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'