JA 26-MRCO-PACIFIC-42 Redacted.pdf
PDF 1 MB Posted
- Solicitation number
- W81K0226PA011
- Issued by
-
Department of the Army Medical Command
About this file
This is a Justification Review Document for other than full and open competition under FAR Part 12. The document supports approval to award a sole source contract to Siemens Healthineers Ltd. for preventive maintenance and repair services for Siemens CT and X-Ray systems at Brian D. Allgood Army Community Hospital (BDAACH), Camp Humphreys, Korea. The estimated contract value is approximately $2.1 million for a five-year period (base year plus four one-year options) spanning September 1, 2026, through February 29, 2032. The contract will be firm-fixed-priced (FFP) and fully funded using Fiscal Year 26 Direct Healthcare Provider (DHP) funds.
The justification documents that Siemens Healthineers Ltd. is the exclusive distributor and service provider authorized by Siemens in South Korea with sole access to proprietary software, licenses, and patents necessary to maintain and validate the equipment. Market research conducted by the contracting officer identified no alternative sources capable of providing these specialized services; vendors contacted included GE Healthcare Korea, Philips Electronics Korea, and several others, none of which responded with capability statements or indicated ability to service Siemens systems in Korea. The document establishes that competition is not available and that without these maintenance services, the hospital's ability to perform necessary CT and X-Ray scans would be severely compromised, impacting patient care and soldier readiness. The Medical Regional Contracting Office–Pacific (MRCO-P) at Fort Shafter, Hawaii is the contracting activity, and the justification was prepared January 20, 2026, with legal counsel and contracting officer approval on January 21, 2026.
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CUI//SP-PROCURE
Control Number: 26-MRCO-PACIFIC-42
CUI//SP-PROCURE
JUNE 2025
JUSTIFICATION REVIEW DOCUMENT
Justification For Other than Full and Open Competition IAW FAR Part 12
Program/Equipment: Preventive Maintenance and Repair Services for Siemens CT System and Siemens X-Ray Systems at Brian D. Allgood Army Community Hospital (BDAACH), Camp Humphreys, Korea
Authority: Title 41 United States Code (U.S.C.) §1901 as implemented in Federal Acquisition Regulation (FAR) 12.102(b), restricting competition for acquisitions valued over the SAT.
Amount:
Prepared by: Phone:
Biomedical Engineer, BDAACH Date: 20 January 2026 E-mail:
Contracting Officer: Phone:
Contracting Officer Date: 21 January 2026 E-mail:
Technical: Phone:
NCOIC Medical Maintenance BDAACH Date: 20 January 2026 E-mail:
Requirements: Phone:
Chief EMB, Logistics, BDAACH Date: 20 January 2026 E-mail:
Controlled by: USAHCA Controlled by: MRCO-P
CUI Category: PROCURE
LDC: FED ONLY POC:
CUI//SP-PROCURE
JUNE 2025
Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.
Legal Counsel:
Phone:
Attorney, Office of General Counsel E-mail:
CUI//SP-PROCURE
JUNE 2025
the instruments, no other known sources are authorized or possess the knowledge necessary to maintain and validate the CT System.
1) This is not a justification for a follow-on contract for the continued development or production of a major system, highly specialized equipment, or major components thereof.
2) This is not justification for a brand name or brand name equivalent requirement.
b. Alternatives: There are no acceptable alternatives to approving this justification and contracting without providing for full and open competition. There is no other SIEMENS distributor and service provider in the territory of South Korea.
Siemens Healthineers Ltd. is the only source; therefore, the requirement is not available for competition. The current contract will expire on 31 August 2026.
c. Impact if not approved: Without these preventive maintenance services, BDAACH’s ability to perform necessary CT and X-Ray scans would cause unacceptable delays or stop altogether, severely impacting patient care and soldier readiness.
b. Efforts to Obtain Competition: The contracting officer has published the notices required by FAR Part 5 and any bids or proposals received shall be considered.
a. Effective competition: Siemens Healthineers Ltd. is the exclusive distributor and service provider in the territory of South Korea. No other companies have the software rights or are authorized by SIEMENS to work on their systems.
b. Subcontracting competition: Siemens Healthineers Ltd. is the exclusive distributor and service provider in the territory of South Korea. No other companies have the software rights or are authorized by SIEMENS to work on their systems. After considering this information, the Contracting Officer has determined that subcontracting possibilities do not exist for this requirement in accordance with FAR 19.109(c).
8. Actions to Increase Competition: This action is a follow-on to contract W81K0221P0119. Under the previous Justification and Approval (Control No. 21- RHCO-P-428) the paragraph, “Actions to Increase Competition” stated: “Ongoing market research will be performed to determine if alternative sources of this service become available.” Those actions were accomplished; the list of the vendors contacted is as follows:
GE Healthcare Korea. –416, Hangang-daero Jung-Gu, Seoul,Korea POC: Mr. Kwak, Jang Jun, +82-2-6201-3430
Philips Electronics Korea – 30 2-gil Sowol-ro Jung-gu, Seoul, Korea POC: Mr. Kwon, Soo ll, +82-80-373-7777
CUI//SP-PROCURE
JUNE 2025
6) An explanation of protests received, if applicable, and actions taken in response to the protest.
No protests were received.
b. Other facts.
None.
CUI//SP-PROCURE
JUNE 2025
Approval
Based on the foregoing justification, I hereby approve the procurement of Preventive Maintenance and Repair Services for Siemens CT System and Siemens X-Ray Systems at Brian D. Allgood Army Community Hospital (BDAACH), Camp Humphreys, Korea on an other than full and open competition basis pursuant to the authority of Title 41 U.S.C. §1901 as implemented in FAR 12.102(b), restricting competition for acquisitions valued over the SAT. The estimated value of follow-on contract is for a five-year (base and four one-year options to include FAR 52.217-8) period of performance from 1 September 2026 through 29 February 2032. The approval is subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for this acquisition.
Advocate for Competition
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