P03 Sole Source Justification 2.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 1 of 6

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

JOFOC TRACKING NUMBER: FY25 - RPOW Activations – 324 – Pharmacy

JOFOC TRACKING NUMBER: FY25 – RPOW Activations – 325 – Supply Chain

Acquisition Plan Action ID: 36C259-25-AP-0689, Equipment Purchase - Pharmacy

36C24W-25-AP-0027, Equipment Purchase – Supply Chain

1. Contracting Activity: Department of Veterans Affairs, VISN 19, 623 VA Tulsa Medical

Center

PR-IFCAP: 623-25-2-2455-0001, Equipment Purchase - Pharmacy

PR-IFCAP: 623-25-2-4455-0002, Equipment Purchase – Supply Chain

2. Nature and/or Description of the Action Being Processed

This procurement is for the Brand Name purchase of the Omnicell Computerized Storage

Cabinets at the Tulsa VA Medical Center (VAMC) 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.

The procurement is a firm fixed price contract for supplies and support services for the supplies. The IGCE for the procurement is $2,418,251.00 based on existing contracts on the

Federal Supply Schedule contract# 36F79723D0073, effective March 1, 2023. Typical pricing on the contract also includes service support for 1 year after receipt of the equipment.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The Omnicell storage cabinets are smart medical storage units equipped with sensors and technology to monitor inventory, track expiration dates, and streamline medication management. In addition, the computerized cabinets reduce medication errors and missed doses with automated dispensing, and provide real-time inventory tracking to ensure optimal stock levels, allowing staff more time to focus on crucial patient care.

The Period of Performance for this requirement will be from 03/01/2025 through

11/28/2025. Delivery is expected between September through October 2025.

Pharmacy Computerized Cabinet Equipment $1,214,823.85.

Supply Chain Computerized Cabinet Equipment $1,203,427.15.

The total estimated combined value for this contract is $2,418,251.00.

Effective Date: 02/01/2022 Page 2 of 6

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement.

Competition is restricted on this procurement for the reason below:

( X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements

( ) Unusual and Compelling Urgency

( ) Industrial Mobilization, Engineering, Developmental or Research Capability or

Expert Services

( ) International Agreement

( ) Authorized or Required by Statute

( ) National Security

( ) Public Interest

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the

Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Omnicell cabinet component system was developed by Omnicell, which owns proprietary rights to their products and service offerings. Currently Omnicell storage cabinets are being used in the Logistics and Pharmacy departments. If the new Tulsa VAMC were to switch to another brand of computerized supply cabinets, it would greatly increase the complexity of operation, and maintenance of the database and system. Switching would require the VAMC to maintain and integrate two different computerized supply cabinets into the local Pharmacy and Supply Chain Management (SCM) logistics database and system.

The SCM database and system provides services for ten local VAMC services across nineteen different locations. Having two separate databases would cause confusion and inefficiency for VAMC staff. It is estimated that operating costs for SCM and Pharmacy is about 5% of the overall purchase cost.

A different brand of computerized storage cabinets would not only increase operating costs relating to support, servicing, and maintenance but would also greatly increase training costs.

Training for VAMC staff from another vendor on a different storage cabinet brand would require about four technicians, estimated to cost about $2,000 a week per technician, plus classroom costs, training materials, and travel expenses.

Omnicell, provided additional information stating that despite having an NAC/FSS contract, Omnicell's permitted purchase amount is $450,000.00; hence, all purchases over this sum must be competed with TrillaMed, LLC, Omincell's authorized distributor.

Effective Date: 02/01/2022 Page 3 of 6

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

There are two major manufactures of computerized supply storage cabinets; Omnicell and

BD Pyxis. Both companies are large businesses who partner with an authorized SDVOSB distributor. Omnicell's authorized distributor is TrillaMed LLC and BD Pyxis's authorized distributor is Four Points Technology. Competition for this requirement is limited to the

Brand Name vendors, Omnicell, Inc. and TrillaMed, LLC. As there are no two Small

Businesses capable of providing these products, this acquisition will be competed as

Restricted.

Omnicell was originally contacted by the Tulsa VA Medical Center (VAMC) back in March of 2024, and provided their price estimate on May 30, 2024. On June 26, 2024, Omnicell provided an Authorized Vendor letter to contracting stating that TrillaMed, LLC is the only authorized business to provide their products. All other services will be Sole Sourced to

Omnicell, Inc.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable:

In consideration of all the information obtained, both Omnicell, Inc. and TrillaMed, LLC, proposals would be based on Federal Supply Schedule pricing, which has been determined to be fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the

Reasons Market Research Was Not Conducted:

FAR Part 10 was followed when conducting market research. Market research was conducted between January, July, and November 2024. Utilizing NAICS Code 339112 and the keyword "Omnicell," market research was carried out with GSA Advantage, FPDS, SBA

DSBS, SBA Vet Cert, and VetBiz.

GSA Advantage search using the keyword resulted in one vendor Omnicell. Their Federal

Supply Schedule is verified and active (36F79723D0073). Any procurement from Omnicell’s

FSS cannot exceed the allowable maximum purchase amount of $450,000.00. On September

09, 2024, Omnicell, Inc provided additional information via email stating that any purchase over the allowable $450,000.00, should be competed with TrillaMed, LLC which is an

(SDVOSB).

A search in FPDS using the keyword shows multiple IDIQ’s and Contracts were awarded to

Omnicell, Inc. Further research of FPDS shows that from January of 2024 to current date, all the awards to Omnicell were awarded under the maximum allowable $450,000.00.

A search in SBA DSBS was conducted and returned one Small Business (TrillaMed).

A search in SBA Vet Cert using the NAICS resulted in 659 SDVOSB/VOSB’s.

Effective Date: 02/01/2022 Page 4 of 6

An additional search was conducted in VetBiz using the NAICS and keyword returned zero results.

Information provided by Omnicell via email stated that Omnicell products are U.S. made with the exception of the third-party software (Windows 10, etc.).

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

Full and Open Competition is not feasible since Omnicell, Inc. is the sole propriator and restricts who can sell their products. As the result, competition will be restricted between

Omnicell, Inc. and their authorized distributor, TrillaMed, LLC.

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

Omnicell, Inc.

Bradley Galbreath

817-239-0308

TrillaMed, LLC

Tejas Smart

248-203-9734

11. 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:

Acquisitions that require brand name specific Omnicell products can be met by using their

FSS contract 36F79723D0073, up to the maximum allowable purchase amount of

$450,000.00. Purchases over this sum must be competed with TrillaMed, LLC, Omnicell's only authorized distributor.

12. Requirements Certification: I certify that the requirement outlined in this justification is a

Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Marvin L. Albers

Deputy Chief of Engineering

Eastern Oklahoma VAHCS

Effective Date: 02/01/2022 Page 5 of 6

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer or Designee’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Robert M. Clark Jr

Contracting Officer

Activations Branch I

b. One Level Above the Contracting Officer (Required over SAT but not exceeding

$750K): I certify the justification meets requirements for other than full and open competition.

Jeffrey S. Crysler

Branch Chief

Activations Branch I

c. Division Chief Activations (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Antonio Jackson

Division Chief

Activations https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

Effective Date: 02/01/2022 Page 6 of 6

d. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR

13.500(c)) for other than full and open competition.

Curtis M. Jordan

Executive Director, Regional Procurement Office West

Head of Contracting Activity (HCA)