Blood Products and Testing Justification.pdf

PDF 193 KB Posted

Attached to
Blood Testing Supplies and Services Federal contract opportunity
Solicitation number
HT941025P0069
Issued by
Defense Health Agency

About this file

This document is a Justification and Approval (J&A) for a sole-source firm fixed-price contract for Blood Testing Services and Blood Products. The contract is for the 60th Medical Group at Travis Air Force Base, specifically the David Grant Medical Center, which requires blood-related services to be delivered within one hour of request during the critical "Golden Hour" after an injury. Vitalant, a large business and current incumbent, was determined to be the only vendor capable of meeting these stringent requirements through extensive market research.

The contract is valued at $750,000 total, with a base period and one option period, each valued at $250,000 and $500,000 respectively, from 4/1/2025 to 9/30/2025. The requirement includes 24/7, 365 days per year availability of blood products and testing services within a "Golden Hour" radius. Despite multiple attempts to find competitive sources, including a 30-day full and open competition and a pre-solicitation notice, no alternative vendors were identified. The procurement is being conducted under 41 United States Code 1901, utilizing simplified procedures for commercial items, with Vitalant being the sole source due to their extensive local blood donation center network and ability to meet the specific operational demands.

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CUI

Control Number: FY25-0003

CUI

Source Selection Information - See FAR 2.101 and 3.104-4

2 NOV 2024

5. Rationale Justifying Use of Authority Cited: The David Grant Medical Center (DGMC) requires Blood/Blood Products, delivery of such, and Blood Testing Services to treat patients during an injury or trauma and these must be available to be delivered within one hour of the request. There are a limited number of blood sources available in the local Military Treatment

Facility (MTF) area that can meet this requirement of I hour response. The "Golden Hour" after an injury is the most critical to patient survival and reduces the risk of death or long-term complications. The services are required to be available 24n, 365 Days a Year. Market research consisted of Internet searches, review of internet sources and directories, as well as local directories to determine location of blood supply and testing facilities within a Golden Hour radius of David Grant Medical Center. Internet research and expertise of the Blood/Blood

Product market only revealed one company that could fulfill all these requirements: Vitalant, which is a large business and the current incumbent.

6. Efforts to Obtain Competition: The Streamlined Acquisition Strategy Summary (SASS) for current contract was conducted in 2019. During this SASS, Contract Specialists conducted internet searches, review of mandatory sources and sources sought. Mandatory sources had been reviewed and it was determined they were not capable of fulfilling the requirement. There was no interested small business that could perform this requirement. Sources sought was posted and yielded zero responses. e requirement was posted for 30 Days under full and open competition and only one vendor was identified to meet the needs- Vitalant. This information was recently reviewed and updated to determine that no new vendors have entered the market area that could meet the needs of DGMC.

On 10/16/2024, a pre-solicitation notice (HT941025N0004) was created and publicized. This

Notice of Intent (NOI) to Sole Source was posted to sam.gov from 10/16/2024 - 11/5/2024. No responses were received from any interested vendors.

7. Actions to Increase Competition/Remove or Overcome any Barriers to Competition:

The 60th MDG Lab wil1 continue to research sources that are uniquely qualified to meet the volume, type and time constraint demands of these described services for future potential sources

8. Market Research: Market research consisted of internet searches and review of Google

Maps to determine the location of facilities to ensure that they are within a Golden Hour radius of DGMC. Internet research and expertise of the Blood/Blood Product market revealed one company that could fulfill all of these requirements - Vitalant Health, which is a large business and the current incumbent.

(The Independent Government Cost Estimate pricing is based off of historical 5-Year usage data from the current contract (FA442720C0006). Current Contract had $514k set aside for the initial

2 Years, which dropped to $485k for the last 3 years. Annual usage was reviewed and compared, and it was determined that setting aside $500k per year would be sufficient to cover fluctuating needs. Usage generally remains consistent, but there was a $100k increase in one year compared to the previous year. The $500k accounts for these potential unexpected spikes in usage.

Normally a 3% inflation rate is applied to subsequent Option Years, however this was not necessary as there is sufficient buffer in the baseline cost of $500k to cover any inflation and

Control Number:

Source Selection Information - See FAR 2.101 and 3.104-4

3 NOV 2024

spikes in usage.

9. Other Facts:

a. Procurement History:

(1) Is this a new requirement? No. Previous FA442720C0006

(2) If 9.a.(1) is No, was the action just prior to this one competed? No

(3) If 9.a.(2) is Yes, what has changed where this action cannot be competed? Not applicable.

b. Additional Information: Vitalant Health has the most amount of Blood Donation

Centers within this market area (13 sites within 50 miles), they are also the vendor that DGMC

Blood Bank/Travis AFB uses for its official Blood Drives. Though this doesn't late directly to the services/supplies that DGMC is looking to acquire, this establishes that Vitalant Health has a dominant market presence in this area and has the supplies and the facilities to meet every single requirement listed in the performance Work Statement (PWS). Vitalant Health is also the only blood center that also provides testing and can have services/supplies provided within one hour of request to meet Golden Hour Demands.

10. Interested Sources: Vitalant Health

File details come from the government source that posted it. Updated .