JAAmendmentQuestInterimFY12Redacted.doc

SOURCE SELECTION SENSITIVE – SEE FAR 3.104

Control No: 12-002

Amendment 01 to Justification and Approval for Other Than Full and Open Competition

1. Contracting Activity: Health Care Acquisition Activity (HCAA), Center for Health Care Contracting (CHCC), United States (U.S.) Army Medical Command, Fort Sam Houston, Texas.

2. Description of Action: Approval is requested to increase the maximum dollar amount from $49,911,000.00 to $72,188,532.00 on the existing sole source Indefinite-Delivery/ Indefinite-Quantity (IDIQ) contract for Clinical Reference Laboratory Testing Services in accordance with (IAW) 10 U.S.C. 2304(c)(1) and FAR Part 6.302-1, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements” to Quest Diagnostics Clinical Laboratories, Incorporated. The period of performance is 1 April 2012 through 30 September 2012. FAR Clause 52.217-8, Option to Extend Services will be incorporated into the contract. The type of funds to be used is Defense Health Program (DHP).

3. Description of Supplies/Services: This is an interim contract for Clinical Reference Laboratory Testing Services; these services support the laboratory missions of the U.S. Army, U.S. Navy, U.S. Air Force, Veteran’s Administration, U.S. Coast Guard, the Federal Prison System and other Federal Government Agencies. These laboratory services support an estimated 150 Military Treatment Facilities (MTFs) located throughout the continental United States, including Alaska, Hawaii, Puerto Rico, and Europe. Required services consist of providing pre-analytic processing analysis, and result interpretation for clinical and pathology specimens as required by the MTFs. Routine testing measures various bodily health parameters such as the functions of the kidney, heart, thyroid, and other organs. More difficult tests are performed less frequently and require more sophisticated equipment, materials, and trained staff that many MTFs do not have on site. Quest Diagnostics, Inc. will provide non-personal services which include, facilities, labor, and equipment, materials, software, and services necessary to support Clinical Reference Laboratory Testing Services to the above referenced Federal Government Agencies. Use of this contract will be limited to those agencies identified. The total estimated value, including the Option to Extend Services, FAR clause 52.217-8, is $72,188,532.00. ($49,911,000.00 plus $22,277,532.00)

4. Authority Cited: No change.

5. Reason for Authority Cited: No change.

6. Efforts to Obtain Competition: No change.

7. Actions to Increase Competition: No change.

8. Market Research: No change.

9. Interested Sources: No change.

10. Other Facts: After receiving additional data from actual contract use from the current contract (which was not available at the time the original Independent Government Estimate (IGE) was completed) and due to the Army and Air Force identifying the need for increased use of Spice and Bath salts tests, which are on the contractor’s existing price list, the IGE was re-estimated and it was determined that the numbers previously provided would not meet the needs of the government. As a result the total estimated value is changed from $49,911,000.00 to $72,188,532.00, an increase of $22,277,532.00.

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.

DANNY R. DEUTER, COL,

MS

Date: 7 March 2012

MEDCOM Deputy Lab Program Manager

Signature: _______________________

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.

DANNY R. DEUTER, COL, MS

MEDCOM Deputy Lab Program Manager

Signature: ______________________

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. Price reasonableness will be based on price analysis by comparing the proposed prices with the existing interim contract prices (W81K04-10-D-0011) and comparison of the proposed prices with Quest Diagnostic’s commercial published price list. Certified cost or price data will not be required. Exception for Cost or Pricing data applies under FAR Part 15.403-1 (b) (3). This requirement is a commercial item.

JOHNIE F. JOHNSON

Contracting Officer:

Signature: _______________

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

JOHNIE F. JOHNSON

Title: Contracting Officer

Signature: _______________

15. Legal Review: I have reviewed this amended justification and approval and it is deemed to be legally sufficient.

EUGENE SMITH

Date: 8 March 2012 Legal Counsel

Signature: ___________________________ Recommend Approval Based on the foregoing justification, I hereby recommend approval of the additional $22,277,532.00 procurement of Clinical Reference Laboratory Testing Services on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1) and FAR 6.302-1, subject to availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

JOYCE B. NADEAU

Special Competition Advocate

Signature: ___________________________ Approval

Based on the foregoing justification, I hereby approve the $72,188,532.00 ($49,911,000.00 plus $22,277,532.00) procurement of Clinical Reference Laboratory Testing Services to support the U.S. Army, U.S. Navy, U.S. Air Force, Veteran’s Administration, U.S. Coast Guard, the Federal Prison System and other Federal Government Agencies on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1) and FAR 6.302-1, subject to availability of funds, and provided that the equipment and services herein described have otherwise been authorized for acquisition.

HERBERT A. COLEY

Head of the Contracting Activity

Signature: ___________________________