Notice of Intent Limited Supply
LIMITED SOURCE JUSTIFICATION FOR FEDERAL SUPPLY SCHEDULE ORDER THIS IS A NOTICE OF INTENT TO AWARD A LIMITED SOURCE CONTRACT AND IS NOT A REQUEST FOR COMPETITIVE QUOTES. Reference#: N0025919RCT0004. 1... LIMITED SOURCE JUSTIFICATION FOR FEDERAL SUPPLY SCHEDULE ORDER THIS IS A NOTICE OF INTENT TO AWARD A LIMITED SOURCE CONTRACT AND IS NOT A REQUEST FOR COMPETITIVE QUOTES. Reference#: N0025919RCT0004. 1. Identification of agency and contracting activity, and specific identification of the document as a "Limited Source Justification (LSJ)." This justification for Biomet i3 dental implants consignment inventories is executed by Naval Medical Center San Diego (NMCSD), on behalf of the Navy to meet the requirements of Naval Medical Center San Diego, Hospital Dentistry and Branch Clinics. 2. Nature and/or description of contract action being approved. The proposed action is conducted under the authority of the Multiple Award Schedule Program (Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et seq.) and Title 40 U.S.C. 501, Services for Executive Agencies). This is a limited source action to be awarded as a new Federal Supply Schedule (FSS) order to the contractor identified in paragraph 3 below. The placement of a Firm, Fixed-Price order is anticipated. 3. Description of the supplies or services required to meet the agency's needs (including the estimated value). The contract award requirement is for a $500,000.00 par level inventory agreement order for Dental/Surgical implants for Naval Medical Center San Diego (NMCSD), Directorate for Dental Services (DDS) and Directorate for Branch Clinics (DBC). This agreement is for a one (1) year period and will be established at Naval Medical Center San Diego, Hospital Dentistry, Naval Branch Health Clinic, Naval Air Station North Island Dental Clinic, Naval Branch Health Clinic, Marine Corps Recruit Depot Dental Clinic, Naval Branch Health Clinic, Naval Amphibious Base Dental Clinic, and Naval Branch Health Clinic, Naval Base San Diego Dental Clinic. The purpose of the agreement is to provide a continuous source of dental implants to the above dental clinics through a par level inventory arrangement. The ability of the contractor to meet the Government's demands for a ‘just in time" inventory concept is the primary focus of this agreement. Pricing of items received under this agreement shall be based on the request of the Dental Clinics listed above and the Contractor's Federal Supply Schedule (FSS). The contractor will conduct a joint inventory with a government representative designated by the Department Head at each inventory site at the initial stocking of the supply shelves, and twice a month thereafter. This frequency can be adjusted as deemed necessary but cannot be less than once per month. Both parties will sign the inventory and forward results to the Contracting Officer (KO) executing this contract. One copy will remain with the Government Representative and another copy to the contractor. Adjustments to quantity levels, either increases or decreases, additions to or deletions from the consignment inventory will be made as needed and as agreed upon by both parties. The contractor shall maintain usage and costs data. A usage and cost data report will be provided to NMCSD within 5 workdays after the end of each month. The usage and costs data report shall contain the Dental Clinic, description, part number and unit price during the reporting period. The report shall be reviewed by NMCSD designated representative with discrepancies forwarded to the NMCSD Contracting Officer. Invoicing for items used will be billed in WAWF. Both NMCSD and the contractor are responsible for monitoring usage and costs and will notify the NMCSD designated representative 30 days before it expects to exceed 80% on any given CLIN. The contractor will not deliver any items that will exceed the total contract amount per CLIN or they will be at risk for non-payment. Contractor Notice Regarding Late Delivery: In the event the contractor for any reason anticipates or encounters difficulty in complying with the agreement delivery schedule or date or in meeting any of the other requirements in this agreement, the contractor shall immediately notify the Contracting officer in writing, giving the pertinent details. The data shall be informational only in character and its receipt by the Government shall not be construed as a waiver by the Government of any delivery schedule date of compliance with any other agreement requirement by the contractor, or of any other rights or remedies provided to the Government by law under this agreement. 