JEFO MRI Upgrade CPEN Final_Redacted.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY (JEFO)

PHILIPS NORTH AMERICA LLC

CONTRACT SPE2D1-17-D-0014

MAGNETIC RESONANCE IMAGING (MRI) 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 a Magnetic Resonance Imaging (MRI) upgrade for the existing Philips Ingenia 3T MRI. The resultant delivery order will be issued under Philips’ Radiology and Imaging Systems Program contract, SPE2D1-17-D-0014, which is valid through December 21, 2026. This MRI upgrade is for Naval Hospital Camp Pendleton, Oceanside, CA. This JEFO will allow an order to be placed against Philips’ contract without following the fair opportunity process.

(3) The requirement is for an upgrade for the Philips Ingenia 3T MRI for Naval Hospital Camp Pendleton. The acquisition includes hardware and software components including new coils, turnkey installation, and training.

This mid-life upgrade is required to ensure extended life expectancy of the existing MRI system. Total estimated dollar value of this action is

(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. Philips is the Original Equipment Manufacturer (OEM) and the only vendor capable of performing an upgrade to the Philips Ingenia system due to propriety of parts, system design, and functionality.

The requirement is to retain the existing MRI magnet, but to upgrade software and hardware to bring the mid-life MRI to current MRI technology and comply with current Risk Management Framework (RMF) requirements.

The use of this authority is necessary because Naval Hospital Camp Pendleton has a requirement for an upgrade of its current Philips Ingenia 3T MRI. The current system has been operated for ten (10) years and it is at the end of it’s service life and utilizes dated technology. Not only is the upgrade necessary to bring the existing system up to the current technology and clinical capabilities, but it also provides a factory reset of the life expectancy and provides compliance with current cybersecurity requirements.

Only Philips can provide the upgrade of hardware and software components due to proprietary system components on the existing Philips Ingenia 3T MRI. Other vendors cannot provide the upgrade because their parts are not compatible with the current Philips Ingenia 3T MRI. Philips Ingenia 3T MRI will only operate with Philips own proprietary and compatible software platforms. MRI units must be approved to operate on the DoD network at all times and are covered by service agreements. If a vendor other than Philips, who is the Original Equipment Manufacturer (OEM), were to perform work on the Philips units, the warranty and DoD Cybersecurity Agreements would be voided. Philips would no longer be responsible for maintaining the equipment and the Philips units would no longer be approved to operate on the DoD network. No other vendor can incorporate its parts to function with the existing magnet. This hardware and software upgrade retains the magnet from the existing Philips MRI system. The upgrade effectively results in a new unit from a functional perspective because the magnet is still useful, but the most up-to-date technology is being applied to the unit.

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