Redacted_JA_Sole_Source_FY18_Asutype_Software_(SW)__Finalogcrev9Jan18.pdf

Tracking # 18-00131

SOURCE SELECTION INFORMATION

(See FAR 2.101 and 3.104-4) Page 1 of 6

Justification and Approval for Other than Full and Open Competition Sole Source Acquisition (FAR 6.302-1)

For FY18 Asutype Software (SW) New Purchase - US Army Medical Command (MEDCOM)

Defense Health Agency (DHA)

1. Identification of the agency and contracting activity: Requiring Activity: Defense Health Agency (DHA), Health Information Technology Directorate (J6), LifeCycle Management Service Branch, Asset Management Support Services located at 300 Convent Street, Suite 1800, San Antonio, TX 78205. The contracting activity responsible for this action is Contracting Office-Health Information Technology (CO-HIT), 4130 Stanley Road, Suite 208, JBSA-Fort Sam Houston, TX 78234.

2. Nature and/or description of action being approved: Approval is requested for a follow on contract replacing contract #W81K04-12-C-0009, FANIX Asutype Assurance Software.

MEDCOM G-6 provided funding in the Memorandum of Agreement (MOA) to continue support of the Medical Applications for Provider Satisfaction (MAPS) program for the FANIX Asutype version. The base period of performance will be February 1 2018, through January 31, 2019, with four (4) one (1) year option periods and a six month extension. The base period estimate for the proposed action is $112,200.00. The total estimated value of this effort is $617,100.00.

3. Description of Supplies/Services: The DHA requires procurement of Asutype Software to continue its usage in three applications and Program use. 1. The software is used to provide a simplified version of Voice dictation for medical providers. 2. MEDCOM G-6 provides funding through a Memorandum of Agreement (MOA) for continued support of the Medical Applications for Provider Satisfaction (MAPS) program. And 3. This product is issued to non-medical users who have either permanent or temporary disabilities that prevent them from utilizing a keyboard. The estimated usage is approximately 20,000 users mostly within the clinical areas.

Description Estimated Value

BASE: 2/1/2018 - 1/31/2019

Asutype Software Special Assurance Option 1: 2/1/2019 - 1/31/2020 Asutype Software Special Assurance Option 2: 2/1/2020 - 1/31/2021 Asutype Software Special Assurance Option 3: 2/1/2021 - 1/31/2022 Asutype Software Special Assurance Option 4: 2/1/2022 - 1/31/2023 Asutype Software Special Assurance 6 Months: 2/1/2023 - 8/31/2023 Asutype Software Special Assurance Total Value

(See FAR 2.101 and 3.104-4) Page 2 of 6

4. Statutory Authority Cited permitting other than full: 10 § USC 2304(c) (1) and FAR 6.302-1, “Only One Responsible Source and no other supplies or services will satisfy agency requirements” as implemented by FAR 6.302-1 (a)(2)(iii) (A) – Services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provisions of highly specialized services when it is likely that award to any other source would result in Substantial duplication of cost to the Government that is not expected to be recovered through competition.

This requirement is the sole source follow-on contract to W81K04-12-C-0009 for FANIX Asutype Assurance Software. The period of performance ended 30 June 2017. The contract was awarded to the software developer FANIX SOFTWARE PTY LTD located in Chapel Hill Australia. FANIX is a foreign OCONUS software developer without certified CONUS resellers to which the service can be procured.

Market research performed August 2017 resulted with the understanding that Asutype Assurance Software is not available on General Service Agency (GSA) but was available on NASA SEWP (SEWP) through three contractors. The Request for Quote (RFQ) submitted through NASA SEWP resulted with one bid in the amount of $963,000.00. Procurement of this service through a third party CONUS vendor would increase the cost to the government each year by an additional $62,800.00 with the six month extension at an additional $31,900.00, for a total of $345,900.00 or 56% over the next 66 months.

Asutype Software Special Assurance is the tool used to administer the Medical Applications for Provider Satisfaction (MAPS) Survey. MEDCOM G-6 provides funding through a Memorandum of Agreement (MOA) for continued support of the Medical Applications for Provider Satisfaction (MAPS) program and the Asutype software is cited to be used with the application of the survey. Medical providers use the software as a tool for voice dictation, allowing shortcuts to enter patient information and a medical dictionary for accuracy. A unique application to this software is the ability for Multi-tier configuration. Medical group leaders benefit by sharing information through linking to all computers in their group using the same group preferences. This provides the information to all group users and eliminates the need to put a file to a network drive to share. Asutype Assurance Software is also used by patients with permanent or temporary disabilities that prevent them from utilizing a keyboard. Asutype is the only software with the capabilities mentioned prior.

This requirement will result in a follow-on contract to W81K04-12-C-0009. FANIX will provide the identical product and support during the contract’s period of performance whether the contract was competed or processed as a direct award. Competing this requirement would only result in an award to a third party contractor at a cost that is 56% more than if the contract was awarded to the software developer as a direct award. Service for Asutype software has already been delayed 7 months. If the requirement was competed at this point, the process would be a duplication of effort, services will be interrupted an additional 30 plus days and overall cost would increase an additional $345,900.00 or a 56% increase due to competition. Therefore, award to another other source would result in Substantial duplication of cost to the Government that is not expected to be recovered through competition.

