Intent to Sole Source

Tracking#: JA15-0163 Justification and Approval Simplified Acquisition Threshold (<$150K) Procedures FAR Subpart 13.106-1(b) (1) (i) - Soliciting from a Single Source 1. Identification of the agency and contracting activity: Defense Health Agency (DHA), Contracting Operations Division - San Antonio (COD - SA), Joint Base Activity San Antonio (JBSA), Ft. Sam Houston, TX, 78234 2. Nature and/or Description of Action being approved: IAW, Federal Acquisition Regulation (FAR) 13.106-3(b)(3)(i) explaining the absence of competition, under the Simplified Acquisition Threshold (SAT), $150,000.00, IAW, FAR 2.101 Definitions, approval is requested for a sole source acquisition, under the procedures of FAR 13.106- 1(b)(1)(i) - Contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization). This will be a firm-fixed-price contract for a service agreement and procurement of Digi-Trax comprehensive maintenance renewal through Digi-Trax. The procurement identified has been procured in the past for DHA (Defense Health Agency) EUD (End User Device) Branch (Contract # W25G1V-12-F-0202) and involves Digi-Trax Zebra BB-Z-M400E+ printers throughout the DHA. Maintenance consists of one year comprehensive coverage that will entail but not limited to: print-head replacement, component coverage along with a three day turn around for repairs (excluding shipping). This requirement is still identified for renewal to ensure operational availability tied to this software. 3. Description of Supplies/Services : The DHA requires procurement of Digi-Trax comprehensive maintenance for Government used Digi-Trax Zebra BB-Z-M400E+ printers. The estimated total value is $54, 508.55, which includes base period at a cost of $21,137.50, with one twelve (12) month option (priced at $21,961.86). This acquisition will include FAR Clause 52.217-8 Option to Extend Services one six month extension at a cost of $11,409.19. The estimated base period of performance is 03 Aug 2015 - 02 Aug 2016 with one 12-month option period 03 Aug 2016 - 02 Aug 2017. The 6-month period covers 03 Aug 2017 - 02 Feb 2018. Contract award will be Firm Fixed Priced using FY15 Operations and Maintenance (O&M). The service description is as follows: The maintenance identified ensures that DHA can keep its Zebra printers, which are deployed throughout the DHA, operational. This support helps administrators manage and maintain healthy working printers and components. This procurement renewal will allow the DHA-EUD (End User Device) Branch to continue the use of the Digi-Trax Zebra BB-Z- M400E+ printers with the awareness that the maintenance support agreement in place will ensure operational availability in a time where a device should go down and need attention. 4. Statutory Authority Cited: IAW FAR 13.106-1(b)(1)(i) - Only one source is deemed reasonably available. Tracking#: JA15-0163 5. Reason for Authority Cited: IAW FAR 13.106-1(b)(1)(i), these services do not exceed the simplified acquisition threshold and only one source, Digi-Trax, is reasonably available due to the use of proprietary data. Per the vendor/manufacturer (Digi-Trax), modifications and enhancements are performed only by the Digi-Trax Corporation. No other vendor/reseller can offer Digi-Trax comprehensive maintenance for Digitrax Zebra BB-Z-M400E+ printers. Considering the work provided for in the proposed contract is a continuation of the work performed by the specified entity under the preceding contract, Digi-Trax Corporation being the only source for Digi-Trax comprehensive maintenance for Digitrax Zebra BB-Z-M400E+ printers, soliciting for competition would not be reasonable. Therefore, Full and Open Competition need not be provided for. 6. Efforts to Obtain Competition: IAW FAR 5.202 Exception: the contracting officer need not submit the notice required by FAR 201, when applying FAR 5.202 (a) (13)(i)(ii)(iii), the proposed contract action is for an amount not expected to exceed the simplified acquisition threshold; (ii) Will be made through a means that provides access to the notice of proposed contract action through the Governmentwide Portal of Entry (GPE); and (iii) Permits the public to respond to the solicitation electronically. However, with the above stated, a notice of intent will be posted on Federal Business Opportunities website in the attempt to increase competition. 7. Actions to Increase Competition: The proposed contract action which is for an amount not expected to exceed the simplified acquisition threshold, will be made through a means that provides access to the notice of proposed contract action through the GPE and will permit the public to respond to the solicitation electronically. Therefore, after contract award, a continued effort will be conducted with an on-going research of the industry market place to determine if there are new entrants into this accreditation arena. 