Redacted_Zeiss_JOFOC_FY15.pdf

Justification for Other than Full and Open Competition

“Source Selection Information – see FAR 2.101 and 3.104”

1. Identification of the agency and contracting activity.

Federal agency and contracting activity: HHS/NIH/NCI/CCR

Sponsoring organization: NCI/CCR

Project Officer information:

Project Officer Name: Yvona Ward, Ph.D.

Mailing address:

LGCP Confocal Core Facility Building 37 Room 1066

E-mail address: WardY@mail.nih.gov

Telephone number: 301-594-2645

2. Nature and/or description of the action being approved.

Acquisition purpose and objectives: The CCR Confocal Core Facilities needs a service contract to maintain their equipment used for epifluorescent and confocal analysis of a wide range of biological specimens. As core facilities, there are over 800 users with “state-of-the-art” microscopic imaging for a wide range of applications.

Project background: Currently, NCI has twenty-four Zeiss confocal microscopes and related equipment requiring coverage by a service contract. Consolidation of twenty-four service contracts into one service contract agreement will streamline the procurement.

Zeiss technical support and service is located in the metropolitan area and has proven to be readily available for both hardware and software support resulting in maximum user time on the system and minimal “down-time” for repairs and /or training on the system. The twenty-four current Zeiss microscope models and their locations are listed below:

1. LSM 510 META w/one scope S/N 2101000225 (location A)

2. LSM 510 UV w/one microscope S/N 850894 (location B)

3. LSM 510 NLO META w/one microscope S/N 851383 (location B)

4. LSM 710 w/one scope S/N 2501000152 (location B)

5. LSM 780 w/one scope S/N 2504000385 (location B)

6. LSM 510 VIS Confocor w/one microscope S/N 850939 (location C)

7. LSM 7 Live DuoScan w/one microscope S/N 2401000215 (location C)

8. LSM 510 VIS META S/N 2435000182 (location D)

9. Observer. Z1 Inverted Scope S/N 3834003359 (location D)

10. LSM 510 VIS/405 META S/N 2435000116 (location E)

11. LSM VIS/405 scan module S/N 2439000124 (location F)

12. LSM 510 NLO META w/one microscope S/N 851075 (location G)

13. LSM 710 W/ spectral detection & NLO ready S/N 2501000105 (location H)

14. LSM 510 META VIS/405 w/one scope S/N 2435000465 (location I)

15. LSM 700 Scanning Newton w one scope S/N 2601000226 (location J)

16. Observer. Z1 Inverted Scope S/N 3834002193 (location K)

17. LSM 510 META VIS/405 w/one scope S/N 2435000450 (location K)

18. Observer.Z1Definite Focus S/N 3834004401 (location L)

19. Imager Z2 with MetaSystem S/N 3534000529 (location L)

20. LSM 710 one photon w/ one scope S/N 2502000471 (location M)

21. Observer. Z1 Inverted Scope S/N 3834004197 (location N)

22. Observer. Z1 Inverted Scope S/N 3851000227 (location O)

23. LSM 780 w/one scope S/N 2504000383 (location B)

24. Observer. Z1 Inverted Scope S/N 3834003122 (location P)

3. Description of the supplies or services required to meet the agency’s needs (including the estimated value).

Project title: Maintenance of Zeiss Confocal Microscopes at CCR Microscopy Core Facilities

Project description: Carl Zeiss Microscopy LLC., shall provide: 1) one preventive maintenance inspection; 2) unlimited emergency repair within seventy-two (72) hours of first call; 3) all required replacement parts with the exception of consumable parts at no additional cost to the Government; and 4) free software upgrades where applicable.

Contractor personnel shall have a minimum of two (2) years specialized factory training within the last five (5) years in order to perform service to these instruments. Contractor shall provide current software updates to the operating system and shall provide Carl Zeiss parts and accessories if required during service.

Requirement type.

Research & development (R&D) R & D support services Support services (non-R&D) Supplies/equipment Information technology (IT) Construction Architect-engineer (A & E) services Design-build Other (specify): ____________________

Type of action.

New requirement Follow-on Other (specify): ______________________

Proposed contract/order type.

Firm-fixed-price

Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee): __________

Cost-plus-fixed-fee Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee): ___________ Time and materials Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): ___________ Other (specify): ___________ Completion Form Term form

Acquisition identification number.

Requisition number 3559501

c. Total estimated dollar value and performance/delivery period.

The estimated cost is $356,656.82 for the renewal service contract on the equipment listed under Part 2: Project Background, on page 1. The Period of Performance is 12 months from date of award.

4. Identification of the statutory authority permitting other than full and open competition.

This acquisition is conducted under the authority of 41 United States Code (U.S.C.) 253(c)(__) as set forth in Federal Acquisition Regulation (FAR) 6.302- __.

X This acquisition is conducted under the authority of section 4202 of the Clinger-Cohen Act of 1996 as set forth in FAR13.106 (b)(1) and FAR. 13.501- (a)(1).

This acquisition is conducted under the authority of the Services Acquisition Reform Act of 2003 (41 U.S.C. 428a).

