ICU Medical Sales, Inc. (FA442724C0002)

B-422151,B-422151.2,B-422151.3 Jan 04, 2024 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights ICU Medical, Inc., of San Clemente, California, protests the award of a contract issued on a sole-source basis to CareFusion Solutions, LLC, of San Diego, California, under request for quotations (RFQ) No. FA442723-Q-0076, issued by the Department of the Air Force for infusion pump software maintenance services. ICU argues that the Air Force unreasonably issued the contract on a sole-source basis because it erroneously concluded that only CareFusion can provide the requisite services and failed to determine that the awarded contract price was fair and reasonable. We deny the protest. View Decision DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of: ICU Medical, Inc. File: B-422151; B-422151.2; B-422151.3 Date: January 4, 2024 Merle M. DeLancey, Esq., and Michael J. Slattery, Esq., Blank Rome LLP, for the protester. William A. Shook, Esq., The Law Offices of William A. Shook PLLC, for CareFusion Solutions, LLC, the intervenor. Erika Whelan Retta, Esq., Colonel Patricia S. Wiegman-Lenz, Major Ryan P. Payne, Major Craig M. Brunson, and Major Zachary T. Thurber, Department of the Air Force, for the agency. Todd C. Culliton, Esq., and Tania Calhoun, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST 1. Protest that the agency unreasonably described the services to be procured as part of a simplified acquisition conducted on a sole-source basis is denied where the record does not show that the agency inaccurately described the services. 2. Protest that the agency improperly made the price reasonableness determination is denied where the record shows that the agency reasonably compared the quoted price against the independent government estimate and the historical price paid for the service. DECISION ICU Medical, Inc., of San Clemente, California, protests the award of a contract issued on a sole-source basis to CareFusion Solutions, LLC, of San Diego, California, under request for quotations (RFQ) No. FA442723-Q-0076, issued by the Department of the Air Force for infusion pump software maintenance services. ICU argues that the Air Force unreasonably issued the contract on a sole-source basis because it erroneously concluded that only CareFusion can provide the requisite services and failed to determine that the awarded contract price was fair and reasonable. We deny the protest. BACKGROUND On May 24, 2023, the Air Force posted a sources sought notice to SAM.gov, soliciting interest from vendors in providing software maintenance services for the agency’s inventory of CareFusion Infusion Pump Systems (i.e., the Alaris pump system) in use at the David Grant Medical Center (DGMC), Travis Air Force Base (AFB), California.[1] Contracting Officer’s Statement (COS) at 3; Agency Report (AR), Tab 8, Justification and Approval (J&A) at 2-3. On June 13, the agency disseminated a request for information to industry vendors. COS at 3. Based on this market research, the agency determined that only CareFusion was authorized to provide software maintenance services for the Alaris pump systems. Id. The agency estimated the contract price to be $254,150. AR, Tab 4, Market Research and Acquisition Report at 1. On August 23, the Air Force finalized the RFQ, and sent it directly to CareFusion. COS at 3; AR, Tab 5, RFQ at 1.[2] The RFQ contemplates the issuance of a fixed-price purchase order to be performed over a 1-year base period and four 1-year option periods, under which the vendor will provide full-service software maintenance services to the agency’s inventory of Alaris pump systems in use at Travis AFB, California. RFQ at 1, 8-9. The RFQ advises that the procurement was conducted under the commercial items and simplified acquisition procedures (i.e., Federal Acquisition Regulation (FAR) parts 12 and 13). Id. at 1. On September 12, the Air Force provided notice of its intent to issue the purchase order on a sole-source basis (i.e., the sole-source notice (SSN)) in SAM.gov. The SSN communicated that the agency intended to procure software maintenance services for the Alaris pump systems from CareFusion. AR, Tab 6, SSN at 3. The SSN explained that CareFusion is the only authorized software maintenance provider for these pump systems. Id. On September 22, ICU sent a letter to the Air Force, requesting that the agency issue a solicitation for contractors to provide entirely new pump systems. Protest, exh. B, Letter from ICU to Air Force at 1. ICU explained that CareFusion will not be able to provide software maintenance without replacing the existing pump systems. Id.