-17692.docx

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >SAT

FedBizOpps Award Notice

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See Attachment

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(POC Information Automatically Filled from User Profile Unless Entered)

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* = Required Field FedBizOpps Award Notice Rev. March 2010 Weight-based Automated Inventory Management System 23667 36C24619Q0607 N 339113 Department of Veterans Affairs Network Contracting Office 6 100 Emancipation Drive Hampton VA 23667 Cole J. Culley 36C24619P1579 $1,697,252.10 08-21-2019

MARATHON MEDICAL CORPORATION

122658151

3251 LEWISTON AV

AURORA

CO

80011 VA.gov VA.gov cole.culley@va.gov cole.culley@va.gov

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

1. Contracting Activity: Department of Veterans Affairs, VISN 6, Salisbury Medical Center, 2237 # 659-19-3-098-0046.

2. 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 through 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

3. Statutory Authority Permitting Other than Full and Open Competition:

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).

4. 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.

5. 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.

6. 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.

7. 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 three 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.

8. Any Other Facts Supporting the Use of Other than Full and Open Competition: There are no other facts at this time.

9. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Marathon Medical, VetGov, BD, and PAR Excellence.

10. 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.

OFOC SOP Revision 08 Page 4 of 4 Original Date: 03/22/11 Revision 08 Date: 04/18/2018