36C24819D0008-001.pdf

OFOC SOP Revision 08 Page 1 of 4 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C248-18-AP-1725

1. Contracting Activity: Department of Veterans Affairs, VISN 08, C.W. Bill Young Medical Center.

2237: 516-19-1-121-0001 (Bay Pines VAMC), 516-19-1-324-0001 (Lee County VAHC)

2. Nature and/or Description of the Action Being Processed: This procurement is for commercial software maintenance and support services in an amount greater than the simplified acquisition threshold but not exceeding $7 million 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. This is a new request to obtain a quote from CareFusion Solutions, LLC for software maintenance and support services identified in the tables below. These systems track and manage medication usage and are owned by the Department of Veterans Affairs, purchased under delivery order HHSN316201500034W VA248- 17-F-3233 for the C.W. Bill Young VAMC and the Lee County Healthcare Center. The equipment identified in the tables below are generally described as the Pyxis Automated Medication Dispensing System(s). These software maintenance and support services are to be provided on a fixed price basis to the Department of Veterans Affairs.

C.W. Bill Young VAMC CareFusion

Solutions, LLC Product ID Product Name

Number of Assets Supported

323 MEDSTATION,ES,MAIN,6DR 50

324 MEDSTATION,ES,AUX,7-DRAWER 35

327 PYXIS ANESTHESIA SYSTEM ES 14

343 MEDSTATION,ES,AUX,TOWER,SC 20

345 MED,RM,SLIMLINE,12FT,LT 46

111-113 CIISAFE, DBL AUX, CLEAR DOORS 2

111-191 CIISAFE,V7.X,DBL INTG MAIN,BIO 1

134562-01 CCE Enterprise SW Site license 1 134806-01 Enterprise User/Form Mgmt Lic 1 136449-01 ES VM Large Server w/SQL 1

136517-01 DELL 630 XL RACK ESXI V 5.5 HE 1

158-17-01 MEDSTATION ES IM1 DBL COL 7 DO 1

Total Number of Serviced Assets: 173

OFOC SOP Revision 08 Page 2 of 4

Revision 08 Date: 04/18/2018

Lee County Healthcare Center CareFusion

Solutions, LLC Product ID Product Name

Number of Assets Supported

323 MEDSTATION,ES,MAIN,6DR 14

327 PYXIS ANESTHESIA SYSTEM ES 7

343 MEDSTATION,ES,AUX,TOWER,SC 3

345 MED,RM,FLATOFFSET,12FT,LT 13

134314-01 ES FACILITY LICENSE 1

134805-01 Enterprise User/Form Mgmt Lic 1

Total Number of Serviced Assets: 39

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The contractor shall provide all necessary labor, management, skills and materials to maintain the proprietary software and hardware associated with the Pyxis medication dispensing systems identified above. By utilizing the automated medication storage and distribution devices, the facilities increase security of high-alert medications, reduce medication errors and frees the pharmacists, doctors and nurses from labor-intensive distributive functions. The barcode scanning technology provides the ability to require clinicians to scan medications upon removal to help ensure they have retrieved the right medication for the right patient and alert them to incorrect dosage or potential errors.

Contract Periods Period of Performance Estimated Price Basic 10/1/2018 through 09/30/2019

Option 1 10/1/2019 through 09/30/2020 Option 2 10/1/2020 through 09/30/2021 Option 3 10/1/2021 through 09/30/2022 Option 4 10/1/2022 through 09/30/2023

Total Estimated Value:

4. Statutory Authority Permitting Other than Full and Open Competition: The statutory authority permitting Other Than Full and Open Competition is 41 U.S.C. 3304(a)(1) where Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1.

