SOLE SOURCE JUSTIFICATION signed EDITED.pdf

FOR OFFICIAL USE ONLY - Source Selection Information - See FAR 2.101 and 3.104

Page 1 of4 DHA PGI 206.3, Attachment 1 (06-21-2018)

Justification and Approval (J&A) for Federal Acquisition Regulation (FAR) Subpart 13.5

Other than Full and Open Competition Sole-Source Acquisitions

J&A Tracking No.

1. Identification of the agency and contracting activity: This justification for an exception to fair opportunity is executed by the Defense Health Agency Contracting Activity (DHACA), Western Markets Contracting Division, San Diego, CA, on behalf of U.S. Naval Hospital Okinawa, Japan

2. Nature and/or Description of Action being approved:

Thousands of ambulatory and inpatient endoscopic procedures are performed each year within the Gastroenterology and General Surgery department at Naval Hospital Okinawa Japan. To continue providing this much needed medical service within the standards of care, it is critical that we have the capability to capture and archive endoscopic images and generate clear medical documentation (i.e. procedural reports) for patients and other medical providers. Furthermore, the software must meet the stringent security DIACAP requirements. Endovault Endosoft is both DIACAP certified and Windows 10 compatible and consist of a combination of software and associated electronic equipment. This system is designed to be used in both endoscopy and minor procedure settings and is compatible with the existing endoscopic equipment. Endovault Endosoft enables physicians and nurses to manage patient scheduling and tracking from arrival to discharge, capture archive procedure information, generate procedure and unit reports, and easily capture and annotate High Definition procedure images and videos. Endosoft endoscopy image capture is very critical for general surgery to have since it will be used hand in hand with the endoscopy system that is currently under acquisition. Without this database, the equipment will not be able to be used by physicians. This annual support provides updates, upgrades and patch notifications for the software.

3. Description of Supplies/Services:

I-year support, product version updates and upgrades for EndoSoft System/Endo Vault Software

- Product Upgrades - Automatic shipment of the latest upgrades as they become available (within the 12 months subscription period)

- Product Updates - Receive all inline releases as they are available

- Patch Notification - Immediate notification via email of product patches available online

Response time: Contractor shall response cases reported by the Government within one business day for high/medium level and three business days for low level cases. Cases can be reported to

Page 2 of4 contractor via phone, voicemail, email , website or fax.

- Period of Performance: 8/1/23 - 7/31/28

4. Statutory and Regulatory Authority Permitting Other Than Full and Open Competition: Per FAR 11.105(a)(l ), the brand name, product, or feature is essential to the Government' s requirements , and market research indicates other companies' similar products, or products lacking the feature, do not meet, or cannot be modified to meet, the agency' s needs. The statutory exception permitting other than full and open competition for this acquisition is 41 U.S.C. 1901 Simplified Acquisition Procedures, as prescribed in FAR 13.501(a)(l)(ii) soliciting from a single source.

5. Rationale Justifying Use of the Statutory Authority Cited:

UTECH Products Inc is the sole source provider of Support and Maintenance for the EndoVault software products currently installed at US Naval Hospital Okinawa.

6. Efforts to Obtain Competition:

Competition is restricted due to the Original Equipment Manufacturer (OEM) have proprietary rights to the USNHO EndoSoft. Per OEM letter dtd March 27, 2023, UTECH Products Inc is the sole source provider of Support and Maintenance for the EndoVault software products currently installed at US Naval Hospital Okinawa.

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7. Determination that Anticipated Cost to the Government will be Fair and Reasonable:

In accordance with the proposal analysis techniques at 15.404-l(b), The Contracting Officer will conduct price analysis by utilizing a comparison of the proposed price found reasonable on similar services and comparison to the Independent Government Estimate (IGCE) provided the requiring activity to determine the vendor's quote price fair and reasonable.

8. Market Research: Market research was conducted mandatory sources are not able to provide support. As stated above UTECH Products Inc. is OEM and have proprietary rights to the instrument.

9. Other Facts: In order to be compliant with OEM specifications, annual support must be performed by OEM company.

10. Interested Sources: None

11. Actions to overcome barriers: For the reason in Paragraph 5, DHA has no plans at this time to make any changes to installed system. USNH Okinawa fully supports any and all efforts to remove or overcome barriers to competition, however there are no authorized distributors or other-than OEM certified contractors who can perform the service.

COORDINATION:

12. Technical/Functional Representative:

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

Hitomi Oshiro Purchasing and Contract Assistant

7/19/2023

Date

13. Fair and Reasonable Cost Determination:

OSHIRO.HITOMI.1363870739

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I have determined that the anticipated cost to the Government for this contract action is fair and reasonable.

Click here to enter a date.

Pedro Reyes Contracting Officer, Choose an item.

Date 7/19/2023