JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN COMPETITION 1. Identification of the agency and the contracting activity. This justification is executed by the Naval Medical Logistics Command, Fort Detrick, MD to meet the requirements of the Department of Defense. 2. Nature and/or description of the action. The requirement is for a system upgrade of its currently installed base of Draeger Innovian Anesthesia Recording and Monitoring Device (ARMD) systems. The Government intends on awarding a Firm Fixed Price contract. The proposed source is Draeger Medical Inc, 3135 Quarry Rd, Telford PA 18969. 3. Description of the supplies/services required. The Department of Defense has a requirement for a system upgrade of its currently installed base of Draeger Innovian Anesthesia Recording and Monitoring Device (ARMD) systems. The upgrade shall provide the software, hardware, and professional installation services necessary for the installed equipment to operate on Innovian version 5 with full system functionality. This upgrade will enable the installed equipment to operate on Microsoft Windows 7 and Microsoft Server 2008 with full system functionality and meet Navy, Army, and Air Force Information Assurance requirements to be allowed on the DoD network. 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. 4. Identification of the statutory exceptions permitting other than full and open competition. The statutory exception permitting other than full and open competition for this acquisition is 10 USC 2304(c)(1) and FAR 13.501(a), Only One Responsible Source. 5. Demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited. Draeger Medical Inc. is the only vendor that can provide the requested system upgrade. Draeger Medical Inc is the only vendor capable of providing the proprietary software required to upgrade the system to Innovian version 5 and function on Microsoft Windows 7 and Server 2008. No other vendor is capable of providing upgrades to proprietary Draeger equipment and software as well as ensures that the system operates as intended. Only Draeger Medical Inc. meets the requirements of the government. 6. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable. Market research was performed, the results of which are in paragraph 8. This requirement will be posted to NECO and/or FedBizOpps in accordance with FAR 5.202. The government will evaluate any responses received. 7. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable. The Contracting Officer shall determine the anticipated cost to the Government of the supplies/services covered by this Justification and Approval will be fair and reasonable by conducting a price analysis before an award is made. In addition, the Government anticipates that the negotiated contract price will reflect a discount from the vendor's commercial price list and will be determined fair and reasonable. 8. Description of the market survey conducted and the results, or statement of the reasons a market survey was not conducted. A Market Survey was conducted in April 2013 using several sources including Google, Bing, GSA Advantage, contracting mechanisms and previous contracts. Draeger Medical Inc. was identified as the only vendor that can provide support to proprietary Draeger ARMD systems. Draeger will not provide any proprietary information to other vendors to support these systems. If any other vendor was to perform work on these systems and the systems were rendered inoperable, Draeger cannot guarantee that they can fix the system which may leave the systems inadequate for the DoD patient population. Only Draeger has the technical expertise and proprietary information to provide system support to Draeger systems. No other vendor can provide updates and upgrades to the proprietary software which make the systems operable. No other vendor will be able to update the software to maintain DIACAP accreditation. No other possible sources were identified. 9. Other facts supporting the use of other than full and open competition. None 10. Listing of Sources, if any, which expressed, in writing, an interest in the acquisition. To date, no other sources have written to express an interest. This requirement will be posted on FedBizOpps in accordance with FAR 5.202. Any sources expressing interest in response to the synopsis will receive consideration. 11. Statement of actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required. Future requirements will be synopsized in accordance with FAR 5.203. For the reasons set forth in Paragraph 5, Naval Medical Logistics Command has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, Naval Medical Logistics Command will assess whether competition for future requirements is feasible. However, there is constant attention to the market to insure that shall technology change, the source selection is reconsidered. U.S. Navy Subject Matter Experts are required to take into consideration the impact on the installed base of equipment when source selection occurs. All necessary components of integrated logistics support are taken into consideration.
