JA20-0004_FDB_JA_(signed).pdf

FOR OFFICIAL USE ONLY - Source Selection Information – See FAR 2.101 and 3.104

DHA PGI 206.3, Attachment 1 (06-21-2018)

Justification and Approval for Other than Full and Open Competition

J&A Tracking No. 20-0004

1. Identification of the agency and contracting activity: The Defense Health Agency, Enterprise

Medical Support – Contracting Division (EMS-CD), plans to award a contract based on the supporting rationale provided herein.

2. Nature and/or Description of Action being approved: DHA is requesting approval of this

Justification and Approval (J&A) for a sole source contract to First Databank Inc, 701 Gateway Blvd., Suite 600, South San Francisco, CA 94080, for the renewal of the existing FDB software. The requirement for DHA-wide FDB Software Support & Maintenance was awarded as a Sole Source on 30

September 2016 under award HT0015-16-C-0014 to support DHA; the Sole Source action was justified under JA17-0012. The period of performance of HT0015-16-C-0014 ended on 30 September 2019, and

DHA has a continuing need for these services. Per confirmation from FDB on 30 September 2019, DHA has a grace period of 21 days to complete the follow-on contract.

3. Description of Supplies/Services: DHA requires the procurement of software renewal of current of

FDB licenses as well as continued maintenance in support of the Composite Health Care System (CHCS), Theater Medical Information Program Composite Health Care System Cache', and Pharmacy OPS. The

FDB licenses are inclusive of all DOD Tri-service Military Treatment Facilities, Development Laboratory

(Dev Labs), and Hospital Ships. Annual subscription renewal of Software Upgrades / Technical

Assistance (SU/TA) are required for the following:

National Drug Data File, Enhanced Package;

FRAMEWORK, COM Edition;

Enhanced Data Bundle software, database, and middle-ware licenses for Program specific modules to support the Composite Health Care System (CHCS) and Armed Forces Health

Longitudinal Technology Application CHCS Critical Fixes (referred to as ACCFS);

Pharmacy Ops and Theatre Medical Information Program – Joint (TMIP-J) under the cognizance of the Defense Health Clinical Systems (DHCS).

SU/TA consists of database updates and upgrades as well as helpdesk support as required. FDB’s NDDF provides prices, descriptions, and collateral clinical information on drugs plus commonly used over-the-counter drugs, herbal remedies, nutraceuticals and dietary supplements and is approved by the U.S.

Food and Drug Administration (FDA). The following software need to be renewed:

FDB MEDKNOWLEDGE, Enhanced Package

FDB MEDKNOWLEDGE FRAMEWORKD1, COM/JAVA Edition, US Version

FDB MEDKNOWLEDGE, Enhanced Package

FOB MEDKNOWLEDGE, Descriptive and Pricing Information

FOB MEDKNOWLEDGE, Descriptive and Pricing Information

The resulting award will have a base period and four option periods, and the total estimated value of this action is $4,764,440.00. When it’s available, FY20 O&M funds will be utilized to fund the base period.

4. Statutory and Regulatory Authority Permitting Other Than Full and Open Competition (see

FAR 6.302), or the Specification of the Statutory and Regulatory Provision Providing Exception to

8(a) Program Competitive Requirements (see FAR 19.805-1): 10 U.S.C. 2304(c)(1) and in accordance with FAR 6.302-1(a)(2)(iii) – “Only One Responsible Source and No Other Supplies or Services Will

Satisfy Agency Requirements.” Due to First Databank (FDB) Inc being the only provider of FDB software and maintenance, the renewal of FDB software cannot be procured from a source other than

First Databank (FDB) Inc. Per research identified in sections 5 and 8, the FDB software renewal is deemed to be available only from the original source because attempt to award to any other source would result in “substantial duplication of cost to the Government that is not expected to be recovered through competition and unacceptable delays in fulfilling the agency's requirements.”

5. Rationale Justifying Use of the Statutory Authority Cited:

The purpose of this procurement is to renew current FDB software, and the manufacturer, FDB, is the only provider of the required FDB software, maintenance, and renewal. FDB does not have resellers for the required products. CHCS is FDB centric, and transitioning to another solution would not be realistic.

The code and algorithms are specific to the architecture of the FDB relational files/modules. Ultimately, the software supporting these modules would have to be re-coded. If another product does not support all modules currently supported by FDB it would result in a loss of current functionality to the beneficiary population and negative impact to patient care. Any transition to a new software vendor/product would require a CHCS development effort to support transition, since vendor relational files and modules are proprietary.

Implementing entirely new software would require testing the new code to determine compatibility with current CHCS configuration to include hardware and software. Transition to a new product would also require training for the sustainment vendor and potentially the user to ensure the product can be effectively sustained and used in the field. In order to support existing modules, CHCS software algorithms access the data in approximately 80 relational files (~400 Mb total) provided monthly by FDB.

