I.A.02 LSJ Under SAT - Final.pdf

Control No: 24-RHCO-C-357

Version – February 2017

Memorandum for Record – Limiting Competition at or below the Simplified

Acquisition Threshold

1. Contracting Activity: Medical Readiness Contracting Office – West (MRCO-W), Fort Bliss, Texas 79918

2. Description of Action:

Nature: New Requirement Follow-on Requirement

Contract Vehicle: Purchase Order Number W81K0024P0003

Blanket Purchase Agreement (BPA) Number _______________ Order/BPA# _______ against FSS Contract #_____ _________ Order #___________ against Multiple Award IDIQ Contract Name or #______________

Order #_______ against a single award IDC Contract

Modification # _______ to existing PO/TO/DO/Call Order

Pricing/Contract Type: Fixed Price Time & Materials/Labor Hours Cost Reimbursable Hybrid

Funds: Operations & Maintenance, Army (OMA) Other Funds: DHP

FY: 2024

Name of Proposed Contractor and Address:

Biomerieux Inc.

100 Rodolphe St Durham NC 27712-9402

Brand Name Buy: Yes No

3. Description of Services or Supplies: Microbial Testing Supplies with Contractor-Owned Analyzers

The US Army Medical Readiness Contracting Office – West (MRCO-W) seeks to procure a contract is for microbial identification and susceptibility detection for the FT Bliss/El Paso area at William Beaumont Army Medical Center Laboratory, Department of Pathology, Fort Bliss, Texas. This contract will be for the lease of one (1) microbial identification and susceptibility testing analyzer and one (1) mass spectrometer analyzer and the reagents/consumables needed to perform gram-positive organism, gram-negative organism, anaerobic organism, yeast organisms and niesseria-haemophilus organisms on both analyzers and mycobacterium organism identification on the mass spectrometer. Middleware/server may also be required to interface the equipment which will be provided by the contractor. The analyzers shall support susceptibility for streptococcus, gram-positive, and gram-negative organisms in accordance with CLSI and the WBAMC algorithm provided in Appendix 2. Test kit, consumable and 12-month workload estimates are provided at Appendix 1.

Period of Performance: 1 October 2024 to 30 September 2025 Total Value: $213,334.67

4. Authority:

FAR 13.106-1(b)(1): For purchases not exceeding the simplified acquisition threshold (SAT), only one source reasonably available, urgency, exclusive licensing agreements, brand name, or industrial mobilization.

5. Reasons for Authority Cited: During the process of soliciting and awarding a new, follow-on contract for this requirement (current contract W81K0020P0036), and in performing market research, a significant amount of confusion was created when all of the required reagents were found listed in the DLA Troop Support website. It took a considerable amount of time to definitively determine that, even though listed, the Contractor did not have a contract with DLA.

It was also realized that the method by which the Contractor is leasing their equipment to the government, burdening that cost into the supplies being purchased, has not been properly analyzed in the past. For instance, the Contractor could not or would not divulge that burden rate. Over the life of the contract, it could not actually be determined if leasing by this method is more or less advantageous than either an outright, separate contract for the cost of leasing, or even purchasing the equipment and either have the government maintain the equipment (as will apparently be done when a separate contract, W81K0019C0006, expires 30 September 2024) or contract for that maintenance. DHA MEDLOG approval was not obtained or provided by the using activity as part of its procurement package, as required by DHA Procedures Manual 4000.0-2, paragraph 9.a., dated 18 October 2021.

To further complicate matters, this equipment requires authority to operate (ATO) on DHA networks IAW DHA ATO/RMF policy. This Contractor’s equipment ATO recently became invalid when the company changed name/ownership. Any competitor not already having an ATO for their equipment will require at least one year, likely longer, to obtain such authorization. For that reason, a 12-month bridge is needed as opposed to six months. No other contractor can provide these supplies and accompanying equipment on such short notice and a break in service would be detrimental and an unacceptable break in WBAMC’s mission.

6. Publicizing Contract Actions: For FAR Part 13 actions, the public display and synopsis requirements of FAR 5.101 and FAR 5.203 do not apply due to the $ threshold, apply and will be followed, or do not apply due to an exception at

5.202 ______________________.

Requirement to post justification in accordance with FAR 8.405-6(b)(3), FAR 13.105(c), or FAR 16.505(a)(4)(iii)(A)

Action is NOT a brand name restriction and is under $250K, no posting required

Action is a brand name restriction, under $25K, no posting required Action is a brand name restriction, over $25K. It will be redacted and posted with the solicitation.

Action is a brand name restriction over $25K but will not be posted due to exception:

FAR 6.305(f) FAR 8.405-6(b)(3)(iii)(A)

FAR 8.405-6(b)(3)(iii)(B) FAR 8.405-6(b)(3)(iii)(C) FAR 16.505(a)(4)(iii(C)

7. Market Research: Market research was conducted 16 May through 10 July 2024 the contract specialist, to include a sources-sought notice, and shown that Biomerieux is the only contractor capable of satisfying this requirement without an unacceptable break in support.

8. Other Facts: This is a long, ongoing requirement that has a history of several six-month bridge contracts prior to award of the current five-year contract, W81K0020P0036.

9. Technical/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.

JORGE MUNOZ

Contracting Officer’s Representative

10. Contracting Officer Certification/Approval: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable based upon price analysis.

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that completing this purchase as a sole source is in the best interest of the government. Additionally, I approve this justification to limit competition subject to the availability of funds and provided that the services or supplies herein described have otherwise been authorized for acquisition.

ROBYN A. VILLAFRANCO

Contracting Officer