Innovation_Maintenance_2018_LSJ_Redacted.pdf

SSI-DGPA 2.104-4, Source Selection Information-See FAR 2.101 and 3.104

LIMITED-SOURCES JUSTIFICATION

1. Defense Logistics Agency (DLA) Troop Support, Medical Supply Chain, is the contracting activity.

2. This justification is for the purchase of extended warranty maintenance coverage for automated pharmacy dispensing equipment on a sole source basis. The acquisition is being conducted under the Electronic Catalog (ECAT) Multiple-Award Schedule Program.

3. The required extended warranty maintenance coverage is for Innovation Associates, Inc.

(hereinafter referred to as “Innovation”) PharmASSIST Pharmacy Automation Dispensing System equipment installed at 77 Air Force Medical Treatment Facilities (MTFs). It is available on Innovation’s ECAT contract SPM2D1-13-D-8312, which expires September 19, 2018. The total estimated dollar value of this requirement is

4. The authority waiving the competition requirements is FAR 8.405-6(b)(1), items particular to one manufacturer. The PharmASSIST system is an automated medication dispensing system for oral and solid medications with linked and computerized quality assurance software. The PharmASSIST system is integrated with the Composite Health Care System (CHCS), becoming a critical component of the entire automated prescription filling process. Innovation’s quality assurance software provides a significant safety measure by verifying the accuracy of prescriptions. Innovation is the only source for the maintenance services required on the PharmASSIST units because they are the original equipment manufacturer with the sole proprietary rights to the operating software. The one-year extended warranty service provided by Innovation consists of equipment repair and software updates; the software is proprietary to Innovation. Repairs of the PharmASSIST equipment often require interaction with the PharmASSIST operating software; no other entity is authorized to perform maintenance service on the PharmASSIST equipment other than Innovation because of the interaction with software that may be necessary for equipment maintenance. The required software updates are sent to all facilities on a monthly or as required basis and cannot be accomplished by any other source. The Government’s requirement for this warranty maintenance coverage is essential and critical to the continuing functionality of all Air Force MTFs; Innovation is the only source for the maintenance service.

5. DLA Troop Support has already determined the price of the PharmASSIST extended warranty maintenance from Innovation to be fair and reasonable based upon the pricing evaluated at the time of award of their ECAT contract on September 20, 2013.

Innovation will be issued a Request for Quote (RFQ) prior to the placement of the delivery order. During negotiations a further attempt will be made to gain additional discounts and better pricing. This order represents the best value to the Government and will result in the lowest overall cost alternative (considering price, special features, administrative cost, etc.).

6. Market research conducted in September 2018, confirmed that Innovation is the only vendor that can perform the maintenance due to proprietary reasons for both the hardware and software. Innovation has no agreements with any service providers to perform maintenance on Innovation’s equipment or software, thus, there are no other sources for the required maintenance service that can meet the Air Force’s needs.

7. There are no additional facts supporting this justification.

8. ECAT vendors have the opportunity to add products that fall within the scope of the ECAT contract at any time, increasing competition within the ECAT program; however, currently there are no other known ECAT vendors that would be able to offer the PharmASSIST maintenance service.

9. I hereby certify that the information contained in this Limited-Sources Justification is accurate and complete to the best of my knowledge and belief.

Date TIMOTHY JOYCE Contracting Officer, FSD

10. I hereby certify that the requirements which form the basis of this Limited-Sources Justification are accurate, that this extended warranty coverage meets the Government’s needs in accordance with applicable specifications and that this Limited-Sources Justification is accurate and complete to the best of my knowledge and belief.

Date Biomedical Engineer, FSDB

I have reviewed this Limited-Sources Justification and recommend approval.

Chief, Capital Equipment Division Medical Supplier Operations

JOYCE.TIMOT

HY.B.103530

Digitally signed by

JOYCE.TIMOTHY.B.103

5309299 Date: 2018.09.10 12:31:16 -04'00'

I have reviewed this Limited-Sources Justification for legal sufficiency.

DLA Counsel – Troop Support

I have reviewed and hereby approve this Limited-Sources Justification.

DLA Troop Support Competition Advocate