The FDB Update process reconciles, translates, and replaces these files at each site with the new data monthly. If FDB were replaced by another product, then all CHCS software algorithms associated with

FBD today would need to be rewritten under the new product requirements. If the CHCS algorithms changed, and new product interface were introduced, then all CHCS and Armed Forces Health

Longitudinal Technology Application (AHLTA) interaction and output (labels, warnings, clinical alerts, screenings etc.) would require extensive development and integration testing to ensure production requirements for the Pharmacy community.

The schedule to implement entirely new software could take up two years and would be more costly than a renewal of FDB software. The effort would require configuration, testing, implementation/deployment, and training to support CHCS, ACCFS, and TMIP-J. The estimated cost to transition to new software is approximately $9-$12 million. This amount is based on a proposal for an upcoming similar type software upgrade. That upgrade is estimated to take two years and cost approximately $10M+. The similar software is a CHCS product that is going through an upgrade and will require similar-type tasks such as configuration, testing, implementation/deployment, and training. It is important to note the software upgrade proposal is for approximately 40 sites versus FDB which is approximately 100 sites.

Failure to renew subscription and SU/TA will render medical treatment facilities unable to utilize FDB database’s to accurately diagnose and treat military and dependent patients. This translates into non-availability of sufficient health care tools to provide satisfactory medical treatment for the warfighter's and their families.

6. Efforts to Obtain Competition: The requested contract will be awarded on a sole source basis to

FDB. At this time, no effort will be made to solicit from multiple offerors due to the fact that the required

FDB Software renewal cannot be provided by any other vendor.

7. Determination that Anticipated Cost to the Government will be Fair and Reasonable: The

Contracting Officer will determine that the anticipated cost to the Government will be fair and reasonable through a comparison and analysis of proposed prices with historical prices paid, the Contractor’s list prices, and the Independent Government Cost Estimate, and by analysis of other than certified cost and pricing data provided from First Databank (FDB) Inc.

8. Market Research:

According to Customer’s market research, although the functions of the existing FDB infrastructure may theoretically be replaced by other brands such as Oracle, Microsoft, etc., per findings discussed in Section

5, the cost of such enterprise-wide software replacement is several times that of FDB renewal. Also, the effort will take several years, leaving critical support functions at risk. In accordance with FAR Part 10, market research was conducted on 01 October 2019 to assess the availability of possible FDB resellers for

FDB Software and Software renewal. This product cannot be found on NASA SEWP or GSA Advantage.

Market research was also conducted on Federal Business Opportunities on 01 October 2019 to verify if authorized resellers are available in the commercial market place, but no certified resellers can be found.

Per letter notification from FDB, FDB is the sole owner, publisher, and supplier of the required FDB

Software renewal; the required software and/or maintenance of the required software are not available from any other source.

9. Other Facts:

a. First Databank Inc is the sole provider of the required FDB Software and Software renewal.

b. Historical data. N/A.

c. Unusual and compelling urgency. N/A.

10. Interested Sources: To date, there are no other known sources that can provide FDB software renewal. Market research will be conducted annually to verify availability of potential certified FDB resellers in the market place.

11. Actions to overcome barriers:

DHA will continue to monitor the availability of certified resellers for FDB Software and Software renewal annually; this requirement may be competed if and when FDB authorizes resellers to distribute the software and software maintenance to end users.

COORDINATION:

12. Technical/Functional Representative:

I certify that the information provided in this justification, is accurate and complete to the best of my knowledge and belief.

09 OCT 2019

Jack V. Larsen Date

COR

13. Requirements Certification:

I certify that the information provided in this justification, is accurate and complete to the best of my

LARSEN.JACK.VI

Digitally signed by LARSEN.JACK.VIGGO.1040289

GGO.1040289654 654

Date: 2019.10.09 10:12:19 -05'00' knowledge and belief.

09 OCT 2019

Jack V. Larsen Date

COR

14. Fair and Reasonable Cost Determination:

I have determined that the anticipated cost to the Government for this contract action is fair and reasonable.

Marc A. Cypert Date

Contracting Officer, EMS-CD

15. Legal Review:

I have reviewed this justification and have found it to be legally sufficient.

Kevin E. Bolin Date

Office of General Counsel

16. Contracting Officer:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Marc A. Cypert Date

Contracting Officer, EMS-CD

APPROVAL:

17. Competition Advocate:

Based on the foregoing justification, I hereby approve the procurement of FDB Software Renewal on an other than full and open competition basis pursuant to the authority of FAR 6.302-1(a)(2)(iii), subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for acquisition.

Jake L. Lewis Date

Competition Advocate (J-4)

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Digitally signed by

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Date: 2019.10.09 12:13:13

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LARSEN.JACK.VI

Digitally signed by LARSEN.JACK.VIGGO.1040289

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Date: 2019.10.09 10:12:34 -05'00'

CYPERT.MARC Digitally signed by

O.A.1292315739 Date: 2019.10.09 10:25:56 -05'00'

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CYPERT.MARC Digitally signed by

O.A.1292315739 Date: 2019.10.09 10:26:11 -05'00'

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