Lawton_JA_-_GE_Healthcare_2019.pdf

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

1. Agency/Contracting Activity: DHHS/ IHS / OCAO / LSU

2. Description of Action:

Nature: ☒ New Requirement ☐ Similar Requirement

☐ Modification to Existing Purchase Order/Contract Number

Name of Proposed Contractor(s): GE Healthcare Street Address: 3000 N Grandview Blvd City, State, Zip: Waukesha, WI, 53188 Phone: 800-437-1171

3. Description of Services or Supplies:

The total estimated value of the proposed action is $119,568 for an annual comprehensive service maintenance agreement

This service will provide comprehensive coverage for service and repair for two GE Healthcare DR rooms, two mobile x-ray systems, and their associated detectors located at the Lawton Indian Hospital.

Period of Performance:

04-01-2019 to 03-31-2020

4. Authority and Rationale:

☒ FAR 6.302-1: Only one responsible source and no other supplies or services will satisfy agency requirements, 41 U.S.C. 253(c)(1)

GE Healthcare is the equipment manufacturer. Comprehensive service including: repair services and annual maintenance/calibrations are only available thru them. GE Healthcare does not license proprietary service materials to 3rd parties. GE Healthcare’s imaging service organization does not accept pass-throughs from small business either.

Services required can only be performed by the manufacturer as they provide factory trained service personnel who receive over 40000 hours of service training annually with the average age of experience being greater than 15 years to, assure equipment maintenance and repairs complies with manufacturer specifications.

https://acquisition.gov/far/current/html/Subpart%206_3.html#wp1087543

☐ FAR 6.302-2: Unusual and compelling urgency, 41 U.S.C. 253(c)(2)

☐ FAR 6.302-5: Authorized or Required by Statute, 41 U.S.C. 253(c)(5)

☐ Other (See FAR Subpart 6.3 for additional authority):

5. Bridge Contracts:

Not Applicable

6. Actions to Increase Competition:

Performed open market research for alternative vendors qualified to work on GE Healthcare Radiographic equipment. However, GE Healthcare is the only party who could offer the proprietary service materials necessary for the required services.

7. Market Research:

The following GSA contact vendors were surveyed: Carestream Health LLC, FCI Tech Inc., and Imaging Spectrum Inc., but none had the capability of providing the services required.

8. Procurement History:

Previous Purchase Order(s) or Contract(s): ☐ Yes ☒ No

If “Yes”, for each purchase order or contract provide:

Was action competed? ☐Yes ☐ No

If action was not competed, state the cited authority, summarize rationale, and describe the actions that were supposed to be taken to increase competition and the results thereof:

9. Additional Information to support the justification.

As no other vendors can supply the services and supplies required to ensure continual operation of this equipment. This will be a reoccurring annual requirement as long as this equipment is in use.

https://acquisition.gov/far/current/html/Subpart%206_3.html#wp1086879 https://acquisition.gov/far/current/html/Subpart%206_3.html#wp1090017 https://acquisition.gov/far/current/html/Subpart%206_3.html

10. Technical / Requirements Certification: By my signature below, I certify that the supporting data under my review, which is included in this J&A, is accurate and complete.

Program Manager

Name: LT Christopher Barnes Position Title: Assistant Facility/Biomedical Engineer Email address: christopher.barnes@ihs.gov Phone: 580-354-5131 Signature:

Program Manager Supervisor (or one level above Program Manager) Name: Michael Mcgilbary Position Title: Supervisory Biomedical Equipment Support Specialist Email address: michael.mcgilbary@ihs.gov Phone: 580-354-5132 Signature:

11. Fair and Reasonable Price Determination:

Market research was performed utilizing the Emergency Care Research Institute (ECRI), an independent nonprofit organization authority on the medical practices and products that provide the safest, most cost-effective care. The Market Intelligence feature offered by ECRI analyzes capital equipment and service cost for like medical devices among various contractors. The average annual service cost associated DR rooms, mobile x-ray systems, and detectors was compared among 12 different vendors.

Base on this analysis it was determined that a price for annual service associated with a DR room, mobile x-ray, and detector would be estimated at $20,411, $17,031, and $9702 respectively. These cost were then applied to the x-ray system configuration at the Lawton Indian Hospital, which consists of two DR Rooms, two mobile x-ray systems, and four detectors. The estimated annual service cost for this configuration would be about $113,693. The proposed contractor, GE Healthcare, quoted $119,568 per year for this service, a 5% difference. This value was considered to represent the best value.

mailto:christopher.barnes@ihs.gov mailto:michael.mcgilbary@ihs.gov

12. Contracting Officer’s Approval: I hereby certify that this justification is accurate and complete to the best of my knowledge. I approve this sole source justification subject to availability of funds, and provided that the services and supplies herein described have otherwise been authorized for acquisition.

Signature: Date:

Typed Name:

Title: Chief Contracting Officer