(See FAR 2.101 and 3.104-4) Page 3 of 6

5. Reason for Authority Cited: Currently, Asutype Assurance Software is required for compatibility throughout DHA Networks. This requirement will be a follow-on to contract W81K04-12-C-0009, which expired on 30 June 2017. The developer of the Asutype Assurance Software is FANIX SOFTWARE PTY LTD with a location in Chapel Hill Australia. The software does not have any resellers within the continental United States. The latest market research resulted with three potential sources under NASA SEWP but further inquiry through an RFQ resulted with the understanding that obtaining the software through a third party would cost the Government an additional 345,900.00 or 56% over the 66 month period of performance.

Since the requirement is a follow-on contract for a previously sole source requirement, the requirement will be awarded to the FANIX SOFTWARE PTY LTD, due to no known viable contractors within the continental U.S.

6. Efforts to Obtain Competition: Market research was conducted during the last attempt at procuring this software and the result was that the software was not available through GSA, but could be purchased through a third party contractor under NASA SEWP. Of the three contractors listed as possible resellers for the software, one did not provide a bid, the other did not bid because the manufacturer required payment in full (base plus four) at time of award and the third added an extra $345,900.00 to the original price. The manufacturer does have a U.S partner (Bright Market LLC) located in Santa Barbara, CA. Discussions with Bright Light, lead to the understanding that there role in this process was purely technical support for Asutype software users.

7. Actions to Increase Competition: The requiring activity will continue to monitor the market for this type of service and work with the US Army Medical Command (MEDCOM) G-6. If additional sources are found, they will be included in any subsequent competitive acquisitions.

8. Market Research: Market research was conducted in August 2017 resulting in the following:

a. AbilityOne: The required supplies are not available from this source.

b. GSA: The required supplies are not available from this source.

c. Small Business Opportunities: A Request for Quotes were sent to the three small business resellers on NASA SEWP that provide FANIX products. Quotes indicated that FANIX SOFTWARE authorized resellers can provide the proper software support at substantial cost that would result in an additional increase of approximately $63K per year or 55%.

d. Currently this requirement cannot be segmented to include small business; no other small businesses were identified who could meet the Government’s requirements.

e. Federal Prison Industries, Inc. (Unicor): The required requirement is not available from this source.

9. Other Facts:

a. N/A

b. Historical data: This requirement has existed for the last five year under contract W81K04-12-C-0009 to FANIX SOFTWARE. This is the next proposed award for this

(See FAR 2.101 and 3.104-4) Page 4 of 6 requirement. FANIX SOFTWARE is the only responsible source capable of providing this requirement at the savings of approximately $346K.

Awardee information:

FANIX SOFTWARE PTY LTD

258 Chapel Hill Road Chapel Hill, Brisbane OLD 4069 Australia Cage: ZOKV4

DUNS: 757414258

(1) Authority previously used for less than full and open competition: 10 U.S.C. 2304(c)

(1) and FAR 6.302-1.

(2) An explanation of any unusual patterns which may be revealed by the history, e.g., several consecutive, urgent buys: The quote received were substantial higher than the IGCE proposed and based on that a Limited Source Justification was requested. The prior award contract expired on June 30, 2017 that leaves the doctors without voice dictation services capabilities until this award is in place. The proposed vendor is not changing reinstatement cost for this new award that is requested to start on or before 30 January 2018.

(3) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the buy and whether there have been any significant changes: The prior justification was needed because the awardee is an NON-CONUS contractor and the same conditions exist today.

(a) Efforts to Obtain Competition. There are three known sources (Mercom, New Technology Solutions, and Accessagility) for this software on NASA SEWP. Until those sources or additional sources found can provide the software that is cost effective, the requirement will continue to be a direct award to the manufacturer.

(b) Actions to Increase Competition. Until such time as the industry will accept another software, there are no foreseeable efforts to overcome barriers other than offering the requirement to the manufacturer FANIX SOFTWARE.

(c) Follow-on Order. The Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future actions to be competed.

c. Unusual and compelling urgency. N/A

(See FAR 2.101 and 3.104-4) Page 5 of 6

10. Interested Sources: Include a listing of the sources that have expressed a written interest in the acquisition. Three NASA SEWP contractors (Mercom, New Technology Solutions, and Accessagility) were found through market research.

11. Methods to overcome barriers: The requiring activity will continue to monitor the market for this type of service. If additional sources are found, they will be included in any subsequent competitive acquisitions.

Coordination:

12. Technical/Functional Representative:

I certify that the supporting data under my cognizance which are included in the justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Date: _____________________________

Title: Operational Chief, Lifecycle Man Branch Signature: _________________________

13. Requirements Certification:

I certify that the supporting data under my cognizance which are included in the justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Date: _____________________________

Title: Operational Chief, Lifecycle Man Branch Signature: _________________________

14. Legal Review:

I have reviewed this J&A and it is deemed to be legally sufficient. (Note: All J&A’s must be reviewed by Office of General Counsel (OGC)/Legal Review.)

Typed Name: __________________________ Date: _____________________________

Title: _________________________________ Signature: _________________________

Approval:

(See FAR 2.101 and 3.104-4) Page 6 of 6

15. Contracting Officer: Based on the foregoing justification, I hereby approve the procurement of Asutype Software on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c) (1) pursuant to FAR 6.302-1, subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for acquisition.

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Typed Name: Date: _____________________________

Title: Contracting Officer Signature: _________________________