JEFO - Stryker IOR Maintenance_NMC San Diego_FINAL_Redacted(2).pdf
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- Attached to
- JEFO - IOR Maintenance
- Solicitation number
- SPE2D1-25-F-0174
About this file
This document is a Justification for an Exception to Fair Opportunity (JEFO) for a sole source contract with Stryker Corporation for maintenance support of operating room equipment at Naval Medical Center San Diego. The contract (SPE2D1-20-D-0011) is for a one-year full-service maintenance contract for Stryker Operating Room Integration Systems and Endoscopy Systems, with a base period expiring on July 16, 2025, and a potential five-year option period that could extend through July 16, 2030. The justification is based on Stryker being the sole authorized source for maintenance, as the original equipment manufacturer with proprietary software and no third-party service options, which is critical for maintaining equipment functionality, patient safety, and care quality at the medical facility.
The Defense Logistics Agency (DLA) Troop Support, Medical Supply Chain, Capital Equipment Division is the contracting activity, and the contract is being awarded under FAR16.505(b)(2)(i)(B) authority, which allows for sole sourcing when only one source can provide services at the required quality level. Market research conducted in March 2025 confirmed Stryker's capability to provide the required maintenance services. The contracting officer has determined the pricing to be fair and reasonable, and DLA Troop Support indicates an intent to allow PMCE vendors to potentially compete in future solicitations to increase competition within the program.
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JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY (JEFO)
STRYKER CORPORATION
CONTRACT SPE2D1-20-D-0011
(1) Defense Logistics Agency (DLA) Troop Support, Medical Supply Chain, Capital Equipment Division, is the contracting activity.
(2) This sole source justification is for the purchase of a full-service contract to provide maintenance support for integrated operating room equipment.
(3) The action submitted for approval is a JEFO for the acquisition of an annual full-service contract to provide maintenance support for one (1) year for Stryker Operating Room (OR) Integration Systems and Endoscopy Systems at Naval Medical Center (NMC) San Diego from Stryker Corporation (Stryker) under its Patient Monitoring and Capital Equipment (PMCE) Contract SPE2D1-20-D-0011. The base period of the contract expires on July 16, 2025. There is a five (5) year option period which is currently being worked, which will extend the contract through July 16, 2030. The total estimated dollar value of this requirement is
(4) The authority waiving the fair opportunity requirements is FAR16.505(b)(2)(i)(B), only one (1) 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.
The use of this authority is necessary since the United States (US) Navy at NMC San Diego requires a full-service contract to provide maintenance support for their Stryker OR Integration Systems and Endoscopy Systems. This requirement is essential and critical to the continuing functionality of Stryker OR Integration Systems and Endoscopy Systems at NMC San Diego. Continued authorized maintenance is also necessary to maintain a high quality of care and to preserve patient safety.
Stryker is the only authorized source for the maintenance services on Stryker OR Integration Systems and Endoscopy Systems because it is the original equipment manufacturer (OEM) for Stryker products, and it does not provide replacement parts for its products to any third-party service organizations.
Stryker has the sole proprietary license for the operating software on Stryker OR Integration Systems and Endoscopy Systems. The annual full-service contract provided by Stryker consists of software updates along with equipment repair. Repairs of the Stryker OR Integration Systems and Endoscopy Systems often require interaction with Stryker’s proprietary operating software, which must be done by an entity with a license for it. No other entity is authorized to perform service on the Stryker OR Integration Systems and
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