Sole_Source_Justification_AG-6395-P-17-0109.pdf

SOLE-SOURCE JUSTIFICATION

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JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(SOLE OR SINGLE SOURCE)

In accordance with the authority granted under FAR Part 13, this request for a noncompetitive acquisition is hereby submitted for consideration for acquisition approval.

IDENTIFICATION OF THE AGENCY AND THE CONTRACTING

ACTIVITY:

Requesting Agency:

USDA, APHIS, WS

NWRC

4101 LaPorte Avenue Fort Collins, CO 80521

Contracting Activity:

USDA, APHIS, MRPBS, ASD

Minneapolis Procurement Branch Butler Square, Fifth Floor 100 North 6th Street Minneapolis, MN 55403

NATURE AND/OR DESCRIPTION OF THE ACTION BEING

APPROVED:

USDA/APHIS/WS is requesting High Density Single Nucleotide Polymorphism services provided by GeneSeek, a Neogen Company. GeneSeek is the leader in the field of agricultural and animal sciences genomics. Their large market share allows them to provide full service genotyping (acceptance of genetic samples, DNA extraction, and genotype quantification) at a substantial (53%) discount over the price their competitors offer for only materials (SNP BeadChips). Further, GeneSeek has become the industry standard for genotyping. Accordingly, they have been contracted by collaborative agencies within USDA for their genotyping needs. For these reasons, GeneSeek was awarded the genotyping contract in Fiscal Year 2016, in which NWRC scientists collectively genotyped approximately 2200 feral swine using GeneSeek’s proprietary genotyping bead array. In order to continue building a seamless dataset and maximize the scientific return on economic investment, it is necessary to continue contracting with GeneSeek for our genotyping needs.

A DESCRIPTION OF THE SUPPLIES, EQUIPMENT, OR SERVICES

REQUIRED TO MEET AGENCY NEEDS (INCLUDING THE ESTIMATED

VALUE OF THE ACQUISITION INCLUSIVE OF OPTIONS):

USDA/APHIS/WS is requesting high density SNP genotyping services employing GeneSeek’s proprietary 70k (70,000+ genetic markers) GGP HD SNP chip. The agency

Page 2 2/24/2017 is in need of genotyping services that provide very high resolution of the genetic differentiation among individual pigs and among feral swine populations across the United States. High resolution genetic information will maximize the return on investment by allowing these genotypes to be used for numerous management and research projects. This information will allow NWRC to develop a detailed map of feral swine genetics across the United States, describe the patterns of range expansion of feral swine via both natural dispersal and human-facilitated introduction, identify cryptic elements of feral swine ecology such as dispersal distance and variation in reproductive success, and quantify the relative susceptibility of feral swine populations to various pathogens that are important for both domestic pig production and human health.

Understanding developed by analyzing genetic patterns will inform future disease surveillance and guide future feral swine eradication efforts.

Vendor Name & Address:

GeneSeek, A Neogen Company 4131 N. 48th St.

Lincoln, NE 68504 USA

Website: http://www.neogen.com/Genomics/

Contact & Phone Number:

Ben Pejsar Product Manager Neogen | GeneSeek | Igenity GeneSeek | 4131 N. 48th St. | Lincoln, NE 68504

(402) 435-0665 bpejsar@neogen.com

IDENTIFICATION OF THE STATUATORY AUTHORITY PERMITTING

NONCOMPETITIVE ACQUISITIONS:

FAR 6.302-1 – Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements. 41 U.S.C. 3304(a)(1).

According to Ben Pejsar, Genomic Market Development Manager at Neogen GeneSeek Operations; GeneSeek is the sole subsidiary of Neogen that performs DNA extraction, genotyping services and analysis. Additionally the Porcine HD array is a sole source product designed and processed by Neogen’s GeneSeek Operations. Competition is precluded by the existence of an agreement with the manufacturer of the array, who has given GeneSeek an exclusive right to market this product at this cost level.

A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES

USE OF THE AUTHORITY CITED:

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High resolution genotypic data is essential for us to address questions related to the origins of feral swine, introduction history, and patterns of invasion throughout the United States. GeneSeek offers high density SNP genotyping at a rate far lower than all other service providers known to the geneticist at NWRC. Continuation of genotyping efforts initiated in FY2016, in which we genotyped ~2200 feral swine using GeneSeek’s proprietary GGP HD SNP array, necessitates continuing to contract with this firm for genotyping efforts in FY2017.

