A.02.04_Justification_and_Approval_Documentation_W91YTZ18R0064-redacted_09172018_Redacted.pdf

Control Number: 19-RHCO-A-39

For Official Use Only (See FAR 2.101 and 3.104-4)

(1 October 2015)

Sole Source Justification and Approval Under FAR 13.501

1. Contracting Activity: Regional Health Contracting Office – Atlantic, 6021 5th Street, Building 1467, Fort Belvoir, VA 22060-5505

2. Description of Action: This is a follow-on procurement of full service maintenance and annual lease of Endoscopy Equipment at the Winn Army Community Hospital (Winn ACH), Fort Stewart, GA. FY 19 Operation and Maintenance, Army funds will be used to fund the requirement.

3. Description of Supplies/Services: Winn ACH has a requirement for full service maintenance and lease of Endoscopy Equipment. The contractor shall provide all repair parts, labor, test equipment, travel, and materials not government furnished, necessary to keep the unit operational to manufacturer’s specifications, five (5) days per week during normal duty hours 0730 through 1630. Contractor shall provide unlimited service calls with 24 hour response time. Contractor shall provide and install all software updates. New and refurbished parts must be certified and documented to meet OEM (Original Equipment Manufacturer)specifications on all repairs. The vendor will be required to provide two preventive maintenance service visits at six month intervals, per year to include Complete Calibration and Comprehensive Preventive Maintenance of the sterilization equipment. The total estimated value of the procurement is for a 12 month base period and four 12 month option periods. FAR Clause 52.217-8, “Option to Extend Services” and FAR Clause 52.217-9, Option to Extend the Term of the Contract will be included in the contract.

4. Authority Cited: 41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items.

5. Reason for Authority Cited: The manufacturer's warranty on the existing equipment expired in September 2014. The life expectancy of this equipment is eight years. These units require test equipment and training that is not available in house.

These units were put into service in September 2013 and are the only Endoscopy Systems used for procedures for Winn ACH. New state of the art equipment is needed to stay up to date on advancing technology. Having manufacturer support ensures parts availability, factory trained personnel and other resources that are proprietary to the Original Equipment Manufacturer (OEM). The Endoscopy System has not and will not be on Winn ACH network.

Additionally, Olympus America, Inc is the manufacturer of the Endoscopy Equipment and components currently in house. They are the OEM and the salient characteristic of the equipment and its parts are certified and/or verified as with other equipment at Winn

ACH.

(Maintenance and Lease of Endoscopy Equipment)

(See FAR 2.101 and 3.104-4)

(1 October 2015)

6. Efforts to Obtain Competition: A special notice was posted on the Federal Business Opportunities (fbo.gov) website on 10 September 2018 to inform industry of the Government’s intent to award a sole source requirement to Olympus America, Inc.

a. Effective competition. None. This equipment is proprietary and manufactured by Olympus America, Inc. Olympus America, Inc is the only provider that can provide the necessary maintenance. Proprietary letter from the vendor is located in PCF Folder A.02.04 labeled Proprietary Letter received via email on 13 September 2018.

b. Subcontracting competition. There are no subcontracting opportunites for this requirement. The lease and equipment requiring maintenance is proprietary and manufactured by Olympus America, Inc.

7. Actions to Increase Competition: There are no practical alternatives available to increase competition for this requirement. Olympus America, Inc is the sole proprietor and manufacturer of this equipment. The Contract Specialist posted a Special Notice on the Federal Business Opportunities page on 14 September 2018 letting industry know of the Government’s intent. Any bids/proposals received will be evaluated.

8. Market Research: Market Research was conducted in accordance with FAR Part

10. Internet searched were performed to into the General Services Administration website. Olympus America, Inc is listed on the Federal Supply Schedule, Contract Number V797P02065D, with an expiration date of 31 July 2019. Small Business Associate Research, to include key words : Market Reseach was accomplished by using NAICS Code 339112. Currently 8(a) Certified – 64, Currently Small Disadvantaged Business Certified – 21, Currently HubZone Certified – 84, Service Disabled Veteran Owned Business – 509, Veteran Owned Small Business – 21, Woman Owned Small Business 559.

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

The notices required by FAR 5.201 shall be (or have been) published, and any bids or proposals received shall be considered.

10. Other Facts:

(1) Previous Contracts -

, Authority on the J&A is FAR 13.106-1 (b)(1)(i)

, solicited as Unrestricted,unsure of competitive status solicited as Unrestricted,unsure of competitive status

(2) The previous acquisitions were solicited sole source per the customer.

(3) Authority previously used for less than full and open competition is FAR 13.106-1 (b)

(1) (i) “Only one source reasonably available (e.g., urgency, exclusive licensing agreement, brand name or industrial mobilization.”

(4) A justification was prepared to support the previous sole source action. No actions was taken by the Government to remove/overcome barriers for the previous action because Olympus America, Inc. is the only vendor capable of maintaining their equipment and they do not train third party service providers, nor sell parts to third party service providers, for the maintenance of their equipment.

(5) Olympus America, Inc. is the sole manufacturer of these systems, components and proprietary hardware and software.

(6) There are no unusual patterns related to limiting sources for these services on Olympus America, Inc. equipment. Olympus America, Inc. is the only vendor that can perform these services as detailed above.

(7) The previous acquisitions were awarded using full and open competition procedures.

b. Other facts.

(1) Based on prior history and confirmation of sole source proprietary letter from Olympus America, Inc., the Contracting Officer has determined that no other vendor has the capability to performance maintenance on the Olympus America, Inc. equipment.

Awarding the contract to a company that is not familiar with the equipment could result in loss of equipment which could cause the hospital to incur unnecessary re-procurement cost.

(2) The current contract expires 30 September 2018.

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.

Signature: ________________________________Date: __________

Typed Name: Title:

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.

Signature: ________________________________Date: __________

Typed Name: Title:__ ______

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.

Certified cost and pricing data is not required because of the exception for commercial contracts in FAR 15.403-1(b) (3). Other than cost or pricing data is required. The estimated value of this procurement for the period of performance from 01 October 2018 – 30 September 2023. Total estimated price of the requirement is $574,993.53.

Signature: ________________________________Date: __________

Typed Name: _______Title:_ _____

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

Signature: ________________________________Date: __________

Typed Name: _____Title: _________