ssj_for_FBO_posting.docx

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Attached to
Preventive MX-3 JEOL Electron Microscopes Federal contract opportunity
Solicitation number
SOL-CI-17-00009
Issued by
Environmental Protection Agency Cincinatti Procurement Operations Division

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Justification for other than Full and Open Competition

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Justification for Other than Full and Open Competition FAR 6.302-1(b)(1)(i)

1. Agency: EPA/NRMRL/WSWRD Contracting Activity: CPOD Requisition No.: PR-ORD-16-02345 Contractor: JEOL USA, Inc.

2.Nature and/or description of the action:
Award a new firm fixed price purchase order for annual service contract for the JEOL JSM-6490LV Scanning Electron Microscope, the JEOL JSM-7600F Field Emission Scanning Electron Microscope and the JEOL JEM 2100 (HT) Scanning Transmission Electron Microscope.
3.Description of the Supplies or Services:

The contractor shall perform 2 routine maintenance service visits per year. The maintenance agreement shall include all travel, labor, time materials, parts and expertise required to maintain the JEOL JSM-6490LV Scanning Electron Microscope, the JEOL JSM-7600F Field Emission Scanning Electron Microscope and the JEOL JEM 2100 (HT) Scanning Transmission Electron Microscope. The contractor shall provide factory certified field engineers for the above name equipment. The contractor shall maintain a full inventory of new or refurbished like-new manufacturer approved replacement parts for the equipment and shall replace all parts with new or refurbished like-new parts. The contractor shall perform all services and replace all parts as required for proper operation of the three microscope systems. All emergency repair services are covered by this agreement. The contractor shall respond to all emergency repair calls within 72 hours of Government request for service and shall continue service until all repairs are complete and the equipment is fully operable in accordance with manufacturer’s specifications. All services and equipment shall be warranted by the manufacturer. The contractor shall provide to minimize equipment down time and continued equipment malfunction.

Period of performance:
Base PeriodFebruary 7, 2017 – February 6, 2018
Option Period 1February 7, 2018 – February 6, 2019
Option Period 2February 7, 2019 – February 6, 2020

The estimated value for the three years is

4. Authority: [Check appropriate exception.]

Exception (* = abbreviated) FAR Cite [X] Only One Responsible Source FAR 6.302-1(b)(1)(i)

5.Describe how the contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:
The comprehensive services provided by JEOL USA, Inc. are the only services that will meet the government’s needs. This is based upon several factors. First, JEOL USA, Inc. is the sole factory-authorized supplier of parts and service for the equipment they manufacture. As such, JEOL USA, Inc. has performed the comprehensive service of this equipment for a number of years. It is important that units be serviced by a provider that is knowledgeable of their operation and components and can readily respond for repair service and rapidly obtain necessary repair parts. JEOL, as the manufacturer of the instrumentation, has the capacity and accessibility to the engineering and electronic specifications to ensure accurate operation of their products.

6. Describe the efforts made to ensure that offers are solicited from as many potential sources as practicable: A notice of intent to sole source will be posted for 15 days to FedConnect and FedBizOpps. The NOISS closed 11/12/2016 and no capability statements were received in response to the posting.

7.The contracting officer determines that the anticipated cost to the Government will be fair and reasonable because a complete analysis of all costs using audits, commerciality, previous history, or other appropriate means will be fully utilized prior to award.
The EPA has a long history of purchasing annual maintenance and repair contracts for these pieces of equipment. The price will be compared to historical prices for these services.

8. Description of the market research conducted (see FAR Part 10). If no market research was conducted, state the reasons:

Market research included internet searches and consulting with colleagues who have historically maintained this type of instrument as well as other owners of this equipment who maintain service contracts with JEOL. Internet searches did not reveal third party vendors with access to the parts or personnel able to service this instrument. No GSA vendors were identified that specialized in service on this type of instrument. Based on this market research the following determinations was made. JEOL is the sole manufacturer and distributor of this instrumentation as well as the parts and products they support. JEOL, as the manufacturer of the instrumentation, has the capacity and accessibility to the engineering and electronic specifications to ensure accurate operation of their products.

Recent competitions revealed the occurrences of instrument type insurance companies stating they can undercut JEOL prices but provide the same services from the vendor by purchasing them for “on demand service” instead of maintaining a preventative service contract. Discussions with others who have utilized these insurance companies have been disappointed with service. The original equipment manufacturers have stated they have had numerous problems getting paid and are now refusing to work with these instrument insurance companies. Last year, the EPA received a letter from JEOL stating it will not provide services on behalf of these third party providers. Therefore, if a third party maintenance provider needs assistance from JEOL for repairs, the owner of the equipment must provide a purchase order for the repairs to JEOL and then seek reimbursement from the insurance company for the repairs. This is not in the best interest of the Agency because it is so inefficient.

9. Other facts supporting the use of other than full and open competition. None.

10. List sources that expressed, in writing, an interest in the acquisition. If no sources expressed an interest in writing, indicate such. No sources have expressed an interest in writing.

11. Include 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 or services required. In the future, market research will be performed to see if there are any new companies that have entered this market and to determine if any of the existing companies have added new products that meet our needs.

Technical Officer’s Certification:

I certify that the facts and representations stated in this justification are complete and accurate which form the basis to award this requirement.

Contracting Officer’s Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Level Above Contracting Officer:

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