JEFO-Philips-Physiological Monitors - final_Redacted.pdf

JUSTIFICATION FOR EXCEPTION TO FAIR OPPORTUNITY (JEFO)

PHYSIOLOGICAL MONITORS AND SOFTWARE UPGRADE

PHILIPS HEALTHCARE SPE2D1-19-D-0014

(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 for the acquisition of Philips physiological monitors and software upgrades. The requirement is under Philips Patient Monitoring Medical Equipment contract SPE2D1-19-D- 0014, which is valid through 03/29/2029.

(3) The required items are sixty-four (64) physiologic, multipurpose, bedside, modular/configured monitors, eighty-three (83) physiologic patient transport monitors, and software upgrades to existing patient monitors at the U.S. Naval Hospital (USNH) Okinawa, Japan. The total estimated dollar value of this action is

The new monitors are required to replace stand-alone and no-vital signs monitors currently in place at the hospital.

(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. Only Philips, the original equipment manufacturer (OEM), can provide the necessary monitors and software upgrades compatible with the existing Philips whole-hospital patient monitoring system at USNH Okinawa.

This requirement is to procure additional bedside monitors and software upgrades to an existing Philips system in order to support increased patient capacity of the hospital during the current healthcare crisis and also to expand routine patient monitoring capabilities at USNH Okinawa. The required items are bedside monitors in multiple configurations for advanced monitoring, perioperative monitoring, and neonatal monitoring; patient transport monitors for mobile monitoring capability; and upgrades to existing physiological monitoring software. The monitors measure non-invasive blood pressure (NIBP), pulse rate, pulse oximetry, and electrocardiogram.

The new monitors are required to replace existing stand-alone and no-vital signs monitors currently in place at the hospital with monitors that interface with the existing Philips PIIC iX central patient monitoring system.

When patient beds are covered by stand-alone vital signs monitors, or no-vital signs monitors, it creates a dangerous situation for both patients and caregivers as caregivers cannot monitor multiple patients simultaneously. The new monitors are critical for patient care as they will increase the number of centrally monitored beds at the hospital, allowing for monitoring of multiple patients at the same time. The new monitors will be used to effectively support and care for an influx of COVID-19 patients during the pandemic as well as routine patient care.

Only Philips is able to offer this equipment as the required monitors and software upgrades must integrate with the hospital’s existing Philips PIIC iX physiological monitoring system. No other manufacturer can provide equipment and software that can integrate with the existing whole-hospital Philips patient monitoring system.

(5) The Philips patient monitoring items are available on the Philips Patient Monitoring contract SPE2D1-19-D- 0014. The contract pricing has previously been determined fair and reasonable via comparison with commercial invoices. The Contracting Officer has determined that the subject procurement represents the best value to the Government and that the anticipated cost will be fair and reasonable.

(6) DLA Troop Support continues to perform market research on the availability of patient monitoring equipment to meet the patient monitoring requirements of medical centers. The results of current market research indicate that Philips is the only known supplier that can provide the necessary equipment to support the

JUSTIFICATION FOR EXCEPTION TO FAIR OPPORTUNITY (JEFO)

PHYSIOLOGICAL MONITORS AND SOFTWARE UPGRADE

PHILIPS HEALTHCARE SPE2D1-19-D-0014

requirements of USNH Okinawa. No other supplier can provide equipment compatible with the current monitoring equipment.

(7) There are no other facts supporting the use of this JEFO.

(8) DLA Troop Support continues to perform market research and add items to the Patient Monitoring program contracts in an effort to overcome barriers to competition. When the Philips patient monitoring system at USNH Okinawa requires replacement, DLA anticipates the acquisition of a new system will be conducted on a full and open competition basis.

(9) As the Contracting Officer, I hereby certify that the information contained in this justification is accurate and complete to the best of my knowledge.