JA_19-0047_03252019_(signed)_Redacted.pdf

FOR OFFICIAL USE ONLY - Source Selection Information – See FAR 2.101 and 3.104

DHA PGI 208.405-6, Attachment 1 (06-21-2018)

FOR OFFICIAL USE ONLY - Source Selection Information – See FAR 2.101 and 3.104

Limited Source Justification Federal Acquisition Regulation (FAR) 8.405-6

J&A Tracking No. 19-0047

1. Identification of the agency and contracting activity: The Defense Health Agency, Contracting Office - National Capital Region (CO-NCR), plans to place an order, on a limited source basis, against a General Services Administration (GSA) Federal Supply Schedule (FSS) contract.

2. Nature and/or Description of Action being approved: To place an order, on a limited source basis, against a General Services Administration (GSA) Federal Supply Schedule (FSS) contract. This is a Justification and Approval (J&A) pursuant to Federal Acquisition Regulation (FAR) 8.405-6). Approval is requested for a sole source justification for the Contract Management Planning and Surveillance System (COMPASS) to Standard Technology Inc., 7201 Wisconsin Avenue, Bethesda, MD, 20814-4850.

3. Description of Supplies/Services required to meet the agency’s needs: COMPASS is a common access card (CAC) enabled, one-stop data warehouse, established to manage contracts at the line item level, from award to closure. COMPASS provides a software dashboard and modules that streamlined contract management, data integration, and Contract Labor Review Board (CLRB) workflow modules to automate the CLRB process. The system and service integrated and normalized data from several disparate legacy systems into a single repository, resulting in improved timeliness of contract coordination/approval, better financial forecasting, and identification of potential de-obligation of excess funds.

This procurement is for the Contract Management Planning and Surveillance System (COMPASS).

This purchase will support the Fort Belvoir Community Hospital (FBCH) and will be awarded by the Contracting Activity. The period of performance will be 01 APR 2019 -30 SEPTEMBER 2023.

Funds being used are O&M (Operational and Management). The total estimated value (includes base plus 4 option years) for this effort is $4,320,505.90.

4. This acquisition is conducted under the authority of the Multiple Award Schedule Program, 41 U.S.C. 152(3) and 40 U.S.C. 501, and Regulatory Authority FAR 8.405- 6(a)(1)(i)(B) – Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

5. Rationale Justifying Use of the Regulatory Authority Cited: COMPASS is presently being utilized for contract data management and for the CLRB Process at WRNMMC.

In accordance with FAR 8.406-6 section 10 U.S.C. 2304(c)(1) or 41 U.S.C. 3304(a)(1) the services/supplies required by the FBCH are only available from one responsible source in avoidance of “Unacceptable delays in fulfilling the agency’s requirements” 10 U.S.C.

2304(d)(1)(B). Standard Technology Incorporated (STI), services are fundamental in assuring that FBCH is able to provide services in a timely and orderly fashion to meet the demand and

DHA PGI 208.405-6, Attachment 1 (06-21-2018) standards of the Logistic Department. It is a commercial product that has embedded software developed by Standard Technology Inc. Under the commercial license rights for the technical data and software that COMPASS employs, only Standard Technology Inc., can provide the proprietary software that would be utilized in this logical follow-on contract. Using any other contractor would not be possible because of the limited commercial data rights that the Government received from Standard Technology in the acquisition of the software modules.

6. Determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 8.404(d): There are other small business contractors that can provide contract management software subscription and maintenance. An award to another vendor would result in substantial cost to the government that cannot to be recovered by a competition. COMPASS is being used throughout DHA and has become a standard system for administering and tracking contracts. Additionally, pursuing a new system would cause an extended gap in service. A fair and reasonableness determination will be made by comparing the contractor's proposed pricing to historical contract pricing, in addition to comparing them to other GSA pricing of similar labor categories.

7. Description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted: Technical Data Packages of the kind that contain system specifications, engineering descriptions, statements of work, or purchase descriptions suitable for use in a full and open competition for this requirement would have to include information that is proprietary to Standard Technology Inc.

The following determination is based on the market research conducted by FBCH and the independent market research to corroborate the accuracy of the limited sole source request. The market research process began on 9 JAN 2019 by researching procurement history of prior government contracts, GSA, Internet and contacting Fort Belvoir Community Hospital (FBCH) medical equipment personnel and discussing the requirement with the prospective sole source vendor. The results of this independent market research supported the Requesting Office’s conclusion that, as the manufacturer of the products, only Standard Technology, Inc., which is the proprietary vendor for the Management Planning and Surveillance System (COMPASS) could satisfy the requirement. They own all data associated with the products. This information is proprietary and the items cannot be procured by any entity other than Standard Technology.

Only Standard Technology Inc. (STI Inc.) can provide the services which can meet the Government’s requirements because the requested software is unique in the industry because no other vendor possesses a DIACAP, is CAC enabled and web based, and possesses the ability to receive data via military systems such as SPS, WAWF, iRAPT, and GFEBS.

