B - Sole Source Justification MEG_Service and Recycler Contract_FS.pdf

Revised10/31/2016

FAR Subpart 13.106-1(b)

SOLE-SINGLE SOURCE (including Brand-Name) JUSTIFICATION

“Source Selection Information – see FAR 2.101 and 3.104”

1. Identification of the Agency and Contracting Activity.

a. Federal Agency and Contracting Activity.

Department of Health and Human Services National Institute of Health National Institute on Drug Abuse

b. Sponsoring Organization.

NIH/NIMH/IRP/MEG Core Facility

c. Project Officer Information.

Dr. Allison Nugent Bldg 10 Room 2D49, Bethesda, MD 20892 nugenta@nih.gov 301-451-8863

2. Project Description.

a. Name of Item or Project Title.

MEG System Service Contract and Helium Recycler Contract

b. Description of the Item or Service.

This request is for a renewal of the current contract award 75N95022P00536 which ends Sept 15, 2024. CTF MEG Neuro Innovations Inc. (formerly CTF MEG International Services, Inc.) has provided the service contract for Sept 16, 2023 to Sept 15, 2024. The CTF MEG system was purchased from VSM MedTech System, Inc. and installed in 2002. The system has been under a full-service maintenance contract that has been renewed each year since 2002. VSM MedTech reorganized several years ago as CTF MEG International Services (MISL), and later as CTF MEG Neuro Innovations Inc., and has all the proprietary rights to the CTF MEG system.

3. Market Research (see FAR Part 1 0).

Market Research was conducted and the results of market research are detailed in the attached market research document.

4. Acquisition Type.

This acquisition exceeds $10,000 and not expected to exceed $250,000 and conducted in accordance with FAR Part 13—Simplified Acquisition Procedures.

5. Acquisition Authority. This acquisition is conducted under the authority of the Federal Acquisition Regulations (FAR) Subpart 13.106-1 (b) Soliciting from a single source. (1) For purchases not exceeding the simplified acquisition threshold, contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, or industrial mobilization).

6. Justification Rationale.

Only one source is available:

I hereby determine that the MEG System Service Contract listed herein is available from only one source, and competition is precluded for the reasons indicated below. There are no substitutes available.

This acquisition is restricted to:

CTF MEG Neuro Innovations Inc.

Unit 111, 17 Fawcett Road Coquitlam, BC, V3K 6V2, Canada Contact: Brent Taylor [brent.taylor@ctf.com], 1-866-585-6044

The estimated cost of the required item or service is $190,000 total.

Service Agreement for the CTF Helium Recycler: 8/15/2024-8/14/2025 CTF MEG Core Service Agreement: 9/16/2024 – 9/15/2025

Brand-name or Items peculiar to one manufacturer:

CTF MEG Neuro Innovations Inc. (previously registered as CTF MISL) is the successor company to VSM MedTech and as such holds all the proprietary knowledge of the CTF MEG system as well as the only source of highly specialized and proprietary spare parts.

Because of the proprietary and complex character of the system no other service provider is possible. (While there are other established manufacturers of MEG systems in the world, their MEG designs are substantially different from our CTF system, with no possible interchangeability of parts not to mention lack of proprietary knowledge.)

7. Any other facts supporting the justification.

There is no other source of parts or service for the CTF MEG anywhere in the world.

The director of the MEG Core Facility, Dr. Allison Nugent, is a world recognized MEG expert, has extensive knowledge of this matter, and is in regular communication with other MEG experts who verify this situation.

8. Project Officer Certification. The undersigned program official(s) certifies that the information in support of this justification for the proposed acquisition has been reviewed, is completed and correct to the best of my knowledge and belief and recommends approval.

Allison Nugent

________________________________________________04/26/2024_______ Project Officer Date

9. Contracting Officer Certification. The Contracting Officer certifies that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief the information and/or data provided to support the rationale and recommendation for approval is accurate and complete and in accordance with FAR 13.106-1(b)(1), the facts of this acquisition preclude the use of full and open competition.

Contracting Officer Date

“Source Selection Information – see FAR 2.101 and 3.104”