A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS

PRACTICABLE, INCLUDING WHETHER A NOTICE WAS, OR WILL BE,

PUBLICIZED AS REQUIRED BY FEDERAL ACQUISITION REGULATION

(FAR) SUBPART 5.2, AND IF NOT, WHICH EXCEPTION UNDER FAR 5.202

APPLIES:

• A thorough web search has found no other commercial companies providing custom or even standard high density SNP testing for pigs. Illumina, the firm that granted GeneSeek exclusive rights to sell the 70k GGP HD SNP BeadChip, also sells a 60k SNP BeadChip directly to consumers. However, Illumina cannot provide genotypes for the GeneSeek’s proprietary 22,000 SNPs, which represent a substantial portion of the established dataset. Use of Illumina’s services would require scientists at NWRC to isolate the DNA from each sample as well as run the testing assay. The cost per sample just to purchase the Illumina’s 60k beadchip, not including DNA preparation or staff time, is $90 per sample.

Startup costs add to the substantial “do it yourself” pricing as Illumina’s HiScanSQ instrument, needed to run generate genotypes with the BeadChip technology, starts at $400,000. Thus, GeneSeek provides more data at a lower price than all other competitors that could be identified.

• Fedbizopps Special Notice# PR-17-83655 published on 01/23/2017 and closed on

02/07/2017. 3 Vendors expressed interest but none submitted capability statements.

A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE, AND THE BASIS FORTHAT DETERMINATION:

Price reasonableness was accomplished by comparison of commercial prices for similar items, when and where both the validity of the comparison and the reasonableness of the price(s) could be established.

The difference in pricing between the last year’s order and current is about 2%, which is acceptable. According to Ben Pejsar, Genomic Market Development Manager

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Neogen GeneSeek Operations; GeneSeek(NEOGEN) does not have a published price list.

All pricing is based on a requested quote and dependent upon sample volumes. The standard price for the Porcine HD array (Tissue sample) currently ranges from $45-$50 per sample depending on sample type. For this project specifically, the $43 per sample price is the discounted price due to sample volumes.

Previous order AG-6395-P-16-0368 Line 002 Porcine HD Tissue Samples 993ea @$42.00ea = $41,706.00 Line 003 Shipping $21.00 total Current requisition Line 001 Porcine HD Tissue Samples 1428ea @$43.00ea = $61,404.00 Line 002 Shipping $21.00 total

A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (FAR

PART 10) AND THE RESULTS, OR AN EXPLANATION OF THE REASON

MARKET RESEARCH WAS NOT PERFORMED:

Market research was conducted, evaluating the market place for the services required.

GeneSeek offers high density SNP genotyping using a proprietary SNP array at a lower price than alternative service providers.

Continuation of research initiated in FY2016 using GeneSeek’s proprietary BeadChip necessitates continued contracting with GeneSeek for genotyping services. Further, we have begun collaborating with USDA Agricultural Research Services to compare genetic patterns among feral swine to those found among domestic pig breeds – this analysis will allow us to identify the breed composition and origins of feral swine populations. USDA ARS is also contracting with GeneSeek for genotyping services. Thus, to continue contributing to established datasets generated within USDA, it is necessary to continue contracting with GeneSeek.

Please contact Dr. Tim Smyser as a subject matter expert if a firm other than GeneSeek is awarded the contract for high density genotyping to ensure the resolution provided is adequate to address identified management/research questions. Contact information is listed below:

Timothy J. Smyser, PhD Biologist, Wildlife Genetics National Wildlife Research Center 4101 LaPorte Ave.

Fort Collins, CO 80521

(970) 266-6365 (office)

(765) 586-5890 (cell) Timothy.J.Smyser@aphis.usda.gov

ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL

mailto:Timothy.J.Smyser@aphis.usda.gov

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AND OPEN COMPETITION - FAR 6.303-2(a)(9):

Our market research has indicated that the tremendous volume of samples processed by GeneSeek has allowed them to reduce prices well below similar services that are offered by their competitors (Illumina). Further, we have explored other options for custom SNP genotyping and deemed the initial investment required for startup to be cost prohibitive.

A LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITON:

The POWERS GROUP

65 SODA BAY RD LAKEPORT, CA

Intrepid capital endeavors llc 131 thompson st fl 6 new york, NY

Frank V. Reilly Bid Protest Attorney / Federal Procurement Lawyer

A STATEMENT OF THE ACTIONS, IF ANY. THE AGENCY MAY TAKE

TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION

BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES,

EQUIPMENT, OR SERVICES REQUIRED:

The industry that provides this work is a mature industry. The agency will continue to monitor the market place for solutions that may meet our requirements.