S-44000-00007068 ThermoElectron Ion Chromatograph Maintenance_Final_signed.pdf

SOLE-SOURCE DETERMINATION AND JUSTIFICATION

FOR SUPPLIES AND SERVICES

No. S-44000-00007068

To: State Chief Procurement Officer

Department of Administrative Services

From: Department of Consumer and Business Services

Designated Procurement Officer: Miriha Aglietti, DPO

Agency Analyst/Procurement Specialist: Nicholas Brooks

Date: 05/25/2023

Re: Sole Source Determination pursuant to Oregon Revised Statute (ORS) 279B.075 and Oregon Administrative Rule (OAR) 125-247-0275 to purchase additional years of maintenance for an Ion Chromatograph.

1. Authority to enter into a Sole-Source Contract: OAR 125-246-0170(2)(c)(H)

2. Estimated Total Value of Contract: $178,547.39

3. Subject of Contract: Maintenance and Support for ION Chromatograph for Oregon OSHA lab.

4. Background:

On April 26, 2017, Agency issued Sole Source Procurement No. DCBS-1329-17 for the purchase for a new Thermo Fisher Scientific Dionex™ Ion Chromatograph, model #ICS-5000. This was to replace a previous model #ICS-3000 which was installed in 2007 and made obsolete in January 2018. Agency also completed a brand name determination for the Ion Chromatograph. The sole source closed without any protests.

As a result, PO50-596 was issued on July 5, 2017 for the purchase of the new Ion Chromatograph for $113,078.66, including shipping costs. This purchase included five years of maintenance and support.

Also on July 5, 2017. Amendment 1 to PO50-596 was issued for the purchase of an additional part for the Ion Chromatograph. This purchase totaled $2,713.37.

On January 23, 2018, Agency issued internal Amendment 2 to PO 50-596 to add $11.25 to cover unexpected shipping costs. This amendment was not sent to the vendor.

On April 25, 2019, Agency issued internal Amendment 3 to PO 50-596 to extend the term date to align with the maintenance included on the initial purchase. This amendment was not sent to the vender and did not add any funds.

On October 8, 2019, Agency issued Amendment 4 to PO 50-596 for the purchase of an additional part for the Ion Chromatograph. This purchase totaled $3,372.11.

On May 11, 2022 Agency issued Amendment 5 to PO 50-596 extending the maintenance and support plan for the Ion Chromatograph for an additional year. This purchase totaled $15,442.00.

On May 4, 2023, Agency issued Amendment 6 to PO 50-596 upgrading equipment that connects with the Ion Chromatograph from Windows 7 to Windows 10. This purchase totaled $8,297.00.

Current total spend under PO50-596 and sole source DCSB-1329-17 is $142,914.39.

Thermo Fisher is the only manufacturer of the Dionex™ Ion Chromatograph, and is only functional with Thermo Fisher proprietary software. There are no other suppliers that can provide support for the Ion Chromatograph currently owned.

Agency is requesting to extend the maintenance and support plan for an additional two years, bringing the new expiration date to June 14, 2025. This extension will cost $35,633.00, bringing the cumulative spend to $178,547.39.

5. Findings:

Agency currently owns an ICS-5000 Ion Chromatograph. Thermo Fisher was the sole-source of this Ion Chromatograph, and Agency conducted a sole-source procurement, along with a brand name determination, on April 26, 2017 for the purchase of the Ion Chromatograph.

Thermo Fisher is also the only supplier that can provide maintenance and support, including compatible software and firmware updates. This is supported by attached sole source letter dated April 24, 2017.

This is also supported by testing by Agency, research through online search engines, and in discussions with Thermo Fisher.

There are no other authorized or qualified suppliers of the ICS-5000 Ion Chromatograph or support services such as; maintenance and repairs, software and firmware updates, or operational training.

A. Market Research Overall Finding.

Pursuant to ORS 279B.075 and OAR 125-247-0275 (3), extensive internet research has determined that Thermo Fisher is the only supplier of the Dionex™ Ion Chromatograph. This includes all maintenance and support services, including software and firmware updates. In order to continue the operational integrity and accuracy of the Ion Chromatograph, Agency requires the maintenance services provided by Thermo Fisher.

And

B. Findings of Fact pursuant to OAR 125-247-0275(2) must include, at a minimum, one of the following:

1. Pursuant to OAR 125-247-0275(2)(a): Compatibility. Provide findings supporting your determination that the efficient utilization of existing goods requires the acquisition of compatible goods or services from only one source.

Thermo Fisher is the only supplier that can provide software and firmware updates/upgrades compatible with the Ion Chromatograph currently in use by Agency. Thermo Fisher is also the only source of certified and qualified engineers that can provide onsite maintenance and technical assistance for the Ion Chromatograph, and well as the only supplier that can provide operational training.

2. Pursuant to ORS 279B.075 (2)(b): Exchange of Software or Data. Provide findings supporting your determination that the goods or services required for the exchange of software or data with other public or private agencies are available from only one source.

N/A

3. Pursuant to ORS 279B.075 (2)(c): Pilot or Experimental Project. Provide findings supporting your determination that the goods or services are for use in a pilot or an experimental project.

N/A

4. Pursuant to ORS 279B.075 (2)(d): Other findings that support the conclusion that Supplies and Services are available from only one source may include but are not limited to considerations of: unique design, availability, geographic location, exclusive authorized representative, cost of conversion, and warranty services.

The Dionex™ Ion Chromatograph software and firmware are of a propriety design that only Thermo Fisher can provide support and updates for. The Ion Chromatograph will not work with any other software or firmware. Also, only engineers trained and certified by Thermo Fisher are able to make modifications and repairs to the Ion Chromatograph, and Thermo Fisher is the only supplier that can provide operational training.

Approved By: ____________________________________________________________________ Miriha Aglietti, Designated Procurement Officer Date:

05/25/2023