JA-24-0199_CAD.CAM-Maintenance_Redacted_15Nov24.pdf

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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: Maintenance services for Dental Computer-Aided Design and Computer-Aided Manufacturing (CAD/CAM) equipment J&A Number: JA-24-0199 Created By: Additional POCs:

1. Identification of the agency and contracting activity:

Tidewater Contracting Division

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

new contract

This contract will be a follow-on to contract N6264518C4006, a sole-source award to Sirona Dental Systems LLC (Sirona), which expires 14 December 2024. The contract will continue providing required maintenance and service for designated, Government-owned Dental Computer-Aided Design and Manufacturing (CAD/CAM) Device and milling equipment at over 200 Navy dental clinics in the Continental United States (CONUS) and Outside the Continental United States (OCONUS).

3. Description of Supplies/ Services:

Preventive maintenance and inspections, corrective maintenance tasks, and unlimited emergency responses by the Contractor for 363 medical devices including but not limited to Cerec MCXL Premium Milling Unit, Inlab MC XL, and Cerec AC Omnicam. Services are provided to more than 200 Naval Dental Clinics located both in CONUS and OCONUS. Complete inventory of equipment and service locations is included in the Performance Work Statement (PWS). All maintenance provisions shall apply to hardware, firmware, and software, as appropriate within the Original Equipment Manufacturer’s (OEM) specifications.

TOTAL Contract Value

POP: From 12/15/2024 to 6/14/2027

Estimated Value

BASE

POP: From 12/15/2024 to 12/14/2025

Estimated Value

Type of Contract (Primary):

FAR 16.202 Firm-Fixed-Price

Options: Yes

Number of Options:

POP (All options): From

Estimated Value (all options):

12/15/2025 to 12/14/2026

Funding Type:

Operations & Maintenance (O&M)

Extension of Services: Yes

Clause: FAR 52.217-8

Estimated Value:

Number of Months: 6

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

41 U.S.C. 1901 Simplified Acquisition Procedures

The regulatory authority permitting other than full and open competition for this acquisition is FAR 13.106 - 1 (b) Single Source

5. Rationale Justifying Use of the Statutory Authority Cited:

The need for a sole source award can be confirmed using the equipment list which is maintained by the Contracting Officer Representative (COR) assigned. Sirona is the manufacturer of all of the equipment that requires maintenance and service. Information therein, coupledwith the manufacturer's proprietary intellectual property and technical support personnel with access to proprietary rights, heightens the need for a sole source requirement. The much-needed government service requirement is heavily hinged on software updates (proprietary property of the manufacturer), an essential factor that makes the deliverables as outlined in the PWS possible.The time and cost associated with acquiring new dental equipment, for over two hundred (+200) dental clinics located CONUS and OCONUS and providing training on new equipment would not be recouped through the benefits of an open competition. The two possible sources listed as potential sources are Sirona designated distributors authorized only to sell the equipment. The service portion as it relates to the PWS requirements is reserved exclusively to Sirona.

6. Efforts to Obtain Competition:

Historically, no other business has been able to meet the requirement, and current Market Research does not indicate any new businesses capable of providing these services. All future requirements will be handled on a case-by-case basis with an emphasis on competition based solicitations. A Notice of Intent to Sole Source to Sirona was posted to SAM.gov on 24 October 2023 for fifteen (15) days and received no challenges. Due to a delay in awarding of a new follow-on contract, all market research was refreshed including the Pre-solicitation Notice of Intent to Sole Source which was posted on 9 August 2024 and has received no responses to date.

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

The DHA Contracting Officer will determine, using the procedures in FAR 13.106-3(a), that the prices are fair and reasonable and will document such determination with a level of detail commensurate with the complexity and circumstances of the the contract. Basis for a fair and reasonable determination will be comparison of the proposed price with prices found reasonable on previous purchases.

8. Market Research:

Market Research Conducted? Yes When was it conducted? 7/6/2023 to 6/26/2024 Description:

Indepth Market Research was conducted for this enterprise-wide requirement covering over 200 dental clinics located both CONUS & OConus. The research included meetings with other Government offices, review of past contracts, searching business search engines, and reviewing generally available product literature. Included in the Market Research is a sole-source letter received from the vendor Sirona Dental confirm the requirement for OEM maintenance and software upgrades services. A Notice of Intent to Sole Source has been posted to SAM.gov to further confirm no other source is available. The research was then refreshed in June 2024. See Market Research Memo attachment for further details.

9. Other Facts:

The two possible sources listed as potential sources in the Market Research Memo are Sirona designated distributors authorized only to sell the equipment. The service portion as it relates to the PWS requirements is reserved exclusively to Sirona.

10. Interested Sources:

None

11. Actions to overcome barriers:

All future requirements will be handled on a case-by-case basis with an emphasis on competition based solicitations.

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:

Approved: 9 Aug 2024, 12:24:47 Comments: None

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:

J-Directorate Office:

Approved: Aug 2024, 12:25:10 Comments: None

14. Fair and Reasonable Cost Determination:

See Section 7 for the fair and reasonable price determination . Certified cost and pricing data is not required for commercial products and commercial services.

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

Name: Title: Contracting Officer, Tidewater Contracting Division

Approved: 9 Aug 2024, 13:45:03 Comments:

Title: Office of General Counsel

15. Legal Review:

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

Name: DHA GEN COUNSEL (USA)

Approved: DHA GEN COUNSEL (USA) - 9 Aug 2024, 15:33:22 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, Tidewater Contracting Division

Approved: 9 Aug 2024, 13:45:08 Comments:

17. Competition Advocate: Based on the foregoing justification, I hereby approve the procurement of Maintenance services for Dental Computer-Aided Design and Computer-Aided Manufacturing (CAD/CAM) equipment 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.

Approved: DHA - 20 Aug 2024, 12:00:57 Comments:

Attachments Market Research Memorandum_DRAFT_Aug24.docx Delete

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