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This justification and approval document outlines a sole source award for preventive maintenance and repair services for Steris sterilization equipment located at Naval hospitals in Okinawa and Yokosuka, Japan. The Defense Health Agency plans to award a firm-fixed-price contract to Steris Corporation for services from September 2023 through August 2028, with four option years. Steris is the only authorized provider of maintenance for this proprietary equipment. Market research found no other qualified sources. The anticipated $5 million contract value was determined fair and reasonable based on previous pricing.

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8/29/23, 9:38 AM JA -

https://info.health.mil/sites/DOP/PAC/Lists/JA/ApprovedView.aspx?ID=874&source=https://info.health.mil/sites/DOP/PAC/SitePages/JA/MyForms.aspx 1/3

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

Justification and Approval (J&A) for Federal Acquisition Regulation (FAR) Subpart 13.5

Other than Full and Open Competition Sole Source Acquisition

Title: Steris Preventive Maintenance - Okinawa & Yokosuka, Japan J&A Number: JA-23-0249

Created By: Nerida, Adrian M CIV DHA DHA CONTRACTING ACT (USA) Additional POCs:

1. Identification of the agency and contracting activity:

San Diego Contracting Division

2. Nature and/or Description of Action being Approved:

new contract

3. Description of Supplies/ Services:

NH Yokosuka and Okinawa, the customers, requests procurement of a service maintenance agreement on Steris Government-owned Sterilizers and Washers equipment. The contractor shall provide all tools, parts, labor, and non-personal services necessary for the preventive maintenance, calibration, and repair the Government-owned Steris equipment (Sterilizers and Washers). Contractor will service and maintain the equipment within the original equipment manufacturers (OEM) specifications, in accordance with the US and Local laws and regulations and meeting Joint Commission requirements.

TOTAL Contract Value

POP: From 9/1/2023 to 8/31/2028

Estimated Value

BASE

POP: From 9/1/2023 to 8/31/2024

Estimated Value

Type of Contract (Primary):

FAR 16.202 Firm-Fixed-Price

Options: Yes

Number of Options: 4

POP (All options): From 9/1/2024 to 8/31/2028

Estimated Value (all options):

Funding Type:

Operations & Maintenance (O&M)

Extension of Services: No

Clause:

Estimated Value:

Number of Months:

DHA HEALTH.MIL TRICARE DHHQ

Administrator

Health Affairs DHA Director of Staff Health Care Administration Support/CAE Locations Services DHA Markets Accessibility Get Connected!

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4. Statutory Authority Cited permitting other than full and open competition:

41 U.S.C. 1901 Simplified Acquisition Procedures

5. Rationale Justifying Use of the Statutory Authority Cited:

Based on market research, it has been determined that Steris is the only source interested and capable of providing preventive maintenance on the Steris Sterilizers and Washers equipment. The training and equipment needed to service the existing Steris equipment is proprietary to this manufacturer, and only Steris trained Field Service Engineers can work on the equipment. Steris does not offer these services through distributors or any subcontractors.

6. Efforts to Obtain Competition:

Based on the analysis of the market research completed, only one (1) vendor, Steris, was found capable of meeting the Government's requirements. Market research was conducted by technical experts in May 2023. This research consisted of reviews of similar previous procurements, using search engines to review open market contractors. After speaking with Steris directly, it was concluded that they are the only authorized company to support our current Steris Sterilizers and Washers equipment. A Notice of Intent (NOI) to Sole Source was posted on Sam.gov from 20 June 2023 to 13 July 2023. No additional sources submitted capabilities statements for the Government consideration.

7. Determination that Anticipated Cost to the Government will be Fair and Reasonable:

In accordance with the basis for award procedures at FAR 13.106-3, the Contracting Officer will utilize a comparison of the proposed price with prices found reasonable on previous purchases and a comparison of the price to the independent Government estimate provided by the requiring activity to determine the vendor's quoted price fair and reasonable.

8. Market Research:

Market Research Conducted? Yes When was it conducted? 5/11/2023 to 7/13/2023 Description:

Market research was first conducted through the mandatory Government sources but yielded no results for Steris preventive maintenance. Further research consisted of reviews of similar previous procurements and using search engines to review open market contractors. Search engines and websites utilized include Google, FPDS-NG, Ability One, Unicor, Dynamic Small Business Search, GSA Advantage, GSA Xcess, ECAT, Medical Master Catalog, Defense Logistics Agency, and Department of Veterans Affairs. Based on the market research conducted, no other vendors were identified as capable of meeting the Government's requirements besides Steris.

9. Other Facts:

None

10. Interested Sources:

The only interested source is Steris.

11. Actions to overcome barriers:

Naval Hospital's Okinawa and Yokosuka and the DHA Western Markets Contracting Division will continue to survey and engage the market of Steris preventive maintenance and consider competing future requirements if there are other vendors capable of meeting the requirements and interested in providing the required services.

Coordination & Approval

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.

Name: Title: BIOMED LPO

Approved: - 20 Jul 2023, 08:48:48

Comments: Please add the following personnel for awareness: - Department Head - Department LPO

- Biomedical LPO

13. Requirements Certification:

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

Name: Title: DLCPO

J-Directorate Office:

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CONTACT US: Web & Mobile Technology PMO | No FEAR Act | Accessibility/Section 508

CONTACT GSC: 800-600-9332 or Visit the Global Service Center site here: https://gsc.health.mil/

Approved: Delapena, Arnold V HMC - 24 Jul 2023, 07:43:16

Comments:

14. Fair and Reasonable Cost Determination:

I have determined that the anticipated cost to the Government for this contract action is fair and reasonable.

Name: Title: Contracting Officer, San Diego Contracting Division

Approved: - 24 Jul 2023, 07:47:18

Comments:

15. Legal Review:

I have reviewed this justification and have found it to be legally sufficient.

Name: Title: Office of General Counsel

Approved: 21 Jul 2023, 10:58:12

Comments:

16. Contracting Officer:

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

Name: Title: Contracting Officer, San Diego Contracting Division

Approved: - 24 Jul 2023, 09:08:18

Comments:

17. Competition Advocate: Based on the foregoing justification, I hereby approve the procurement of Steris Preventive Maintenance - Okinawa & Yokosuka, Japan on an other than full and open competition basis pursuant to the authority of 41 U.S.C. 1901 Simplified Acquisition Procedures, subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for acquisition.

Name: Title: Competition Advocate (DAD-P&C)

Approved: - 26 Jul 2023, 13:28:49

Comments:

Attachments PGI_213.5_JA.pdf Delete

Version: 120.0 Created at 7/19/2023 4:06 PM by Nerida, Adrian M CIV DHA DHA CONTRACTING ACT (USA) Last modified at 7/26/2023 1:29 PM by Workflow on behalf of

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