36C261-26-AP-2844-FY26-1851 JOFOC NCO21 PAR Excellence WBSM - HCA Approved 1_Redacted.pdf

VHAPG Part 806.3 OFOC Page 1 of 5 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C261-26-AP-2844

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID:36C261-26-AP-2844 JOFOC Tracker 26: FY26-NCO 21-1009

1. Contracting Activity: Department of Veterans Affairs (VA), Veterans Health Administration (VHA), Network Contracting Office (NCO) 21, on behalf of the Veterans Integrated Service Networks (VISN) 21, VA Southern Nevada Health Care System (VASNHCS). 2237: 593-26-2-163-0027.

2. Nature and/or Description of the Action Being Approved: This action is for a new firm-fixed-price contract for a weight-based automated inventory management system. The acquisition will be conducted in accordance with Revolutionary FAR Overhaul (RFO) Part 12 procedures for commercial products and services.

Competition is restricted pursuant to RFO 6.104 and the statutory authority cited in Section 4.

The award will be made to PAR Excellence Systems, Inc. (PAR), a large business, located in Cincinnati, Ohio.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The VASNHCS in Las Vegas has a requirement for a weight-based automated inventory management system for medical supplies that interfaces with Veterans Health Information Systems and Technology Architecture/ Generic Inventory Package (VISTA/GIP). A weight based automated system will help ensure patient safety by enabling the healthcare providers to reduce medical suppliers’ errors.

The equipment automates replenishment, tracks usage, and optimizes operational efficiency. Smart bins and weight-based systems monitor stock levels, calculate par levels, and automatically generate requisitions to hospital management systems, reducing manual ordering. The platform captures and aggregates data across all locations, providing actionable insights for supply allocations, stock optimization, and cost control through 100 percent real-time inventory visibility. PAR supports bone and tissue tracking and ensures compliance and improves patient safety. By automating inventory tasks, the system allows staff to focus on higher-value activities such as clinical support and logistics. It interfaces with HL7 for Integrated Funds Distribution, Control Point Activity, Accounting, and Procurement (IFCAP) VISTA/GIP Inventory Management Systems to enable automated order management. It also captures usage data and generates reports for inventory analysis to assist medical facilities to reduce stockouts and overstocking of items.

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Acquisition ID#: 36C261-26-AP-2844

The PAR Excellence system combines automated inventory tracking, real-time data analytics, and operational optimization. It reduces costs, improves efficiency, and enhances patient care by ensuring that critical supplies are always available while minimizing manual labor and errors.

The Period of Performance is 06/01/2026 – 05/31/2027.

The estimated total value of the proposed action is $1,033,360.91.

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

( X ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by

RFO 6.103-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by RFO 6.103-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by RFO 6.103-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by RFO 6.103-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by RFO 6.103-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by RFO 6.103-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by RFO 6.103-7;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): PAR is the exclusive designer, developer, manufacturer, and maintainer of its proprietary, highly specialized, fully automated, turn-key, Weight-based Inventory Management Systems (WBIMS), software, and associated Maintenance and Support Services. The WBIMS is the only product that includes the required GIP interface. GIP enables the remote loading of information onto VA systems without the delays, workarounds, and complexity otherwise attributable to transferring data that can result in corruption and/or improper manual entries. GIP ensures the proper storage of medical and surgical products and produces an accurate real-time accounting of quantities that is accessible through a web-based program and provides data mining capabilities that include minimum current stock level, recommended order points, average usage levels per item, and the ability to track medical supply usage per patient.

The WBIMS fully satisfies VA’s operational and performance requirements by significantly increasing efficiency in managing expendable supplies and supporting clinical workflows. It provides accurate real-time monitoring of all supply inflow and outflow, enabling improved responsiveness to patient-care needs while reducing risk of error, stock-outs, or duplicate ordering. Its automation minimizes required human

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Acquisition ID#: 36C261-26-AP-2844 intervention, making it the only viable solution for high-volume, resource constrained environments across VA.

Accordingly, PAR Excellence Systems, Inc. is the only firm capable of providing the supplies and services described in Section 3 above without the Department of Veterans Affairs experiencing unacceptable delays in fulfilling its requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as possible (including whether a notice was or will be publicized as required by RFO Part 5 and, if not, which exception under RFO Part 5 applies): Notice of Intent to Sole Source was published via Contracting Opportunities (Solicitation No. 36C26126Q0567) on April 3, 2026. The notice remained open until April 9, 2026, thereby providing a full six days for potential vendors to review and respond. No vendors submitted offers or inquiries during this period.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer will determine the price to be fair and reasonable in accordance with RFO Part 12. This determination will be based on comparison to the Independent Government Cost Estimate (IGCE), historical pricing, and market research, as applicable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Small Business Administration’s (SBA’s) Small Business Search (SBS) database was used to identify certified capable Service-Disabled Veteran-Owned Small Business (SDVOSB) and Veteran-Owned Small Business (VOSB). The database search utilizing NAICS code 339112 Surgical and Medical Instrument Manufacturing yielded sixteen (16) SDVOSB and VOSB matches.

The VA National Acquisition Center catalog was queried using the vendor’s name “Par Excellence Weight Based Supply Management System," and no records were found. The same keyword was also queried on the General Service Administration Advantage website, with no results found.

A Notice of Intent to Sole Source was posted on Contracting Opportunities (36C26126Q0567) on 04/03/2026 and closed on 04/09/2026. No responses were received from any vendors.

Supply Chain Master Catalog search revealed that awards have been made to PAR.

ADDS UP search indicated that most awards were not competed. PAR does not authorize any reseller of their products or services.

The Nonmanufacturer Rule does not apply in this case. The PAR Excellence inventory management equipment, highly specialized, fully automated, turnkey Weight-Based Inventory Management Systems (WBIMS) and supporting software is

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Acquisition ID#: 36C261-26-AP-2844 manufactured, designed, and developed exclusively by PAR Excellence Systems, Inc., which is classified as a large business.

The system is manufactured, designed, and developed in the United States. The Buy American Statute and Trade Agreement Act does not apply.

As described in Section 6 above, market research in accordance with RFO Part 10 was conducted, including publicizing the requirement to industry to identify potential sources.

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

There are no other supporting facts.

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

PAR EXCELLENCE SYSTEMS, INC

11500 Northlake Dr. Ste. 135 Cincinnati, OH 45249

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:

The agency will continue to conduct thorough market research for any subsequent requirements involving this type of equipment. If future needs arise, updated market research will be performed to assess whether additional sources capable of meeting the agency’s technical and functional requirements have entered the marketplace.

This will ensure that the agency remains aware of any new competitive opportunities and can promote competition to the maximum extent practicable in future.

acquisitions.

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.

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Acquisition ID#: 36C261-26-AP-2844

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

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

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

c. 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 recommend approval (if over $90 million) or approve ($900K to $90 million) for other than full and open competition.