IRCO_Computers-JA_Sole_Source_Redacted.pdf

Control No: JA16355

“For Official Use Only”

Sole Source Justification (SSJ) in accordance with FAR subparts 13.501 using

Simplified Acquisitions Procedures (SAP) ICRCO, Inc. Medical Equipment Repair Parts

(Brand Name Only)

1. Contracting Activity: The Contracting Activity responsible for this action is the U.S.

Army Medical Research Acquisition Activity (USAMRAA), 820 Chandler Street, Fort Detrick, MD.

2. Requiring Activity: The U.S. Army Medical Materiel Agency (USAMMA), 693 Neiman Street, Fort Detrick, MD 21702.

3. Nature of Action:

Commercial Item Non-Commercial Item New Requirement Follow-on Requirement Mod to Existing Purchase Order/Contract Number

Pricing: Firm-Fixed Price* Time & Materials** Cost*

* See FAR 12.207(a) ** See FAR 12.207(b).

For Hybrid Contracts, list percentage of each type of pricing:

* Firm Fixed Price: ________

**Time & Materials: ________

Funds: RDT&E Operations and Maintenance, Army (OMA)

Other Funds:

Fiscal Year of Funds: _FY16______

4. Contractor Name:

Name of Proposed Contractor(s): Image Capture Review Company (ICRCO), Inc.

Street Address: 26 Coromar Drive City, State, Zip: Goleta, CA 93117 Phone: 310-921-9559

DUNS: 610790276

Cage Code: 47KK5

500-0206-01 Stand Computed Radiography Reader 21 x 11 x 1

500-0221-01 VertX Cassette Slide Assembly 16

500-1247-03 Sheet Metal Scan Head 2.0 Brackets and Eraser Board Included

900-0029-03 Eraser Power Supply 24V 3600 Triad Magnetics ALS75-24

900-0046-01 Quad Power Supply PCBA GRN 110M

900-0078-02 1/4" Caterpillar Brush 35

900-0090-02 Bumper, Elastomer 1 1x2 DIA, 3/4 Tall NDT/Vertx MC#9450K28 PKG

900-0168-04 1 Meter USB Cable 15 900-0236-03 Velcro Cable Baffle 15

900-0252-14 14 x 17 Cap Grid Computed Radiography

900-0252-15 10 x 12 Cap Grid Computed Radiography

900-0258-01 Caterpillar Brush, Top End Cap Assembly, Vertx

900-0283-01 Power Module Fuse 15 900-0719-02 Cat5E Patch Cable 100' 14

900-0801-01 Switch Computed Radiography Reader 5-Port Networking

900-1800-01 Case Monitor Computed Radiography

900-1805-01 Case Accessory Reader VertX Laptop

SVC-CR3-002 Service Kit -Diode Replacement kit 15

SVC-DRS-

Galvo

Cambridge Galvo@controller 15

6. Authority Cited: 41 U.S.C. 1901 OR 41 U.S.C. 1903

(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 13.501(a)(1)(i): Only one source reasonably available (including brand name); OR

(d) FAR 13.501(a)(1)(ii): Only one source can provide a portion of the purchase that is a particular brand-name item.

7. Reason for Authority Cited: ICRCO, Inc. is the only authorized manufacturer of the specific medical equipment components required at Tracy, CA. There are authorized resellers that can provide ICRCO, Inc. brand parts required by USAMMA. Therefore, brand name only parts will be purchased by the Government.

USAMMA has three medical equipment repair depots in Tobyhanna, Pennsylvania;

Tracy, California; and Hill Air Force Base, Utah. Medical equipment used by deployed forces in Afghanistan is returned to one of the three depots for repair, refurbishment, or replacement when the repair issue exceeds the deployed unit’s maintenance capability. There are limited spares in theater, so repair and return is a high priority activity at USAMMA’s depots.

With very few exceptions, medical equipment repair parts are available only from the manufacturer of the equipment or from a firm that has been licensed by the manufacturer to produce authorized parts. This conclusion is based on Army and Food and Drug Administration (FDA) regulations and market research. Army Regulation (AR) 40-61, Medical Logistics Policies, prohibits modifications or alterations of Army medical equipment without the manufacturer’s consent. Section 6-17 provides that even “minor alterations without the manufacturer’s consent may negate any further manufacturer product liability.” AR 40-61 lists four circumstances under which Army medical maintenance personnel may modify medical equipment: modification work order, quality assurance alteration, minor alteration, and component modernization. All require manufacturer involvement or consent.

USAMMA is the Army’s medical manager and therefore considers any medical equipment alteration, including the substitution of manufacturer-provided or approved repair parts with other repair parts to be contrary to Army and FDA regulations, endangering the device’s FDA certification, and incurring product liability on behalf of the Army.

