A.02.04_J A_Sole_Source_Justification-_Cool_Systems_(version_3)(Redacted).pdf

Control Number: 16-RHCO-C-469

For Official Use Only (See FAR 2.101 and 3.104-4)

(25 February 2016)

Sole Source Justification and Approval Under FAR 13.501

1. Contracting Activity: Regional Health Contracting Office - Central, Carl R. Darnall Army Medical Center (CRDAMC), Fort Hood, Texas.

2. Description of Action: Request for a follow on contract as a Sole Source acquisition with CoolSystems, Inc. This action will be accomplished through the use of a Firm Fixed contract for a Base Period of Performance of 1 October 2016 to 30 September 2017 with one (1) twelve month option. The total estimated cost base plus the option is $400,000.00 via an ordering officer. Subject to the Availability of FY17 Funds.

3. Description of Supplies/Services: Carl R. Darnall Army Medical Center (CRDAMC) has a requirement for therapeutic recovery systems capable of facilitating therapy after surgery or injury that provides automatic cold compression. While there are numerous cold packs and other methods, Game Ready Cold Compression System is the only fully automated system that provides cold and compression simultaneously.

Utilizing this equipment and associated services directly coincides with established departmental rehabilitation procedures. The systems have been used with much success, decreasing the recovery time for patients, and eliminate the need for additional hospital personnel. The CRDAMC Ortho Clinic conducted a survey to assess the Game Ready System. A summary of the survey found that between 95-100% stated the device reduced the amount of pain medication they took, helped them return to work sooner, and provided an overall "excellent experience" using the device. The award will be an equipment lease and non-personal maintenance service.

4. Authority Cited: "41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items".

5. Reason for Authority Cited: The Carl R. Darnall Army Medical Center (CRDAMC), Fort Hood, Texas has a request/need for therapeutic recovery systems capable of facilitating therapy after surgery or injury that provides automatic cold compression.

While there are numerous cold packs and other methods, this is the only fully automated system that provides cold and compression simultaneously. Utilizing this equipment and associated services directly coincides with established departmental rehabilitation procedures. Currently there are no other vendors capable of providing this particular equipment (an automatic simultaneously cold and compression system), with the necessary services, as these are unique. CoolSystems is the Original Equipment Manufacturer (OEM) of the Cold Compression System and holds a patent for this equipment.

Cool Systems - Game Ready therapeutic recovery system Fort Hood, TX

(See FAR 2.101 and 3.104-4)

6. Efforts to Obtain Competition: A Sources Sought notice was posted to FedBizOps on 19 July 2016 and closed on 28 July 2016 at 10:00 am Central Standard time. Two vendors responded to the sources sought notice; CoolSystems, Inc. and Compression Systems, LLC.

Compression Systems, LLC provided a capabilities statement which identified the products they carry however, they do not deliver the equipment to CRDAMC for patient use or to the patient’s home nor do they retrieve all units from the patient whether at CRDAMC or at the patient’s home of residence. Instead, Compression Systems, LLC offers to mail the units to the patient with a return-mailing envelope and provide an instructional video, which is available online at www.powerplay.us the method of delivery and the training does not meet the Governments requirement and therefore, Compression Systems, LLC does not meet the needs of the Government. Compression Systems, LLC capabilities statement was passed along to the end user for consideration in future procurements.

Only CoolSystems, Inc. is able to offer the items and service required by the Government. Market research revealed at this time that CoolSystems, Inc. is the Original Equipment Manufacturer (OEM) of Game Ready Cold Compression System and there are no authorized distributors.

a. Effective competition. No competition has been received for this action.

b. Subcontracting competition. No subcontracting competition is expected for this action.

7. Actions to Increase Competition: The previous J&A control number 401, associated with contract number W81K00-14-P-0882 stated the below:

“Future procurements shall be advertised through the Government Point of Entry.

When the current Game Ready Cold Compression System equipment becomes obsolete or when equivalent equipment becomes available every effort shall be made to increase competition. CRDAMC will continue to evaluate the capabilities of other vendor's products and re-procure Cold Compression System equipment that provides the best value to the Government. The government will continue to seek new resources that will satisfy these requirements through continued market research, requests for Statements of Capability and telephonic inquiries”.

