J A_16-RHCO-P-272_Revised_2.docx

Control Number: 16-RHCO-P-0272 Control Number: 16-RHCO-P-0272

Bulk Liquid Medical Oxygen to Government-Owned Storage Vessels located at Fort Wainwright, AK.

1. Contracting Activity: JBLM Health Contracting Cell, Lacey, WA. 98503.

2. Description of Action: Follow on Sole Source Firm-Fixed Price Contract for Bulk Liquid Medical Oxygen to Government-Owned Storage Vessels located at Fort Wainwright, AK to be funded with O&M funds for current fiscal year (FY17).

3. Description of Supplies/Services: Estimated cost $570,150.38. This requirement is for a Base Year plus 4 option years.

Period of Performance Estimated Value Base Period: 1 October 2016 – 30 September 2017 $83,330.16 1st Option Period: 1 October 2017 – 30 September 2018 $96,414.90 2nd Option Period: 1 October 2018 – 30 September 2019 $111,654.79 3rd Option Period: 1 October 2019 – 30 September 2020 $129,184.90 4th Option Period: 1 October 2020 – 30 September 2021 $149,565.63

TOTAL $570,150.38

4. Authority Cited: FAR 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

5. Reason for Authority Cited: Only one source is capable of providing the supplies required at the level of quality require. Air Liquide is the only company that manufactures and distributes Bulk Liquid Medical Oxygen in the state of Alaska. They are able to provide timely and cost effective service as compared to companies out of state that charge at an increased cost due to travel and loss of product during travel. Per Pharmacopeia (SB 8-75-11), Bulk Liquid Medical Oxygen cannot be less than 99% pure, Air Liquide consistently tests at 99.97% and above.

6. Efforts to Obtain Competition: There is currently no effort to increase competition as there is only one source capable of meeting the requirement.

a. Effective competition. In the future, Joint Base Lewis McChord Contracting Cell, Lacey, Washington will continue to perform market research to monitor any changes in the status of this requirement.

b. Subcontracting competition. In accordance with FAR 19.702(a)(1), a Subcontracting Plan is not required for negotiated acquisitions under $700K.

7. Actions to Increase Competition: Air Liquide is the only company that is capable of providing Bulk Liquid Medical Oxygen to BACH in the timeframe needed. Based on this information, there is no effort to increase competition at this time. In the future, Joint Base Lewis McChord Contracting Cell, Lacey, Washington will continue to perform market research to monitor any changes in the status of this requirement. However, based on on the above information, there is no effort to increase competition at this time.

8. Market Research:

a. Air Liquide is the only company that manufactures and distributes Bulk Liquid Medical Oxygen in the state of Alaska. They are able to provide timely and cost effective service as compared to companies out of state that charge at an increased cost due to travel and loss of product during travel. Additional market reseach was conducted using numerous sources (Please see A.01.01 PCF labeled Market Research Extended Version BACH Medical or Bulk Liquid Oxygen).

b. A Sources Sought (W81K02-16-T-0107) was posted on https://www.fbo.gov on 26 Mar 16 with a closing date of 1 Jun 16. No responses to date have been received.

c. Joint Base Lewis McChord Contracting Cell will continuously monitor any changes in this requirement along with Bassett Army Community Hospital, Fort Wainwright, AK.

9. Interested Sources: To date, no other sources have written to express an interest.

10. Other Facts:

a. Procurement history.

(1) W91YU0-08-P-0563 was awarded as a sole source contract on 23 Sep 2008. This was awarded under the authority of FAR 6.302-1. This contract was awarded as a base plus four options years contract.

W91YU0-13-C-0025 was awarded as a sole source contract on 11 July 2013 as a base plus two option years contract.

(2) N/A.

(3) IAW FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirement.

(4) W91YU0-13-C-0025: There is currently no eefort to increase competition as there is only one source capable of meeting the requirement. Air Liquide LLC, is the only company that is capable of providing Bulk Liquid Medical Oxygen to Bassett Army Community Hospital. Based on this information, there is no effort to increase competition at this time.

(5) N/A

(6) N/A

(7) No change in procurement history.

b. Other facts. Air Liquide is the only company that manufactures and distributes Bulk Liquid Medical Oxygen in the state of Alaska. They are able to provide timely and cost effective service as compared to companies out of state that charge at an increased cost due to travel and loss of product during travel. Per Pharmacopeia (SB 8-75-11), Bulk Liquid Medical Oxygen cannot be less than 99% pure, Air Liquide consistently tests at 99.97% and above.

c. In 2011, Air Liquide made the, “Declaration of Excuse of Performance/Force Majeure Conditions” do to their production plant having issues that halted production for some time. As a result, BACH relied on bulk oxygen being trucked up from the loew 48 states. This was at an increase cost due to the distance and increase changes of product loss (Fort Wainwright, Alaska is over 2,000 miles from Tacoma, Washington).

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.

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.

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:__________________________

For Official Use Only (See FAR 2.101 and 3.104-4) (1 October 2015)

For Official Use Only (See FAR 2.101 and 3.104-4) (25 February 2016)