4. The authority and supporting rational (see 8.405-6(a)(1)(i) and (b)(1)) and, if applicable, a demonstration of the proposed contractor's unique qualifications to provide the required supply or service. The statutory authority which permits restricting consideration of schedule contractors to fewer than that required in FAR 8.405-1 or 8.405-2 is 41 U.S.C. 251, as implemented by FAR 8.405-6. Source selection was based on Biomet 3I, LLC being the only source capable of providing the required consignment items based on Naval Medical Center San Diego Dental Clinics only using external hex interface and internal hex interface restoration components and equipment. Biomet 3i, LLC is the only company to manufacture and supply implants with an internal or external implant-abutment mating surface. The implants must also be universally compatible so that an implant placed at one Command can be restored or maintained at another Command. Limiting the number of systems precludes the need for massive clinic/shipboard stock levels that would be required for multiple systems. ZIMMERBIOMET is used by NMCSD Dental Clinics daily, and used for NMCSD Advance Education for General Dentistry (AEGD) resident training program. BUMEDINST 6630.3B which standardizes the use of dental implants in the Navy Medical Healthcare System also lists Biomet 3i, LLC as a company that can provide implants to the Navy Medical Healthcare System. Recommend to solicit this on a sole source basis to Biomet 3i, LLC. 5. A determination by the ordering activity contracting officer that the order represents the best value consistent with FAR 8.404(d). GSA has determined the authorized federal supply price list of Biomet 3i dental equipment and supplies to be fair and reasonable for the purpose of establishing the schedule contract. NMCSD is also responsible to make a separate determination of fair and reasonable pricing for this order. Biomet 3I, LLC provided a quote for the needed items for a total of $500,000.00 for the base and $500,000.00 for the option year for a total of $1,000,000.00. Award decision was made IAW FAR 8.404(d) Pricing (Deviation), FAR 13.106-3(a)(2)(ii) and FAR 13.106-3(a)(2)(iii). Although FAR 8.404(d) Pricing (Deviation) establishes that pricing is fair and reasonable, it does so only in establishing the GSA schedule contracts. Price reasonableness for delivery orders derived from GSA schedules need to be determined fair and reasonable individually. The award was determined fair and reasonable IAW FAR 13.106-3(a)(2)(ii) because NMCSD awarded a contract for the exact consignment supplies under N0025917F0085 on 22 Mar 2017. That contract was determined to be fair and reasonable based on market research, historical comparison and current price lists or catalogs. The award was also found to be fair and reasonable IAW FAR 13.106-3(a)(2)(iii) because pricing can be found up front in Biomet 3I, LLC's current catalog and price list on their GSA schedule (included in file). Pricing on Biomet 3I, LLC's price list is the same as pricing provided for this contract. 6. A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted. Market research was conducted by technical experts in March and April 2019. This research consisted of reviews of similar previous procurements and a market survey, using search engines to review open market contractors and Federal Supply Schedule contractors. Search engines utilized include Google, GSA Advantage and mandatory Government sources of supply for a company who manufactures and supplies implants with an internal or external implant-abutment mating surface compatible with the Biomet 3i system's internal hex (Certain) and external interface restorative components and equipment currently owned and operated at NMCSD dental clinics. Biomet 3i, LLC is the only company who manufactures and supplies implants with required features. 7. Any other facts supporting the justification. This procurement uses a GSA Schedule and will be solicited and awarded in accordance with FAR Subpart 8.4. 8. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made. All future requirements will be handled on a case-by-case basis. Technical and requirements certification I certify that the facts and representations under my cognizance which are included in this LSJ and which form a basis for this justification are complete and accurate. CONTRACTING OFFICER CERTIFICATION I certify that this justification is accurate and complete to the best of my knowledge. Cassi Jo Newman Date Contracting Officer TECHNICAL REQUIREMENTS REPRESENTATIVE CERTIFICATION I certify that this justification is accurate and complete to the best of my knowledge. CAPT Lewis Todd Carpenter Date Implant Board Coordinator
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