The planned actions to remove barriers and increase completion as stated in block 7 of the previous justification have been accomplished. Game Ready Cold Compression System equipment is not obsolete and Game Ready is still protected by patent laws. A sources Sought notice was publically posted to FedBizOps where one (1) vendor replied with their capabilities statement. CRDAMC evaluated the capabilities of the other vendor's products (Compression Systems, LLC) and determined that http://www.powerplay.us/

Compression Systems, LLC did not meet the Governments requirements, additionally thorough research was conducted via internet and no other suitable vendors nor equivalent equipment was identified.

For future requirements:

Extensive market research will again be conducted prior to the next award to see if any new eligible vendors have entered the market place.

Future procurements shall be advertised through the Government Point of Entry. When the current Game Ready Cold Compression System equipment becomes obsolete or when equivalent equipment becomes available every effort shall be made to increase competition. CRDAMC will continue to evaluate the capabilities of other vendor's products and re-procure Cold Compression System equipment that provides the best value to the Government. The Government will continue to seek new resources that will satisfy these requirements through continued market research, requests for Statements of Capability, and telephonic inquiries. To increase competition for future requirements the department will take into consideration the option of purchasing of the Cold Compression System as well as researching other delivery methods such as mailing the equipment verses delivery to the hospital or patients home.

8. Market Research: Market research was conducted to identify if other vendors could provide like or similar items. The internet was searched utilizing a variety of key words such as “therapeutic recovery systems” and “automatic cold compression” and a combination of key words. While there are numerous cold packs and other methods, Game Ready Cold Compression System is the only fully automated system that provides adjustable cold and compression simultaneously with the services required by the Government. Additionally, a sources sought notice was posted to FedBizOps.

This is a unique patented item and service provider with a unique lease. Although extensive market research was completed, no vendors offered a similar cold compression device; only one source was identified as an authorized vendor;

CoolSystems, Inc. A good faith effort was made researching comparative sources with no viable vendors found. The United States Patent and Trademark Office, at www.tmsearch.uspto.gov, was researched CoolSystems, Inc. holds patent# 1018655 for Game Ready Cold Compression System.

9. Interested Sources: A Sources Sought notice was posted to FedBizOps on 19 July 2016 and closed on 28 July 2016 at 10:00 am Central Standard time. Two vendors responded to the sources sought notice; CoolSystems, Inc. and Compression Systems, LLC.

Compression Systems, LLC provided a capabilities statement which identified the products they carry however, they do not deliver the equipment to CRDAMC for patient use or to the patient’s home nor do they retrieve all units from the patient whether at CRDAMC or at the patient’s home of residence. Instead, Compression Systems, LLC offers to mail the units to the patient with a return-mailing envelope and provide an instructional video, which is available online at www.powerplay.us the delivery and the training does not meet the Governments requirement and therefore, Compression Systems, LLC does not meet the needs of the Government.

Only CoolSystems, Inc. is able to offer the items and service required by the Government.

Market research revealed at this time that CoolSystems, Inc. is the Original Equipment Manufacturer (OEM) of Game Ready Cold Compression System and there are no authorized distributors.

The requirement will be synopsized by posting a Special Notice of Intent to Award Sole Source on the Government Point of Entry (GPE) to indicate the intent for a sole source award. Any response received as a result of the Special Notice will be considered.

10. Other Facts: Discuss any other facts supporting the use of other than full and open competition, such as the following:

a. Procurement history. Reasonable efforts to retrieve the following items from computer records, contract files, competition advocate office files or other sources are expected:

Current Contract

(1). Contract W81K00-14-P-0882 was awarded to CoolSystems, Inc., on 25 September 2014. The Period of Performance was 1 October 2014 to 30 September 2016.

(2). The competitive status of these actions. Sole Source

(3). Authority previously cited if less than full and open competition was used. IAW

FAR 6.302-1

(4). If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results.

Previous block 7. Actions to Increase Competition: Future procurements shall be advertised through the Government Point of Entry. When the current Game Ready Cold Compression System equipment becomes obsolete or when equivalent equipment become available every effort shall be made to increase competition. CRDAMC will continue to evaluate the capabilities of other vendor's products and re-procure Cold Compression System equipment that provide the best value to the Government. The Government will continue to seek new resources that will satisfy these requirements through continued market research, requests for Statements of Capability, and telephonic inquiries.

