Perkin Elmer Prev. Maintenance

The United States Department of Agriculture (USDA), Federal Grain Inspection Service (FGIS), Technology and
Science Division (TSD) intends to award a sole source award to Perkin Elmer for preventive maintenance and repair services.

1. NATURE AND/OR DESCRIPTION OF THE ACTION BEING
APPROVED:

Due to the circumstances described below, the FGIS, TSD, Biotechnology and Analytical Services Branch request the maintenance agreement for the Optima 8000 (ICP) and the PinAAcle 900T instrument with ICP and AA software updates/coverage be acquired using a noncompetitive procurement in support of commodity testing.

2. A DESCRIPTION OF THE SUPPLIES, EQUIPMENT, OR SERVICES
REQUIRED TO MEET AGENCY NEEDS (INCLUDING THE ESTIMATED
VALUE OF THE ACQUISITION INCLUSIVE OF OPTIONS):

Both the PinAAcle 900T (AA) and the Optima 8000 (ICP) instrumentation, along with the associated components, currently allow for the testing of iron, potassium, calcium, lead, and cadmium for the evaluation of the safety/health risks of U.S. grain related to heavy metal content (AA/ICP). The instrumentation is also used in a research capacity by searching for new/improved testing methods that can be used marketing grain to better define the quality and best-use potential of raw grain.

The service agreements for the previously mentioned instruments are essential to ensure that the equipment is properly maintained and serviced in order to support mission goals and meet a contractually obligated 5-day sample turnaround time. With limited turnaround time, it is important that we have a service agreement that works expeditiously to diagnose and fix all instrument problems and malfunctions.

See Statement of Work for maintenance plan coverage.

Base Year and 2 option Year - TOTAL: $58,603.56

3. IDENTIFICATION OF THE STATUATORY AUTHORITY PERMITTING
NONCOMPETITIVE ACQUISITIONS:

Authority Cited: 41 U.S.C 253 (c) (1), and FAR 6.302.1

The property or services needed by the executive agency are available from only one responsible source and no other type of property or services will satisfy the needs of the executive agency.

4. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR'S UNIQUE
QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES
USE OF THE AUTHORITY CITED:

Currently, FGIS, TSD relies solely on the Perkin Elmer instrumentation for the efficient and repeatable evaluation of the safety and health risks associated to U.S. grain in relation to heavy metal content (AA/ICP) in support of the Agricultural Marketing Act and various other testing procedures in support of the USAID and Farm Services Agency (FSA) programs. Proper operation and accurate analyses are vital to contractual obligations of result turn-around times and commodity specifications. It is necessary to have a distributor with the capability to meet the necessary requirements, listed in the accompanying Statement of Work, so as to not impact FGIS's mission and the obligations of meeting time requirements.

Perkin Elmer does not have any agreements to supply spare parts with any other distributor or service providers, severely limiting the capability of anyone else to provide the maintenance agreement effectively. Also, Perkin Elmer is the sole source for factory new or factory remanufactured parts. They do not certify third party technical service, and is the only source for factory trained and certified engineers to provide service for all instrumentation manufactured and sold by Perkin Elmer Health Sciences, Inc.

5. A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE
SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING WHETHER A NOTICE WAS, OR WILL BE, PUBLICIZED AS REQUIRED BY FEDERAL ACQUISITION REGULATION (FAR) SUBPART 5.2, AND IF NOT, WHICH EXCEPTION UNDER FAR 5.202 APPLIES:
FEDbizopps Special Sources Sought Notice SS-PR952430 posted 7/2/2019.

There were 3 vendors who were interested in the sources sought notice:
1. Perkin Elmer
2. Remi Group
3. RV Global Solutions

Both Remi Group and RV Global Solutions were asked via email whether they would have their own Perkin Elmer Certified technicians. There was no reply. With this being said, the government can expect that Remi Group and RV Global Solutions will subcontract actual repairs, annual maintenance service, software updates to PerkinElmer.

6. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE
ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND
REASONABLE, AND THE BASIS FORTHAT DETERMINATION:

Perkin Elmer has quoted $58,603.56 for preventive maintenance and repair services for 1 base year and 2 options years. Previously, USDA paid $55,056.00 for one base year and 2 option years. That is approximately a 6% difference which is deemed fair and reasonable for coverage of 3 years.

7. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (FAR
PART 10) AND THE RESULTS, OR AN EXPLANATION OF THE REASON
MARKET RESEARCH WAS NOT PERFORMED:

See Perkin Elmer letter attached stating that they are they only firm who have certified Perkin Elmer Technicians and the only supplier for OEM parts.

8. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL
AND OPEN COMPETITION - FAR 6.303-2(a)(9):

1. Harness technology to streamline grain inspection and weighing processes, and to provide objective measures of grain quality, quantity, and end-use value to increase the efficiency of U.S. grain marketing.
2. Provide all segments of American agriculture with cost-effective and responsive official grain inspection and weighing services.
3. Facilitate the marketing of grain and oilseeds for the benefit of U.S. agriculture.

9. A LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN
INTEREST IN THE ACQUISITON:

FEDbizopps Sources Sought Notice SS-PR952430 posted 7/2/2019.

There were 3 vendors who were interested in the sources sought notice:
1. Perkin Elmer
2. Remi Group
3. RV Global Solutions

Both Remi Group and RV Global Solutions were asked via email whether they would have their own Perkin Elmer Certified technicians. There was no reply. With this being said, the government can expect that Remi Group and RV Global Solutions will subcontract actual repairs, annual maintenance service, software updates to PerkinElmer.

A STATEMENT OF THE ACTIONS, IF ANY. THE AGENCY MAY TAKE
TO REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION
BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES,
EQUIPMENT, OR SERVICES REQUIRED:

None, due to the fact that Perkin Elmer is the sole provider of certified engineers using certified Perkin Elmer factory parts. Even the third party vendors have admitted their firms would be utilizing Perkin Elmer technicians to perform repair and maintenance services in order to provide qualified service technicians with access to proprietary diagnostic software and updates.

RESPONSES TO THIS SOLE SOURCE NOTIIFCATION SHALL BE SUBMITTED TO CONTRACTIGN OFFICER KIM YEN TU VIA EMAIL ONLY TO KIMYEN.N.TU@USDA.GOV BY AUGUST 12TH, 2019 @10AM CENTRAL TIME.

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