-20456.docx

Contract Opportunity Award Notice

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* = Required Field Contract Opportunity Award Notice Automated Weight-based Inventory Management System 23667 36C24620Q0438 N 339113 Department of Veterans Affairs Network Contracting Office 6 100 Emancipation Drive Hampton VA 23667 Cole.Culley@va.gov 36C24620P0956 $1,439,583.91 04-21-2020

MARATHON MEDICAL CORPORATION

122658151

3251 LEWISTON AV

AURORA

CO

80011 https://www.va.gov/ https://www.va.gov/ cole.culley@va.gov https://www.va.gov/

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C246-20-AP-1402

1. Contracting Activity: Department of Veterans Affairs, VISN 6, Hampton VA Medical Center, 2237 # 590-20-2-985-0036.

2. Nature and/or Description of the Action Being Approved: The Hampton VAMC requires a contract for the implementation of a Weight-Based Automated Inventory Management System. This will be a new firm-fixed-price contract.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for weight based inventory management system in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Hampton VAMC requires a turn-key automated weight-based inventory management system to assist supply chain management (SCM) staff with the management of expendable supplies in all primary and secondary distribution points. The Hampton VAMC lack 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 interaction, it is the most appropriate solution for the VA based on staffing levels and the volume commodity items passing through the system. A weight-based system seamlessly logs the inflow and outflow of supplies and disposables to reduce double ordering supplies. It also ensures that par levels are maintained. The implementation of such a system will reduce waste at the Hampton and Fayetteville facilities.

The estimated price of these projects is REDACTED. The period of performance is estimated to be six months after receipt of order (ARO).

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or ( ) 819.7008 Sole source awards to a verified veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/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 Excellence inventory management systems. PAR Excellence is the only manufacturer of an automated weight-based inventory management system.

Pursuant to VAAR 819.7007, Sole source awards to a verified service-disabled Veteran-owned small business:

A contracting officer may award a contract to a verified SDVOSB concern using procedures other than competitive procedures provided:

The anticipated award price of the contract (including options) will not exceed $5 million;

The justification prepared pursuant to FAR 6.302-5(c)(2)(ii) is posted in accordance with FAR subpart 5.301(d) ;

The SDVOSB concern has been determined to be a responsible source with respect to performance; and

In the estimation of the contracting officer, a contract award can be made at a fair and reasonable price that offers best value to the Government.

Marathon Medical has performed multiple contracts for the Department of Veterans Affairs, including one for this exact requirement in Durham, Richmond, and Salisbury and is considered to be a responsible source with respect to performance and meets eligibility requirements in 819.7003. 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 based on data from past acquisitions.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under 5.202 applies: A sources sought notice (36C24619Q0607) was issued from 05/24/2019 to 05/31/2019. The notice was used to determine the availability of qualified businesses, registered under NAICS code 339113, capable of providing a weight-based Automated Inventory Management System. Additionally, two intent to sole sources for contract numbers 36C24619P1651 and 36C24619P1579 were posted on 08/19/2019 and 08/06/2019 respectively

7. 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 and Salisbury VAMCs. The CO will use the historical pricing, 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.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: VIP was searched utilizing NAICS code 339113 and keyword VHAPM Part 80

6.3 Other Than Full and Open Competition (OFOC) SOP

Attachment 2: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 08 Original Date:

03/22/11 Revision 08 Date: 04/18/2018 Page of “inventory management.” 74 vendors were found; 67 Service Disabled Veteran-Owned Small Businesses (SDVOSBs) and 7 Veteran-Owned Small Businesses (VOSBs).

Market research sources include VIP, GSA eBuy, FPDS, FBO, NASA SEWP, sources sought notice, Google searches, past contracts, and conversations with industry professionals.

A sources sought notice was posted on FBO from 05/24/2019 to 05/31/2019. Zero responses were received. GSA eLibrary was checked 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. PAR Excellence is the only manufacturer of an automated weight-based inventory management system.

The Durham VAMC and Salisbury VAMC both have a contract with Marathon Medical, a SDVOSB, for this automated inventory management system. When the intent to sole source was posted for both of these acquisitions, on 08/19/2019 and 08/06/2019 respectively, zero inquiries were received.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None, pursuant to the authority under 38 USC 8127(c).

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: N/A

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 survey the market for future acquisitions in an attempt to locate other weight-based automated inventory management systems.