Southcom_Redacted.pdf

LIMITED SOURCE JUSTIFICATION

1. Defense Logistics Agency (DLA) Troop Support, Medical Supply Chain, Capital Equipment Division, is the contracting activity.

2. This justification is for the acquisition of brand name products or features essential to the United

States Southern Command (US SOUTHCOM). The order will be placed against Pacific Consolidated Industries (PCI) Electronic Catalog (ECAT) contract SPE2D1-18-D-0013, which expires on June 11, 2023.

3. The US SOUTHCOM has requirements for the following items:

Item Description: Deployable Oxygen Concentration System (DOCS) Document Number: W91LMH165515 Model Number: DOCS 80 Part Number: 801207-002 Quantity: 8 each Unit Price: $161,162.15 Total Estimated Dollar Value: $1,289,297.20

4. The authority under the Multiple Award Schedule program waiving the competition requirement is

FAR 8.405-6(a)(1)(i)(B), as the following circumstance applies: only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

This procurement is part of the Department of Defense’s mission to support the United States (US) Government’s response to the Coronavirus (COVID-19) pandemic. The US SOUTHCOM Humanitarian Assistance Program (HAP) needs to purchase eight (8) Oxygen Generator Systems at the request of the Peruvian Ministry of Health (MOH). The country of Peru is being hit particularly hard by COVID-19 pandemic and many hospitals do not have the ability or resources to produce their own medical oxygen. The HAP Team at US SOUTHCOM will use their Overseas Humanitarian Disaster and Civic Aid (OHDACA) appropriation to make this purchase and subsequently donate the equipment to Peru on behalf of the US Government.

The required oxygen generation systems must satisfy the following minimum requirements established by the Peruvian MOH:

a. The oxygen generation system shall provide medical grade oxygen meeting the requirements of the United State Pharmacopeia (USP) of 93%.

b. The weight of the system, including accessories (i.e., hoses and fittings) and emergency back-up system shall not exceed 2,300 pounds total weight.

c. The oxygen generation system shall produce gaseous oxygen at a flow rate of at least 75 liters per minute (lpm)

d. The oxygen generation system shall deliver gaseous oxygen through a regulator that is capable of supplying between 50 to 100 pounds per square inch gauge (psig).

e. The oxygen generation system shall be able to operate during and after being exposed to harsh environmental conditions such as blowing sand, snow, sleet, dust, rain, and high-salinity environments

PCI’s DOCS 80 oxygen generation system is the only system currently available on ECAT that meets all of the Peruvian MOH’s requirements.

5. DLA Troop Support has already determined the prices of supplies under the Non-Developmental

Oxygen Generating Systems multiple award program fair and reasonable based on Defense Contract Audit Agency (DCAA) and Defense Contract Management Agency (DCMA) audits. A determination has been made by the contracting officer that this order represents the best value to the Government and results in the lowest overall cost alternative (considering price, special features, and administrative cost) consistent with FAR 8.404(d).

6. Market research was conducted in July 2020 by Peruvian MOH via internet search engines assessing whether other vendors could offer oxygen generation systems that meet all of their minimum requirements. Oxygen Generating Systems International (OGSI) was identified as a potential supplier and was considered for this procurement action since they offered similar items.

• OGSI’s MOGS-100 Oxygen Generation system is 2550 lbs., exceeding the maximum weight in the minimum requirements (b).

• Also, the MOGS-100 is only capable of producing a flow rate of 50 lpm which fails to meet the minimum requirements (c).

Additional Market research was conducted in January 2021 by the DLA Biomedical Engineer via internet search engines assessing whether other vendors in our multiple award program could offer oxygen generation systems that meet all the minimum requirements of the Peruvian MOH. The DOCS 80 Oxygen Generation System offered by PCI was proven to be the only one meeting all of the Peruvian MOH’s minimum requirements.

Two (2) other Oxygen Generation vendors were identified as potential suppliers. Essex Industries and Onsite Gas were the two (2) vendors considered for this procurement action since they offered similar items and are available on long term contracts.

• Essex Industries’ Next Generation Portable Therapeutic Liquid Oxygen System (NPTLOX) is only capable of producing a flow rate of 66 lpm which does not meet minimum requirement (c).

• Onsite Gas manufactures two (2) comparable units: the POGS 33C and the POGS 33C FHP

Oxygen Generation systems.

• The POGS 33C is only capable of producing a flow rate of 33 lpm which also fails to meet minimum requirement (c).

• The POGS 33C FHP is the resulting oxygen generation system when daisy-chaining four (4) POGS 33C systems together to achieve up to 120 lpm flow rate.

• The POGS 33C and POGS 33C FHP are only capable of delivering gaseous oxygen at 50-55 psig which fails to meet minimum requirement (d).

DOCS 80 supplied by PCI is the only device available on ECAT that is compliant with all of the Peruvian MOH's minimum requirements.

7. Oxygen Generating System vendors have the opportunity to add products that fall within the scope of the Oxygen Generating System Program at any time. Therefore, any Oxygen Generating System vendor not currently offering the required product has the opportunity to add the product, thereby enhancing competition. However, currently there are no other known program vendors that offer a similar or equivalent product that meets all of the Peruvian MOH’s minimum requirements.

8. DLA Troop Support will attempt to locate other acceptable sources for future routine requirements as they arise; however, any new item would be required to meet the minimum requirements.

9. As the Contracting Officer, I hereby certify that the information contained in this Limited Source Justification is accurate and complete to the best of my knowledge and belief.