J A_(v5)_redacted.pdf

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Justification and Approval for Other than Full and Open Competition Justification

Upper Extremities Prosthetic Services

Control No.: 005A-13

1. Contracting Activity. North Regional Contracting Office, Walter Reed

National Military Medical Center (WRNMMC), 8901 Wisconsin Avenue Bldg 54

Bethesda, MD 20889.

2. Description of Action. Approval is requested for a six (6) month bridge contract (three (3) month base plus a three (3) month option) in order to avoid an extended gap in services between the expiration of the current contract

(W91YTZ-12-C-0024 ending on 31 Mar 2013) and the award of a new contract.

The period of performance requested is for a base period of 1 Apr 2013 through

30 Jun 2013 which would allow for review, evaluation and award of the competitive follow-on contract in a timely manner. This requirement will be a sole source, Firm Fixed Price contract utilizing the incumbent contractor, Advanced

Arm Dynamics Group Inc. FY 13 Overseas Contingency Operations (OCO) funds will be used. The clause at FAR 52.217-8 will be included in the contract.

3. Description of Supplies/Services. The bridge contract will provide upper extremity prosthetic services to qualified amputee soldiers injured in Operations

Iraqi Freedom and Enduring Freedom. These services involve modeling by cast or scan, prosthesis design, fabrication and fitting to the patient. Full range of patient care will be provided including but not limited to, comprehensive evaluations, assembly and delivery of prosthesis, follow up care, monitoring of patient's progress when repetitive prosthesis changes are required and independently modifying or adjusting the prosthesis based on the patient's needs. Funds in the amount of $2.250 million are provided for the three month base period of 1 Apr 2013 through 30 Jun 2013. The total estimated value of the requirement, to include option period one and the option to extend services is $9 million.

4. Authority Cited. The statutory authority permitting other than full and open competition is 10 U.S.C. 2304(c)(5), as implemented by FAR 6.302-1, services required by the agency are available from only one responsible source, and no other services will satisfy agency requirements. Services may be deemed to be available from only the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that the award to any other source would result in unacceptable delays in fulfilling the agency's requirements.

5. Reason for Authority Cited. As prescribed in FAR 6.302-1, the issuance of a new contract without competition is the only option available to the U.S.

Government that meets the present requirement. No source other than

Advanced Arm Dynamics Group Inc is capable of meeting the Government's requirement for these services with a start up performance date of 1 Apr 2013. It is necessary that the required services be provided without delay to satisfy

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Upper Extremities Prosthetic Services mission requirements and provide for the health and well-being of amputee patients injured in Operations Iraqi Freedom and Enduring Freedom. In accordance with the terms and conditions of the previous contract as implemented by both parties (Government and Contractor), Advanced Arm

Dynamics Group Inc has been performing satisfactorily and will incur only minor start up costs, if any, for the short contract period of the bridge contract. There is a higher probability that another contractor will have significant costs impacts and may not be able to deliver components or provide quality service as needed in a timely manner. Displacement of those eligible amputee candidates to the northern Virginia healthcare network would not be feasible nor cost efficient since the equipment and Government facility specialized to meet the complex requirements of the performance work statement (PWS) utilize the most advanced prosthetic technology which is located at the WRNMMC Prosthetic

Lab. Even temporary assignment outside of the WRNMMC network could cause irreparable harm to amputee candidates if they receive wait list status while attempts are made to absorb new workloads into the healthcare network at Ft.

Belvoir, VA.

6. Efforts to Obtain Competition. The intention is to issue a bridge contract so there will not be a delay in service and so there will be adequate time for award off the solicitation. A determination has been made that it is in the Government's best interest to approve a short term contract to the incumbent until the competitive follow-on contract can be competed and awarded. However, a synopsis of the Government's intent will be announced on the Federal Business

Opportunities Page in accordance with FAR 5.201(a).

7. Actions to Increase Competition. Actions will not be taken to increase competition for a six (6) month bridge contract, it is not practical. However, actions have been taken to compete a three (3) year requirement. Currently, the three (3) year requirement is in the pre-solicitation phase, with pre-solicitation documents drafted and submitted for Legal and Policy review. The solicitation will be competed among small businesses.

8. Market Survey. lAW FAR Part 10, market research was conducted. A search on the Small Business Association website, sba.gov, utilizing the parameters for all states under NAICS 621399 yielded 1,224 small businesses.

