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Notice of Intent to Sole Source - Reference Laboratory Testing Services   2

ID: 25_HRCO_34 • Type: Special Notice

Description

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.

Background
The Health Readiness Contracting Office (HRCO) at Joint Base San Antonio, Fort Sam Houston, TX is seeking to increase the ceiling value of the current IDIQ contract W81K0421D0001 by $90 million on a sole source basis to Laboratory Corporation of America (LabCorp).

This action is justified under the exception for procurement from only one responsible source when no other supplies or services will satisfy agency requirements. The contractor's services are essential for supporting the patient care mission across various branches of the U.S. military and the Defense Health Agency (DHA).

Work Details
The contractor shall provide comprehensive clinical reference laboratory testing services necessary for patient care across U.S. Army, U.S. Air Force, U.S. Navy, U.S. Coast Guard, and DHA Medical Treatment Facilities (MTFs). The services include:
- Performing approximately 5,583 unique laboratory tests and panels that cover multiple disciplines such as chemistry, hematology, coagulation, urinalysis, transfusion medicine, microbiology, molecular testing, histology, cytology, and genetic testing.
- Ensuring compliance with Army Regulation 40-3 regarding Medical Laboratory Management.
- Maintaining approved interfaces with the Department of Defense Electronic Health Records (EHR) system (MHS Genesis) and obtaining necessary Information Assurance approvals.
- Providing additional testing related to COVID-19 and other unforeseen operations such as Operation Allies Refugees and Operation Allies Welcome.
- Addressing unanticipated expenses that necessitate an increase in the contract ceiling.

Period of Performance
The current contract period of performance ends on December 31, 2025.

Place of Performance
Services will be performed at the contractor's premises in Burlington, NC.

Overview

Response Deadline
None
Posted
March 5, 2025, 3:17 p.m. EST
Set Aside
None
NAICS
None
PSC
None
Place of Performance
JBSA Ft Sam Houston, TX 78234 United States
Source
SAM

Est. Level of Competition
Sole Source
Est. Value Range
$90,000,000 (value based on agency estimated range)
Vehicle Type
Indefinite Delivery Contract
On 3/5/25 U.S. Army Health Contracting Activity issued Special Notice 25_HRCO_34 for Notice of Intent to Sole Source - Reference Laboratory Testing Services.
Primary Contact
Name
David D. Robledo   Profile
Phone
(210) 221-5490
Fax
(210) 221-5402

Secondary Contact

Name
Kirk Heyen   Profile
Phone
(830) 931-7686
Fax
None

Additional Contacts in Documents

Title Name Email Phone
Contracting Officer David Robledo Profile david.robledo17.civ@health.mil None

Documents

Posted documents for Special Notice 25_HRCO_34

Question & Answer

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Additional Details

Source Agency Hierarchy
DEPT OF DEFENSE > DEPT OF THE ARMY > MEDCOM > W40M USA HLTH CONTRACTING ACT
FPDS Organization Code
2100-W81K04
Source Organization Code
100221514
Last Updated
March 7, 2025
Last Updated By
kirk.e.heyen.civ@health.mil
Archive Date
March 7, 2025