A.02.04_JA_16-RHCO-P-552_(FINAL_Revision)_-_FBO_Submission.docx

Control Number: 16-RHCO-P-552

Control Number: 16-RHCO-P-552

Lease of Hematology Analyzer System, MAMC, Joint Base Lewis-McChord, WA

Sole Source Justification and Approval Under FAR 13.501

1. Contracting Activity: Joint Base Lewis McChord Health Contracting Cell (JBLM-HCC), Lacey, WA 98503

2. Description of Action: Request approval of a new Sole Source Firm Fixed Price Contract for the lease of an Sysmex Hematology Analyzer Lease (including reagents and supplies) for connection to existing Roche Diagnostic Equipment currently installed at Madigan Army Medical Center, Joint Base Lewis-McChord, WA, to be funded with O&M funds for fiscal year (FY17)

3. Description of Supplies/Services: Estimated total value is $630,000.00, Period of Performance: 1 October 2016 – 30 September 2017, plus two (2) one-year option periods.

Title: Lease of Hematology Analyzer Vendor: Sysmex America, Inc.

Requirement Type: Equipment lease/Supplies Estimated Value: $630,000.00, Base period (on/about 01 October 2016 through 30 September 2017) plus on (2) one-year option periods: 01 October 2017 to 30 September 2018 and 01 October 2018 to 30 September 2019.

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: MAMC is requesting an equipment lease/supplies contract for the Lease of a Hematology Analyzer System from Sysmex America. Initially, this will save the government approximately $60,000 from our current contract.

The US Government just entered into a contract (W81K02-16-D-0008) with Roche Diagnostics as part of MAMC Core Laboratory’s transition to total laboratory automation (TLA). TLA provides the greatest leap forward for providing the highest quality patient test results in the shortest time period. TLA helps to reduce the need for physicians to have to order STAT tests because all tests are handled and resulted in the shortest time period possible. With TLA, long term staffing requirements are reduced thereby saving in civilian personnel costs.

Roche Diagnostics currently only supports the connection of a Sysmex America, Inc hematology analyzer system to their equipment. (See attached letter from Roche Diagnostics). Since Roche serves as the backbone of the TLA process, we must acquire the Sysmex system.

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 Health Contracting Cell, Lacey, WA, will continue to perform market research to monitor any changes in the status of this requirement. As technology becomes available, research will be performed to consider other products that meet or exceed the current requirements.

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: Sysmex America, Inc. is the only company that is able to provide a Hematology Analyzer System that is compatible with existing equipment located at Madigan Army Medical Center. The Notice required by FAR 5.201 will be published. No action on the part of this office will decrease this type of barrier to competition available.

8. Market Research:

Sysmex America, Inc. is the only company that is able to provide a Hematology Analyzer System that is compatible with existing equipment located at Madigan Army Medical Center. Additional market research was conducted using numerous sources (Please see A.01.01 in PCF labeled Market Research Documentation) A Sources Sought was posted on 17 August 2016 closing on 19 August 2016. Two responses were received as a result of this notice. The first response from Beckman Coulter, said they were not capable of providing the equipment that was compatible with Roche. The second response was from the suggested source, Sysmex, Inc., which said that they were the only company authorized to connect to Roche equipment.

Joint Base Lewis-McChord Health Contracting Cell will continuously monitor any changes in this requirement along with Madigan Army Medical Center, Joint Base Lewis-McChord, WA.

9. Interested Sources: To date, only one source has written that is capable of providing the requested equipment for this acquisition. The notice required by FAR 5.201 will be published within 14 days after award and all responses will be considered for future acquisitions.

10. Other Facts:

a. Procurement History

1) Contract # W91YU0-14-D-0002 was competed as full and open on Federal Business Opportunities and awarded on 24 Dec 2013. Three Quotes were received and only 1 Quote was found to be technically acceptable (Beckman Coulter, Inc.). The contract was awarded as a base plus four option years.

2) Full and Open Competition

3) N/A

4) N/A

5) The US Government just entered into a contract (W81K02-16-D-0008) with Roche Diagnostics as part of MAMC Core Laboratory’s transition to total laboratory automation (TLA). Roche Diagnostics currently only supports the connection of a Sysmex America, Inc hematology analyzer system to their equipment. (See attached letter from Roche Diagnostics). Since Roche serves as the backbone of the TLA process, we must acquire the Sysmex system.

6) N/A

7) N/A

b. Other Facts: N/A

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

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