5. Demonstration that the proposed contractor(s) unique qualifications or the nature of the acquisition requires use of the authority cited.

Name and address of the proposed contractor(s):

Carl Zeiss Microscopy, LLC One Zeiss Drive Thornwood, New York 10594 Service Agreement Sales Specialist: Audrey Bice Phone: 914-681-7798 Fax: 914-681-7465 (Attn: Service Contracts) Email: Audrey.Bice@zeiss.com Website: www.zeiss.com/microscopy

Nature of the acquisition and proposed unique qualifications of the contractor(s):

These Zeiss confocal instruments were designed by the firm Carl Zeiss Microscopy, LLC.

They require professional maintenance including scheduled service visits and periodic part replacement. Continuous service requires a renewable service contract. Carl Zeiss is the only reliable firm that is capable of repairing and maintaining these state-of -the art Zeiss confocal models especially the Meta detector and the NLO. The internal components and mechanisms of this instrument are proprietary and Carl Zeiss LLC is the only known source capable of fulfilling the service contract on these instruments.

First, Zeiss service engineers have the highest qualification for repairing the Zeiss confocal microscopes. The engineers are specially trained in Germany on the latest models of the instrument. Any other firm would claim that they can maintain such an instrument do not have the training opportunities of the Zeiss service engineers and may be capable of only of servicing older models.

Second, Carl Zeiss holds multiple patents on these instruments and is the only source for replacement parts.

Third, the parts of the confocal instrument require special handling and this handling requires approval from Carl Zeiss to get replacement of the warranty.

Fourth, NCI is constantly upgrading this confocal system with the newest versions of the software and hardware. These new pieces require fine-tuning, which is more cost effective if done as part of the service contract.

It is critical for the smooth operation and for the research conducted by the NCI/CCR that the Zeiss confocal equipment continues to be calibrated accurately and maintained according to the manufacturer’s specifications. Any deviation from the specifications could jeopardize the use of the aforementioned systems. Therefore, it is crucial that the systems are properly maintained with compatible parts by trained service technicians.

6. Description of the efforts made to ensure that offers are solicited from as many potential sources as practicable. Indicate whether a FedBizOpps notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

A pre-solicitation notice was posted on FedBizOpps on September 29, 2014 with a response date of October 14, 2014; 11:00 am EST. No responses were received in response to the pre-solicitation notice.

7. Determination by the Contracting Officer that the anticipated cost/price to the Government will be fair and reasonable.

The NCI Office of Acquisition received a quotation from Carl Zeiss, LLC for $356,656.82 for a combined maintenance agreement for 24 Government Owned Carl Zeiss Confocal systems. The list price for 24 individual maintenance agreements is $419,965.00; therefore, NCI is receiving a discount of 15% ($63,308.18) for consolidating individual maintenance agreements into one contract. Carl Zeiss has provided a quote with both, the list price and discounted prices.

Previous contracts for similar service agreements include:

HHSN261201400065P, a combined maintenance agreement for 26 Government Owned

Carl Zeiss Confocal systems for $424,350.16

HHSN261201300005C, a combined maintenance agreement for 21 Government Owned Carl Zeiss Confocal systems for $371,317.27

HHSN261201200005P, a combined maintenance agreement for 19 Government Owned Carl Zeiss Confocal systems for $332,214.28

HHSN261201100040P, a combined maintenance agreement for 17 Government Owned Carl Zeiss Confocal systems for $332,214.28

HHSN261201000002P, a combined maintenance agreement for 15 Government Owned Carl Zeiss Confocal systems for $305,320.00.

Based on the aforementioned quote, government discount, and market research, there is no reason to believe that the proposed pricing will not be fair and reasonable to the Government.

A final determination will be conducted prior to the award of this contract.

8. Description of the market research conducted (see FAR Part 10) and the results, or a statement of the reasons market research was not conducted.

The NCI program office contacted Confocal Micrososcope manufacturers, Olympus and Leica- Microsystems, which produce similar systems, and was, informed that they do not provide service on Carl Zeiss Confocal Microscopes.

Based on this market analysis, Carl Zeiss, LLC is the only known vendor that can meet the needs of NCI at this time.

9. Any other facts supporting the use of other than full and open competition.

It is essential that the microscopes are covered by a Zeiss Maintenance Agreement because only such a service contract provides access to unlimited phone support and onsite training by qualified service engineers and application specialists. Such support and continuous training are essential because of the sophistication level of the equipment. A maintenance agreement also guarantees elective enhancements and upgrades to existing equipment followed by complete performance check of the entire system. In addition to this, a maintenance agreement with Zeiss covers reinstallation of software, if necessary.

10. Listing of sources, if any, that expressed, in writing, an interest in the acquisition.

No other sources expressed any interest in writing.

11. Statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the required supplies or services.

NCI anticipates the needs to be met successfully in this contract. In the event NCI requires additional parts, services, software upgrades or attachments, the NCI program office and the and Contracting Officer will conduct market research to determine if there are others sources available that can provide the services required.