A.02.01_USAHCA-Sole_Source_Justification_under_13.501_(25Feb16)_-_REDACTED.pdf

Control Number: 17-RHCO-P-445

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 Healthcare Contracting Office – Pacific (RHCO-P) , Bldg #339, 146 Clark Road, Fort Shafter, HI 96859.

2. Description of Action: This is to request a new firm-fixed price contract with Philips Electronics Korea for the preventive maintenance and repair service for the Government-owned Achieva 1.5T Magnetic Resonance Imaging (MRI) System, Gyroscan Mobile, located at 121st Combat Support Hospital (CSH) / Brian Allgood Army Community Hospital (BAACH). Funds to be used have been programmed for FY18

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3. Description of Supplies/Services: Services supplied will be for scheduled and unscheduled preventive maintenance and repair services for the Achieva 1.5T MRI System. The Contractor provides all labor, parts (excluding Gantry Magnet assembly), material, and travel to maintain the MRI System. Total estimated value is for a one-year base, plus two (2) one-year options. The estimated period of performance is 4 December 2017 – 3 December 2020.

4. Authority Cited: 41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), only one source is capable of providing the supplies or services required at the level of quality required.

5. Reason for Authority Cited: The preventive maintenance and repair service of this requirement will ensure proper operation IAW AR40- 61, TB MED, and the manufacturer’s recommendation. The Achieva 1.5T MRI System, Gyroscan Mobile is used to perform a wide range of clinical applications. Loss of this item for an extended period of time will result in referral of multiple cases to outside medical treatment facilities at a significant cost to the Government. Repair of this item by anyone other than personnel certified by Philips would expose the 121st CSH/BAACH to potential liabilities. Philips is currently the only certified vendor capable of providing the Government with the necessary certificates required to perform proprietary software, preventive maintenance, and repair services. There are no other vendors who have certified technicians to perform this requirement and can provide the OEM parts for repairs.

6. Efforts to Obtain Competition: Although the Government intends to make a sole-source award to Philips Electronics Korea, a Sources Sought was posted on 25 April 2017, inviting all responsible sources to submit a capability statement. Prior to the closing date of 9 May 2017, All American Solutions expressed interest on 28 April 2017.

While All American Solutions claims that they are authorized to purchase parts from AllParts Medical – A Division of Philips, All American Solutions did not confirm that they

The total estimated cost is for a one-year base period, plus two (2) one-year options, as well as a six-month option to extend.

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Charis.Naito Typewritten Text This is to request a follow-on firm-fixed price contract with Philips

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Charis.Naito Typewritten Text sole source (including brand name) under the authority of the simplified

Charis.Naito Typewritten Text procedures for certain commercial items."

Maintenance and Repair Service Contract for Government Owned Achieva 1.5T Magnetic Resonance Imaging (MRI) System Systems located at 121st CSH/BAACH

(See FAR 2.101 and 3.104-4) were authorized to perform maintenance on the Achieva 1.5T MRI System, Gyroscan Mobile, located at the 121st CSH /BAACH.

a. Effective competition. There is no effective competition anticipated for this acquisition. Philips Electronics Korea is the only one who can meet the requirements.

b. Subcontracting competition. Due to the proprietary nature of this procurement, the contractor does not offer subcontracting opportunities.

7. Actions to Increase Competition: The current contract’s J&A stated that the Government will continue to conduct on-going research of the industry market place to determine if there were new entrants into this product arena. Continued research revealed that there were no new entrants into this product arena. Furthermore, Philips has provided a corporate certificate, stating that Philips Korea is the general commission agent in the Republic of Korea for Philips products. Based on this information, it has been determined that Philips Electronics Korea is the only vendor who can maintain, repair, and fulfill the requirements for this contract.

8. Market Research: Market research has shown that this product is commercial in nature. Philips Electronics Korea is currently the only certified local vendor with the certifications and experience in order to meet our mission requirements. After contacting multiple vendors located in Korea, no vendor has the authority to deal with Philips radiology equipment. The list of the vendors that were contacted is as follows:

GE Healthcare – 65-1 Sangdaewon 1-Dong, Jungwon-Gu Songnam, Korea o POC: Mr. Kim, Min Hoe, +82-2-6201-3273

JW Medical – 73 Chungjusandan 1-Ro, Chungju, Korea o POC: Mr. Won, Chul Jae, +82-2-2109-7720

SHINKI Commercial Co., Ltd. – 33 Gangnam-Daero 34-Gil, Seocho-Gu, Seoul, Korea o POC: Mr. Nam, Gye Hwa, +82-2-550-3480

9. Interested Sources: As stated in paragraph 6, although the Government intends to make a sole-source award to Philips Electronics Korea, a Sources Sought was posted on 25 April 2017, inviting all responsible sources to submit a capability statement. Prior to the closing date of 9 May 2017, All American Solutions expressed interest on 28 April 2017. While All American Solutions claims that they are authorized to purchase parts from AllParts Medical – A Division of Philips, All American Solutions did not confirm that they were authorized to perform maintenance on the Achieva 1.5T MRI

(See FAR 2.101 and 3.104-4)

System, Gyroscan Mobile, located at the 121st CSH /BAACH. To date, no other sources have written to express an interest.

10. Other Facts:

a. Procurement history.

(1) Previous Contract No: W81K02-15-P-0004, 4 December 2014 – 3 December 2017

(2) Contract was awarded on a sole source basis.

(3) Authority cited was FAR 13.501(a)(1)(ii).

(4) As stated in paragraph 7above, the Government continued to conduct on-going research of the industry market place to determine if there were new entrants into this product arena, with the conclusion that Philips Electronics Korea is still the only vendor who can provide the requirement services.

(5) No prior contract was accomplished using full and open competition.

(6) There have been no unusual patterns revealed by history.

(7) The services for preventative maintenance and repair services are still required as evidenced by the activity’s requirement request. Based on market research, there have been no significant changes to the services requested and provided.

b. Other facts. There are no other necessary facts.

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.

5/19/2017

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

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. The basis for this determination will be based on price analysis and the Independent Government Cost Estimate in accordance with FAR 15.404-1(b).

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:

19 MAY 2017

23 May 17

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