J A_New_Contract_FINAL_Redacted.pdf

Control Number:

SOURCE SELECTION INFORMATION

(See FAR 2.101 and 3.104-4)

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Limited Sources Justification for Other Than Full and Open Competition

1. Contracting Activity: U.S. Army Health Contracting Activity (Provisional) (USAHCA(P)), Regional Health Contracting Office – Central (Provisional) (RHCO-C(P)), 1650 Cochrane Circle, Bldg 7500, Ft. Carson, CO 80913-4604

2. Nature and/or Description of Action: WBAMC Pathology Department is requesting a sole source supply and reagent contract with Sysmex America, Inc. This is a follow on contract to W91YU0-15-F-0182. This will be a firm-fixed price contract. Defense Health Program (DHP) funds will be used, PR 0010817822.

3. Description of Supplies/Services: This contract will be for supplies and reagents for Hematology Testing Analyzers which will be used to test red and white blood cells for determining patient diagnosis and treatment. The equipment and reagents will be purchased off GSA FSS, Schedule 66, CIN 615-19. The estimated value of the requirement $825,911.92 which is reflected in the quote by the vendor. This will be a 7 month base contract, with two option years (1 March 2016—30 September 2018).

4. Authority Cited and Reason: FAR 8.405-6(a)(1)(i)(B), Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized. See offeror’s statement in paragraph 6.

5. Best Value Determination. I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable based on the Contracting Officer’s knowledge, the IGE, and the procurement history. No certified cost or pricing data will be required as this is a commercial buy, FAR 15.403-1(b)(3). The offeror has offered the same pricing for this new contract as they offered on the previous contract. The machines have a lifecycle of 7 years. This is the first year.

6. Market Research: In February 2016, the following research was conducted:

GSA-e-buy – A search using keywords of “Hematology Analyzer” did provide several vendors that could provide the requested source. However, only one of the vendors provides the reagents required for the analyzers that the Government own, Sysmex.

Google – A search using the keywords “Hematology Analyzer” shows vendors are available on the open market. Some of the companies listed were Fisher, Beckman Coulter, Alere, and Horiba.

Dynamic Small Business Search - A search was conducted using the search keywords of “Hematology Analyzer” did not provide 2 or more small business vendors that can provide the same or equal supplies as outlined by the requiring activity. A Quick Market Search revealed the following small businesses categories: 101 Service-Disabled Veteran, 33 HUBZone Certified, 334 Woman Owned, and 39 8(a).

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Hematology Testing Analyzers

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The contract specialist contacted Sysmex. The contractor provided the following statement “The reagent and control products needed to operate the Sysmex Hematology analyzers placed at William Beaumont Army Medical Center are sold only by Sysmex and no other manufacturer reagent and/or control products can be used on Sysmex analyzers. Attempting to use another manufacturer’s reagents and/or control products will not produce the correct test results and will also void the warranty on the analyzers.”

A Sources Sought notice was posted on FedBizOps on Tuesday, 9 February 2016 with a suspense date of 10:00 a.m. mountain time 11 February 2016. No responses were received.

7. Other Facts Supporting the Justification: Discuss any other facts supporting the use of other than full and open competition, such as the following:

a. Procurement history:

(1) The previous contract is W91YU0-15-F-0182 and was issued to lease the equipment and purchase reagents for a five month ordering period. The period of performance is 1 October 2015 – 29 February 2016.

(2) The current contract used a Sole Source Statement under the SAT per FAR 13.106-1(b)(1)(i).

(3) Authority previously used for less than full and open competition was FAR 8.405-6(a)(1)(i)(B), Only one source is capable of providing the supplies or services required.

(4) This J&A states This requirement is for Onsite Hematology Testing Analyzers used by the Department of Pathology, William Beaumont Army Medical Center (WBAMC), El Paso, TX, to test red and white blood cells for determining patient diagnosis and treatment. Sysmex America, Inc. is the only company and manufacturer available that can provide the requested supplies and reagents.

