JA Redacted.pdf

DEFENSE HEALTH AGENCY

SOUTHEASTERN HEALTHCARE OPERATIONS CONTRACTING DIVISION

808 SCHREIDER STREET

FORT DETRICK, MD 21702

24 JULY 2024

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION SOLE

SOUCE JUSTIFICATION

I. CONTRACTING ACTIVITY

a. Requiring Activity: Naval Hospital

2080 Child Street Jacksonville, FL 32210

b. Procuring Activity: Southeastern Healthcare Operations (SEHO-CD) Defense Health Agency Contracting Activity (DHACA) 808 Schreider Street Fort Detrick, MD 21702

c. Purchase Request Number: TBD

II. NATURE AND/OR DESCRIPTION OF THE ACTION BEING PROCESSED

The proposed action is a sole source justification to award a one-year purchase order to Operative Experience, Inc. under the authority of FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization. The placement of a Firm Fixed- Price, order is anticipated.

III. DESCRIPTION OF THE SUPPLIES/SERVICES REQUIRED

The Navy Hospital (NH) in Jacksonville, FL has a requirement for a contract for Field Service Repair and Maintenance program for a one-year period of performance beginning 1 September 2024 and going through 31 August 2025. Services shall include Preventive Maintenance Services Program PRO series on site repair and services including loaner and one preventive maintenance check and repair. The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform Field Service Repair and maintenance program for the Operative Experience (OEI) Tactical Casualty Care Simulators (TCCS). The contractor shall conduct a factory reset annually.

The contractor shall complete a technical evaluation and update to most current hardware and software used in the corresponding OEI product. The contactor shall complete an evaluation of all mechanical systems and repair any deficiencies. The contractor shall be an Original Equipment Manufacturer (OEM) authorized dealer, authorized distributor, or authorized reseller for the proposed equipment/system such that OEM warranty and service are provided and maintained by the OEM. All software licensing, warranty, and service associated with the equipment/system shall be in accordance with the OEM terms and conditions.

IV. STATUTORY AUTHORITY

FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

Or

FAR 8.405-6(a)(1)(i)(B) and 8.405-6(b)(1) Brand Name

FAR 8.405-6(a)(1)(i)(A) Urgency

FAR 8.405-6(a)(1)(i)(B) Only One Source is Capable

FAR 8.405-6(a)(1)(i)(C) Logical Follow-on

Or

FAR 16.505(b)(2)(i)(B) Only One Awardee is Capable

FAR 16.505(a)(4) Brand Name

FAR 16.505(b)(2)(i)(A) Urgency

FAR 16.505(b)(2)(i)(C) Logical Follow-on

FAR 16.505(b)(2)(i)(D) Minimum Guarantee

V. APPLICABILITY OF AUTHORITY

The statutory authority which permits restricting consideration for purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available is FAR 13.106- 1(b)(1). Operative Experience Inc. is the sole authorized maintenance provider for the TCCS products. No other sources are available or authorized.

VI. EFFORTS TO OBTAIN COMPETITION

Market Research was conducted to identify as many potential sources as possible. One additional potential source was found. However, based on the available information located on GSA, and unresponsiveness of the contractor they were removed from further consideration. Further the notice from Operative Experience Inc. states that they are the only authorized maintenance provider. A Notice of Intent to Sole Source will be posted on SAM.gov.

VII. ACTIONS TO INCREASE COMPETITION

The Tactical Casualty Care Simulators are only authorized to be serviced by Operative Experience Inc. The replacement of simulators would require a new solicitation to replace currently serviceable units. This would entail a lengthy procurement process and a significant cost to the Government. Replacement of currently serviceable units is not in the best interest of the Government. As the Tactical Casualty Care Simulators near the end of their serviceable life, full and open competition will be pursued in the future to allow for various manufacturers of simulators.

VIII. MARKET RESEARCH

Extensive market research was conducted to identify products that can fulfill the needs of this requirement. Market research was conducted April 2024 through July 2024. It included searches using Internet search engines, Electronic Catalog, Medical Master Catalog, and Defense Logistics Agency. None of the mentioned federal and wholesale sources offer the TCCS Preventive Maintenance Services Program. Mandatory sources were reviewed with none offering the required services. General Services Administration (GSA) was searched and there were no TCCS Preventative Maintenance Services offered. A previous contract SPE2D118D0011 was found that was awarded to Atlantic Driving Supply on 16 August of 2016 that included the OEI simulator line of products. Delivery Order SPE2D521F307U was awarded to Atlantic Driving Supply 1 December 2020 for the supply of TCCS Manikins. OEI products are available on Atlantic Diving Supplies GSA contract, but OEI still is the only source that can perform services. Using GSA eLibrary the Contractor Atlantic Diving Supply was searched which does have a Multiple Award Schedule. The specific services could not be found. The Contract Specialist reached out to the Contractor to inquire about the ability to provide the required services. No response was received.

The Contract Specialist Contacted OEI to inquire about authorized service providers for the TCCS Pro Products. OEI informed the Specialist that OEI is the only authorized maintenance provider for the TCCS products. Operative Experience is the sole supplier of the TCCS Preventative Maintenance Services Program for their products and no other sources can meet the Government’s needs.

IX. OTHER FACTS

a. Procurement History was reviewed. A Contract and Delivery Order were found for Operative

Experience Products, but the Awardee could not provide the needed Services.

b. Federal Procurement Data System was searched for the required services. Three Purchase Orders were found.

1. M0068119P0042 was awarded to Operative Experience by the Department of the

Navy on 29 May 2019 as sole source for services on Operative Experience simulators.

2. M0068121P0014 was awarded to Operative Experience by the Department of the Navy on 26 January 2021 as sole source for an Operative Experience service and maintenance plan.