Notice of Intent to Sole Source - Reference Laboratory Testing Services

The Health Readiness Contracting Office (HRCO), Joint Base San Antonio, Fort Sam Houston, TX intends to increase the contract,

W81K0421D0001, ceiling value of the current IDIQ award by $90M on a sole source basis to the incumbent contractor Laboratory Corporation of America at 231 Maple Ave, Burlington, NC 27215-5848 utilizing the authority of FAR 6.302-1(a)(2)(iii)(B), Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements under the authority of 10 U.S.C. 3204 (c)(1). The Contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform clinical reference laboratory testing services. Prior to initiation of a new contract for clinical reference laboratory testing support, the contractor's reference laboratory must have an approved Business to Business (828) Agreement from the Defense Health Agency (DHA) 828 Program Management Office (PMO) to connect to the Government via the Military Health System (MHS) 828 Gateway. Additionally, the reference laboratory must have approved interfaces to the DoD Electronic Health Records (EHR) (e.g., MHS Genesis), in addition to obtaining the requisite Information Assurance (IA) approvals or Authority to Operate (ATO). Clinical reference laboratory services are complex and heavily regulated medical services that directly impact effective medical operations and positive patient outcomes. The contractor has approximately 5,500 different laboratory tests identified for all DOD medical facilities. All tests are done at the contractor’s premises. This specialized service ensures continuity of care across the DOD. Additional testing required for the COVID 19 pandemic, unforeseen special operations (e.g., Operation Allies Refugees (OAR), Operation Allies Welcome (OAW)), and perfluoroalkyl and polyfluoroalkyl substances (commonly known as PFAS) testing, and the proliferation genetic testing were unanticipated expenses on the current IDIQ contract resulting in the need to increase the IDIQ ceiling. Only one vendor, LabCorp, has the approved software to connect with the government’s MHS Genesis medical system. Any other vendor would not only be required to go through the ATO approval process which can take 6 months to a year for approval, but the use of multiple reference laboratories could inadvertently contribute to misdiagnosis, inappropriate treatment, and a myriad of other negative consequences affecting patient care. Awarding to any other source other than LabCorp would cause unacceptable delays and increased costs that would negatively impact the mission of the Military Health System and patient care.

The Government intends to procure from only one source under the authority of FAR 6.302-1(a)(2)(iii)(B), Only one responsible source and no other supplies or services will satisfy agency requirements. The provision of highly specialized services when it is likely that award to any other source would result in - (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition; or (B) Unacceptable delays in fulfilling the agency's requirements. All responsible sources may submit a capability statement, proposal, or quotation, which shall be considered by the agency. Any concerns with this intent to Sole Source may be submitted for consideration by the Government to Contracting Officer, David Robledo, at david.robledo17.civ@health.mil with the Notice ID number referenced in the subject line.