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This sole source justification document outlines preventive maintenance services for a government-owned Philips Ingenia Elition 3.0T MRI scanner. Philips Healthcare will provide the services under a sole source contract for an estimated price over a three year base and two option year period from May 2023 through May 2026. As the original equipment manufacturer and sole authorized service provider, Philips Healthcare is the only source able to maintain the equipment according to specifications and provide critical system updates and support. Market research confirmed Philips Healthcare is the only qualified source given proprietary software, hardware, and service network. The National Cancer Institute intends for needs to be met under this contract and will conduct additional market research if further services are required.

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3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

a. Project title. Preventive maintenance services for a Government-owned clinical Philips Ingenia Elition 3.0T MRI scanner.

b. Project description.

Requirement type.

Research & development (R&D) R & D support services Support services (non-R&D) Supplies/equipment Information technology (IT) Construction Architect-engineer (A & E) services Design-build Other (specify): ____________________

Type of action.

New requirement Follow-on (PO #75N91020P00436) Other (specify): ______________________

Proposed contract/order type.

Firm-fixed-price Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee): __________ Cost-plus-fixed-fee Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee): ___________ Time and materials Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): IDIQ Other (specify): ___________ Completion Form Term form

Acquisition identification number. Requisition # 6487588

c. Total estimated dollar value and performance/delivery period.

The total estimated price is . The period of performance shall consist of one (1) 12-month base period, plus two (2), 12-month option periods, as follows:

Base Period: May 10, 2023 – May 9, 2024

Option Period 1: May 10, 2024 – May 9, 2025

Option Period 2: May 10, 2025 – May 9, 2026

4. Identification of the statutory authority permitting other than full and open competition.

This acquisition is conducted under the authority of FAR subpart 13.5 in accordance with 41 U.S.C. 1901.

5. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

a. Name and address of the proposed contractor(s). Philips Healthcare, 22100 Bothell Everett Hwy, MS 665, Bothell, WA 98041

b. Nature of the acquisition and proposed unique qualifications of the contractor(s).

Philips Healthcare is currently the only known authorized service provider for the Philips Ingenia Elition 3.0T MRI Scanner. Being the manufacturer and sole service provider, Philips Healthcare is the only provider able to maintain and service the equipment in accordance with Original Equipment Manufacturer (OEM) specifications and provide critical updates to the system as needed to address system issues, or updates.

Additionally, Philips Healthcare is the only company that has OEM-authorized, and trained service technicians capable of performing required maintenance, repair, and support services for the Philips Ingenia Elition 3.0T MRI Scanner.

Additionally, due to intellectual property, proprietary diagnostic software, and hardware updates/upgrades, Philips is the only vendor that can provide maintenance for the scanner. Philips has also established a direct remote services network that monitors the scanner and can provide remote services capable of fixing issues when possible, thus reducing scanner downtime.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a FedBizOpps notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

A Notice of Intent to Sole Source #75N91023Q00008 was published on SAM.gov on 11/21/22 thru 12/09/22 in accordance with FAR Part 5.2. In response to this notice, no responses were received from interested vendors.

7. Determination by the Contracting Officer that the anticipated cost/price to the Government will be fair and reasonable.

The NCI Contracting Officer will consider the independent government estimate and previous purchase order prices as a determining factor for reasonableness.

Based on the aforementioned there is no reason to believe that the price will not be fair and reasonable to the Government. A final determination will be conducted prior award and documented in the award file.

8. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

Market research was conducted in accordance with FAR Part 10. These efforts included a review of mandatory and suggested sources as defined in FAR Part 8.

As a result of these efforts the required services were identified as only being available via the Open Market. This determination was also supported by historical data related to past procurements conducted by NIH for previous services for the Philips Ingenia Elition 3.0T MRI Scanner. As a result of these efforts no other vendors were able to be identified as possessing the required resources to successfully perform maintenance services in accordance with the Governments requirements.

9. Any other facts supporting the use of other than full and open competition..

The NCI MIB has a research collaboration with Philips Healthcare and specific research keys are activated as related to patient scanning because of this collaboration. If another vendor other than Philips serviced the scanner, the keys would be deactivated due to confidential intellectual property requirements. As a result, the clinic will be unable to scan clinical patients. The MIB also has a direct Remote Service Network connection to Philips. This allows Philips to monitor the MRI, view error logs, and provide remote service repairs if possible and decrease the downtime of the scanner. The service agreement with Philips also covers technical and clinical applications telephone support which is invaluable when creating new patient research protocols.

10. Listing of sources, if any, that expressed, in writing, an interest in the acquisition.

No other sources have expressed an interest in writing.

11. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the required supplies or services.

NCI anticipates the needs to be met successfully under this contract. In the event additional services are required, the NCI program office and the Contracting Officer will conduct market research to determine if there are any other sources available that can provide the required services.

File details come from the government source that posted it. Updated .