Ft Leonard Wood Canon MRI upgrade JEFO.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY (JEFO)

(1) Defense Logistics Agency (DLA) Troop Support, Medical Supply Chain, Capital Equipment Division, is the contracting activity.

(2) This justification is for the acquisition of items and installation in support of one (1) upgrade to an existing Canon (formerly Toshiba) Vantage Titan Magnetic Resonance Imaging (MRI) system under Canon contract SPE2D1-17-D-0022, which is valid through February 2, 2027.

The requirement is for Fort Leonard Wood, MO.

(3) The total estimated dollar value for this action is $777,553.00.

The part numbers that comprise the order are as follows:

(4) The authority waiving the competition requirements is FAR 16.505(b)(2)(i)(B), only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

The use of this authority is necessary because Fort Leonard Wood has a requirement for a midlife upgrade for the Canon Vantage Titan 1.5T MR. The existing system has been operating since 2012 and the life expectancy of an MRI system is about eighteen (18) years.

The complete upgrade will consist of a combination of hardware and software upgrades as well as new coils. An MRI upgrade consists of stripping the existing unit down to the magnet and replacing all of the hardware that, together with the magnet, make up the MRI system.

The resulting product will be indistiguishable from a new system. The only difference is that the magnet (which still has several years of useful life) remains while the hardware and software surrounding the magnet have been replaced/updated. Specifically a new gantry table will be installed. The unit will get an upgrade to Windows 10 Operating System (a DoD Cybersecurity requirement) and new new coils will be included. The new coils are lower in profile than the original coils. The lower profile coils are more maneuverable than the existing coils to permit better imaging than the existing coils. New 3D flex coils will allow for a greater number of patients able to tolerate studies due to an increase in patient comfort because the new coils will permit imaging from more angles than the existing coils. The

Part Number Unit Price (Each) Manufacturer

TITAN ENCORE UPG.000 351,542.00$ CANON

Installation 217,552.40$ N/A

036 077 5,600.00$ CANON

D500 871 7,907.00$ CANON

MZPT 1510/S3 32,797.00$ CANON

MJAJ 197A/J1 12,692.00$ CANON

MJAJ 217A/S1 19,350.00$ CANON

MJAJ 227A/S1 20,443.00$ CANON

MJCA 207A/S1 5,029.00$ CANON

MJAH 177A/S1 54,661.00$ CANON

MJCG 307A/S1 49,980.00$ CANON

current chilling system will also be repaired which is necessary to resolve current issues with humidity. The upgrade is necessary to bring the system up to the current state of technology which will result in enhanced imaging capabilities of tissue and decrease the scan time required thus providing an improved standard of care. The result will be an increase to the number of studies the unit will be able to perform. Canon is the only known source that can complete the required upgrade because no other manufacturer’s parts and equipment are compatible with the existing Canon Vantage Titan 1.5 MR system. Further, if any vendor other than Canon were to perform work on the existing unit all existing warranties and service contracts would be voided. Canon’s obligation to maintain DoD Cybersecurity requirements would also be voided. This would render the system inoperable because no systems are permitted to run on the DoD system that are not compliant with DoD Cybersecurity.

(5) The required items for the Canon Vantage Titan 1.5T MR upgrade are available on the Canon radiology contract SPE2D1-17-D-0022. The contract pricing has previously been determined fair and reasonable via comparison with commercial pricing and other than cost or pricing data for these items. The Contracting Officer has determined that the anticipated cost will be fair and reasonable, and that the subject procurement represents the best value to the Government.

(6) Market research performed February through March 2020 by both the Army and DLA Troop Support included review of all vendors products under our Radiology and Imaging Systems Program. It was determined that Canon is the only vendor able to fulfill this requirement to upgrade the current Canon Vantage Titan 1.5T MR system. The midlife upgrade brings existing equipment up to current standards in order to support customer clinical needs.

Competition will be performed in the future when the entire MR unit is replaced.

(7) There are no other facts supporting the use of this JEFO.

(8) DLA Troop Support continues to perform market research and add items to the Radiology program contracts in an effort to overcome barriers to competition. When the MR system at Fort Leonard Wood requires replacement, DLA anticipates the acquisition of a new system will be conducted on a full and open competition basis.

(9) As the Contracting Officer, I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge and belief.