There are no authorized distributors and no other companies available that can provide this requested testing. This requirement is for reagents used in Hematology testing equipment that will provide patient diagnosis and treatment.

(5) If any prior award was accomplished by full and open competition, a detailed explanation of the changed circumstances: The current contract, W91YU0-15-F- 0182, was the first contract for the reagents and equipment. No previous history.

(6) An explanation of any unusual patterns which may be revealed by the history, e.g., several consecutive, urgent buys: The purchase of supplies for these Analyzers will be sole source until the end of the 7 year lifecycle. This is the first year using the machines.

(7) If a justification was prepared to support the procurement made before this one, briefly describe the circumstances justifying the buy and whether there have been any significant changes: The equipment was leased on contract W91YU0- 15-F-0182. The current contract, and subsequent contracts purchasing the brenda.m.palmer Typewritten Text

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Page 3 of 6 (1 October 2015) reagents, will be sole source as Sysmex reagents are the only reagents that can be used on these leased machines.

(8) Several contracts were reviewed to determine if the anticipated prices for this contract are fair and reasonable. Contract W81K00-14-P-0919 was reviewed.

This contract is for Chemistry Analyzer reagents. For one year, the cost on this contract for the reagents is $486,299.62. This is significantly more than the $62,715.72 anticipated for the first full year of the reagents on this Sysmex contract. Contract W81K00-14-F-0310 was also reviewed. The annual price for the reagents for this contract is $72,261.69. The anticipated price for the Sysmex contract is less than this. A third contract was reviewed, W81K00-13-F-0072.

This contract has both analyzers and reagents. The contract is for one year and has a value of $486,848.93. This is significantly more than one full year of the anticipated value of the Sysmex contract. Based on the review of these contracts, the anticipated prices for the Sysmex contract fall within an acceptable range and are considered fair and reasonable.

b. Acquisition data availability. Explain why technical data packages, specifications, engineering descriptions, statements of work or purchase descriptions suitable for full and open competition have not been developed or are not available. Describe actions taken or planned to remedy this situation: No technical data packages are necessary for this purchase.

c. Unusual and compelling urgency. When FAR 6.302-2 is cited, provide data, estimated cost or other rationale to explain the nature and extent of the injury to the Government. If the delay associated with the requirement for first article testing is the principal reason for not awarding the contract on a full and open basis, clearly describe the reasons that first article testing is required on this procurement and why other means of assuring quality are not being used. If not used, insert N/A. N/A

d. Subcontracting competition. In single source situations, address efforts to be taken by the Government to assure that the prime contractor obtains as much competition as possible in its subcontracting. N/A

8. Actions Taken to Remove/Overcome Barriers to Competition: Describe efforts to ensure that offers are solicited from as many potential sources as is practicable. Also describe the extent of effective competition anticipated for this acquisition: Until the end of the lifecycle of the equipment, the purchase of supplies will be sole source. When the equipment reaches the end of its lifecycle, a new procurement will be done under full and open competition.

The J&A for the current contract is attached. A sources sought synopsis was posted on Fed Biz Ops on 9 Feb 16 and closed 11 Feb 16, with no responses received.

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10. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

John A. Kwiatkowski 16 Feb 2016 Typed Name: _________________________________ Date: ___________________

Contracting Officer Title:_____________________________

Signature:

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APPROVAL

Based on the foregoing justification, I hereby approve the procurement of a lease of Hematology Testing Analyzers and the purchase of reagents and supplies, NTE $825,911.92, on an other than full and open competition basis conducted under the authority of the Multiple Award Schedule Program, as implemented under FAR 8.405-6(d)(2) and provided that the reagents and supplies herein described have otherwise been authorized for acquisition.

Typed Name: _________________________________ Date: ___________________

Title:_____________________________

Signature:

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Joe.Peck Typewritten Text Joseph S. Peck

Joe.Peck Typewritten Text 19 February 2016

Joe.Peck

Special Advocate for Competition