JA-REES - Redacted.pdf

CUI//SP-PROCURE

REES Refrigeration Monitoring System Maintenance and Repair for various locations on Oahu, Hawaii

Controlled by: USAHCA Controlled by: MRCO-P

CUI Category: PROCURE Limited Dissemination Control: FED ONLY

POC: Ronnie Sakata, 808-438-5127

SEP 2021

CUI//SP-PROCURE

Justification Review Document For Sole Source – FAR Part 13.501*

(*Format follows FAR 6.303-2, but modified to reflect FAR subpart 13.5 procedures)

Program/Equipment: REES Refrigeration Monitoring System Maintenance and Repair for various locations on Oahu, Hawaii.

Authority: 41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items.

Amount: includes a 6-month base period, four 12-month option periods and 6-month 52.217-8 extension period.

Reviews

I have reviewed this justification and find it adequate to support other than full and open competition.

Legal Counsel:

SEP 2021

CUI//SP-PROCURE

Sole Source Justification and Approval Under FAR 13.501

1. Contracting Activity: Medical Readiness Contracting Office-Pacific, 146 Clark Road, Building 339, Fort Shafter, Hawaii 96858.

2. Description of Action: This approval is for a new firm fixed priced contract. Defense Health Program (DHP) funds will be used.

3. Description of Supplies/Services: REES Refrigeration Monitoring System Maintenance and Repair for various locations on Oahu, Hawaii. The estimated total value to include all options and FAR 52.217-8, Option to Extend Services, is

4. Authority Cited: 41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items.

5. Reason for Authority Cited:

a. REES Scientific Corporation (REES), 1007 Whitehead Road EXT, STE 1, Ewing, NJ 08638, is the sole manufacturer for REES Scientific Temperature Monitoring and Alarm System hardware and software installed at various locations on Oahu, Hawaii.

b. The software that runs the Government owned REES refrigeration monitoring system is proprietary to REES as the company is the developer and owner of the source code.

No other companies have software rights or are authorized by REES to work on their systems. Upgrading of software is required and must be done by REES in order to maintain the equipment in a fully functional condition in accordance with the Original Equipment Manufacturers specifications and to maintain product warranty. Due to the proprietary nature of the system, which includes software updates, new replacement parts, licenses, and patents covering the intricate designs of the instruments, no other known sources are authorized or possess the knowledge necessary to maintain and validate the monitoring system.

6. Efforts to Obtain Competition:

a. Effective Competition. Based on the results of market research conducted, the contracting officer does not anticipate effective competition for this acquisition. The notices required by FAR 5.201 shall be published and any offers received shall be considered.

CUI//SP-PROCURE

b. Subcontracting Competition. The products and services manufactured and performed by REES is proprietary in nature and therefore, they do not subcontract any of their products or services to other firms. After considering this information, the Contracting Officer has determined that subcontracting possibilities do not exist for this requirement in accordance with FAR 19.705-2(c).

7. Actions to Increase Competition: The Government conducted ongoing market research of the industry to determine if there were new entrants into the local market to meet the Government’s requirements.

8. Market Research: Market research was conducted within the previous 12 months. It is a commercial practice for each manufacturer to provide these types of services for their own systems. A sources sought notice was posted to SAM.gov on 14 Feb 2024.

No responses were received.

9. Interested Sources: To date, no other sources have written to express an interest.

10. Other Facts:

a. Procurement history.

(1) W81K02-19-P-0008 REES. 6 Nov 2018 – 5 May 2024

(2) Previous contract sole sourced to REES.

(3) Authority previously cited for W81K02-19-P-0008 was 41 United States Code 1901 as implemented by FAR 13.501 (a)(1)(ii).

(4) The reasons for authority cited on the previous justification remains unchanged for this follow-on procurement. The requiring activity continued to conduct on-going research of the industry market and could not identify new entrants that are authorized to service the REES system.

(5) Prior procurement for this requirement was sole sourced to REES.

(6) There are no unusual patterns that are revealed by the history of this requirement.

(7) There have been no significant changes in the justification for this procurement compared to the previous one.

Approval

Based on the foregoing justification, I hereby approve the procurement of REES Refrigeration Monitoring System Maintenance and Repair for various locations on Oahu, Hawaii, for the estimated total value of on an other than full and open competition basis pursuant to the authority of 41 U.S.C. 1901 as implemented by FAR 13.501, subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

Command Advocate for Competition