REDACTED_-_Sole_Source_Justification_-_FY19_-REDACTED.pdf

Control Number: 19-RHCO-C-657

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 76544.

2. Description of Action: This is a continuing contract for Stryker equipment maintenance. This action will be accomplished through the use of a firm-fixed price contract. DHP funds will be used for this acquisition.

3. Description of Supplies/Services: Non-Personal Services to provide scheduled and unscheduled maintenance according to the Performance Work Statement (PWS) to include parts, and labor on the Government-owned, Stryker Equipment. With several hundred different pieces of equipment, the major items are arthroscopes, laparoscopes, hysteroscopes, cystoscopies, and various saws. The scopes are being repaired the most. This will be SAF FY20 Funds. Funds for the subsequent option periods will additionally be subject to the availability of funds. The total estimated amount of this contract is (POP: Base of one year from 01 October 2019 - 30 September 2020 and four (4) twelve-month option years, from 01 October 2020 - 30 September 2024). The total estimated amount of the contract includes the potential 6 month extension (Ref. 52.217-8 Option to Extend Services). The POP for the 6 month extension would be 1 Oct 24 to 31 Mar 25, at a cost of $XXXXXXXXXX, and is included in the price above.

4. Authority Cited: 41 U.S.C 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified acquisition procedures for certain commercial items.”

5. Reason for Authority Cited: Stryker Corporation is the only vendor that has the proprietary license software and trained personnel to provide maintenance services for Government owned Stryker equipment. Stryker Corporation has authorized distributors that sell their items, but they do not have any authorized distributors that provide maintenance services on Stryker equipment.

6. Efforts to Obtain Competition: In the future, the Government will utilize the sources sought option as the government’s mission changes and the current equipment becomes obsolete there may be more companies that can provide this type of technical expertise. The life cycle of these systems is estimated between 1 – 5 years. This office will continue to monitor the market for any new participants that may be able to provide this type of technical expertise for any follow-on requirements. The largest hindrance to competition is the cost of replacement, when you have a requirement for this many working parts and components, that spans across the CRDAMC platform it is going to be very expensive to replace, an estimated $XXXXXXXXXX will have to be spent to replace these items. This office will continue to work towards measures to eliminate or reduce competitive barriers.

a. Effective competition. There will not be any competition for this procurement, based on previous procurements for the same requirement. This is a performance-based services contract.

Control Number: 19-RHCO-C-

(Stryker Equipment Maintenance, CRDAMC, Fort Hood, TX)

(See FAR 2.101 and 3.104-4)

The performance-based outcomes to be satisfied include having access to OEM parts, repairs, meeting manufacturing specifications, complying with security regulations and maintaining a Quality Control Plan. The performance standard for maintaining documentation in accordance with regulations is 100%. The performance standard for the objective, is all repair parts shall meet exact manufacturer specifications and be at the most current revision level, is 96% of the time. Metrics are clearly identified to measure how well the contractor meets or exceeds the Performance Work Statement (PWS) requirements.

b. Subcontracting competition. The suggested source does not rely on subcontracting; however, competition in subcontracting will be utilized when available.

7. Actions to Increase Competition: Due to proprietary rights and diagrams of the equipment, no other vendor can provide the required services.

8. Market Research: Market Research through the SBA Dynamic Small Business Quick Market Search was conducted on 4 September 2019, to identify Small Businesses with NAICS Code 811219. Vendor profiles were assessed to determine if they could satisfy the requirement.

Upon review of the capabilities of vendors with similar maintenance programs, this procurement was deemed price reasonable, therefore the price received from Stryker Corporation will represent the best value and result in the lowest overall cost alternative to meet the needs of CRDAMC. Stryker is the manufacturer and sole authorized distributor of the equipment and instruments needed to provide these services.

9. Interested Sources: A Sources Sought was posted to ASFI for five (5) days, from September 4 to September 9. The KS received one response.

10. Other Facts: The items for service were manufactured by Stryker Corporation. They do not sell their parts, materials, processes or proprietary tool to third party vendors; therefore, only authorized Stryker trained technicians can provide the needed service. The use on non-Stryker technicians or components nullifies any warranties and liabilities that are currently in place on these instruments. Additionally, using a third party service may jeopardize the joint Commission study for the CRDAMC. Under the Stryker agreement, all replacement parts used are Original Equipment Manufacturer (OEM). Any damage caused by non-Stryker repairs or components voids any future repairs by Stryker that were still covered under previous liability/warranty agreements. Additionally, when a repair is required, Stryker will provide a loaner piece of equipment to ensure that there is no lapse in care. The total replacement value for all Stryker Instruments in the inventory is $XXXXXXXXX.

a. Procurement history. This procurement is to purchase non-personal services for Stryker instruments at the Carl R. Darnall Army Medical Center (CRDAMC), Fort Hood, TX. The Government does not possess the manpower assets or equipment to accommodate this workload and without this service the Government may not have the tools available as needed by the surgeons during surgery which may impact the mission of the warfighter.

Contract W81K00-17-P-0753, was awarded for two years. The current vendor is a large business and this procurement is expected to be procured as a sole source acquisition.

(1) Contract numbers and dates of the current award:

W81K00-17-P-0753 = $XXXXXXXXX (1 October 2017 – 30 September 2019).

(2) The above action was previously procured as a sole source, under Control # 17-

RHCO-C-781.

(3) The J&A is under the following authority: FAR 13.501(a)(2)(ii); For a proposed contract exceeding $XXXXXXX, but not exceeding $XXX million, the advocate for competition for the procuring activity, designated pursuant to 6.501; or an official described in 6.304(a)(3) or (a)(4) must approve the justification and approval. This authority is not delegable.

(4) A justification was prepared to support the procurement before this one, which stated that due to proprietary rights and diagrams of the equipment, no other vendor can provide the required services. The previous action was not competed, as stated in paragraph 9.

(5) The previous contract for this requirement was not accomplished using full and open competition.

(6) There were no unusual patterns revealed by the history.

(7) No changes were identified from the previous procurement. Stryker is the only company that is authorized to work on this equipment due to the proprietary nature of this equipment. Stryker is the Original Equipment Manufacturer (OEM) and they have no authorized maintenance providers.

b. Other facts. There are no additional facts that were not previously stated.

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:

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. “As part of the basis for the fair and reasonable price determination, certified cost or pricing data is not required per FAR 15.403-1(b)(3).”

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: ____________________

Typed Name: _ ___Title:_______________

Approval

Based on the foregoing justification, I hereby approve the procurement of Stryker Maintenance services in support of the Carl R. Darnall Army Medical Center, with a total value of $XXXXXXXXXX (including the possibility of a six month extension), 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. The total estimated amount of the contract includes the potential 6 month extension (Ref. 52.217-8 Option to Extend Services).

Signature: ________________________________Date: _____________________

Typed Name: ____Title:__ ___________

Based on the foregoing justification, I hereby approve the procurement of Stryker Maintenance services in support of the Carl R. Darnall Army Medical Center, with a total value of $XXXXXXXXXX (including the possibility of a six month extension), on an...