Brand_Name_Only_JA_Redacted_3-13-19.pdf

Control Number: 19-RHCO-P-198

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

2. Description of Action: This is to request approval for a follow-on contract to lease Hematology Analyzers, DxH 600 and DxH 800, for the outlying health clinics and the Department of Pathology, Brian Allgood Army Community Hospital (BAACH). This requirement will be solicitated as brand name only. DHP funds will be used for this procurement.

3. Description of Supplies/Services: This is to lease Beckman Coulter Hematology Analyzers, four units of DxH 600 and one unit of DxH 800, for the outlying health clinics and the Department of Pathology at the Brian Allgood Army Community Hospital (BAACH). The Contractor shall provide equipment, material, personnel and any other items and services, as defined in the performance work statement. Period of performance is a base year (1 June 2019 through 31 May 2020), plus four, one-year option years. The total estimated contract value is . The total estimated contract value with FAR 52.217-8 is .

4. Authority Cited: The statutory authority permitting other than full and open competition is 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: The BAACH laboratory and outlying health clinics currently use the Beckman Coulter brand in the laboratory The BAACH laboratory uses the Hematology Analyzer DxH 800 under contract W81K02-18-D-0003 and the outlying health clinics use the Government-owned Hematology Analyzers, Act5.

The BAACH lab needs to have one unit of the DxH 800 for back-up, because the body fluids testing, such as spinal fluid and synovial fluid can be analyzed on the DxH 800, that is not available on DxH 600 or Act5. Therefore, it must be the same brand and model.

The outlying health clinics need to replace the Act5s, which have exceeded the eight-year life expectancy and is considered to be outdated technology. The DxH 600 uses the same interface and technology as the DxH 800, allowing for the testing process to be standardized. It also uses the same consumable as DxH 800 for easy inventory management; this also reduces the need for additional personnel training. DxH 600 will be more suitable than DxH 800 for the mid- to large-volume laboratories at the outlying health clinics.

Lease Beckman Coulter Hematology Analyzer DxH600 and DxH800 Brian Allgood Army Community Hospital & Four (4) Outlying Health Clinics

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

Retaining the same brand/methodology will provide an overall net savings by reducing man-hours required to attain full operational capability. The staff (18 personnel) will require minimal equipment training/competency assessment, as the brand/methodology remains the same. Standard Operating Procedures revisions are minimized, as there will be minimal revisions to the test file and table built in the laboratory information system; and the department will be able to retain the current Patient Reference Range associated with the Beckman Coulter brand/methodology, without completing prolonged correlation and demographic population studies. Retaining Beckman Coulter brand/methodology will minimize the time and cost to correlate with BAACH laboratory and laboratories at outlying health clinics and patient values across the Korean Peninsula.

6. Efforts to Obtain Competition: Although the Government intends to make a brand name sole source award, a synopsis was posted on FedBizOpss on 25 January 2019, with a closing date of 30 January 2019. No responses were received.

a. Effective competition. Effective competition is not expected to be high, considering the fact that there are only three known authorized distributors in Korea.

b. Subcontracting competition. BMI, LEITEM and BLES are the authorized distributors in Korea and do not offer subcontracting opportunities.

7. Actions to Increase Competition: Ongoing market research will be performed to determine if alternative sources become available. To date, no other sources have written to express interest. A copy of the previous J&A, 17-RHCO-P-782, is attached.

8. Market Research: Market research conducted over the internet in the past 3 months indicates that this product is commercial in nature. There are three Beckman Coulter distributors in Korea; BMI, LEITEM and BLES.

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

The three known vendors were contacted to confirm that they are authorized distributors; to date, only one (BMI) of the three vendors responded with confirmation that they are an authorized distributor. A source sought was posted on 25 January 2019, with a closing date of 30 January 2019. No responses were received.

10. Other Facts:

a. Procurement history.

(1) Contract numbers and dates of the last several contracts for these same requirements.

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

This requirement is for the lease of Hematology Analyzers, DxH 600 and DxH 800.

Contract W81K02-18-D-0003 was for the purchase of reagents, including the lease of Hematology Analyzer DxH 800. The contract period of performance is 29 March 2018 through 30 September 2018.

(2) The competitive status of these actions.

Contract W81K02-18-D-0003 was awarded as a sole source requirement.

(3) Authority previously cited if less than full and open competition was used.

The authority previously cited was FAR 13.501(a)(1)(ii).

(4) If a justification was prepared to support the procurement made before this one, a summary of the contents of paragraph 7 of the justification for that procurement and an explanation of the results.

The Beckman Coulter is the only analyzer that can replace the Beckman Coulter LH- 750 due to the complexity of the existing methodology, reference ranges and systematicfunctions of the Beckman Coulter system analyzers. If the Beckman Coulter LH-750 isreplaced by another brand, the laboratory results could vary and impact patient care. Additionally, the analyzer being requested must be able to interface with the otherhematology analyzers in the department which are all Beckman Coulter brand.

(5) If any prior contract for this requirement was accomplished using full and open competition, include a detailed explanation of the changed circumstances causing this action to now limit the sources.

Requirement was not accomplished using full and open competition.

(6) An explanation of any unusual patterns that may be revealed by the history, e.g., several consecutive, urgent buys.

No unusal patterns.

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the procurement and whether there have been any significant changes.

No significant changes.

b. Other facts.

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

No other facts.

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