V797D-30111-078.pdf

VHAPM Part 808.405-6 Limiting Sources Original Date: 08/30/2017 Revision 01 Eff Date: 04/23/2018

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LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C242-19-AP-3281

1. Contracting Activity: Department of Veterans Affairs, VISN 02, James J. Peters VA Medical Center 130 West Kingsbridge Road, Bronx, New York 10468. Organizational Activities: VA NJHHS, East Orange and Lyons Campuses, 385 Tremont Avenue, East Orange, NJ 07018 and 151 Knollcroft Road, Lyons, NJ 07939, James J. Peters VA Medical Center 130 West Kingsbridge Road, Bronx, NY 10468 and 79 Middleville Road, Northport, NY 11768 through 2237#561-19-4-3086-0079, 2237#632-19-4-3086-0475 and 2237#526-19-4-3086-0585 seeks to purchase Omnicell brand name medicine cabinets and accessories on a noncompetitive acquisition.

2. Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 251 and 40 U.S.C. 501). This proposed action is for approval to sole source a new contract for brand name Omnicell Pharmacy medicine cabinets and upgrades for VA New Jersey Healthcare System, James J. Peters VA Medical Center and VA Northport VAMC. This upgrade will include additional replacement cabinets, Windows 10 software upgrade and hardware to expand the availability and functionality to the existing physiological Omnicell pharmacy dispensing system. This acquisition will result in the award of a firm-fixed price, sole source, FSS order. The anticipated period of performance is September 16, 2019 through March 14, 2020.

Order against: FSS Contract Number: V797D-30111

Name of Proposed Contractor: Omnicell, Inc

Street Address: 1201 Charleston Road

City, State, Zip: Mountain View, CA 94043-1337

3. Description of Supplies or Services:

The estimated value of the proposed action is $.

This request is a follow-on requirement needed for Pharmacy Equipment System as well as an upgrade for VISN facilities. Omnicell, Inc. pharmacy software and medicine cabinets are currently in use at the facilities. The current system by Omnicell includes XT Omnicell cabinets which is an automated dispensing machine for use in the inpatient setting. Primarily controlled

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Page 2 of substances are stored in the machine. The XT Omnicell improves VA’s ability to provide more medication on the unit which decreases the time for ordering to delivery to the patient. It is critical that pain medications be readily available. The Pharmacy system is outdated and no longer supported by Windows 7 operating system. Upgrading the system will allow the Omnicell cabinets to run Windows 10. All Omnicell components will be replaced. This will allow the facilities to maintain the highest level of patient satisfaction with care. The device provides detailed reports on usage and access. Audits are done to ensure that diversion is not occurring.

Each entry is recorded. This machine also ensures that there are medication orders available before the medication is given to the patient. All facilities have over sixty-one (61) Omnicell cabinets currently in use and upgrading of the system can only be accomplished by the manufacturer/models in place for continuity of care. The Omnicell system ensures that the medical centers follow all mandated VA, DEA and Joint Commission statutes.

(4) IDENTIFY THE AUTHORITY AND SUPPORTING RATIONALE (see 8.405-6(a)(1)(i)(A), (B), and

(C) or 8.405-6(b)), AND IF APPLICABLE, A DEMONSTRATION OF THE PROPOSED

CONTRACTOR’S UNIQUE QUALIFICATIONS TO PROVIDE THE REQUIRED SUPPLY OR SERVICE.

Only one source is capable of providing the supplies or services required at the levelof quality required because the supplies or services are unique or highly specialized;

Omnicell is the only source that can complete this optimization and are the sole proprietary owner of the software needed for the upgrade. Omnicell is a leader in medication and supply automation, combining the latest technology with input from pharmacy community to develop solutions that help VA achieve drug accountability goals. Currently, VA has Omnicell medication cabinets in all facilities and this order is to upgrade them. Omnicell consists of a tower (server) which has been in place and upgraded to accommodate new cabinets since 2003. Omnicell brand is covered under an FSS contract.

In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is: Software, Hardware and Firmware.

This is a brand name justification in support of FAR 11.105, Items Peculiar to One manufacturer for VISN 02 facilities to designate Omnicell as the sole source for the procurement based on the following criteria:

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a. The existing cabinets, software, hardware, firmware will be replaced, including network access points, patch panels and all equipment for compatibility.

b. Software licenses will be transferred from existing to new at no additional cost.

c. User interface is intuitive and easy to use.

d. New items that were quoted have a similar software platform reducing the hoursof nursing and providing training, making for an easier learning curve with faster competency.

