J and A_GatanMaint_REDACTED.pdf
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- Solicitation number
- 75N91023P00448
About this file
This justification document outlines a sole source award for maintenance services on Gatan imaging equipment. The National Cancer Institute intends to award a firm-fixed price contract to Gatan, Inc. for maintenance of one K3 digital camera, one K2 digital camera, and associated instrumentation. The total estimated value is $507,918 over a five-year period from May 2023 to April 2028. Market research found that as the manufacturer of this specialized equipment, Gatan is the only qualified source able to provide proprietary parts, software, and service support.
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3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).
a. Project title.
Maintenance Service for Gatan Imaging Filter (GIF) BioQuantum-K3 and K2 and its Associated Instrumentation
b. Project description.
See accompanying statement of work (SOW) Requirement type.
Research & development (R&D) R & D support services
X Support services (non-R&D) Supplies/equipment Information technology (IT) Construction Architect-engineer (A & E) services Design-build Other (specify): ____________________
Type of action.
New requirement
X Follow-on: 75N91021P00389 Other (specify):
Proposed contract/order type.
X Firm-fixed-price
Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee): __________
Cost-plus-fixed-fee Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee): ___________ Time and materials
Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): ___________ Other (specify): ___________ Completion Form Term form
Acquisition identification number. 75N91023Q00041
c. Total estimated dollar value and performance/delivery period.
The total estimated dollar value for this service, including all option periods, is , with a total performance period of five (5) years. The base period of performance shall be for twelve (12) months, followed by four (4) 12-month option periods as follows:
Base Period May 1, 2023 – April 30, 2024 Option Period 1 May 1, 2024 – April 30, 2025 Option Period 2 May 1, 2025 – April 30, 2026 Option Period 3 May 1, 2026 – April 30, 2027 Option Period 4 May 1, 2027 – April 30, 2028
4. Identification of the statutory authority permitting other than full and open competition.
This acquisition is conducted under FAR 13.106-1 (b)(2), for soliciting from a single source for purchases exceeding the simplified acquisition threshold, which states that the requirements of FAR 13.501(a) apply to sole-source acquisitions of commercial products and commercial services conducted pursuant to subpart FAR 13.5.
5. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.
a. Name and address of the proposed contractor(s).
Gatan, Inc.
5794 W. Las Positas Boulevard Pleasanton, CA 94588
SAM UEID: LB2BZV3NJ847
b. Nature of the acquisition and proposed unique qualifications of the contractor(s).
This acquisition is to acquire continuous maintenance service for the Government-owned Gatan Imaging Filter (GIF) BioQuantum-K3 and K2 and associated instrumentation.
These digital cameras produce ultra-high clarity and low noise images of biological specimen at high magnification. The Gatan K2 and K3 digital camera detect and record electrons instead of light with unprecedented sensitivity and precision.
Gatan, Inc. is the manufacturer and distributor of the Gatan Imaging Filter (GIF) BioQuantum-K3 and K2. The manufacturer does not license third party technicians, and spare or replacement parts for this equipment can only be obtained from the original manufacturer. Thus, no other company or 3rd party provider has trained personnel to work with this complex system or access to any potential required parts that might need replacing over time. In addition, the Gatan Imaging Filter (GIF) BioQuantum-K3 and K2 has a specialized parts that only service engineers at Gatan, Inc. are authorized to handle.
Gatan, Inc. owns the proprietary software needed to provide the required support on these digital cameras. No other vendor has trained personnel to handle the equipment and components of the Gatan Imaging Filter (GIF) BioQuantum-K3 and K2 and associated instrumentation.
Because of the high degree of sensitivity and specificity of the components involved in these digital cameras, only factory-trained service engineers from Gatan, Inc. can perform maintenance and repair, as well as obtaining the necessary parts for replacement, on these instruments. These digital cameras require regular maintenance for proper continuous function. Only the original manufacturer is capable of providing the specialized services and the supplies required to maintain these digital cameras.
6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a SAM.gov Contracting Opportunities notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.
A Pre-Solicitation Notice of Intent to Sole Source was published on SAM.gov Contract Opportunities in accordance with FAR Part 5.2. Pre-solicitation Notice 75N91023Q00041 was posted from 3/9/2023 – 3/20/2023, which received no responses from interested vendors. Therefore, the Pre-solicitation Notice could not demonstrate that a competitive alternative to the manufacturer exists in the commercial marketplace.
7. Determination by the Contracting Officer that the anticipated cost/price to the Government will be fair and reasonable.
The NCI Contract Specialist will consider the Independent Government Estimate and similar purchase order prices as determining factors for price reasonableness. Based on this information, there is no reason to believe that the price will not be fair and reasonable to the Government.
A final determination will be conducted prior to the award of this contract. The contract file will be documented to support the Contracting Officer’s fair and reasonable price determination.
8. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.
Market research was conducted utilizing Required Sources, Federal Supply Schedules, NIH Strategic Sources, Commercial Websites, historical data, and correspondence with industry. The Contracting Officer has determined that only Gatan, Inc. can provide service, maintenance and replacement parts for their digital cameras. Gatan, Inc. is the manufacturer and distributor of the Gatan Imaging Filter (GIF) BioQuantum-K3 and K2 and authorized service on these digital cameras is only available directly through Gatan’s service organization. As such, Gatan, Inc. is considered as a Sole Source for proprietary parts and service on these devices.
The Project Officers conducted market research via internet search engine and their own technical and scientific knowledge of the marketplace. Building on the Project Officers’ work, the Contract Specialist’s market research consisted of: 1) reviewing LCB’s IGE; 2) searching purchases in FPDS-NG over the last 3 years for similar maintenance services, all of which were made to Gatan, the manufacturer; 3) reviewing the most recent previous award (75N91021P00389) and its market research; 4) searching GSA eLibrary;
however, the required services are not available under any GSA Multiple Award Schedules and 5) an internet search with the keywords “maintenance service for Gatan Imaging Filter BioQuantum.” The internet search resulted in Gatan, the manufacturer.
NCI OA has determined that the appropriate NAICS Code is 811210 - Electronic and Precision Equipment Repair and Maintenance
9. Any other facts supporting the use of other than full and open competition.
All facts have been previously stated.
10. Listing of sources, if any, that expressed, in writing, an interest in the acquisition.
As described in section 6 above, the one inquiry received in response to the Pre-Solicitation Notice of Intent to Sole Source did not demonstrate reasonable capability from an interested third-party provider. No other sources have expressed written interest in the proposed acquisition.
11. Statement of actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the required supplies or services.
The Government requires unique maintenance services and propriety supplies from the original source, Gatan, Inc. This vendor provides unique maintenance capabilities for the continued utilization of their highly specialized Gatan Imaging Filter (GIF) BioQuantum- K3 and K2 digital cameras. Subsequent acquisitions for maintenance are anticipated, and the Government will monitor the market to avoid or reduce continued noncompetitive acquisition of this requirement in the future. However, the Government does not expect changes to the current market situation in the foreseeable future, i.e. during the anticipated period of performance of this contract, since propriety software and propriety supplies are, at present, the major barriers to competition.
12. Program office certification.
This is to certify that the portions of this justification that have been developed by the undersigned program office personnel, including supporting information and/or data verifying the Government’s minimum needs, schedule requirements and other rationale for other than full and open competition, are accurate and complete.
13. Contracting Officer certification.
This is to certify that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief the information and/or data provided to support the rationale and recommendation for approval is accurate and complete.
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