JAfinal.doc

SOLE SOURCE JUSTIFICATION FOR SIMPLIFIED ACQUISITION UNDER THE TEST PROGRAM FOR COMMERCIAL ITEMS (FAR 13.5)

1. Contracting Activity: Western Regional Contracting Office (WRCO), 9902 Lincoln St., Tacoma, WA, 98431. PR# MAMC11AUG015

2. Description of Action: The purpose of this BPA Call is to purchase Teleradiology services as follows:

Nature:

Follow-on contract for (W81K04-09-A-0009-1003), which expires on 15 Jan 12.

Pricing:

Firm-Fixed Price BPA Call Estimated at $ 99.992.00 Funds:

OCO

Period of Performance 16 Jan 12 through 15 Jan 13

2. Nature of Action Being Approved. This document sets forth the justification and approval as required by Federal Acquisition Regulation (FAR) part 13.106-1(b). This effort is to procure Teleradiology Services the requirement will be awarded as a Firm-Fixed Price BPA Call with OCO funds.

3. Description of Supplies or Services. The agency seeks to procure Teleradiology services. The contractor shall provide professional diagnostic radiological interpretations and reports by, as a minimum, a board certified radiologist for MHS. Services shall be performed using secure broadband connections to transmit radiology images and data between MHS and the contractor’s facility. These Teleradiology services for MHS will be electronically furnished by the contractor to MHS Composite Health Care System (CHCS) Information System.

4. Estimated Dollar Value. The total estimated value of the proposed action is $ 99,992.00.

5. Statutory Authority. The proposed action may be awarded on a sole source basis under the authority of FAR 13.501(a) (2) the test program for commercial items (section 4202 of the Clinger-Cohen Act of 1996).

6. Rationale Supporting Use of Citation in No. 5. This purchase is for Teleradiology services. The last BPA Call (W81K04-09-A-0009-1003) was awarded to Southeast Xray, Inc., on February 7, 2011, and it was competed amongst the five MEDCOM Blanket Purchase Agreement (BPA) holders (US Radiology, Heritage Radiology Solutions, On Line Radiology Medical Group Inc., Valor Network, Inc., and Southeast Xray, Inc.). The incumbent contractor has been working with Madigan Healthcare System (MHS) since March 2011, to establish the required Army mandated business-to-business (B2B) connectivity in order to fulfill the terms of this contract. It generally takes 3 – 4 months to establish (B2B) connectivity. However, based on both the Government and the Contractor interface issues, this contract is supposed to finally be connected., by the first part of December 2011. In order to cover the delay, and receive services WRCO would have incorporated a follow-on option period, had the BPAs allowed for them. As of today’s date no work has been performed under the current contract and as a result neither the contractor nor the Government have reaped any benefits of the BPA Call.

Furthermore, if another BPA holder is awarded the call, then the B2B connectivity will have to start all over. In the event that this request is not approved MHS will not have the capability to use the contract Teleradiology services to support increased mission requirements, out patient access will be adversely affected and patients will be sent to the network. The workload cannot be cross leveled within the Western region. Which is why WRCO recommends awarding the follow on BPA Call to Southeast Xray, Inc..

7. The Efforts to Identify Additional Sources Including the Market Research Conducted. Market research was not conducted There are several qualified sources under the MEDCOM Teleradiology Blanket Purchase Agreements: US Radiology (W81K04-09-A-0004), Heritage Radiology Solutions (W81K04-09-A-0006), On Line Radiology Medical Group, Inc. (W81K04-09-A-0007), Valor Network, Inc. (W81K04-09-A-0008), and Southwest Xray, Inc. (W81K04-09A-0009). None of these vendors have connectivity established yet or credentialed providers at MHS.

8. Future Plans to Permit Competition: Next Fiscal Year (FY) it is WRCO’s intent to establish a long term contract with a base plus two-one year option periods via full and open competition. Awarding the follow-on BPA Call to Southeast Xray, Inc., allows time for the Government to compete and award a long term contract.

9. TECHNICAL/REQUIREMENTS CERTIFICATION: Based on the above, I recommend this acquisition be conducted on a sole source basis. I certify that technical data which form a basis for this justification that are the responsibility of technical or requirements personnel are complete and accurate to the best of my knowledge and belief:

Name:

Signature:

Title:

Date:

10. CONTRACTING OFFICER DETERMINATIONS

10.1. I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. Fair and reasonable will be based on firm-fixed-price BPA Call for which unit prices are established in the BPA. No certified cost or price data will be required.

10.2. I hereby certify that this justification is accurate and complete to the best of my knowledge and belief. Based on the foregoing, I approve this sole source justification subject to availability of funds, and provided that the services and supplies herein described have otherwise been authorized for acquisition.

10.3. This J&A cites FAR 6.302-1 which provides the procedures for sole source acquisitions justification in lieu of full and open competition. Because this is a commercial item and because the acquisition does not exceed the simplified acquisition threshold (SAT) use of FAR Part 13.106-1(b) is required per FAR part 13.0003(a). FAR part 13.106-1(b) requires only that the contracting officer “determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand name or industrial mobilization).” The J&A sufficiently satisfies this requirement.

Name: PAMELA S. RUNYON

Signature:

Title:

Date: