JEFO MISAWA Posted.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY (JEFO)

PHILIPS NORTH AMERICA LLC

CONTRACT SPE2D1-19-D-0014

PATIENT MONITORING SYSTEM UPGRADE

(1) Defense Logistics Agency (DLA) Troop Support, Medical Supply Chain, Capital Equipment

Division, is the contracting activity.

(2) The action submitted for approval is a JEFO supporting the acquisition of an upgrade to the existing patient monitoring system for Misawa Airforce Base (AB), Japan under Philips’ Patient Monitoring Program contract, SPE2D1-19-D-0014, which is valid through March 28, 2029. This JEFO will allow the acquisition to proceed without following the fair opportunity process.

(3) Following are the supplies to meet the Government’s needs:

Replacement of thirty-three (33) End of Service Life (EOSL) Phillips Multi-Measurement Modules.

Replacement of three (3) EOSL Philips X2 Transport Monitors, with four (4) additional new patient monitors.

Twenty-six (26) Capnography Extensions to current Philips MX Series Monitors.

Upgrade of four (4) EOSL Patient Information Center iX (PIIC iX) Central Nurse’s Station, with two (2) additional new Central Nurse’s Station computer display units.

Total Estimated Dollar Value: $762,362.13.

(4) The authority waiving the competition requirements is FAR 16.505(b)(2)(i)(B), only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized. These upgrades and replacements are necessary due to failing equipment that is negatively impacting patient care. These upgrades and replacements will enable several more years of use out of the existing patient monitoring system before a full hospital patient monitoring system replacement occurs. The replacement is anticipated to take place in 2030.

Misawa AFB has the following generally applicable minimum requirements:

(a) Must be the same form, fit, and function as the existing equipment.

(b) must connect with existing monitors and Patient Monitoring Network Philips Intellivue infrastructure.

(c) Must meet current cybersecurity requirements.

Only Philips, the original equipment manufacturer (OEM) is capable of meeting all requirements due to the propriety nature of parts, system design, and functionality as follows:

As a result, only Philips can provide the required equipment necessary to successfully upgrade the existing patient monitoring system at Misawa AB.

(5) The Philips Patient Monitoring items are available on the Philips’ Patient Monitoring Program, contract SPE2D1-19-D-0014. The contract pricing has previously been determined fair and reasonable via comparison with commercial pricing and other than certified cost or pricing data. The Contracting Officer determined that the subject procurement represents the best value to the Government.

(6) Misawa AFB performed market research in the form of a market survey from August 2024 through

September 2024. Market research findings indicate that no other vendor can provide the required equipment to meet the requirement.

DLA Troop Support reviewed the current vendors in the DLA Troop Support Patient Monitoring Program in March 2025 to determine if any other contract holders could meet Misawa AB’s requirement for a patient monitoring upgrade. Findings indicate that Philips is the only supplier on contract that offers the required equipment that meets all the minimum requirements. Other contract holders such as GE, Spacelabs and Nihon Kohden are unable to meet the requirements of Misawa AB due to the proprietary nature of the equipment being upgraded.

(7) In an effort to remove barriers to fair opportunity on subsequent acquisitions, DLA will continue to perform market research to locate other sources for any future procurements of Patient Monitoring systems and upgrades. Current vendors in the Patient Monitoring Program have the opportunity to add new products that fall within the scope of the contract at any time throughout the year, enhancing competition for future acquisitions. Furthermore, DLA Troop Support will continue to monitor the market. The results of the current market research indicate Philips is the only known supplier that can meet the requirements of Misawa AB. However, Misawa AB plans to fully replace their Patient Monitoring System in 2030, for which the requirement will be fully competed amongst all Patient Monitoring Program contract holders.