J&A_NMLC_Radio_Pharms_redacted.pdf

LOG# 19-10044

Annex 1-JUSTIFICATION AND APPROVAL

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity.

This justification is executed by the Naval Medical Logistics Command {NMLC), Fort Detrick, MD, on behalf of the Navy to meet the requirements of Naval Medical Center Portsmouth, Virginia (NMCP).

2. Description of the action being approved.

The proposed action is award of a contract on a sole source basis to support and maintain NMCP's requirement for radiopharmaceuticals and associated supplies. The Government intends on awarding an Indefinite Delivery, Indefinite Quantity (IDIQ) contract. The proposed source is Cardinal Health, LLC. 7000 Cardinal Health Place, Dublin, OH 43017.

3. Description of Supplies/Services.

NMCP has a requirement for a supplies contract to maintain radiopharmaceuticals and associated supplies on an as needed basis. Contractor support shall be provided for a one 60 month ordering period spanning. 01 October 2019 through 30 September 2024. The estimated cost for one year of radiopharmaceuticals and supplies is approximately Removed. The total estimated cost for the entire length of the contract is approximately removed. The selected vendor shall be able to provide support immediately upon award of a resulting order. Current year DHP O&M funds will be obligated on each delivery order.

4. Statutory authority permitting other than full and open competition.

The statutory exception permitting other than full and open competition for this acquisition is 41 U.S.C. 1901. See also FAR 13.5, Simplified Acquisition procedures for certain commercial items.

5. Rationale justifying the use of cited statutory authority.

Cardinal Health is the incumbent and only vendor capable of delivering a complete list of radiopharmaceuticals to NMCP. There are currently the incumbent of competitively awarded contract for the required supplies under contract N0018914D0037 and have received satisfactory past performance. It was demonstrated during the competitive bidding process that Cardinal is the only company that can meet NMCP's unique needs. They are the only vendor that can distribute nuclear pharmaceuticals within the required timeframes and in compliance with the ordering requirements and delivery constraints of the MTF. These pharmaceuticals undergo decay and after a few half-lives they are useless. It is critical that the vendor have facilities that are located close to NMCP in order to meet the required delivery times. Cardinal health can meet three critical aspects of the requirement: 1) The vendor has the logistical infrastructure to access the MTF on a daily basis, which is critical as some items half-lives only consist of a few hours and it will not work if they are to be shipped, transported, and delivered from a distant location; 2) Is the only vendor that has demonstrated availability and delivery of all items required by the Radiology Department, this is critical as the department will not be able to conduct operations and serve the military families without the availability of all required items; 3) The vendor already has the ordering mechanisms in place at the MTF that affords interoperability with current equipment at NMCP to support time sensitive requests that are critical in the response to a medical emergency.

LOG# 19-10044

6. A description of efforts made to solicit offers from as many offerors as practicable.

Market research was performed in accordance with FAR 10, the results of which are in paragraph 8. The Government contacted via email Radiology Services of Hampton Roads as the vendor was identified at NMCP as a potential service provider. They cannot provide Lymphoseek or Xofigo as required and do not meet the needs of the Government. This requirement was posted to FedBizOpps in accordance with FAR 5.202. A Notice of lntent to Sole Source was posted to www.tbo.gov on September 12, 2019 for fifteen days. It closed on September 27, 2019.

Two other sources, Jubilant Draxlmage Radiopharmacies and Radiology Services of Hampton Roads, expressed interest, but are not capable of meeting the needs of the facility.

Jubilant Draxlmage Radiopharmacies is located in Orlando and expressed an interest to the notification posted to www.fb o.gov, but did not present an indication that they could meet the unique requirements of this requirement.

They are located in Richmond and are not expected to be able to deliver timely materials. Radiology Services of Hampton Roads also expressed interest. They provide services to Southeast Virginia, however, they cannot provide Lymphoseek and Xofigo. T. Based on the above it has been determined that a Sole Source to Cardinal Health is in the best interest of the Government.

7. Determination of fair and reasonable cost.

The Contracting Officer has determined the anticipated cost to the Government of the supplies/services covered by this J&A will be fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, NAVMEDLOGCOM has no plans at this time to compete future contacts for the types of supplies/services covered by this document. If another potential source emerges, NAVMEDLOGCOM will assess whether competition for future requirements is feasible.

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