JA SS - VITEK - Redacted.pdf

CUI - Source Selection Information – See FAR 2.101 and 3.104

Controlled by: Defense Health Agency Contracting Activity Controlled by: Healthcare Contracting Division – West CUI Category: PROCURE Distribution Control: FED ONLY POC: April Burbage, april.l.burbage.civ@health.mil

CUI - Source Selection Information – See FAR 2.101 and 3.104

Justification and Approval for Other than Full and Open Competition Sole Source Acquisition

1. Identification of the agency and contracting activity:

This justification is executed by the Defense Health Agency (DHA) Contracting Activity (DHACA), Western Markets Contracting Division, San Diego, CA, on behalf of the Navy to meet the requirements of United States (U.S.) Naval Hospital Guam (USNHG).

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

DHA intends to negotiate and award a new, firm fixed price contract on a sole source basis to Medpharm, 136 Kayen Chando, Dededo, Guam 96929-5900, for the purchase of leasing two (2) Biomerieux Vitek Analyzers, on-site preventative maintenance (PM), and training.

3. Description of Supplies/Services:

The objective of this sole source award is to procure two (2) Vitek Compact 2 Analyzers, capable of performing microbial identification and antibiotic susceptibility testing. Tests are requested by a credentialed provider to obtain critical information about the patient’s microbial infections and appropriate antibiotic treatments. A clinical laboratory scientist performs the requested testing and provides the requesting provider with results of the patient’s microbial identification and susceptibility tests. Refer to Vitek Microbiology reference manual for a list of all Gram-Negative, gram Positive, and Yeast identifications tested through the Vitek.

Services include preventative maintenance (PM), software upgrades, firmware upgrades, operational checks, and adjustments to on-site equipment in order to ensure the equipment is fully operational and within OEM specifications. The contractor shall ensure a fully operable Vitek 2 Compact analyzer up on completion of any service, parts replacement, hardware upgrade, software upgrade, etc. prior to end of service.

Total contract value is estimated Period of performance starts 01 October 2024 to 30 September 2025 for base period and will include two (2) additional 12-month option periods.

Base Period: 01 October 2024 to 30 September 2025

Option Period 1: 01 October 2025 to 30 September 2026

Option Period 2: 01 October 2026 to 30 September 2027

Equipment Lease/Services:

DHA PGI 213.5, Attachment 1 (06-21-2018)

CUI - Source Selection Information – See FAR 2.101 and 3.104

Two (2) Biomerieux Vitek 2 Compact Analyzer Lease (Serial No. #21694 and # 21353), PM, and Training

4. Statutory Authority Cited permitting other than full and open competition:

10 U.S.C. 3204(a)(1) 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

5. Rationale Justifying Use of the Statutory Authority Cited:

Biomerieux is the Original Equipment Manufacturer (OEM) of the the Biomerieux Vitek 2 Compact Analyzers, therefore, the technicians performing the service maintenance are required to be certified to work on their equipment. Biomerieux does have an authorized vendor, MedPharm who can conduct these services and is the only source that can provide the service maintenance located in Guam. All completed work shall be certified to meet OEM specifications. Based on market research, Medpharm is the only source that can meet the Government’s minimum requirements to provide onsite service and training on Biomerieux Vitek 2 Compact Analyzers.

6. Efforts to Obtain Competition:

Contract specialist conducted a mandatory search throughout September 2024 and determined via internet searches that this requirement is customarily available in the commercial marketplace. Through research and mandatory sources: AbilityOne, UNICOR, ECAT and GSA Advantage. A small business dynamic search for additional small business firms meeting the requirement resulted in negative results under NAICS code 811210 and search terms “Biomerieux Vitek”. A search on FPDS-NG using search terms “Vitek Analyzers” found services were not competed. CS reached out to MedPharm to confirm they are an authorized distributor for Biomerieux. A proprietary letter was received on 23 September 2024 confirming MedPharm is an exclusive distributor and are certified to conduct service maintenance on the Biomerieux Vitek Analyzers.

Recommendation is other than full and open competition with no small business set aside, due to no reasonable expectation of receiving more than one offer from other small businesses.

MedPharm is the only vendor capable of meeting the Government’s requirement.

A notice of intent to sole source was posted on SAM.gov under solicitation number HT941024N0161 on 23 September and closed on 24 September 2024. No additional sources submitted capabilities statements for the Government’s consideration. The suggested source is MedPharm, Cage Code: 602B5, UEI: DLM6VHZ3VUN3, large business.

7. Determination that Anticipated Cost to the Government will be Fair and Reasonable:

DHA PGI 213.5, Attachment 1 (06-21-2018)

CUI - Source Selection Information – See FAR 2.101 and 3.104

In accordance with the basis for award procedures at FAR 13.106-3, the Contracting Officer will utilize a comparison of the proposed price found reasonable on previous purchases and a comparison of the price to the Independent Government Cost Estimate (IGCE) provided by the requiring activity to determine the vendor's quoted price fair and reasonable.

8. Market Research:

As stated above, several market research methods were used to include the review of mandatory sources, reviews of similar previous procurements, using online search engines reviewed by USNHG and DHA Healthcare Contracting Division – West in September 2024. A Notice of Intent to Sole Source was posted on SAM.gov under solicitation number HT941024N0161 on 23 September and closed on 24 September 2024, resulting in the identification of no additional sources capable of meeting the Government's minimal requirement.

9. Other Facts:

None.

10. Interested Sources:

MedPharm is the only source identified that can meet the Government's minimum requirements.

Additional market research and the posting of a Notice of Intent to Sole Source did not identify any additional interested parties.

11. Actions to overcome barriers:

USNHG and the DHA Healthcare Contracting Division – West will continue to survey and engage the market of any potential vendors that can provide PM services and will consider competing future requirement if there are other vendors capable of meeting the requirements. In addition, review and due diligence will be conducted by the Government for any vendor submitting capability statements for PM services.

COORDINATION:

12. Technical/Functional Representative:

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

Date

DHA PGI 213.5, Attachment 1 (06-21-2018)

CUI - Source Selection Information – See FAR 2.101 and 3.104

13. Requirements Certification:

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

14. Fair and Reasonable Cost Determination:

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

APPROVAL:

15. Contracting Officer:

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