unlimited Technical Services (24x7) & Clinical Applications Telephone Support (Mon-Fri 8am - 5pm) Remote Service Support (includes Remote Desktop).

Reports: PSI Eligible, service history, PM's on request.

Base Period: 14 Dec 2020 to 13 Dec 2021 Estimated Value: $44,640.00 Option Period 1: 14 Dec 2021 to 13 Dec 2022 Estimated Value: $44,640.00 Option Period 2: 14 Dec 2022 to 13 Dec 2023 Estimated Value: $44,640.00

Total Value: $133,920.00 (Base +2) ($44,640.00 annually)

4. 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.

Or

☐ FAR 8.405-6(a)(1)(i)(B) and 8.405-6(b)(1) Brand Name ☐ FAR 8.405-6(a)(1)(i)(A) Urgency ☐ FAR 8.405-6(a)(1)(i)(B) Only One Source is Capable ☐ FAR 8.405-6(a)(1)(i)(C) Logical Follow-on

Or

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☐ FAR 16.505(b)(2)(i)(B) Only One Awardee is Capable ☐ FAR 16.505(a)(4) Brand Name ☐ FAR 16.505(b)(2)(i)(A) Urgency ☐ FAR 16.505(b)(2)(i)(C) Logical Follow-on ☐ FAR 16.505(b)(2)(i)(D) Minimum Guarantee

5. Reasons for Authority Cited:

a. Philips’ Healthcare is the Original Equipment Manufacturer (OEM) of the Philips equipment outlined in quotation # 5018035 R3. As OEM Philips is the sole source provider, of service and parts that are OEM certified (new or like new) and are compatible with the diagnostic imaging equipment used at RWBAHC. Philips' Field Service provides the highest level of proprietary diagnostic software and other tools to maintain the equipment they manufacturer. Due to this, Philips will only allow Philips’ Field Service Engineers (FSE) to install proprietary software and hardware updates/upgrades and perform service/maintenance on our equipment. Philips will only guarantee work done by their FSEs.

b. Philips’ Healthcare uses no Third Party businesses, or small or veteran owned business or subcontractors to support Philips manufactured equipment.

c. The Philips’ machine is critical to the Raymond W. Bliss Army Health Center mission;

performing scheduled and necessary maintenance, adjustments and repairs will ensure that RWBAHC can continue to provide quality healthcare to our beneficiaries without unnecessary complications and delays associated with having to schedule x-ray imagining services elsewhere in the community.

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 dollar threshold, ☐ apply and will be followed, or ☐ do not apply due to an exception at 5.202( )( ). (Fill in exception).

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, redacted & posted with 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 was not conducted for this acquisition. Philips’ Healthcare uses no Third Party businesses, or small or veteran owned business or subcontractors to support Philips manufactured equipment. OEM authorized service/maintenance and parts must be purchased from Philips’.

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8. Other Facts: None

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.

Signature:

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Typed Name: Lawrence Hillis Title: COR Date: 2 December 2020

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 price analysis.

I certify that this justification is accurate and complete to the best of my knowledge and belief and that completing this purchase as a limited/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:

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Typed Name: Gay R. Moss Title: Contracting Officer Date: 3 December 2020