Endoscopy Maintenance JA Redacted.pdf

Control Number: 24-RHCO-C-174

Controlled Unclassified Information (Source Selection Information - See FAR 2.101 and 3.104-4)

AUG 2022

Reviews

Legal Counsel

Typed Name:

Signature: Date: ___ ___

Command Advocate for Competition

Typed Name: __

Signature: _ Date: __ ______

(Source Selection Information - See FAR 2.101 and 3.104-4)

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

1. Contracting Activity: Medical Readiness Contracting Office-West, Joint Base San Antonio-Ft Sam Houston, Texas

2. Description of Action: Evans Army Community Hospital (EACH), Fort Carson, Colorado has a requirement which is a follow-on to contract No. W81K00-23-P-0240 for Stryker Endoscopy Maintenance Services, utilizing fiscal year 2025, DHP Operations and Maintenance funds.

3. Description of Supplies/Services: Nonpersonal Service contract for Stryker to provide Endoscopy Maintenance Services. The Contractor (Stryker) shall provide Procare Protect/Procare Prevent Maintenance Service Contract to include all resources, labor, travel, transportation, parts, materials, equipment, loaner equipment (as necessary), shipping, software maintenance/upgrades, routine on-site training for personnel on equipment usage, and management necessary to keep the medical equipment in good operating condition and to perform all scheduled and unscheduled maintenance of the equipment.

4. Authority Cited: 41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items.

5. Reason for Authority Cited:

a. The government uses Stryker equipment. Stryker is the original equipment manufacturer (OEM) and is the only company that provides certified maintenance services (listed above) for its Stryker equipment. Stryker uses only original parts for servicing these devices and guarantees their (Stryker) services are only performed by Stryker-trained technicians, who have evidence of current factory training on the specific device being serviced. In order to provide the certified services, which are critical to the Department of Defense mission of providing patient care, a sole source contract with Stryker is required.

b. According to the Stryker, third-party service organizations are not regulated by the FDA. Therefore, any work/services provided by third-party service organizations will not indemnify the government for liability and/or damage caused by products services or repaired by third party vendors. Stryker does not track, verify, certify, or authorize the quality of third-party maintenance and repair services and does not validate that they use OEM parts. Therefore, parts, services and software updates provided a third-party vendor cannot be verified as being compatible with the existing equipment.

(Source Selection Information - See FAR 2.101 and 3.104-4)

c. Therefore, Stryker is the only viable maintenance solution for the government’s Stryker equipment and failure to approve this sole source will have detrimental effects to the mission.

6. Efforts to Obtain Competition: Medical Readiness Contracting Office-West, Joint Base San Antonio-Ft Sam Houston, Texas performed extensive, detailed market research for this requirement to include, posting a Notice of Intent to award this requirement as sole source to Sam.gov from 05 April 2024 to 12 April 2024. One vendor responded with a quote, but they did not provide a capability statement. Additionally, Stryker Corporation has provided a letter stating that Stryker is the only OEM service organization certified to maintain the endoscopy equipment.

7. Actions to Increase Competition: For future actions, the Government will reassess the market for available vendors, including but not limited to, issuing a Sources Sought Notice to determine market availability for brand name, or equal requirements. A Special Notice of Intent for the proposed limited source award will be posted on SAM.gov for which any responsible sources may submit a capability statement, proposal, or quotation which shall be considered by the agency for future requirements. EACH in conjunction with MEDCOM, will continue to evaluate the capabilities of other vendor's services to provide items that are of the best value to the Government. The Government will continue to seek new resources that will satisfy these requirements through continued market research, requests for Statements of Capability, and telephonic inquiries.

8. Market Research: A query using the words “Stryker Endoscopy Maintenance” was conducted on GSA on 1 May 2024 and did not yield any available sources. An additional search was conducted for the suggested source and incumbent contractor, Stryker, LLC. This vendor does not have a GSA contract.

a. The current requirement was awarded to other than small business, Stryker, LLC under NAICS 811210. There is a reasonable expectation the follow-on will not be set aside for small business concerns. Market research has indicated that this requirement will be sole sourced to Stryker, LLC, a large business.

b. Equipment Maintenance is customarily available in the commercial marketplace.

Based on this market research and IAW FAR 10.001(a)(3)(ii), this requirement meets the definition of a commercial items as defined in FAR 2.101(a) “Commercial Item”.

c. Per FAR 19.502-2 a review for small business socioeconomic contracting programs was conducted. A search of the Small Business Administration’s (SBA) Dynamic Business Search (DSBS) using NAICS 811210 and using keyword “Endoscopy Maintenance”, identified zero matches.

d. A review of mandatory sources to include GSA/VA Schedules, in addition to open market and knowledge of the current contract indicate, that Stryker Endoscopy

(Source Selection Information - See FAR 2.101 and 3.104-4)

Maintenance Services is commercial in nature and only available on a sole source basis by Stryker, LLC. Stryker, LLC is the only OEM service organization certified to maintain Stryker Endoscopy machines. The selected NAICS code for this requirement is 811210 with a size standard of $34,000,000.00 and PSC of J065.

e. Based on the information collected during the market research process, this equipment maintenance will be sole sourced to Stryker, LLC IAW FAR Part 13.5.

9. Interested Sources: Stryker, LLC is the only vendor that can support the required services. The Notice of Intent generated one response from Black Olives Company (CAGE: SJUU2). However, they are not an authorized service provider for Stryker.

Stryker, LLC is the only OEM service organization certified to maintain government owned Stryker Endoscopy machines.

10. Other Facts:

a. Procurement history.

(1) W81K00-23-P-0240, POP: 06 December 2023 to 05 December 2024, Contract type: Firm Fixed Price Period of Performance: 06 December 2023 – 05 December 2024 Total Value: $238,799.88

(2) The competitive status of these actions is as follows: W81K00-19-P-0246, POP: 08 June 2019 to 07 June 2020, plus four (4) 12-month options, ending 7 June 2019; and utilized 52-217-8, Option to Extend Services, POP: 08 June 2023 to 05 December 2023.

Contract type: Firm Fixed Price Period of Performance: 8 June 2019 to 5 December 2023

Total Value: $1,136,475.00

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

W81K00-23-P-0240: 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.

W81K00-19-P-0246: 41 USC 1901 as implemented in FAR 13.501(a) (1)(iii), sole-source (including brand name) under the authority of the simplified procedures for certain commercial items.

(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

(Source Selection Information - See FAR 2.101 and 3.104-4) procurement and an explanation of the results. W81K00-23-P-0240: the previous procurement was under SAT and the applicable J&A does not have a paragraph 7.

Contract, W81K00-19-P-0246, was a new requirement, therefore, paragraph 7 was not applicable.

(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. Not applicable

(6) An explanation of any unusual patterns that may be revealed by the history, e.g., several consecutive, urgent buys. Not applicable.

(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. Not applicable.