Information was sought through the Telemedicine and Advanced Technology

. Research Center TATRC. Ten (10) companies were found to be involved in both the latest research and clinical care in upper extremity prosthetics. These 10 companies will potentially submit a proposal for the upcoming competed contract.

9. Interested Sources. To date, no other sources have written to express interest.

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10. Other Factors.

a. Procurement history.

VV91YTZ-12-C-0024

Period of Performance: 1 Feb 2012-31 Mar 2013

Total Contract Cost: $10,350,000.00

Competitive Status of Action: Sole sourced to Advanced Arm Dynamics

Group Inc

VV91YTZ-06-D-0006

Period of Performance: 1 Aug 2006-31 Jan 2012

Total Contract Cost: $48,809,098.41

Competitive Status of action: Competitive small business set aside; awarded to Advanced Arm Dynamics Group Inc

b. Other Rationale.

(1) Delays in service would be detrimental to the health of injured soldiers.

Should an amputee patient not be able to receive timely care at VVRNMMC

Prosthetics Lab, which contains highly specialized equipment in the field of prosthetic services, patients will have to be on wait list status putting them at risk of irreparable harm. Such harm can result in massive costs to the

Government.

(2) The requiring activity completed advance planning for this requirement. A requirements package for one year plus four option years was submitted for approval by the requiring activity, however, due to the BRAG, the Surgeon

General did not approve the five year requirements package. The option at

FAR clause 52.217-8 was exercised in order to prevent a gap in service.

VVhen the requiring activity moved to VVRNMMC, a requirements package documenting advance acquisition planning was again resubmitted. Approval of this package would have allowed the contracting activity to compete the requirement. The requirement package was submitted in accordance with

Army procedures, however, due to the change of command structure, the process for getting a requirements package approved had also changed. The new process resulted in compliance issues and approval for the five year requirement was not given.

Contract VV91Z-12-C-0024 was awarded to the incumbent in order to allow sufficient time to draft a requirements package that would be in compliance with current regulations.

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Q

Justification and Approval

(3) The relocations of both the requiring activity and the contracting activity resulted in temporary loss of computer and telephone access and permanent loss of files which further impacted office capabilities.

(4) A meeting was held 30 May 2012 between NRCO, the requiring activity, J8 and RM to discuss the acquisition strategy for this requirement. The meeting clarified processes and communicated the information, documentation, and approval needed for the follow on requirement to be competed.

(5) Biweekly meetings between the Contracting Officer, Contract Specialist and the COR have been ongoing from April 2012 to the present, in order to work on the acquisition strategy and resulting competed contract for the requirement. Action items for the lower extremities requirement, whose acquisition strategy is closely followed by this upper extremities requirement, have also been discussed.

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.

Name:David M. Laufer Date: 3 ·2"7-rfrt---() ;..;:;)jJ

Title: Chief Orthotic & Prosthetic Service 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.

Name: David M. Laufer Daleo 3 -?."7 ·lei

Title: Chief, Orthotic & Prosthetic Service Signature:·

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13. Fair and Reasonable Cost Determination: Certified cost or pricing data is not required in accordance with FAR 15.403-1(c)(3) "Commercial items". The estimated value of services is $9 million for a period of performance of 1 Apr

2013 through 31 Mar 2014 (includes the 3 month base, 3 month option period and 6 month FAR 52.217-8 option). Price analysis will be conducted to determine fair and reasonableness based on market research and past procurement history for this bridge contract. I hereby determine the anticipated cost to the Government for this contract action will be fair and reasonable.

Name: David E. Johnson

· Title: Contracting Officer

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

Name: David Johnson Date: 2;:; ;<-·vh._ 2..0'

Title: Contracting Officer Signature: ----'=tc::: '-'/ ""'e:::==-= -""'q"_ '4 ) _

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Upper Extremities Prosthetic Services APPROVAL

Based on the foregoing justification, I hereby approve the $9 million procurement to provide upper extremities prosthetic services by Advanced Arm Dynamics

Group Inc. for Walter Reed National Military Medical Center (WRNMMC)

Bethesda, MD, and Ft. Belvoir Community Hospital (FBCH) at Ft. Belvoir, VA from 1 Apr 2013 through 30 Sep 2013 on an other than full and open competition basis pursuant to the authority of 10 U.S.C.2304(c)(1), FAR 6.302-1, provided that the services herein described have otherwise been authorized for acquisition.

Name: Joseph Peck Date: 28 March 2013 _

Title: Special Competition Advocate Signature: _