20-RHCO-P-129_JA.PDF

Control No.: 20-RHCO-P-129

Version – March 2017 FOR OFFICIAL USE ONLY

JUSTIFICATION REVIEW DOCUMENT

(Simplified Acquisition Threshold < $250K)

JUSTIFICATION AND APPROVAL

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, Radiology PACS, Joint Base Lewis-McChord Tacoma WA is requesting maintenance and systemsupport service contract for Government owned system - HERMES PACS system in support of Department of Radiology.

Requirement: Repeat (W81K02-19-P-0082) Pricing: Firm-fixed price Funds: DHP, total $106,666.00 (BASE only)

Name of Intended Contractor: HERMES Medical Solutions Street Address: 710 Cromwell Drive, suite A City, State, Zip: Greenville North Carolina, NC 27858

Phone: 866-355-4381

a. 3. Description of Supplies/Services: Hermes System is an end-to-end enterprise software solution for molecular imaging in Nuclear Medicine. The Hermes PACS provides an information system that collects, integrates and processes data across multiple imaging modalities. It delivers increased efficiency and accuracy in diagnosing and personalized treatment of patients. The result is improved quality and outcomes for healthcare providers who continually pursue refined clinical pathways in precision medicine. HERMES PACS System is required to have services of Inspection (INSP), Preventive Maintenance (PM) and Calibration (CAL) services per OEM specifications and licensed software updates.

Period of Performance: 15 Feb 20 – 14 Feb 21 Total Value: $ 106,666.00

4. Authority Cited: This requirement is for Maintenance and Repair as described under authority of the simplified procedures for commercial items at 41 U.S.C. 1901, as implemented FAR 13.501(a)(1)(ii) Sole Source (HERMES Medical Solutions) Acquisitions on the Government-owned equipment located at Madigan Army Medical Center, Tacoma, WA. Please see attached Sole Source Letter fromvendor.

(a) FAR 13.106-1(b)(1)(i): Only one source reasonably available (e.g., urgency, exclusive licensing agreement, brand name or industrial mobilization); OR

(b) FAR 13.106-1(b)(1)(ii): Only one source can provide a portion of the purchase that is a particular brand-name item; OR

(c) FAR 8.405-6(a)(1)(i)(A): An urgent and compelling need exists, and following the procedures would result in unacceptable delays; OR

(d) FAR 8.405-6(a)(1)(i)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized; OR

(e) FAR 8.405-6(a)(1)(i)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order not previously issued under sole-source or limited-sources procedures.

5. Reason for Authority Cited: The Hermes System is an end-to-end enterprise software solution for molecular imaging in Nuclear Medicine. The Hermes PACS provides an information system that collects, integrates and processes data across multiple imaging modalities. It delivers increased efficiency and accuracy in diagnosing and personalized treatment of patients. The result is improved quality and outcomes for healthcare providers who continually pursue refined clinical pathways in precision medicine. HERMES PACS system is Government owned equipment that requires manufacturer’s maintenance service that includes scheduled, un-scheduled maintenance services and repairs with replacement Original Equipment Manufacturer (OEM) parts from the manufacturer. Also software and hardware support should be provided by manufacturer under service contract. According to the market research, there are no other vendors with availabilities with maintenance service on HERMES PACS system against to Manufacturer (HERMES Medical Solutions) due to the Sole Source right.

Current maintenance contract (W81K02-19-P-0082) will be expired on 14 Feb 2020 and this is for renewal of expiring 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 proprietary rights with any types of services on HERMES System, as indicated in the company signed sole source letter.

7.

a. HERMES Medical Solutions is the sole distributor of services on the PACS

System due to the proprietary right with software and hardware.

b. HERMES Medical Solutions does not have third parties who is authorized by HERMES Medical Solutions to perform any maintenance service on PACS system. It has been verified through the market research.

7. Actions to Increase Competition: General research has been conducted through mandatory sources and there was no other service available vendors who canprovide maintenance service that includes software support. This Action will be posted to FBO as a Special Notice with J & A.

8. Market Research: Market Research has been conducted by Web Searching (Google), GSA and Dynamic Small Business search using NAICS Code: 811219, key word “HERMES PACS system”. Results from the research did not provide any businesses that can provide the maintenance services on the HERMES System due to the proprietary rights. As a result of Market Research source (1) met the criteria by the requiring activity based on a Sole Source letter from HERMES as sole distributor of all services.

9. Interested Sources: To date, other than HERMES Medical Solutions, no other sources can provide service requirement on HERMES PACS due to proprietary right with software and hardware of Manufacturer.

10. Other Facts:

a. Procurement History

Previous Contract or Purchase Order Number: W81K02-19-P-0082 or N/A Previously competed? N/A No Yes Previous authority for less than Full & Open Competition: N/A No Yes

11. Technical / 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.

NAM.HOSUK.14475581 Digitally signed by

NAM.HOSUK.1447558129

Date: 2020.02.05 10:02:37 -08'00'

Submitted By: Hosuk ‘Erik’ Nam Position Title: Purchasing Coordinator Email Address: hosuk.nam.civ@mail.mil Date: 05 February 2020

12. Fair and Reasonable Cost Determination: I hereby determine that the anticipated cost or price to the Government for this contract action will be fair and reasonable.

This determination will be made using the following: price analysis cost analysis IGCE audit: other: Current award has same service requirement and renewal cost offer was proposed lower than active contract (W81K02-19-P-0082).

13. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Signature:

Typed Name: Larry A. Bradbury Position Title: Contracting Officer Email Address: Larry.a.Bradbury2.civ@mail.mil Date: 06 February 2020

BRADBURY.LARRY.A.

1164241951

Digitally signed by

BRADBURY.LARRY.A.1164241951

Date: 2020.02.07 12:24:50 -08'00'