JA Modified for FAR Part 13.501 - NHGA Gas 051925_Competition Advocate.pdf

CUI

Source Selection Information - See FAR 2.101 and 3.104-4

1 NOV 2024

Controlled by: Defense Health Agency (DHA) Controlled by: Healthcare Contracting Division – West (HCD-W) CUI Category(ies): Source Selection Limited Dissemination Control: FEDCON POC: Tracy Robinson, tracy.m.robinson18.civ@health.mil

Justification and Approval (J&A) Modified for Federal Acquisition Regulation (FAR) 13.501

1. Identification of the Agency and Contracting Activity:

This justification is executed by the Defense Health Agency Contracting Activity (DHACA), Healthcare Contracting Division – West (HCD-W), San Diego, CA, to meet the requirements of Naval Hospital (NH) Guam and Naval Medical Branch Clinic, Naval Dental Branch Clinic and Naval Dive Locker.

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

DHACA, HCD-W intends to award a firm-fixed purchase order for base plus four option year for medical gas in accordance with FAR 13.501(a).

3. Description of Supplies/Services:

NH Guam requires a comprehensive supply of medical-grade gases and solids, along with delivery and pick-up services to the following locations: U.S. Naval Hospital Guam; Naval Medical Branch Clinic;

Naval Dental Branch Clinic; Naval Dive Locker.

The required products include compressed Medical Air USP, Oxygen USP, Carbon Dioxide USP, Nitrogen NF, Nitrous Oxide USP, Helium USP, Lung Diffusion Mixtures, Liquid Oxygen, and Dry Ice.

In addition to supplying these materials, the contractor will be responsible for providing related services such as contingency/emergency procedures, cylinder maintenance (including caps, cylinders, safety features, tags, hydrostatic testing, painting, stenciling, and cleaning), and all necessary supporting equipment.

Below is the required product list:

Description Unit of Issue Quantity

Liquid Oxygen Gallon 13,348

Oxygen, Medical 114CH Cylinder 10 mailto:tracy.m.robinson18.civ@health.mil

Control Number: FY25-0143

CUI

2 NOV 2024

Oxygen, Medical 13CF Cylinder 270

Oxygen, Medical 22CF Cylinder 20

Oxygen, Medical 200CF Cylinder 46

Carbon Dioxide 50Lbs Cylinder 1

Carbon Dioxide 13oz Cylinder 35

Carbon Dioxide Dry Ice Lbs 8,221

Liquid Nitrogen Bulk Gallon 150

Nitrous Oxide 56 Lbs Tank Cylinder 2

Lung Diffusion Gas Cylinder 2

Helium, USP Cylinder 1

Compressed, Medical Air 22 CF Cylinder 22

Cylinder Cap Each 20

Cylinder tag Each 470

Hydrostatic Testing/Painting Each 20

Estimated Delivery Date: 30 September 2026 - 30 September 2031

Value: $1,854,431.67

Type of Funding: Operations and Maintenance (O&M)

Contract Type: Firm Fixed Price

Location: NH Guam

4. Statutory Authority Permitting the Sole Source Acquisition:

41 United States Code 1901 as implemented in FAR 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items as implemented in FAR 6.302-1(c).

CUI

3 NOV 2024

5. Rationale Justifying Use of Authority Cited:

This sole source justification is prepared using the format at FAR 6.303-2, modified to reflect the procedures in FAR Subpart 13.5 in accordance with 41 U.S.C. 1901. Two gas companies operate on Guam - Marianas Gas Corp and Pacific LP Gas. Pacific LP Gas does not provide medical gas. Marianas Gas Corp is currently providing the medical gas requirement and is the only vendor on Guam that can provide medical grade gas.

Marianas Gas Corp is the only contractor that can meet the Statement of Work (SOW) requirement for 24-hour emergency gas delivery when needed. No other vendor on Guam can provide this critical service.

A review of FPDS-NG for medical gas shows that Marianas Gas Corp was the sole contractor awarded the current medical gas contract HT941022P5016, following a competitive solicitation where they were the only responsive bidder. Further market research confirms that Marianas Gas Corp. remains the only available source capable of meeting the Government’s requirement for medical-grade gases.

