JA_19-RHCO-P-364_Maintenance_Service_and_Repairs_Stryker_Endoscopes_Revised_-1.pdf

Control Number: 19 RHCO-P-364

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, Health Contracting Cell, Joint Base Lewis-McChord (JBLM), 673 Woodland Square Loop SE, Lacey, WA 98503.

2. Description of Action: Madigan (MAMC) Army Medical Center, Equipment Management Branch (EMB), Joint Base, Lewis-McChord Tacoma WA is requesting a renewal of service Contract Base Plus Two (2) Option years for the Maintenance and Repair Services for the Government owned equipment – Stryker Endoscopes and camera equipment. The contract period of performance is 1 October 2019 through 30 September 2020, plus two-one year option periods (if exercised) ending on 30 September 2022. This order is subject to the availability of FY20 DHP funding and is expected to be available for the base period.

3. Description of Supplies/Services: Madigan Army Medical Center (MAMC), is requesting an acquisition of Maintenance & Repair services for the Stryker Endoscopes listed in the PWS with an acquisition cost of $303,618.36 for the BASE year, total: $674,318.28 for Base plus two option years (BASE + OP2).

4. Authority Cited: This requirement is for Maintenance & Repair as described under authority of the simplified procedures for commercial items at 41 U.S.C. 1901, as implemented FAR 13.501-(a) Sole Source (Stryker) Acquisitions on the equipment located at Madigan Army Medical Center, Tacoma, WA.

5. Reason for Authority Cited: Stryker Corporation’s endoscope is an illuminated optical instrument that is used to look deep inside the body to examine internal organs. The Stryker Rigid and Flexible surgical endoscopes including camera equipment are instruments used to provide a view of a patient’s internal anatomy during examination, diagnosis, and therapy in general endoscopic procedures. The endoscopes provide a direct visualization of the target area inside the body. It requires maintenance and repair service with OEM replacement parts and there is no other vendors with OEM replacement parts of Scopes. Current maintenance contract (W81K02-16-C-0007) will be expired on 30 Sept 2019 and this is for renewal of maintenance contract.

6. Efforts to Obtain Competition: General Competitive effort is made throughout the requirement review process and this is considered as sole source service due to the OEM replacement parts on Stryker Endoscopes. Please see Sole source Letter.

a. Stryker is the sole distributor of services on the Endoscopes due to the

Original Equipment Manufacturer (OEM) replacement parts.

b. Stryker does not provide any maintenance of scopes with non-factory- authorized parts with scopes and it will be result of replacement which will cost more than maintenance or repair of scopes.

c. A Sources Sought will be issued on the Federal Business Operations (FBO) in an effort to establish or obtain competition.

7. Actions to Increase Competition:

a. Maintenance and repair services must be performed with OEM replacement parts, which has to be provided from Stryker Corporation. From the research, Stryker Corporation is the only vendor who can service any maintenance and repair with OEM, factory-authorized parts.

8. Market Research: Market Research was conducted by within the past three months searching (Google), GSA and Dynamic Small Business search using NAICS Code: 811219, and keyword “Stryker Endoscopes”. Results from the research did not provide any businesses that can provide the maintenance services on the scopes due to the replacement part requirement.

As a result, the Market Research source (1) met the criteria by the requiring activity based on Sole Source letter from Stryker. Please see sole Source Letter from Manufacturer.

8. Interested Sources: There is no other service available vendors with OEM replacement parts since Stryker Corporation is not providing any products to the third parties companies.

9. Other Facts:

a. FAR 8.002(a)(1)(i) through FAR 8.002(a)(iv), which addresses supplies (including Federal Prison Industries and Ability One), are not applicable and will not be considered.

b. A review of FAR 8.002(a)(1)(v) was conducted and consideration to General Service Administration (GSA) and/or Federal Supply Schedules (FSS). However, there are no possible sources available to fulfill this requirement.

c. FAR 8.003, Use of Other Mandatory Sources does not apply.

d. FAR 8.004, Use of Other Sources, and FAR 12.1, Acquisition of Commercial Items, Google search conducted with keywords “Stryker Endscopes” are available on the open market.

However, Stryker Corporation is the only authorized contractor to service these scopes, therefore, a sole source contract will be awarded.

e. A Dynamic Small Business Search was conducted with keyword “Stryker Endoscopes,” results from this search did not identify contractors that can provide the same or equal supplies outlined by the requiring activity.

f. Stryker is not accepting any repairs if there is non-factory-authorized part with the devices unless they are all re-replaced by factory-authorized parts by Stryker. Eventually, it will create an extra repair cost for the customers. Also third party vendor will not be able to replace the devices as needed. Maintenance and repair services have to be performed by Stryker with factory-authorized parts.

g. Due to the exacting specifications and the Original Equipment Manufacturer (OEM) of these products no substitutes are allowed. In summary, currently the market condition of vendor selections does not justify switching to a different vendor that cannot adequately address the agency’s unique medical needs.

h. Sources Sought (W81K0219Q0143) was posted on https://www.fbo.gov on 30 May 19 with a closing date of 7 June 19. Three possible sources were identified (see below). However, Stryker Corporation does not authorized any third party services or parts.

1. RCG of North Carolina LLC, 404 Overlake Dr STE A., Raeford, NC. 28376-5602, (CAGE Code: 57GK3, DUNS: 824980887), Expires 05/15/2020.

2. Triage Inc., 1707 Miller Road, Kalamazoo, MI. 49001-4513, (CAGE Code: 1SDS7, DUNS: 010610625) Expires 04/10/2020.

3. Stryker Corporation, 5900 Optical Court, San Jose, CA. 95138-1400, (CAGE Code:

0K999, DUNS: 187502109), Expires: 03/24/2020.

i. Joint Base Lewis McChord Contracting Cell in conjunction with Department of Clinical Engineering, Madigan Army Medical Center will continuously monitor changes in market conditions with this requirement.

j. Procurement history:

1. W81K02-16-C-0007 was awarded as a Sole Source to Stryker Corporation. The contract was awarded as a base plus two (2) option years.

2. The competitive status of these actions: Sole Source.

3. Authority previously cited if less than full and open competition was used. “The statutory authority permitting other than full and open competition is IAW FAR 13.5-Test Program for Certain Commercial Items, FAR 13,501(a) Sole Source (Including Brand Name) acquisitions.

(Section 4202 of the Clinger-Cohen Act), PL 104-1`06 and FAR 6.302-1—Only one Responsible Source and No Other Supplies or Services will Satisfy the Agency Requirements: 10 U.S.C.

2304(c)(1).”.

k. Other facts. Provide any other facts necessary to justify limiting competition that were not previously stated. N/A

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: 5/20/2019

Typed Name: Nam, Hosuk _Title: Purchasing Coordinator

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.

Signature: Date: 5/20/2019

Typed Name: Nam, Hosuk Title: Purchasing Coordinator_

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 base on previous history.

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.

Approval

Based on the foregoing justification, I hereby approve the procurement of (Maintenance Service and Repairs of Government-owned Stryker Endoscopes/$674,318.28) on an other than full and open competition basis pursuant to the authority of 41 U.S.C. 1901 as implemented by FAR 13.501, subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.