Sole Source Justification under the SAT.docx

Control Number: FY26-0470

Control Number: FY26-0470

Sole Source Justification (SSJ) for Requirements under the Simplified Acquisition Threshold

1. Identification of the Agency and Contracting Activity: Defense Health Agency (DHA), DHA Contracting Activity (DHACA), Healthcare Contracting Southeast.

2. Description of Action:

☐ New Requirement

# Click or tap here to enter text.

☒ Follow-on Requirement to Contract/Order # FA480021P0003 ☐ Modification against existing Contract/Order and Modification # Click or tap here to enter text.

Contract Type ☒ Fixed Price ☐ Time & Materials/Labor Hours ☐ Cost Reimbursable ☐ Hybrid Click or tap here to enter text.

3. Description of Services or Supplies and Estimated Value: Preventive Maintenance Inspection (PMI) of Draeger Apollo anesthesia equipment is required semi-annually at 633rd Medical Group Langley-Eustis Joint Air Force Base, VA. PMI services include repairs and calibrations. The contractor shall provide all necessary personnel, supervision, Original Equipment Manufacturer (OEM) parts, tools, and supplies necessary to ensure that the equipment performs in accordance with the manufacturer’s conformance standards. The contractor shall provide telephone assistance for correcting equipment operation issues. Service representatives shall have completed OEM certified formal professional training on Apollo anesthesia equipment and shall be receiving continuing OEM certified education annually.

4. Authority:

☒ FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold, only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name, or industrial mobilization).

Or

☐ FAR 8.405-6(a)(1)(A) Urgent and compelling need exists, and following the procedures would result in unacceptable delays.

☐ FAR 8.405-6(a)(1)(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.

☐ FAR 8.405-6(a)(1)(C) In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.

☐ FAR 8.405-6(b)(1) Items peculiar to one manufacturer. A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer.

Or

☐ FAR 16.505(a)(4) Items Peculiar to One Manufacturer☐ FAR 16.505(b)(2)(i)(A) The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

☐ 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.

☐ FAR 16.505(b)(2)(i)(C) The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

☐ FAR 16.505(b)(2)(i)(D) It is necessary to place an order to satisfy a minimum guarantee.

5. Reason for Authority Cited: There is only one responsible source and no other services will satisfy the requirement. Only Draeger technicians are certified by the OEM to service Apollo equipment. Draeger technicians receive continuous specialized training to maintain up to date expertise. The Apollo's longevity is extended and functionality is optimized by strictly following Draeger's strict preventative maintenance and repair guidelines.

a. Explain why the intended Contractor is the only reasonable source who can provide the required supplies or services. Discuss the unique capabilities, expertise, etc. that support the lack of competition: Only Draeger technicians are certified by the OEM to service Apollo equipment. Draeger technicians receive continuous specialized training to maintain up to date expertise. The Apollo's longevity is extended and functionality is optimized by strictly following Draeger's preventative maintenance and repair guidelines. Any deviation from Draeger protocols could lead to premature wear, decreased reliability, and potential device failure. Draeger confirmed that only their technicians are Draeger certified to service the Apollo. There are biomedical engineering training classes that third parties can attend (non-certified) to learn Apollo maintenance, but the courses would not teach strict OEM protocol and once completed Draeger would not be measuring technician competency, tracking their level of expertise, or providing them continuous training. The Government requires the maintenance service to be performed exactly as prescribed by the OEM for the equipment to last as long as possible and function optimally. Only Draeger can fulfill the requirement.

b. Describe the detrimental effects/serious injury to the mission of the requiring activity or to the Government, financial or otherwise, that will result if this SSJ is not approved, and the product or service cannot be provided by the intended sole source Contractor: Any deviation from Draeger maintenance and repair protocols could lead to premature wear, decreased reliability, and potential device failure. The continuous availability of optimally performing anesthesia machines is critical for medical services provided at 633rd Medical Group. Delays of medical procedures could result if machines are not functioning. Increased costs to the Government would result if the lifespan of the machines is reduced.

c. For a brand-name restriction – Not Applicable

d. For a logical follow-on restriction – Not Applicable

6. Market Research: Market research was performed by Jennifer Cross (Contracting Officer’s Representative at 633rd Medical Group) and Justin Robertson (Contract Specialist for Healthcare Contracting Southeast) from 1 October 2025 through 24 November 2025. Market research techniques including discussions with contractors, review of recent contracts, contacting knowledgeable individuals in the Government, searching the federal supply schedule, and internet searches were conducted. Market research showed that multiple contractors provide maintenance service for Draeger Apollo anesthesia machines. Agiliti Health and Heartland claim that their technicians are certified for service of the Apollo anesthesia machine. However, Draeger confirmed that only their technicians are Draeger certified to service the Apollo. There are biomedical engineering training classes that third parties can attend (non-certified) to learn Apollo maintenance, but the courses would not teach strict OEM protocol and once completed Draeger would not be measuring technician competency, tracking their level of expertise, or providing them continuous training. The Government requires the maintenance service to be performed exactly as prescribed by the OEM for the equipment to last as long as possible and function optimally. Market research showed that only Draeger can fulfill the requirement.

7. Other Facts:

a. Procurement History:

(1) Is this a new requirement? No.

(2) If 7.a.(1) is No, was the action just prior to this one competed? No. Services were previously fulfilled under firm fixed price non personal services contract FA480021P0003, held by Draeger, Inc. (UEI: M835NJ4FS8T9), 3135 Quarry Rd, Telford, PA 18969-0142, which ended 18 October 2025. The contract had a one-year base period (19 October 2020 – 18 October 2021) and four one-year option periods ending 18 October 2025. The total price was $72,202.50. The contract was awarded on a sole source basis with no set aside restrictions under NAICS 811219. Draeger was found to be the only contractor capable to perform the services.

(3) If 7.a.(2) is Yes, what has changed where this action cannot be competed? Not Applicable.

b. Additional Information: No additional information is necessary.

8. Technical Certification:

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

MSgt. Christopher Sarchioto Healthcare Technology Manager 633rd Medical Group Langley-Eustis Air Force Base

9. Requirements Certification:

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

MSgt. Christopher Sarchioto Healthcare Technology Manager 633rd Medical Group Langley-Eustis Air Force Base

10. Fair and Reasonable Cost Determination: This determination shall be made by the Contracting Officer who will sign the contract resulting from this SSJ.

I hereby determine the anticipated cost to the Government for this contract action will be fair and reasonable.

Basis for Determination: Price reasonableness will be based on market research; comparison of the proposed price with prices found reasonable on previous purchases; a comparison with similar items in a related industry; and comparison to an independent Government estimate.

Karl Molina Contracting Officer Healthcare Contracting Southeast

11. Contracting Officer Determination: This determination shall be made by the Contracting Officer who will sign the contract or modification resulting from this SSJ.

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

Karl Molina Contracting Officer Healthcare Contracting Southeast

Source Selection Information - See FAR 2.101 and 3.104-4

NOV 2024

Source Selection Information - See FAR 2.101 and 3.104-4

NOV 2024