6. Efforts to Obtain Competition:

Comprehensive market research was conducted by technical experts in March 2025 to identify potential sources capable of meeting the Government’s requirements. This research included a thorough review of mandatory sources and an extensive search of open-market contractors utilizing the following platforms: SAM.gov, FPDS-NG, DHA Inventory, Excess Personal Property, Federal Prison Industries (FPI), AbilityOne, ECAT-DLA, GSA Advantage, and the VA.

The research conclusively demonstrated that Marianas Gas Corp is the sole vendor on Guam capable of providing medical-grade gas.

A Notice of Intent (NOI) HT941025N0052 was posted on System for Award Management website (SAM.gov) from 16 Apr 2025 and close 22 Apr 2025 in accordance with FAR Subpart 5.2. No additional sources submitted capabilities statements for the Government's consideration.

7. Actions to Increase Competition/Remove or Overcome any Barriers to Competition:

NH Guam and DHACA HCD-W will continue to survey and engage the market for any additional potential vendors.

8. Market Research:

Market research was conducted by technical experts in March 2025 through mandatory sources (AbilityOne and Unicor) as well GSA utilizing the keyword “Medical Gases,” all of which yield negative results. While two gas companies operate on Guam, Pacific LP Gas does not offer medical-grade gas, leaving Marianas Gas Corp. as the only available source.

Due to the results of the market research and the remote location NH Guam, a sole-source procurement to Marianas Gas Corp. is the recommended strategy. Marianas Gas Corp. is a Service-Disable Veteran- Owned Small Business (SDVOSB) and, critically, is the only contractor capable of meeting the SOW

CUI

4 NOV 2024

DOMINGO.ROLLY.CRISJ

Digitally signed by

DOMINGO.ROLLY.CRISJOHNNAVAR.13

OHNNAVAR.1367902104 67902104

requirement for 24-hour emergency gas delivery. This critical service is not available from any other vendors on Guam.

. 9. Other Facts:

a. Procurement History:

(1) Is this a new requirement? Yes

(2) If 9.a.(1) is No, was the action just prior to this one competed? No.

(3) If 9.a.(2) is Yes, what has changed where this action cannot be competed? Not applicable.

b. Additional Information: None.

10. Interested Sources:

Extensive market research did not identify any additional interested parties. Therefore, Marianas Gas Corp is the only company that can provide medical gas.

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

HM1 Rolly Domingo NH Guam

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

Digitally signed by

BUNDALIAN.FROILANIVAN.NABON.13

AN.NABON.1363724180 63724180

Date: 2025.05.13 11:08:54 +10'00'

HMC Froilanivan Bundalian NH Guam

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

Basis for Determination: This procurement will utilize simplified acquisition procedures under FAR Subpart 13.5., and the required supplies are commercially available and have been previously procured, which established current and historical information that will be used as a basis for fair and reasonableness. Certified cost or pricing data will not be required in accordance with FAR 15.403-1(b)(3).

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

BUNDALIAN.FROILANIV

CUI

5 NOV 2024

GORDON.CHA- Digitally signed by

ON.PATAVEE.10387631 GORDON.CHA- ON.PATAVEE.1038763152

KAIDO.JILLIAN.CLA Digitally signed by

YTON.1469929198 Date: 2025.05.13 16:42:23 -06'00'

KAIDO.JILLIAN.CLAYTON.1469929198

GORDON.CHA- Digitally signed by

ON.PATAVEE.1038763152

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

Cha-on Gordon Contracting Officer, DHACA, HCD-W Echo Branch

14. Legal Review: I have reviewed this justification and have found it to be legally sufficient.

Jillian C. Kaido Attorney, DHA, Office of General Counsel

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

Cha-on Gordon Contracting Officer, DHACA, HCD-W Echo Branch

Review

I have reviewed this justification and find it adequate to support the brand name acquisition.

Concurrence

Jason Jerome Chief of the Contracting Office

DHACA, HCD-W

JEROME.JASO

N.1030387798

Digitally signed by

JEROME.JASON.1030387798

Date: 2025.05.19 08:01:54 -07'00'

CUI

6 NOV 2024

Approval

Based on the foregoing justification, I hereby approve the procurement of medical gas for NH Guam for sole source basis pursuant to the authority of o 41 United States Code 1901 as implemented in FAR 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items, subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for acquisition.

Kelly L. Sherman Competition Advocate

DHACA