JA 20-RHCO-P-271 Redacted.pdf

Control No.:

Version – March 2017 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

1. Contracting Activity: Regional Health Contracting Office-Pacific, Health Contracting Branch, Joint Base Lewis-McChord (JBLM), 673 Woodland Square Loop SE, Suite 101, Lacey WA 98503.

2. Description of Action: Madigan (MAMC) Army Medical Center, Joint Base Lewis- McChord Tacoma WA is requesting maintenance and repair service contract for Government owned equipment – Karl Storz Endoscopes and Camera equipment.

Requirement: Repeat (W81K02-17-C-0001) Pricing: Firm-fixed price Funds: DHP, total $ (BASE + OP1)

Name of Intended Contractor: Karl Storz Street Address: 2151 Grand Ave City, State, Zip: El Segundo, CA 90245

Phone: 925-588-1617

3. Description of Supplies/Services: Karl Storz Endoscopes and Camera equipment are currently in MAMC’s inventory and require maintenance, repair and replacement services. The proposed maintenance support agreement includes all labor, replacement parts, shipping costs, operator support training and a comprehensive contract performance analysis per quarter.

Period of Performance: BASE (16 June 2020 – 15 June 2021) Total Value: $249,996 (BASE)

4. Authority Cited: This requirement is for Maintenance and Repair Service as described under authority of the simplified procedures for commercial items at 41 U.S.C. 1901, as implemented by FAR 13.501(a)(1)(ii) Sole Source (Karl Storz) Acquisitions on the equipment located at Madigan Army Medical Center, Tacoma, WA. Sole Source Letter from vendor is attached.

(a) FAR 13.106-1(b)(1)(i): Only one source reasonably available (e.g., urgency, exclusive licensing agreement, brand name or industrial mobilization); OR

(b) FAR 13.106-1(b)(1)(ii): Only one source can provide a portion of the purchase that is a particular brand-name item; OR

(c) FAR 8.405-6(a)(1)(i)(A): An urgent and compelling need exists, and following the procedures would result in unacceptable delays; OR

(d) 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; OR

(e) FAR 8.405-6(a)(1)(i)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order not previously issued under sole-source or limited-sources procedures.

5. Reason for Authority Cited: An endoscope is an illuminated optical instrument that is used to look deep inside the body to examine internal organs, such as the throat or esophagus. Surgical providers at MAMC utilize a variety of endoscopes from several manufacturers in order to visually examine, diagnose, and assist in different surgical procedures. Current Karl Storz service contract (W81K02-17-C-0001) will be expiring on 15 June 2020 and it requires contract renewal to make sure that all Karl Storz endoscopes are in operable condition and the most of maintenance services were repair by replacement and Karl Storz agrees to provide MAMC return credit if there is not enough (less than 80% 0f annual charge) maintenance services per each service term.

6. Efforts to Obtain Competition: There is currently no effort to increase competition because there is only one source capable of meeting the requirement. The service for the maintenance and repair of Karl Storz Endoscopes cannot be procured competitively.

The notice required by FAR 5.201 will be published on Beta.SAM that Karl Storz is the only responsible source for service, repair and maintenance of the Karl Storz Endoscopes owned by the Government.

a. Karl Storz does not provide any training for third party organizations to repair Karl Storz products.

b. Karl Storz endoscopes have an acquisition value between $3000- $10,000 each.

Due to the extensive use, constant cleaning, and handling by clinical staff, the endoscopes break frequently which shortens the endoscope’s projected life cycle.

Storz will not service or repair endoscopes if the endoscope is serviced or repaired by a third party.

7. Actions to Increase Competition: There is no currently effort to increase competition because there is only one source capable of meeting the requirement.

Karl Storz has proprietary rights to the technology and the repair and maintenance of the Karl Storz Endoscopes owned by the Government. As technology becomes available, research will be performed to consider other services/products that meet or exceed the current requirement.

8. Market Research: Market Research has been conducted by Web Searching (Google), GSA and Dynamic Small Business search using NAICS Code: 811219, key word “Karl Storz Scopes”. Results from the research did not provide any businesses that can provide the maintenance services on Karl Storz Endoscopes due to the proprietary right. As a result of Market Research source (1) met the criteria by the requiring activity based on a Sole Source letter from Karl Storz as sole distributor of services. Please see sole Source Letter from Manufacturer.

9. Interested Sources: To date, other than Karl Storz, no other sources can provide service requirement on Karl Storz Endoscopes due to the proprietary right with manufacturer.

10. Other Facts:

a. Procurement History

Previous Contract or Purchase Order Number: W81K02-17-C-0001 or N/A Previously competed? N/A No Yes

Previous authority for less than Full & Open Competition: N/A No Yes

41 U.S.C. 1901, as implemented under Federal Acquisition Regulation 13.501(a) Sole Source Acquisition (Including Brand Name) Under Test Program for Certain Commercial Items and FAR 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

11. Technical / Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

12. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using the following: price analysis cost analysis IGCE audit: other:

13. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.