-16401.pdf

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

OFOC SOP Revision 08 Page 1 of 3 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: 36C261-19-AP-2617

1. Contracting Activity: Department of Veterans Affairs, VISN 21, NCO21, PR# 640-19-2-554-

0010.

2. Nature and/or Description of the Action Being Processed: WaveMark EiRTLS Software

Subscription and Support Services, warranty expired 06/21/2018, system requires on-going subscription of services. The proposed action is a sole source justification for a new Firm Fixed Price Base plus four option years contract with WaveMark/Cardinal Health. This contract includes hardware maintenance, software maintenance, interface maintenance, database administrator support services, and support services for the WaveMark Cath Lab inventory management systems at VA Sierra Nevada Health Care System – Reno.

3. FAR13.5 Simplified Procedures for Certain Commercial Items: This acquisition is for software and hardware maintenance and servicing 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.

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

The procurement is for WaveMark software and hardware support to include hardware maintenance, software maintenance, interface maintenance, database administrator support services, and support services for all WaveMark Cath Lab inventory management systems. The contract will also include Unlimited parts for cabinet and workstation hardware, Software support with unlimited upgrades and updates, Refresher on line training for new and existing staff, Software integration with Clinical and technical consultation. The Base Period Plus 4 Option Years, March 22, 2019 through June 30, 2023 with the Base Period intent to align with all other VISN 21 align with current WaveMark services for VAPAHCS Palo Alto, VANCHCS Mathter, VASNHCS Las Vegas, and forthcoming VACCHCS, Fresno. Option Years will commence on July 1st. Fore this acquisition Base Period and 4 Option Years the total costs is $290,050.00.

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 FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4

OFOC SOP Revision 08 Page 2 of 3

Revision 08 Date: 04/18/2018

( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

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-l(b)(2).

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 Cath lab inventory management system has been developed for use with the WaveMark RFID Smart Cabinets currently used by the three stations listed above to track Cath Lab supplies. Due to the proprietary nature of this system, no other vendor but WaveMark can provide the required software and database updates necessary for the continued use of the system and the government owned Wave Mark cabinets.

It would be cost prohibitive to entertain another inventory system since it would require the replacement of WaveMark RFID Smart Cabinets and the associated hardware/software located throughout not only VISN 21 but VA wide.

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

WaveMark was contacted concerning authorized distributors of the requested product. It was confirmed that in order to support current users on the system, Wave Mark support continuously updates a master product database that lists product barcodes and other product data. This data is created and maintained by WaveMark through password access which is controlled by WaveMark.

WaveMark owns the code for this product library and does not provide access to that code to other vendors. Proprietory elements are addressed by substantiated within Cardinal Health declaration of patents related to WaveMark system software and hardware, (P03 Cardinal Health WaveMark – Patent Letter, uploaded in contract file).

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

Current Cardinal Health pricing for WaveMark services at Palo Alto, Mather, and Las Vegas range from $80,739.00 to $106,915.00 for annual services. Pricing for VASNHCS, Reno are $19,005.00 for Base Period and $67,875.00 each following Option Year without any incremental increases. Based on comparison it can be determined that Fair and Reasonable Pricing is achieved.

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

VIP NAICS Search 511210 resulted in 342 SDVOSB vendors, amplified search of keywords “WaveMark” and “EiRTLS” resulted in 0 vendors. GSA search keywords “WaveMark” and “EiRTLS” resulted in 0 vendors. Due proprietary elements WaveMark Inc. / Cardinal Health are the single source providers for this service to confirm findings contacted Technology Acquisition Center

OFOC SOP Revision 08 Page 3 of 3

Revision 08 Date: 04/18/2018 contract specialist for a similar WaveMark EiRTLS solicitation posted in 2017, affirmed that single source award to WaveMark/Cardinal Health based on proprietary elements.

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

Market Research and coordination with TAC and NASA Sewp affirmed, at this time, no 3rd party vendors are capable of providing WaveMark services.

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

WaveMark/Cardinal Health are the sole entity expressing interest.

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 Veterans Affairs will continue the market research process along with communication with WaveMark/Cardinal Health on their release of proprietary data to independent vendors. Other facets involve shelf-life of equipment and software, if entering non-sustainability or scalability, considerations to seek alternative hardware and software may take place.

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.

Rico L. Johnson Date Contracting Officer

NCO21

13. 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.

Mark J. Milus Date Branch Chief – Services I

NCO21