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The Pyxis automated medication dispensing systems are located throughout the Medical Centers, to include Inpatient Wards, Inpatient Pharmacy, Outpatient Pharmacy and the Emergency Rooms. CareFusion Solutions, LLC is uniquely qualified as they are the only manufacturer and sole provider of maintenance services for this highly specialized equipment and software. These networked systems are used to store and monitor distribution all types of medications, significantly reducing loss of medication and increasing prescribing accuracy and ultimately improving care at these facilities. CareFusion Solutions, LLC does not have subcontractors trained or certified to perform repairs to the Pyxis dispensing equipment nor its software. CareFusion Solutions, LLC is the only source that can deploy virtual machine.

A sole-source letter was provided to the Contracting Officer on August 13, 2018. This letter stated, “CareFusion Solutions, LLC, a wholly owned subsidiary of Becton Dickinson and Company (BD), is the exclusive manufacturer and provider of Pyxis® products and services and the sole company capable of performing installation and maintenance.” This letter affirmed the findings of the market

OFOC SOP Revision 08 Page 3 of 4

Revision 08 Date: 04/18/2018 research that was conducted which identified CareFusion Solutions, LLC as the only provider for these services.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A notice of intent to solicit from a single source was posted under special notice 36C24818Q9673 on August 15, 2018. Any interested parties were to provide information to their capability of providing the maintenance and software support of the Pyxis systems by August 29, 2018. Only one response was received by the Government from CareFusion Solutions, LLC.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated cost will be considered fair and reasonable since there are a number of sources for comparative price analysis which include the previous contracts for similar services, V797P-4012B VA248-15-F-0405 and V797P-4012B VA248-16-F-1699. Additionally, there is a published price list for similar services within contract 36F79718D0454, a Federal Supply Schedule contract. Pricing for these services is expected to be in alignment with these contracts whose pricing have been already found fair and reasonable.

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

Market Research Was Not Conducted: Market research was conducted pursuant to FAR Part 10, utilizing NAICS code 811219 and the PSC of J065 via Federal Business Opportunities (FBO), SBA’s Dynamic Small Business website, SAM, NAC tools, GSA Advantage, and VETBIZ. Priority sources within the VA NAC Med/Surge catalog were also consulted to locate sellers of Pyxis systems maintenance services and it has been determined that CareFusion Solutions, LLC is the only company capable of providing these services. As identified previously, CareFusion Solutions, LLC is the sole manufacturer of these highly specialized automated medication dispensing systems.

CareFusion Solutions, LLC is the only source with service technicians that have access to the proprietary diagnostic software and other tools such as implementing virtual machines which are used in maintaining and servicing these assets. As noted above, an intent to solicit from CareFusion Solutions, LLC was posted to FBO on August 15, 2018 in an effort to affirm these market research findings. Acquisition history also corroborates the findings found within the Limited Source Justification associated with contract V797P-4012B VA248-16-F-1699. Market research has demonstrated that the only source for providing these services for this highly specialized, proprietary equipment is the manufacturer, CareFusion Solutions, LLC.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: On September 26, 2017 the Department of Veterans Affairs initiated a purchase of the highly specialized Pyxis equipment under delivery order HHSN316201500034W VA248-17-F-3233 in the amount of

. Significant duplication of costs would occur if the Government chose to compete a new requirement to include these maintenance services. CareFusion Solutions, LLC has proprietary rights on all software patches, upgrades, parts, and services of their equipment.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: The only source that provided interest in this acquisition was CareFusion Solutions, LLC on August 15, 2018.

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: In the future, the Bay Pines VA Healthcare System will consider, compare, and evaluate any alternative contractors with the capability and training from the OEM to provide maintenance services and software upgrades.

OFOC SOP Revision 08 Page 4 of 4

Revision 08 Date: 04/18/2018

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.

Kokkheang Lim Date Pharmacy Supervisor, Pharmacy Service C.W. Bill Young VAMC

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.

Matthew Lucas Date Contracting Officer NCO8 Bay Pines

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Brian MacLean Date Branch Chief, Services NCO8 Bay Pines

c. VHA SAO 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 recommend HCA approval ($700K to $68 million) for other than full and open competition.

Mr. Brent Goe Date Acting VHA Head of Contracting Activity (HCA)

09/11/2018