8. Efforts to obtain Competition: Multiple third party resellers have been located for ICRCO, Inc. Specifically, the Contract Specialist has identified TQM, LLC dba Two Rivers Medical and Tryco, Inc. as two (2) small business resellers capable of providing parts manufactured by ICRCO, Inc. In order to obtain competition the Contract Specialist will post a Brand Name only request for quotes on FEDBIZOPPS. This posting will allow for the submission of quotes from all authorized sources.

a. Effective competition. As previously stated, market research has revealed that multiple resellers are able to provide ICRCO, Inc. products. Therefore, the Government intends to request quotes from all ICRCO, Inc. authorized resellers.

b. Subcontracting competition. Not applicable; as this is a supply-type requirement, the Government does not anticipate subcontracting opportunities or competition.

9. Actions to remove or overcome barriers Competition: USAMMA conducts online research as part of its periodic market research efforts to locate other available sources that are capable of meeting this requirement in the future. Additionally, the Government may post a Request for Information (RFI) in the market place for any future procurement to determine if there are any sources that can meet the Government’s need. If the RFI shows that there are competitors in the market, future acquisitions may be competed.

10. Market Survey: Thorough market research has been completed by both USAMMA and USAMRAA for medical equipment repair and replacement parts as Blanket Purchase Agreements (BPAs) were awarded in fiscal year (FY) 2014 to satisfy USAMMA’s requirement for medical equipment repair parts (please note that the required items listed in Table 1 above are not included under the BPAs). However, based on the Sources Sought Notices posted on in FY13 as well as the information provided within the proposals in response to solicitation W81XWH-13-R-0039, the USAMRAA CS has identified multiple third party resellers/distributors that are authorized vendors for manufacturers, to include ICRCO, Inc. Note that subsequent Call Orders issued against these BPA within the last 12 months (such as W81XWH-14-A- 0035-0002 awarded on 10 September 2015 which included the following part numbers 500-0034-02; PH01; 500-0162-01; 900-0061-03; 900-0168-01) has verified that these vendors continue to sell the required brand name parts.

A similar requirement that was awarded for ICRCO, Inc. parts (Purchase Order number W81XWH-15-P-0336). As part of the market research efforts for this similar Purchase Order, a Request for Information (RFI) was posted to FedBizOpps on 1 May 2015 under solicitation number W81XWH-15-T-0155. This RFI was posted to ascertain whether there are any alternative sources in the open market that can provide brand name or equal parts specifically included in the RFI posting, which reflect some of the same parts included in the table above for this Order. No responses were received by the Contract Specialist as a result of that RFI posting. As this RFI posting is within 18 months, this is considered to be current market research for the subject requirement, in accordance with FAR 10.002(b)(1).

Additional market research was conducted on 21 July 2016 for this requirement.

Specifically, the USAMMA completed searches on GSA Advantage for a sample of the items included in the table above. This search revealed no results. The USAMRAA Contract Specialist on 8 April 2016 also searched GSA eLibrary to determine if the manufacturer has a GSA contract. In addition to this search, direct correspondence with the Global Sales Manager for ICRCO, Inc., , confirmed that ICRCO, Inc.

does not have a GSA contract. Therefore, the Contract Specialist has determined that these items are only available through the open market. Threre was also direct correspondence with on 29 August 2016 and it was stated that IRCO works directly with TRYCO.

11. Interested Sources: As previously stated, a Brand Name Only RFQ will be posted to FedBizOpps. This announcement will detail the Government’s intent to purchase the required items on a non-competitive basis. However, as market research efforts conducted for this procurement and stated elsewhere in this document revealed that there are numerous authorized resellers, quotes will be requested via an RFQ that will be posted to FedBizOpps to ensure sufficient price competition. All interested sources purporting to have the ability to provide the various ICRCO, Inc. parts will be considered for award.

12. Procurement History and any other facts:

Previous Contract or Purchase Order Number: Although this is a new requirement, similar orders have been issued by USAMRAA for ICRCO, Inc.

parts. The following is a summary of these similar orders:

Purchase Order W81XWH-14-P-0242 was awarded on 5 May 2014 to ICRCO, Inc. in the amount of $35,064.84

Purchase Order W81XWH-15-P-0336 was awarded on 7 August 2015 to ICRCO, Inc. in the amount of $431,025.10

Purchase Order W81XWH-16-P-0232 was awarded 25 July 2016 to TRYCO Incorporated, in the amount of $56,179.26

Previously competed? No, both previous Purchase Orders were accomplished through a sole source award to ICRCO, Inc. However, TRYCO Incorporated was done on a brand name only basis.

Previous authority for less than Full & Open Competition: The Federal Acquisition citation used for both Orders listed above was FAR 6.302-1(a)(2), Only One Responsible Source and No Other Supplies or Services will Satisfy Agency Requirements. The TRYCO Incorporated Order was listed under FAR 13.106-1(b)(1)(i) Only one source reasonably available.

13. Technical / Requirements Certification: I certify that the support data under my cognizance which are included in this SSJ are accurate and complete to the best of my knowledge and belief.