C_Open_Market_J&A_Redacted_for_posting.doc

Attachment C HHS Template and Instructions for a Justification for Other than Full and Open Competition

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.

a. Federal agency and contracting activity. HHS

b. Sponsoring organization. NIH, NIAID

c. Project Officer information.

· Project Officer name:

· Mailing address:

NIH-Animal Center 16707 Elmer School Road Bldg. 1002, Room 126 Poolesville, MD 20837

· E-mail address:

· Telephone number.

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

a. Acquisition purpose and objectives. This acquisition will support the National Institutes of Health (NIH), National Institute of Allergy and Infectious Diseases (NIAID) Integrated Research Facility (IRF) Aids Imagining Research (AIR) with maintaining the Symbia T2 camera to ensure that it is kept in optimal function. In addition to the annual maintenance the replacement of the radioactive sources utilized by the system to perform periodic calibrations of the camera.

b. Project background.

Central to the AIR mission is the use of CT and SPECT imaging systems, such as the Symbia T2 camera. The cameral is used to systematically evaluate in vivo the pathogenic scientist to access a collaborative and highly multidisciplinary approach in order to accelerate research primarily focused on imaging the immune system and the insults caused to the immune system by pathogens, such as Human Immunodeficiency virus (HIV). The Symbia T Camera is an essential piece of equipment for the implementation of studies in our Aids Imaging Research (AIR) program and requires excellent maintenance when needed, so that the lab can receive accurate pictures and results when performing experiments.

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

a. Project title. Annual Maintenance agreement for Symbia T2 camera

b. Project description. No Statement of work needed this is a commercially offered maintenance agreement. The Service Contract Act Exemption 52.222-48 will apply.

· 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: AMBIS 1855360 ( 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. AMBIS 1898507 c.

Total estimated dollar value and performance/delivery period. This is requirement is a Base + four options and a period of performance from 08/17/18 – 08/16/2023. The estimated dollar amount inclusive of all options is **************.

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.) 1901(e)(2) as set forth in Federal Acquisition Regulation (FAR) 13.5(a).

( This acquisition is conducted under the authority of section 4202 of the Clinger-Cohen Act of 1996.

( 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.

a. Name and address of the proposed contractor(s). Siemens Medical Solutions 40 Liberty Blvd.

Malvern, PA 19355-1418 (847) 26-7224

b. Nature of the acquisition and proposed unique qualifications of the contractor(s). For the Symbia T2 Camera To continue operating at optimal function, an active service contract must be in place. Also, due to the high cost and complex technology, the maintenance provided must include: highly qualified team of engineers, the use of OEM parts and regular preventive maintenance visits. Siemens Medical Solutions, the manufacturer, is the sole source in the market that offers service on this equipment.

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 Sources Sought Notice was published on the fedBizOpps (FBO) website on 03/12/2018 for 15 days. Only one vendor registered as an interested party Siemens Medical Solutions, who is the manufacturer of the instrument. This will be posted as a Notice of Intent to award (NOI) on FBO website for 15 days to Comply with FAR Part 5.202.

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

The price of the requirement was determined to be fair and reasonable based on price paid for maintenance agreements on similarly technical equipment. Two CT Scanners were identified as being similar to the Symbia scanner. The first is the Toshiba Aquilion 64 CT Scanner and the Ceretom CT scanner. All specifications for both models are provided in the market research section of the file.

In FY 2018 36C24118N0414, for the Toshiba CT scanner, was posted full and open on FBO.gov and received 27 responses. The final award was made to Toshiba America Medical systems in the amount of $******** for a Base two options, or an average cost of $********* per year.

HHSF223201011683P was award to Neurologica Corp for the Ceretom CT scanner. This requirement was competed with a small business set aside and only one response was received. The final award amount was $******** Per year.

These previous award made for maintenance on similarly technical equipment shows that Siemens Medical Solutions price of ******* per year for a Base + 4 options is fair and reasonable.

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. During market Research past history was reviewed, current market offerings and a sources sought notice.

Past history of the acquisition revealed that the symbia T2 Camera was purchased in 2012 from Siemens Medical Solutions. The new equipment came with a 12-month manufacture warranty. In August of 2013, a base + 4 maintenance agreement was awarded for maintenance coverage. This award was not completed but award through an Notice of Intent (NOI) posted on the FedBizOpps website.

I searched existing government Contracting mechanisms including: BPA’s on the commodities listing and the other IDIQ’s on the OLAO website and none offered service on this instrument.

A search of the open market revealed that Siemens is the manufacture, they are a large business. Unable to find other service providers in the open market I posted a Sources Sought Notice on FedBizOpps for 15 days. The only interested party was Siemens Medical Solutions.

9.

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

This requirement is a sole source for maintenance to the manufacturer who is a large business. there is no reasonable expectation of obtaining offers from two small businesses so a small business set aside is not in the government best interest.

10.

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

No other sources have expressed an interest, in writing, in the proposed acquisition.

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.

Although the acquisition should well cover the AIR’s need at this time more maintenance agreements will be issued in the future. Attention will always be paid to new venders in the entering the market.

12.

Program office certification.

This is to certify that the portions of this justification that have been developed by the undersigned program office personnel, including supporting information and/or data verifying the Government’s minimum needs, schedule requirements and other rationale for other than full and open competition, are accurate and complete.

Project Officer

Project Officer’s Immediate Supervisor

Head of the Sponsoring Program Office

13.

Contracting Officer certification.

This is to certify that the justification for the proposed acquisition has been reviewed and that to the best of my knowledge and belief the information and/or data provided to support the rationale and recommendation for approval is accurate and complete.

Contracting Officer

14.

Chief of the Contracting Office and Head of the Contracting Activity signature(s).

Branch Chief of the Contracting Office

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