Based on the following criteria, the facility’s investment is greatly reduced by not using a different manufacturer, as all the equipment communicates through a dedicated and proprietary critical care backbone infrastructure that exists within the facilities. Additionally, a new OEM would require higher investment costs for network cabling and infrastructure to support all new bedside physiologic equipment and software components. Pharmaceutical and Nursing Staff training will be easier and require less of a learning curve if the equipment is purchased from Omnicell, Inc. since it is currently being used by NJHHS, JJP and NP staff.

To ensure compatibility with the existing system, parts and components, this procurement will be solicited as Omnicell product through VA NAC Federal Supply Schedule 65II A, which will provide the best value to Government.

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit andfunction) with existing systems presently installed/performing.

Omnicell, Inc. is the sole manufacturer and exclusive provider of Omnicell products and support services for the Omnicell equipment in the United States. It is compatible with the current medication cabinets in place. There are few other brands of medication dispensing cabinets available, however; VA is standardized to Omnicell brand for medication distribution with the inception of using these types of cabinets since 2003.

(5) DESCRIBE WHY YOU BELIEVE THE ORDER REPRESENTS THE BEST VALUE CONSISTENT WITH

FAR 8.404(d) TO AID THE CONTRACTING OFFICER IN MAKING THIS BEST VALUE

DETERMINATION:

In accordance with FAR 8.404(d) GSA has already determined price of supplies under schedule contracts to be fair and reasonable. I hereby determine that the proposed contract action will represent the best value to the Government. IAW FAR 8.405-4, the CO will request a price reduction and Omnicell offers price discounts and special pricing on most of the items which should result in a net price lower than the FSS price. Additionally, Omnicell is offering free of charge basic labor, warranty and virtual testing per server. Price is a significant factor since

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Page 4 of buying a new system and cabinets would make this purchase cost significantly more, so sole sourcing is most advantageous.

(6) DESCRIBE THE MARKET RESEARCH CONDUCTED AMONG SCHEDULE HOLDERS ANDTHE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED:

Market research was conducted, to include consulting with Omnicell representatives, a senior manager and Vice President of Operations. The market research shows that there are no potential vendors that could provide Omnicell medication cabinets and upgrade. On July 23, 2019, Omnicell provided VA with written confirmation that there are no other distributors of the supplies or support service for Omnicell products. Omnicell does not contract products and or services to 3rd parties, therefore there are no other sources capable of meeting the requirement. Omnicell requires only certified parts to be used that can meet original equipment manufacturer specifications and be fully compatible with the existing system currently used at VA.

Additionally, an intent to sole source was posted on FedBizOpps (FBO) on 07/23/2019, which resulted in zero (0) vendors responding that they are potential distributors of the system. There is no guarantee on the compatibility of non-Omnicell vendors with the existing software in the hospitals. There is an FSS NAC contract established for this product and no other manufacturer or distributor would be able to handle the complexity of the service or installation of the equipment.

(7) ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

(8) A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS THAT LED TO THE RESTRICTED CONSIDERATION BEFORE ANY

SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES IS MADE:

In order to overcome barriers to competition in the future for this requirement, the agency would have to replace the entire physiological Pharmacy Medication dispensing system. The time and cost to replace all equipment and the down-time associated with training technicians and hospital staff would not be cost effective. Therefore, no other source can provide the proprietary components required to meet the Government’s need.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by

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FAR Subpart 8.4. (This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)

08/01/19 DATE Veterans Integrated Service

Network

(10) APPROVALS IN ACCORDANCE WITH THE VHAPM Part 806.3 OFOC SOP:

a. CONTRACTING OFFICER’S CERTIFICATION (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

DATE Network Contracting Office

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K):

I certify the justification meets requirements for other than full and open competition.

DATE

Network Contracting Office

HIGHER LEVEL APPROVAL (Required for orders over $700,000):

c. VHA SAO HCA REVIEW AND APPROVAL (over $700,000 to $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

DATE

VHA Regional Procurement Office-East (RPO-E)

VHAPM Part 808.405-6 Limiting Sources Original Date: 08/30/2017 Revision 01 Eff Date: 04/23/2018

Date: 2019.08.14 08:38:38 -06'00'