APPROVED REDACTED SSJ_ CO Redacted.pdf

Effective Date: 12/30/2025 Page 1 of 4 Revision: 02 Acquisition ID#: 36C249-26-AP-1587

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 12

Acquisition Plan Action ID: 36C249-26-AP-1587

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 9 (NCO9), on behalf of the Louisville VA Medical Center (VAMC). The 2237 for this procurement is 603-26-2-426- 0032.

1. Nature and/or Description of the Action Being Processed: The Louisville Healthcare System is currently building the new VA Medical Center (VAMC) with the address of 4906 Brownsboro Road in Louisville Kentucky. A new automated medication management/distribution system is needed as part of the construction to prepare the new facility for activation in the second quarter of fiscal year 2027. This requirement will include complete hardware and software that must integrate with the electronic health record (EHR) health information technology (HIT) systems of the Robley Rex VA Medical Center (RRVAMC) and (7) VA Community Based Outpatient Clinics (CBOCs) under the Louisville VA HealthCare system’s umbrella.

This procurement will be awarded as a firm-fixed-priced sole sourced to Becton Dickinson and Company (BD) the original equipment manufacturer (OEM) in accordance with FAR 12 Acquisition of Commercial Products and Services. Estimated award date will be September 15, 2026. Total estimated cost is

2. Description of Supplies/Services Required to Meet the Agency’s Needs: This requirement is for the procurement of the Pyxis medication management system which is developed and sold exclusively by BD. The suite is made up of automated medication management/dispensing cabinets that enhances safety, efficiency, and inventory management. The system contain proprietary hardware and software, as well as the specialized expertise required for installation, maintenance, and complex healthcare systems integration.

The BD Pyxis medication system, all associated components must integrate with the electronic health record (EHR) health information technology (HIT) systems of the Robley Rex VA Medical Center (RRVAMC) and (7) VA Community Based Outpatient Clinics (CBOCs) under the Louisville VA HealthCare System’s umbrella. The Government currently own all BD Pyxis medication systems in the Louisville umbrella. The Pyxis system is currently utilized at all the outpatient clinics under the Louisville Healthcare System’s umbrella. .

3. Statutory Authority Permitting Restricted Competition:

FAR 12.201 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 12.102 for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

( x ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

Effective Date: 12/30/2025 Page 2 of 4 Revision: 02 Acquisition ID#: 36C249-26-AP-1587

Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): As stated above, BD is the OEM of the Pyxis automated medication system. The system contain proprietary hardware and software, as well as the specialized expertise required for installation, maintenance, and complex healthcare systems integration. The Pyxis system along with all associated components must integrate with the EHR and HIT systems of the RRVAMC and (7) COBCs under the Louisville VA HealthCare System’s umbrella. BD provided a sole source letter to the program office stating that BD is the OEM and only source authorized to distribute or work on the Pyxis system. Additionally, the Government currently own the Pyxis systems at the RRVAMC and COBCs procured through contract # 36C24923C0034 on 12/16/2022 (per the market research).

CO confirmed that BD’s competitors such Omnicell cannot meet the needs of the Government as Omnicell’s automatic medication system is not compatible and cannot integrate with the Pyxis HER and HIT. This interoperability will exposure the Government to unnecessary costs in excess of $923,000.00 as the entire Louisville enterprise’s automatic medication system would have to be swapped out from the Pyxis system and a complete retraining would be necessary to prevent mismedication of Veterans.

4. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The CO posted a sources sought notice # 36C24926Q0133 from 02/26/2026 – 03/10/2026. Two responses were received. One response was from the manufacturer BD (Large business) and one was from Trillamed Inc, a SDVOSB.

5. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The CO conducted a google search of the “average cost of automated medication system” and also requested VA-GPT to find the average cost of automated medication system similar to the Pyxis system to assist in the determination. Both results were similar with the average cost ranging between $40,000 and $200,000 per system. No other brand will meet the needs of the medical center. the CO has determined that the price quoted to be fair and reasonable as the price is in line with the initial government estimate.

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

Market Research Was Not Conducted: The CO’s market research consisted of keyword searches of “Pyxis system” returned no active SBA certifications. A keyword search of “automated medication systems” resulted more than 2 SDVOSB entities; however, none are authorized to distribute the Pyxis system. CO also posted a sources sought notice # 36C24926Q0133 FROM 02/26/2026 TO 03/10/2026. One response from the OEM was received along with a response from Trillamed a SDVOSB verifying if Pyxis was the brand desired. CO confirmed there are no SDVOSB or small business sources that can meet the needs of medical center. BD also provided a sole source/proprietary memo to the program office stating that BD is the OEM and only source authorized to distribute or work on the Pyxis system.

7. Any Other Facts Supporting the Use of Other than Full and Open Competition: As stated above, the OEM provided a source letter stating BD is the only company authorized to install and service the pyxis medication system due to the proprietary nature of the system. No other competitor’s system is compatible with the Pyxis system and awarding a competitor would require removal of all Government owned Pyxis system from the Robley Rex VA medical center and all Community Based Outpatient Clinics under the Louisville HealthCare system’s umbrella.