Maintenance on Government-owned, GSL Solutions-manufactured equipment

Sole Source Justification and Approval
Under FAR 13.501

1. Contracting Activity: US Army Medical Command, Regional Health Contracting
Office - Central (RHCO-C), 3160 McIndoe Road, JBSA - Fort Sam Houston, Texas.

2. Description of Action: The Regional Health Contracting Office - Central requests
approval to issue a new contract on a sole-source basis to GSL Solutions. A firm-fixed price contract is contemplated. Fiscal Year 2017 Defense Health Program (DHP),
Operations & Maintenance Army (OMA) funds are available for obligation.

3. Description of Supplies/Services: The requirement is to obtain non-personal
preventive maintenance, as-needed repair, and other support services, such as
operating system upgrades and changes mandated by Department of Defense
Certification and Accreditation Process (DIACAP) security requirements, as well as any
parts needed, for Government-owned, GSL Solutions-manufactured equipment:
IntelliSys Will Call Management Operating System (CTS Server and Rack Mount
Server) and the Four Drawer Intellicab. Varying configurations of these items are
located within the San Antonio Military Medical Center (SAMMC) area of responsibility,
to include the Main Pharmacy, Community Refill Pharmacy, Primary Care Clinic
Pharmacy, and the Westover Hills Medical Home Pharmacy. These systems allow the
pharmacies to physically track and store prescriptions from receipt through to patient
pick-up, reducing errors. For the base period, 1 April 2017 - 30 September 2017, plus
two (2) twelve-month option periods, the total estimated value is $303,750.00. If a six month extension of services was executed under the authority of Federal Acquisition
Regulation (FAR) clause 52.217-8, the total estimated value would be $364,500.00.

4. Authority Cited: The statutory authority permitting other than full and open
competition is 41 United States Code 1901 as implemented in FAR 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: GSL Solutions is the sole manufacturer and seller of
the IntelliSys Will Call Management System and the Four Drawer Intellicab, as well as
all software and maintenance services required to maintain these items. Any software
upgrades or maintenance provided by an entity other than GSL Solutions would void
any existing warranties.

6. Efforts to Obtain Competition: A Sources Sought Notice was posted to
FedBizOpps on 23 February 2017 and closed on 3 March 2017. No responses were
received. However, GSL Solutions has previously provided RHCO-C with a letter
confirming they have no authorized distributors. A telephone conversation between
GSL Solutions and the Contracting Officer confirmed this letter was still valid on 16
March 2017.

a. Effective competition. Based on market research and the results of the Sources
Sought Notice, competition is not anticipated for this requirement. The
Government will continue to assess the market for new entrants.

b. Subcontracting competition. A subcontracting plan is not required, in accordance
with FAR 19.708(b)(1) and 52.219-9(a), as GSL Solutions is a small business
concern.

7. Actions to Increase Competition: As long as SAMMC owns this equipment and
GSL Solutions does not have any authorized distributors, it is expected this requirement
will continue to be solicited on a sole-source basis. However, the Government will
continue to monitor the marketplace for any new entrants.

8. Market Research: Market research was conducted by the Pharmacy and RHCO-C
via web and telephonic inquiries in the weeks prior to the Sources Sought Notice. While
there are many vendors that provide maintenance services of medical equipment, to
include some that also provide software upgrades, there are none that could provide the entirety of the Government's requirement at this time.

9. Interested Sources: To date, no other sources have written to express an interest.
The notice required by FAR 5.201 was posted with no response.
10. Other Facts:

a. Procurement history.

(1) Maintenance and support services are currently provided under W81K00-
12-C-0027, which expires 31 March 2017. This contract was the first to
provide such maintenance, as the equipment was just coming off its original
warranty (associated with the initial purchase of equipment).

(2) W81K00-12-C-0027 was issued on a non-competitive basis.

(3) 10 USC 2304(c)(1), as authorized by FAR 6.302-1.

(4) The sources sought notice was posted to FedBizOpps from 13 - 30 April
2012, with the J&A posted on 12 June 2012. No responses were received in
response to either posting.

(5) If any prior contract for this requirement was accomplished using full and
open competition, include a detailed explanation of the changed
circumstances causing this action to now limit the sources: N/A.
(6) An explanation of any unusual patterns that may be revealed by the history: N/A.

(7) As with this requirement, the contractor, GSL Solutions, did not have any
distributors or other authorized vendors that could perform the required
maintenance, to include software upgrades. The only change from the initial
procurement to this one is an increase in the quantity of equipment requiring
maintenance, due to the outfitting of the Westover Hills Medical Home.
Otherwise, all services remain the same.

b. Other facts.

(1) GSL Solutions equipment is installed in many Department of Defense
medical treatment facilities, to include the hospitals at Fort Bliss, Texas; Fort
Sill, Oklahoma; Fort Leonard Wood, Missouri; Goodfellow AFB, Texas;
Keesler AFB, Mississippi, Beale AFB, California, and F.E. Warren AFB,
Wyoming. Maintenance is required of all equipment. Some of these
maintenance contracts were issued on a sole-source basis; those that were
competed resulted in the receipt of only one offer.

(2) At this time, failure to award a contract to GSL Solutions for maintenance
and support services could jeopardize the SAMMC Pharmacy's mission of
providing accurate and timely prescriptions to its beneficiary population. If the
contract is not awarded in time and a failure of any one piece of equipment
occurs, it would potentially be more expensive for a one-time repair than
compared to the expected cost of this contract. Alternately, SAMMC could
purchase new prescription-management equipment, rendering the current
equipment unusable. This new equipment would more than likely be higher in
cost than the expected cost of this contract.

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: Signature: ,
Title: Budget Analyst, Date:
Dept of Pharmacy, SAMMC

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: Signature:
Title: Budget Analyst, Date:
Dept of Pharmacy, SAMMC

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. A price analysis will be conducted to compare the proposed
prices to competitive contracts within RHCO-C for the same or similar requirements.
Certified cost or pricing data is not required, in accordance with FAR 15.403(b)(3).

Name: Michelle Bartkowski Signature: BARTKOWSKI.MIC
Digitally signed by
BARTKOWSKI.MICHELLE.M.1019472678
HELLE.M.10194726 DN: c=US, o=U.S. Government, ou=DoD,
Title: Contracting Officer, RHCO-C Date: 78

14. Contracting Officer Certification:
cn=BARTKOWSKI.MICHELLE.M.1019472678
Date: 2017.03.28 07:54:13 ‐05'00'
I certify that this justification is accurate and complete to the best of my knowledge and belief.

Name: Michelle Bartkowski Signature:
Title: Contracting Officer, RHCO-C Date:
BARTKOWSKI.MIC
HELLE.M.1019472
678
Digitally signed by
BARTKOWSKI.MICHELLE.M.1019472678
DN: c=US, o=U.S. Government, ou=DoD,
ou=PKI, ou=USA,
cn=BARTKOWSKI.MICHELLE.M.1019472678
Date: 2017.03.28 07:54:33 ‐05'00'