Weight-based Automated Inventory Management System
VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >SAT OFOC SOP Revision 08 Page 1 of 9 Original Date: 03/22/11 Revision 08 Date: 04/18/2018 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT) Acquisition Plan Action ID: 36C246-19-AP-2990 Contracting Activity: Department of Veterans Affairs, VISN 6, Salisbury Medical Center, 2237 # 659-19-3-098-0046. Nature and/or Description of the Action Being Processed: The Salisbury VAMC requires a contract for the implementation of a Weight-Based Automated Inventory Management System. This will be a new firm-fixed-price contract Description of Supplies/Services Required to Meet the Agency s Needs: The Salisbury VAMC requires a turn -key automated weight-based inventory management system for the Salisbury, NC facilities. System is needed to assist supply chain management (SCM) staff with the management of expendable supplies in all primary and secondary distribution points. The Salisbury VAMC lacks the appropriate SCM personnel required to operate other types of inventory management systems other than weight-based. Because the weight-based system, once established, requires the least amount of human inventory management it is the correct solution for our needs based on staffing levels and the volume of commodity items passing tough the system. A weight based system shall seamlessly log the inflow and outflow of supplies and disposables to maximize supply readiness, eliminate double ordering and ensu re demand satisfaction. The implementation of such a system will reduce waste and increase the efficiency of the supply chain at all Salisbury facilities. The estimated price of the project is REDACTED. The period of performance is to start 08/21/2019- 08/21/2020 Statutory Authority Permitting Other than Full and Open Competition: (X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1; ( ) (2) Unusual and Compelling Urgency per FAR 6.302-2; ( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3; ( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5; ( ) (6) National Security per FAR 6.302-6; ( ) (7) Public Interest per FAR 6.302-7; FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2). Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Marathon Medical, a Service Disabled Veteran-Owned Small Business, is the only authorized distributor of PAR Exellence inventory management systems. This acquisition is expected to cost approximately REDACTED. Marathon Medical has performed multiple contracts for the Department of Veterans Affairs, including one for this exact requirement in Durhan, NC, and is considered to be a responsible source. The Contracting Officer (CO) estimates that an award can be made at a fair and reasonable price that offers the best value to the government. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A sources sought notice was posted on FBO from 12/10/2018 to 12/21/2018. A second sources sought notice was issued from 05/24/2019 to 05/31/2019. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: This exact project is currently being performed at the Durham VAMC. The CO will compare the offer received for the Salisbury VAMC to the Durham offer. The CO will use the past prices, that have already been deemed fair and reasonable, to negotiate the best pricing for the government. If deemed appropriate, the CO will request other than certified cost or pricing data to perform a price analysis. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: A sources sought notice was posted on FBO from 12/10/2018 to 12/21/2018. Responses were received from: (1) REDACTED: The current contractor at the Durham, NC VAMC under contract # 36C24618P6474; (2) REDACTED: Based on their response, REDACTED has not shown sufficient evidence to show that they are capable of providing a weight-based Automated Inventory Management/POU System; (3) REDACTED: Based on their response, REDACTED has not shown sufficient evidence to show that they are capable of providing a weight-based Automated Inventory Management/POU System and; (4) PAR Excellence (Large): Based on their response, REDACTED has shown sufficient evidence to show that they are capable of providing an Automated Inventory Management/POU System. REDACTED currently provides the supplies and services for this for the Hunter Holmes McGuire VAMC in Richmond, VA under contract number 36C24618P5094. A second sources sought notice was issued from 05/24/2019 to 05/31/2019. Zero responses were received. The list of respondents were cross referenced with GSA eLibrary to see if these services are offered on a GSA FSS contract, they are not. The NASA SEWP market research tool was used and it has been determined that the required inventory management system is not available on a SEWP contract. The top tee sources found on FPDS are Shipcom Wireless, Inc., Omnicell, Inc., and PAR Excellence. Although a contract was awarded directly to the large business (PAR EX) for the Richmond VA in 2018, PAR EX has since sent out a letter stating that all purchases for installation and equipment has to be purchased directly from the distributor Marathon Medical. They will no longer take direct orders from the Veterans Administration. They also state that they do not compete with their distributor. Any Other Facts Supporting the Use of Other than Full and Open Competition: There are no other facts at this time. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Marathon Medical, VetGov, BD, and PAR Excellence. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required: In order to overcome barriers to competition, the VA will continue to issue sources sought notices for future acquisitions in an attempt to locate other weight-based inventory management systems. Awarded contract 36C24619P1579 to MARATHON MEDICAL CORPORATION;3251 LEWISTON AV;AURORA;CO;80011 for $1,697,252.10 on 2019-08-21. 36C24619Q0607 Department of Veterans Affairs Veterans Health Administration Veterans Integrated Service Network 6
8/21/19, 3:35 PM Automated Inventory Management System
