A.02.04_ECI-Chemistry_Sole_Source_Justification_under_13.501_(25Feb16).pdf

Control Number: 17-RHCO-C-213

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, Fort Hood Cell.

2. Description of Action: This is for a New Firm Fixed Priced (FFP) for Cost Per Reportable Result (CPRR) Chemical Reagents to use with the Vitros 5600 Chemistry Analyzer. This requirement is subject to the Availability of Funds. However; when funded will use OMA funds.

3. Description of Supplies/Services: This requirement is for the purchase of Chemical Reagents to use with the Vitros 5600 Chemistry Analyzer manufactured by Ortho Clinical Diagnostics for Irwin Army Community Hospital, Fort Riley, KS, to provide patient diagnosis and treatment. The base period (1April 2017 – 30 September 2017) is estimated to cost $232,208.00 and the one (1) option period (1October 2017 – 30 September 2018) is estimated to cost $464,417.00.

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: Ortho Clinical Diagnostics is the Original Equipment Manufacturer (OEM) of the equipment and services needed to satisfy this requirement.

Ortho-Clinical does not allow any of its products or services to be sold by third parties, and has no authorized third party vendors.

(a) The government already has the Vitros 5600 Chemistry Analyzer manufactured by Ortho Clinical Diagnostics installed in the lab at Irwin Army Community Hospital, Fort Riley, KS. The government will incur additional unnessary cost to replace the current analyzers and experience a service delay in fulfilling patient care which would not be recovered through the process competing this requirement. A lapse in service would have an immediate negative impact, and potential mission failure in providing current health care operations and current health care services to our soldiers, civilians, and beneficiaries who rely on these services.

6. Efforts to Obtain Competition:

a. Effective competition. Procurement history for these exact same reagents for the past three years has shown that after being posted on FEDBIZOPS as “unrestricted” that no small business has ever submitted any proposals and subsequently this requirement has been awarded to the same large company during the past three years. No other efforts are being made to obtain competition as only one responsible source, Ortho- Clinical Diagnostics Inc., is capable of meeting the requirement prior to the expiration of the current contracts.

(Cost Per Reportable Result (CPRR) Chemical Reagents to use with the Vitros 5600 Chemistry Analyzer)

(See FAR 2.101 and 3.104-4)

b. Subcontracting competition. In accordance with FAR Subpart 19.705-2, the Contracting Officer has taken actions to determine whether the proposed contractual obligation requires a sub-contracting plan. According to System for Award Management (SAM) the incumbent contractor is a small business and a sub-contracting plan does not apply.

7. Actions to Increase Competition: Regional Health Contracting Office – Central will continue to evaluate the capabilities of other vendor’s products and re-procure the system equipment that provides the best value to the Government.

8. Market Research: Market research was conducted on 17 January 2017. Web and telephonic inquiries reveal that there are no capable providers in the market who currently provide the Vitros 5600 Chemistry Analyzer manufactured by Ortho Clinical Diagnostics. This requirement was soliciated approximately 3 weeks ago the government posted the soliciatation (W81K00-17-T-0060) on 22 December 2016 for a period of eight (8) days and received only one offer from Ortho Clinical Diagnostics.

9. Interested Sources: Due to the proprietary nature of the service and the compatibility issue created by the existing equipment, no other business can provide the requested service.

10. Other Facts: Discuss any other facts supporting the use of other than full and open competition, such as the following: This procurement is to provide Cost Per Reportable Result (CPRR) Chemical Reagents to use with the Vitros 5600 Chemistry Analyzers.

The following provides contract information for the last several contracts for the same requirement:

a. Procurement history. The previous acquisitions for these exact same items were posted on FEDBIZOPPS as unrestricted purchases, however the government only received one response from each of those two solicitations from the same vendor (Ortho-Clinical Diagnostics Inc.) therefore the market research conducted for this requirement does not reflect the market has changed in any significate way that would lead one to believe the government would now receive offers from any aother source than it has received in the past six months, therefore the Contracting Officer has decided to purchase as a sole source acquisition for this requirement.

(1) Contract numbers and dates: W81K00-17-P-0105 (1 January 2017 – 31 March 2017) & W81K00-16-P-0335 (1 October 2016 – 31 December 2016).

(2) The competitive status of these actions: Full & Open Competition.

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

(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. N/A

(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.

-This requirement was competed using full and open competition for past three years, however the government has only received one company to respond to these solicitations and have awarded to only Ortho-Clinical Diagnostics, therefore the Contracting Officer has decided to pursue the sole source route.

(6) An explanation of any unusual patterns that may be revealed by the history, e.g., several consecutive, urgent buys.

- For the past three consecutive acqusitions for this requirement was posted on FEDBIZOPS as “unrestricted” no other company has ever submitted a quote and subsequently this requirement has been only awarded to the same large company during the past three years.

(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. N/A

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

Historically these acquisitions were procured under FAR 13 and awarded to the incumbent due to the proprietary nature of the service and that being the only contractor to respond to the soliciatation.

Due to the proprietary nature of the supplies and the fact that no other business can provide the requested supplies. No other sources have written to express an interest in conjunction with these previous postings.

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: __________ devon.v.riley Typewritten Text 3 February 2017

Typed Name: ____________________________Title:__________________________

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:__________________________

13. Fair and Reasonable Cost Determination:

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

Signature: ________________________________Date: __________

Typed Name: ____________________________Title:__________________________

14. Contracting Officer Certification:

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

Signature: ________________________________Date: __________ pamela.a.nelson2

MAJ Devon Riley Chief, Pathology

Pamela Nelson Management Analyst pamela.a.nelson2 Typewritten Text 3 February 2017 pamela.a.nelson2 Stamp randall.p.cummins

03 Feb, 2017 randall.p.cummins Typewritten Text randall.p.cummins Typewritten Text Contracting Officer randall.p.cummins Typewritten Text Randall P. Cummins randall.p.cummins Typewritten Text randall.p.cummins Typewritten Text Randall P. Cummins randall.p.cummins Typewritten Text Contracting Officer randall.p.cummins Typewritten Text randall.p.cummins

03 Feb, 2017

Approval

Based on the foregoing justification, I hereby approve the procurement of (Cost Per Reportable Result (CPRR) Chemical Reagents to use with the Vitros 5600 Chemistry Analyzers for the base period and all options Not to Exceed (NTE) $696,625.00 on an other than full and open competition basis pursuant to the authority of 41 U.S.C. 1901 as implemented by FAR 13.501, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

Signature: ________________________________Date: ___________

03 Feb, 2017 randall.p.cummins Typewritten Text randall.p.cummins Typewritten Text Contracting Officer randall.p.cummins

Randall P. Cummins