Standard Technology Inc., (STI Inc.), (CAGE Code 68200), has been identified as a “Small Business” under the relevant NAICS code (511210) and is the sole source provider of the services below:

Perform electronic contract management for healthcare administrative service contract/task order, personnel contracts, Blanket Purchase Agreement, BPAs and other budget departmental functions. COMPASS provides a customized e-CLR electronic workflow module to automate a process currently managed manually.

8. Other Facts:

Technical Data Packages of the kind that contain system specifications, engineering descriptions, statements of work, or purchase descriptions suitable for use in a full and open competition for this requirement would have to include information that is proprietary to Standard Technology Inc. Currently, there is “only” one other company permitted to utilize the authorized proprietary Contract Management Planning and Surveillance System (COMPASS) for these type of services and that is Tecknomic, currently providing services to WRNMMC. There are no alternatives available for competition since the COMPASS system is proprietary to the developing company Standard Technology with only one company authorized to utilize the systems through a partnership agreement; however, the market will be monitored for continued innovations and advancements, prior to entering into another sole source contract for the same services.

I hereby determine that only one source, Standard Technology Inc., is reasonably available to satisfy this requirement and this procurement is in the best interest of the Government.

9. Actions to overcome barriers:

The Requesting Office asked that these items be procured on a sole source basis from Standard Technology, Inc. The sophistication and complexity of the system, along with it critical clinical need in the contract and data management process, requires that this software be provided with continuing support. Competitive comparison of other vendors, who do not have access to Standard Technology Inc. proprietary technical data and software licenses, cannot realistically be done. If FBCH replaces the existing software module in the future, market research will be performed at that time to find as many potential offers possible to compete on the actual hardware and support services.

After reviewing the information provided, the Contract Specialist performed independent market research to corroborate the accuracy of the sole source request by researching procurement history of prior government contracts, GSA, Internet and contacting Fort Belvoir Community Hospital (FBCH) medical equipment personnel and discussing the requirement with the prospective sole source vendor. The results of this independent market research supported the Requesting Office’s conclusion that, as the manufacturer of the products, only Standard Technology, Inc., which is the proprietary vendor for the Management Planning and Surveillance System (COMPASS) could satisfy the requirement. They own all data associated with the products. This information is proprietary and the items cannot be procured by any entity other than Standard Technology.

NOTE: Review/Approval Requirements are based on dollar threshold and whether or not the action is a Bridge Action (see DHA PGI 208.405-6 for details). Delete all informational and instructional text (i.e., italicized text) in final draft, prior to review and coordination.

COORDINATION:

12. Technical/Functional Representative:

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

Date Management Analyst Supervisor, Contract Support Office, FBCH

13. Requirements Certification:

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

[Insert Name of J Director (or designee] Date [Insert title of Responsible J Director, insert J-Directorate Office]

14. Best Value Determination:

I have determined that this contract action represents the best value to the Government and that the anticipated cost to the Government is fair and reasonable, in accordance with FAR 8.404(d).

Date Contracting Officer, Contracting Office - National Capital Region

15. Legal Review:

I have reviewed this justification and have found it to be legally sufficient. (Note: All J&A’s ew.)

Date Office of General Counsel

03/25/2019

Not Applicable

03/25/2019

APPROVAL:

Note: The below approval block(s) shall be moved to “Coordination” above, based on the approval level required (see DHA PGI 208.405-6 for the appropriate approval authority).

Delete signature blocks for higher level authorities that are not required. For example, if the Competition Advocate is the Approval Authority, delete the Head of Contracting Activity and Senior Procurement Executive signature blocks.

16. Contracting Officer: This certification shall be made by the contracting officer who will sign the contract resulting from this justification and approval (J&A). Include the following statement:

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

Date Contracting Officer, Contracting Office - National Capital Region

17. Competition Advocate:

Based on the foregoing justification, I hereby approve the procurement of (state supplies/ services being procured) on a limited or restricted consideration basis pursuant to the authority of Choose an item., subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for acquisition.

Date Competition Advocate (J-4)

18. Head of Contracting Activity (or designee):

Based on the foregoing justification, I hereby approve the procurement of (state supplies/ services being procured) on a limited or restricted consideration basis pursuant to the authority of Choose an item., subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for acquisition.

[Insert Name] Date Head of Contracting Activity (HCA) (J-4)

19. Director of Defense Health Agency, Senior Procurement Executive. (Authority is not delegable, except in the case of the Under Secretary of Defense for Acquisition, Technology, and Logistics, acting as the SPE for the DoD).

03/25/2019

Based on the foregoing justification, I hereby approve the procurement of (state supplies/ services being procured) on a limited or restricted consideration basis pursuant to the authority of Choose an item., subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for acquisition.

[Insert Name] Date Senior Procurement Executive (SPE)