The Department of Veteran Affairs, Veterans Health Administration, Network Contracting Office 6, Hampton VA 23667, intends to negotiate a Sole Source Firm-Fixed Price contract for the implementation of a weight-based inventory management system. The Salisbury VAMC requires a turn-key automated weight-based inventory management system for the Salisbury NC facilities. In accordance with 10 U.S.C. 2304(c)(1)(B) as implemented by FAR 6.302-1 Only One Responsible Source. This is not a request for competitive offers and no solicitation is available. Market research has determined that these services are highly specialized are only available from a single source without an unacceptable delay or duplication of cost and no other type of services will satisfy agency requirements. The Government intends to award the contract with an effective date of August 19, 2019 to Marathon Medical 3251 Lewiston Street, Suite 16 Aurora, CO 8011. This is a Sole Source requirement to satisfy the minimum requirements of the Salisbury VAMC. The following work shall be completed on each station. Software license fees Interface development & service fees Par Bin Products Storage options Turn Key Installation Installation Services based on Walktough prep for install Install all hardware or other necessary components to allow the system to function according to OEM standards. This synopsis announcement is being issued for information purposes only and does not constitute a solicitation or request for competitive proposals. If a firm believes it is capable of meeting the Government's requirement, it may identify their interest and capability to the Contracting Officer within tee (3) calendar days of this publication by contacting Keeshia Newman via e-mail at Keeshia.Newman@va.gov. Telephone inquiries will not be accepted. Those interested firms must indicate whether they are large, small, small-disadvantaged, 8(a) or woman owned business and whether they are U.S. or foreign owned. Respondents who submit proprietary data shall clearly mark the data with appropriate markings. The Government will not pay for any information submitted as a result of this synopsis. This synopsis shall not be construed as an obligation on the part of the Government to acquire any products or services. 36C24619Q0607 Department of Veterans Affairs Veterans Health Administration Veterans Integrated Service Network 6
8/6/19, 3:21 PM Weight-based Automated Inventory Management System
Page 1 of 2 SOURCES SOUGHT: The Department of Veterans Affairs, VISN 6 Network Contracting Office (NCO) is conducting Market Research tough this sources sought notice to help determine the availability of qualified businesses, registered under NAICS code 339113, capable of providing a weight-based Automated Inventory Management System for the Salisbury VAMC, and its outlying patient care centers, that lack inventory management staff. All responding contractors shall be able to provide a system that meets, but isn t limited to, the following requirements: The weight-based system must be able to interface with the VA Generic Inventory Package (GIP) utilizing a contractor provided integrator that has been approved for use on the VA network in accordance with VA Technical Reference Model v19.4; The contractor shall ensure the solution is consistent with VA policies and standards, including, but not limited to, VA Handbooks 6102 and 6500; VA Directives 6004, 6513, and 6517; and National Institute of Standards and Technology (NIST) standards, including current Federal Information Processing Standards (FIPS); The system shall be capable of producing automatic inventories without staff intervention; The system shall be capable of automatically determining the use of a single item, an each (EA), without staff input or intervention for any expendable supply; and The system shall be a commercial off-the-shelf combination of software and hardware with demonstrated capabilities in a healthcare medical supply environment to perform the data capture, tracking, and search capabilities. If the contractor can provide the above items, the contractor shall provide a letter from the manufacturer stating they are an authorized distributor/licenser of their products and specify how they would perform at least 51% of the work. Failure to submit an authorized distributor letter shall result in the product(s) potentially offered to be considered grey market and shall not be considered technically acceptable. If the contractor can provide the above product and services, please indicate in your response how the above requirements can be met. In your response please include: A brief narrative of products and services the company can provide; A brief narrative of the types of risks associated with system installation at a VA medical center; An estimated install timeline based on previous Veterans Affairs Medical Center projects of similar scope and size; and The materials list and labor categories that shall be employed to complete this project and the metric used to determine what and how many will be required. The capability statements received from this market research are for planning purposes only and will assist the Government in planning its acquisition strategy. This is strictly market research and the Government will not entertain questions concerning this market research. The Government will not assume any costs incurred by the contractor in the preparation of responses. All responses shall be submitted in writing no later than May 31st, at 0700AM EST to the attention of: Cole J. Culley, VA Medical Center, 27 Averill Avenue, Hampton, VA 23667. E-mail address: cole.culley@va.gov Please title the subject line for all responses as: Sources Sought Automated Inventory Management System: 36C24619Q0607 Locations where deliveries are needed: W.G. Bill Hefner Veteran Affairs Medical Center CBOCs, HCC s, and other outlying patient care centers. 36C24619Q0607 Department of Veterans Affairs Veterans Health Administration Veterans Integrated Service Network 6
5/24/19, 9:32 AM