J A_MORU_Redacted.pdf

Defense Threat Reduction Agency and

United States Strategic Command

Center for Combating Weapons of Mass Destruction

8725 John J. Kingman Road, Stop 6201

Fort Belvoir, VA 22060-6201

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Nature and/or Description of Action

The Defense Threat Reduction Agency (DTRA) contracting activity proposes to execute a sole source contract on behalf of the Cooperative Biological

Engagement Program (CBEP), of the Cooperative Threat Reduction Program

(CTR), with The Oxford University (Oxford) without using full and open competition. In this instance, Oxford is acting in Trust with Mahidol University in

Thailand as the Mahidol Oxford Tropical Medicine Research Unit (MORU)). This effort, entitled “Provision of Additional Laboratory Capacity in Thailand and

Cambodia” will increase the capability of the Kingdom of Thailand to detect pathogens, provide disease surveillance, and respond to outbreaks. The enhanced capability of Thailand to detect, track, and share information on, pathogens with economic and security implications, such as anthrax and avian influenza, will directly benefit the United States. This project will also focus on strengthening

Cambodia laboratory capacity in biosafety through training of staff and mentoring of technicians.

The Period of Performance for this effort is 18 months; the estimated dollar value is $603,000.00

2. Description of the Supplies/Services Required

MORU was established in 1979 and is a collaboration between Mahidol

University, in Thailand, and the University of Oxford, in England. MORU’s primary mission is to fight infectious tropical diseases affecting rural communities in Asia and elsewhere in the developing world.

The purpose of this contract is to provide equipment to two laboratories within

Thailand and one located in Cambodia. These include the National Institute of

Health (NIH) and the National Institute of Animal Health (NIAH) in Thailand, and the National Institute of Public Health (NIPH) in Cambodia. This task includes purchasing and installing the equipment along with providing for applicable training and warranty/service support. This contract will also include training and mentoring of Cambodian staff and technicians in biosafety and biosafety cabinet certification. This contract include two Optional tasks including; biosafety cabinet certifier mentoring in Laos and an Option to provide for VAT costs if required.

Enhancing this capability directly aligns with CBEP’s stated mission to address global health security threats by working with partner nations and other stakeholders to improve biosafety, biosecurity, and disease surveillance for emerging pathogens that may cause Public Health Emergencies of International

Concern (PHEIC).

3. Statutory Authority

The statutory authority for this non-competitive action is derived from 10 United

States Code (U.S.C.) 2304(c)(1), as implemented by FAR 6.302-1, Only One

Responsible Source. This Statute further provides that in the case of Department of Defense (DoD) procurements a sole source may be justified when there is more than one, but still a limited number of sources, with unique capabilities.

4. Applicability of Authority

Pursuant to FAR 6.302-1, Only One Responsible Source and no other supplies or services will satisfy agency requirements.

MORU is the only known performer with the following attributes:

1. An existing exemption for payment of Import Duties in Thailand.

2. Established formal relationship with the subject laboratories.

3. Proven expertise in Bio-Safety Cabinet and Bio-Safety training and certification.

1. As the CBEP program expands in Southeast Asia one of the biggest hurdles has been the lack of exemptions for paying Value Added Tax (VAT) and Import

Duties. CBEP policy is to avoid incurring these costs in countries which lack exemption agreements. There is no exemption available to CBEP in Thailand and the timeframe for obtaining one uncertain with no guarantees. MORU has a unique ability to procure and receive equipment in Thailand without paying Thai import duties. MORU has this exemption through their agreement with the

Southeast Asian Ministers of Education Organization (SEAMEO). Given the policy of CBEP to not pay VAT on assistance provided to partner nations, MORU provides the simplest solution to comply with this programmatic mandate. This greatly reduces the time and effort that would be required to try and negotiate tax exemption through several Thailand Ministries.

2. MORU is an established organization with long standing relationships with the subject Thai Government, Laboratories, U.S. Government Agencies, and

International Organizations operating in Thailand. This includes having personnel co-located in the Thai laboratories. No known contractor could leverage such relationships immediately to support CBEP.

3. MORU maintains the expertise in Biosafety Cabinet Certification and Biosafety training and mentoring. MORU is currently performing these same activities so they possess the experience necessary and have established relationships with the current students. MORU is also engaged with the Cambodian Ministry of Health in developing national biosafety guidelines and providing subject matter expertise support for laboratory biosafety. Mentors capable of providing hands on support to trainees in biosafety cabinet testing and repair are in short supply. Furthermore, there are only a few companies within the region that perform such work, and it is cost prohibitive. The same work can be achieved by MORU for less cost, and at the same time providing sustainability by using an organization based in Bangkok with ties to the healthcare and laboratory systems.

In addition to the above, Oxford has proven to be a cost-efficient, non-profit performer for DTRA with minimal overhead and operating costs.

5. Effort to Solicit Potential Sources

No effort was made to solicit other potential sources. A specific performer for this effort has been identified by DTRA, and associated international organizations and experts in epidemiology.

Per FAR 5.202 no synopsis was posted or required since this action is by a

Department of Defense agency, made and performed outside the United States, with a foreign entity as the performer. MORU has an exemption from paying

Import Duties in Thailand which no known commercial entity has, a unique, long-standing relationship with the recipient laboratories, and proven expertise in bio-safety cabinet certification and mentoring.

6. Fair and Reasonable Costs

The estimated price of this contract action is $603,000.00 for 18 months of performance. The final price of this action will be determined to be fair and reasonable based on the Independent Government Estimate (IGCE) and in-country price analysis during a planned Cooperative Proposal Development (CPD) with

MORU. The Contracting Officer has preliminarily concluded that contract negotiations will lead to a fair and reasonable price and their signature on the resultant document will constitute the determination required by FAR 6.303-

2(a)(7).

7. Market Research

In accordance with FAR Part 10, market research has been conducted for this acquisition. The research sources used consisted of prior acquisition information, a review of internet resources, and interviews with experts in the field. This research found no sources capable of reasonably meeting this requirement other than MORU. While commercial entities exist which could fill this requirement doing so would be grossly inefficient. Given the relatively low cost of this effort, using any other source would result in substantial additional/duplicative costs which would not be recovered through competition.

8. Other Facts

Per FAR 5.202 no synopsis was posted or required since this action is by a

Department of Defense agency, made and performed outside the United States, with a foreign entity as the performer.

9. Interested Sources

There are no other known sources capable of reasonably fulfilling this requirement as efficiently and effectively as MORU based on the unique position, background, and experience of MORU.

10. Subsequent Actions

As the DTRA CBEP project in Thailand evolves, the Program Manager will continue to assess the role of MORU. The effectiveness of MORU in furthering

CBEP’s mission to address global health security threats will be evaluated prior to any decisions regarding a follow on effort.