Justification and Approval

JUSTIFICATION AND APPROVAL FOR USE OF OTHER THAN FULL AND OPEN COMPETITION 1. Contracting Activity. The Naval Medical Logistics Command (NMLC), Fort Detrick, MD is the contracting activity. The requiring activity is the Naval Medical Research Unit San Antonio (NAMRU-SA), located at 3650 Chambers Pass, Building 3610, JBSA Fort Sam Houston, TX 78234 2. Description of the Action Being Approved. NAMRU-SA has a requirement for an Indefinite Delivery Indefinite Quantity (IDIQ), equipment maintenance contract for Philips Healthcare ClearVue 550 and Philips Healthcare EPIQ5 ultrasound equipment. The proposed source is Philips Healthcare, located at 22100 Bothell Everett Hwy, Bothell, WA, 98021-8431. 3. Description of Supplies/Services. The proposed acquisition is for a maintenance contract for the Philips Healthcare ClearVue 550 Ultrasound and Philips Healthcare EPIQ5 Ultrasound equipment. The services required include travel for a field service specialist to provide repairs at the customer's facility and coverage for repair, parts, and labor. The contract will include coverage for the electronic, electromechanical, and mechanical components necessary for the proper operations of the existing ClearVue 550 and EPIQ5 Ultrasounds, but will not include cabinet and housings, overlays, painting, trim decorations, accessories, consumables, and packaging materials. Due to the number of experiments being run at NAMRU-SA, on-site service is required in order to prevent problems with the instrument and to ensure that all measurements taken by the ultrasounds are as accurate as possible. The required vendor shall be an Original Equipment Manufacturer (OEM) authorized maintenance contractor for the proposed equipment/systems, such that OEM warranty and service are provided and maintained by the OEM. All software licensing, warranty, and service associated with the equipment/system shall be in accordance with the OEM terms and conditions. The duration of the contract is anticipated for one 12-month base year, followed by three 12- month option periods of maintenance/service coverage. This Research and Development requirement will be incrementally funded. Initial funding for the base period has been provided in the amount of $34,130.74 as FY 2017 Research Development Testing and Evaluation (RDT&E) funds. The estimated value of the base period and each option ordering period is estimated at $34,130.74. The total estimated contract value is $136,522.96. Option periods will be fully funded at the time that the option is exercised with the appropriate fiscal year and type of funding. 4. Statutory Authority Permitting Other Than Full and Open Competition. 41 U.S.C. 1901, (as implemented by FAR 13.501(a); Simplified Acquisition Procedures for Sole Source Acquisitions 5. Rationale Justifying Use of Cited Statutory Authority. The Philips Healthcare ClearVue 550 and EPIQ5 Ultrasounds have been covered under warranty since their original purchase date. To ensure data integrity, NAMRU-SA requires that no lapse in the service warranty coverage occurs. To prevent this lapse, a maintenance services contract is required. Market research revealed that Philips Healthcare does not authorize any third party (non-OEM) maintenance services on any of its equipment. Any occurrence of utilizing unauthorized (non - Philips Healthcare) maintenance services could render the systems inoperable, will void warranties and it is probable that Philips Healthcare cannot guarantee that they can fix the system after such an occurrence. Furthermore because Philips Healthcare does not share any proprietary information, software updates, new OEM parts, refurbished OEM parts, or service training with other vendors, it would be impossible for a third party vendor to provide maintenance services. As only Philips Healthcare can provide maintenance services performed by the OEM manufacturer, only Philips Healthcare meets the minimum requirements of the Government. Market research failed to locate any other possible sources. 6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable. A notice of intent to sole source will be posted on the FedBizOpps website (FBO.gov) for 15 days prior to award in accordance with 5.202. Currently no other sources are being solicited, as Phillips Healthcare is the provider of OEM maintenance services. If another company submits a written interest in this requirement as a result of the announcement, the company's information will be evaluated before the contract is awarded. In accordance with FAR 13.501(a)(1)(iii), NMLC will post a redacted copy of this J&A within 14 days after contract award. 7. Determination of Fair and Reasonable Cost. The Contracting Officer will perform a price analysis in order to determine that the anticipated cost to the Government of the services covered by this J&A will be fair and reasonable. 8. Actions to Remove Barriers to Future Competition. For the reasons set forth in Paragraph 6, (NMLC) has no plans at this time to solicit for future contracts for the type of supplies covered by this document using full and open competition. If another potential source emerges, (NMLC) will assess whether competition for future requirements is feasible. If future requirements exist that do not involve the same research efforts, the government will solicit through full and open competition to remove barriers. 9. Contracting Point of Contact. The point of contact at Naval Medical Logistics Command is Jennifer M. Reed, Code 05, (301) 619-1200 or by e-mail at Jennifer.m.reed20.civ@mail.mil. See Approvals on Next Page