JA__NavyMEDLOG_Draeger_Anest_Redacted.pdf

Justification– FY21 Navy MEDLOG Draeger Anesthesia Equipment Maintenance

IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY

The requiring agency is the Naval Medical Logistics Command (NAVMEDLOGCOM), Fort Detrick, MD on behalf of the U.S. Navy fleet requirements for Draeger Anesthesia Machines Preventative Maintenance Service and Calibration Contract onboard US Navy ships. The contracting activity is the General Services Administration, Global Supply, Southwest Supply Acquisitions Center, 819 Taylor St., Fort Worth, TX 76102. This document is a justification for the sole source acquisition of preventative calibration maintenance and calibration of anesthesia equipment from vendor, Draeger, Inc., 3135 Quarry Road, Telford, PA 18969.

DESCRIPTION OF THE ACTION BEING APPROVED

This Justification and Approval (J&A) serves to support the sole source acquisition and award of a Firm-Fixed Price Requirements Contract IAW FAR 13.5 (Simplified Procedures for Certain Commercial Items) with Draeger, Inc. for annual preventative maintenance of anesthesia equipment on for the Base Period covering November 1, 2020 through October 31, 2021 and four (4) option years.

DESCRIPTION OF SUPPLIES REQUIRED TO MEET THE AGENCY’S NEEDS

NAVMEDLOG has a recurring need for annual preventative maintenance and calibration of Draeger anesthesia equipment located on-site at multiple listed Naval Ships and Carriers. The services consist of the furnishing of full maintenance and scheduled preventative maintenance and calibration of installed Draeger brand anesthesia equipment onboard various Navy ships.

Total maximum value of this procurement is $1,072,577.60 for the period covering one (1) Base Period and four (4) one year option periods. This estimate is the maximum limit of the contractor’s obligation to deliver and the Government’s obligation to order.

This estimate is not a representation that the estimated quantity will be required or ordered, or that conditions affecting requirements will be stable or normal. The contracting officer has obtained this estimate from records of previous requirements and consumption, and has based this estimate on the most current information available. Additionally, the contracting officer shall specify in the Schedule of Items that failure of the Government to furnish such items in the amounts or quantities described in the Schedule as estimated or maximum will not entitle the contractor to any equitable adjustment in price under the Government Property clause of the contract.

IDENTIFICATION OF STATUATORY AUTHORITY

This procurement is being conducted under the authority of FAR Subpart 13.106(b)(2) and the Contracting Officer has determined only one source is reasonable available. IAW FAR Part 13.5 – Simplified Procedures for Certain Commercial Items - these anesthesia machines meet the definition of Commercial Item in FAR Part 2.101 as they are, "...of a type customarily used by the general public or by non- governmental entities for purposes other than governmental purposes". Draeger machines are used in non-governmental hospitals worldwide and the maintenance required to ensure

General Services Administration Federal Acquisition Service, Southwest Supply Operations Center

Acquisition Division

JUSTIFICATION AND APPROVAL (J&A)

Draeger Anesthesia Equipment Maintenance Requirements Contract proper operation of these machines is also of the type commonly performed in the commercial marketplace. FAR 13.500 authorizes the use of simplified procedures for the acquisition of services in amounts greater than the simplified acquisition threshold but not exceeding $7.5 million if the Contracting Officer (CO) reasonably expects only offers will include only commercial items and services. The CO has determined this acquisition is for a commercial maintenance service; therefore, this acquisition meets the requirements for the use of FAR Part 13.5.

For purchases exceeding the simplified acquisition threshold, the requirements at 13.501(a) apply to sole source acquisitions of commercial items conducted pursuant to FAR subpart 13.5. IAW 13.501(a) , the need for this sole source requirement is hereby justified in writing and will be approved at the specified levels in accordance with FAR 13.501(a)(2)(ii) as this requirement exceeds $750,000 but does not exceed $15 million. The Contracting Officer completed this J&A for a sole source acquisition by utilizing the format listed in FAR 6.303-2 as required by FAR 13.501(a)(1)(ii) and modified to reflect that the procedures in FAR subpart 13.5 were used in accordance with 41 U.S.C.1901 or the authority of 41 U.S.C.1903.

This J&A will be made publicly available via the beta.SAM.gov website within 14 days of award in accordance with FAR 13.501(a)(1)(iii).

DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRE THE USE OF

THE AUTHORITY CITED

Draeger is the Original Equipment Manufacturer (OEM) of the anesthesia machines that require the annual preventative maintenance and calibration in this procurement. Draeger has the sole legal rights to its proprietary designs, patents, system architecture, specialized tools and equipment diagnostic software. For these machines, Draeger has proprietary documentation and a service portal called ServiceConnect that contains all of the essential documentation required to perform service and maintenance per the OEM specifications in order to maintain the warranty on these anesthesia machines. Draeger requires that only their certified technicians perform full maintenance and preventative maintenance on Draeger anesthesia machines and only Draeger certified technicians have complete online and local access to ServiceConnect. Therefore, only Draeger can provide the services required in this procurement.

Draeger is uniquely qualified to provide these services as they have the sole legal rights to their proprietary designs, patents, system architecture, specialized tools and equipment diagnostic software. Failure to utilize the proprietary diagnostic software may result in the inability to identify equipment operating parameters, failures of a device, analysis of product performance and the inability to accurately calibrate the equipment. As the OEM, Draeger certifies that all technicians have complete online and local access to ServiceConnect – a Draeger proprietary documentation and service portal. ServiceConnect is the only approved method to access all essential documentation required to perform service and maintenance per the OEM specifications. Market research indicates other companies’ similar products do not meet, or cannot be modified to meet, the customer’s needs without the Government making a substantial investment in cost. In order to utilize another company, the Government would need to procure to replace the existing equipment already onboard the Naval ships. This initial investment would cost the Government In addition to replacing all of the existing equipment, the Government would also have to train staff aboard the how to use the new equipment which would involve an unknown amount of labor dollars and have to be planned over an extended period of time and orchestrated while the ships are in port which is often for a very limited period of time. In addition to this investment, the Government would still have the expense of maintaining the new equipment.

DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING

WHETHER A NOTICE WAS OR WILL BE PUBLICIZED AS REQUIRED BY 5.2 OR THE

EXCEPTION UNDER 5.202.

Market research was conducted on GSA Advantage and through internet searches. It was determined that the required services are only available from Draeger. Draeger has the sole legal rights to its proprietary designs, patents, system architecture, specialized tools and equipment diagnostic software.

In accordance with FAR subpart 5.203(a)(1), a notice of intent to sole source has been posted to beta.SAM.gov for a period of 5 days prior to issuance of the solicitation. Also IAW FAR Part 5, GSA Acquisition Letter V-09-02 and FAR subpart 13.501(a)(1)(iii), this Justification and Approval (J&A) will be posted to the beta.SAM.gov website within 14 days after award.

DETERMINATION BY THE CO THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE.

Because this requirement is being sole sourced, the Government is utilizing two methods by which to determine pricing submitted by Draeger, Inc. to be fair and reasonable. The Government intends to use a comparison with proposed prices found reasonable on previous purchases IAW FAR Part 13.106-3(a)(2)(ii) and by comparing quoted pricing to current published price lists IAW FAR Part 13.106-3(a)(2)(iii).

STATEMENTS OF ACTION TO OVERCOME BARRIERS TO COMPETITION BEFORE

ANY SUBSEQUENT ACQUISITION

Prior to any subsequent procurement, the market will be reviewed to assess whether any other qualified sources are available and are able to meet the Government’s requirements and whether an investment in new equipment would be in the best interests of the Government given items commercially available at that time. Also, prior to each option being exercised, the Government will examine whether or not it is in the Government’s best interests to continue performance under this contract.

TECHNICAL/REQUIREMENTS CERTIFICATION

I certify that the facts and representations under my cognizance, which are included and form a basis for this justification, are complete and accurate.

Date

Operational Forces Directorate Naval Medical Logistics Procurement Support Supervisor

CONTRACTING OFFICER CERTIFICATION The contracting officer has determined the information contained in this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer

Approved By:

One Level Above Contracting Officer

Regional Counsel Date

Director, Assisted Acquisition Division

COMPETITION ADVOCATE CERTIFICATION

I, the approving authority, determine that the circumstances identified in this document are accurate;

therefore, limiting competition to one source under FAR 13.501(a) is justified. The signature below also represents approval of this document.

Competition Advocate FAS Regional Commissioner's Office