Results: This action was advertised on the Government Point of Entry “FedBizOps” as “A Sources Sought notice” on 19 July 2016 and closed on 28 July 2016. The equipment is not obsolete, nor has there been any change to the requirement. The Government conducted market research and reviewed the capabilities statement of the one other interested vendor and determined they did not meet the requirement.

(5). If any prior contract for this requirement was accomplished using full and open competition, include a detailed explanation of the changed circumstances causing this action to now limit the sources. N/A, the precious requirement was awarded as a Limited Source.

(6). An explanation of any unusual patterns that may be revealed by the history, e.g., several consecutive, urgent buys. CoolSystems, Inc. offers the same pricing via GSA/FSS and Open Market. Open Market procurement is utilized under conditions when unable to procure via GSA/FSS.

(7). If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the procurement and whether there have been any significant changes. The Sole Source environment remains the same there have been no significant changes to the requirement, to the marketplace, or within industry.

Previous Contract

(1). Contract W81K00-13-F-M161 was awarded to CoolSystems, Inc., on 28 September 2013. The Period of Performance was 1 October 2013 to 30 September 14.

(2). The competitive status of these actions. Limited Sources Justification and Approval.

(3). Authority previously cited if less than full and open competition was used. IAW FAR 8.405-6(a)(1)(i)(B).

(4). If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results.

Previous block 7. The government will continue to seek new and innovative equipment that will satisfy these requirements through continued market research, requests for Statements of Capability, and telephonic inquiries.

Results: This action was advertised on the Government Point of Entry “eBuy”. The equipment is not obsolete, nor has there been any change to the requirement. Five

(5) vendors, four (4) vendors responded with “no quote”, the fifth vendor was CoolSystems Inc. The Government conducted market research and reviewed the capabilities statement of other interested vendors and determined they did not meet the requirement.

(5). If any prior contract for this requirement was accomplished using full and open competition, include a detailed explanation of the changed circumstances causing this action to now limit the sources. N/A, the precious requirement was awarded as a Limited Source.

(6). An explanation of any unusual patterns that may be revealed by the history, e.g., several consecutive, urgent buys. CoolSystems, Inc. offers the same pricing via GSA/FSS and Open Market. Open Market procurement is utilized under conditions when unable to procure via GSA/FSS.

(7). If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the procurement and whether there have been any significant changes. The Sole Source environment remains the same there have been no significant changes to the requirement, to the marketplace, or within industry.

The first Contract Action:

(1) Contract W81K00-12-F-0163 was awarded to CoolSystems, Inc., on 28 September 2013. The Period of Performance was 1 October 2012 to 30 September 13.

(2) The limited sources J&A was posted 18 September 2012 to 20 September 2012.

Ten (10) vendors provided responses to the ebuy Limited Sources J&A, eight (8) vendors responded with “no quote”, one vendor offered to sell the items to the Government, and the final vendor was CoolSystems Inc.

b. Other facts. Provide any other facts necessary to justify limiting competition that were not previously stated. N/A

11. Technical Certification:

I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Signature: ________________________________Date: ________________________

Typed Name: Title: Orthopedic Clinic, Head Nurse

12. Requirements Certification:

I certify that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Signature: ________________________________Date: ________________________

Typed Name: Title: Orthopedic Clinic, Head Nurse

13. Fair and Reasonable Cost Determination:

IAW 15.403-1(b)(3) certified cost and data is not required.

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Signature: ________________________________Date: __________

Typed Name: Title: Contracting Officer_________

14. Contracting Officer Certification:

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

Signature: ________________________________Date: __________

Typed Name: Title: Contracting Officer_________

Approval

Based on the foregoing justification, I hereby approve the procurement of Cool Systems

- Game Ready therapeutic recovery systems, not to exceed $400,000.00, on an other than full and open competition, basis pursuant to the authority of 10 United States Code 2304(c)(1) as implemented in Federal Acquisition Regulation 6.302-1(a)(2)(iii)(B), subject to availability of FY17 funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Signature: _____________________________ Date: __________________________

Typed Name: _______________ Title: Advocate for Competition____