8. Market Research: Market Research revealed that Digi-Trax holds proprietary rights to the software license and maintenance, of Zebra printers which include 300 dpi print head mechanism and special (Digi-Trax exclusive) printer firmware. This firmware is loaded by Digi-Trax and supports the printing of compliant ISBT128 with prescribed ABO, Rh fonts and Biohazard Symbols as required by FDA and AABB in the US Consensus Standards,that enables a product result which meets using agencies need. It was found that this maintenance is not available through GSA Advantage, Ability One, any GWAC, or any other preferred procurement method. Digi-Trax is the only source for Digi-Trax comprehensive maintenance, which includes: printhead replacement (including physical damage or abuse), covering all internal and external components such as the LCD, media cover, gears, etc., eliminates unexpected charges for repairs, a three day turnaround and UPS Ground return freight. A letter was also obtained written by a General Counsel member within Digi-Trax states that comprehensive hardware maintenance for model BB-ZM400E+ thermal transfer printers for ISBT128 compliance labeling is only available from Digi-Trax Corporation, as part of Digi-Traxs total Lifecycle Support Services (LSS) for on- demand HemaTrax system, all hardware, software and supplies support systems.. The World Wide Web was used to conduct market research, visited websites include: sba.gov, bgov.com and bestvendor.com. 9. Other Facts: Tracking#: JA15-0163 - DHA - EUD (End User Device) Branch has had these printers in place for its operations within several locations throughout the DHA and will need renewal of this maintenance to continue operations and ensure timely support and replacement in the time of need where a device should go down (inoperable). - Failure to renew the comprehensive maintenance could result in inoperable printers and cause downtime to facilities in which these printers are needed and to function on a daily basis. These printers are fragile and unique to the purpose of the facilities and maintenance is needed for immediate service and parts replacement. Software maintenance has already been put in place for these printers, but the comprehensive maintenance identified for renewal will include tangible objects due to failure. Purchasing new hardware, new software maintenance and comprehensive maintenance from a different manufacturer will require additional training, equipment costs and create delays caused by the new hardware configuration that is not expected to be recovered through competition. - Per the Program Manager for this requirement, this comprehensive maintenance identified for procurement will meet the needs of the facilities and allow the facilities to continue normal operations and capabilities. The cost and expenses associated with replacing Digi-Trax printers throughout the DHA will be more than the $21,000 comprehensive maintenance price given the costs such as training, labor, research along with actual product replacement, considering that the original cost for these printers was $666,864.45, under contract, W25G1V-12-F-0202, and have been discontinued (as of 31Jan2008); therefore, obtaining maintenance elsewhere is not possible. 10. Interested Sources: None known. 11. Methods to overcome barriers: No other vendors have been found that can provide this service and additional licenses; however, this justification will be posted to allow responses from vendors before award. To date, no other sources have written to express an interest. The notices required by FAR 5.201 shall be published, and any offers or proposals received shall be considered. Coordination: 12. Technical / Functional Representative : I certify that the supporting data under my cognizance which are included in the justification is accurate and complete to the best of my knowledge and belief. Typed Name: Date: Title: Chief, Enterprise Capital Investment Signature: Life Cycle Management Office Operations 13. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification is accurate and complete to the best of my knowledge and belief. Typed Name: Date: Title: Chief, Enterprise Capital Investment Signature: Lifecycle Management Office Operations 14. Fair and Reasonable Cost Determination: IAW FAR 13.106-3(c), techniques to be used to determine fair and reasonable price will be based on Market Research and comparison with similar items in the related industry. As part of this basis, certified cost or pricing data shall not be obtained for acquisitions at or below the simplified acquisition threshold, IAW FAR Part 15.403 - 1 (a).I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. I certify that this justification is accurate and complete to the best of my knowledge and belief. Typed Name: Date: Title: Contracting Officer Signature: 15. Legal Review: I have reviewed this limited source and it is deemed to be legally sufficient. Typed Name: Date: Digitally signed by Title: Information Technology Attorney Signature: 16. Chief, Contract Policy and Compliance Division: I certify that this justification is accurate and complete to the best of my knowledge and belief. Typed Name: Date: Title: Chief, CP/CD Approval: 17. Contracting Officer: Based on the foregoing justification, I hereby approve the procurement of the purchase of Digi Trax based on a sole source acquisition in accordance with FAR 13.106-1(b) Soliciting from a single source, subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for acquisition. Typed Name: Date: Title: Contracting Officer