Attachment 1 FAR 13.5 Sole Source Justification - Omnicell Console Upgrades Coatesville.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

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DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 542-25-1-483-0015

1. Contracting Activity: Department of Veterans Affairs, VISN 4 Coatesville VA Medical Center, 1400 Black Horse Hill Road, Station 542, Coatesville, PA 19320

2. Nature and/or Description of the Action Being Processed: The Coatesville VA Medical Centers has a brand name only requirement for an Omnicell Automated Dispensing Cabinet (ADS) XT-EXTEND CONSOLE UPGRADE. This upgrade will allow continuation of services provided by Coatesville pharmacy’s to provide needed medications to the inpatient units and outpatient clinics for our patients. This upgrade also ensures continuation of security updates and data encryption, as well as future Operating System(s) Support. The Omnicell ADS cabinet is essential to storage of medications, real time inventory monitoring, dispensing medications to be given to patients as ordered, and to maintain compliance with medication storage regulated requirements. The Omnicell ADS cabinets ensure medications are securely stored and monitored.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Coatesville Veterans Affairs (VAMC) is requesing for Omnicell XT-EXTEND Consule UPGRADE and installation for their current XT cabinets installed prior to 2024 and no longer have a software upgrade path to future operating systems. The current path for this console upgrade would have the hardware necessary to install Microsoft Windows 10 IoT Enterprise LTSC (22H2) and capable of supporting Microsoft Windows 11 when deemed available. Due to this the support is nearing End of Life by Microsoft for Windows 10, sixteen (16) Omnicell cabinets will need a hardware upgrade across the facilitie to support the enterprise Windows version, Windows 10 IoT, and or Windows 11. Current version of Windows 10 installed will no longer be supported by Microsoft by October 2025. The enterprise version of Windows 10 has an extension of service, support, and Windows updates provided by Microsoft until 2030. In addition to the operating support, the XTE Console Upgrade further extends the service support for the Omnicell cabinet(s).

The estimated value of this procurement action is: $209,280.00

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 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 13.106-1(b)(2) 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

( ) Unusual and Compelling Urgency

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( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services

( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

Coatesville VAMC’s existing Automated Dispensing Cabinets and equipment was installed using the Omnicell brand and vendor. Omnicell Inc, only supports products which they manufacture.

No other vendors’ products are supported. The upgrade we are seeking is for the console of the

ADS cabinet and not the entire ccabinet itself. The cost to the facility and the taxpayers would greatly outweigh this need if an alternative product line were sought after. Consistency with equipment ensures compatibility and simplicity of its infrastructure.

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

Omnicell is sole manufacturer of Omnicell products and support services of equipment in the United States; they do not have authorized personnel outside of our company to provide the required products and or services for this procurement. Omnicell only works with one authorized Service Disabled Veteran Owned Small Business distributor, TrillaMed.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Omnicell is the sole manufacturer of this desired product. Omnicell has provided quotes with pricing to both Coatesville VAMC.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Received a quote from the manufacturer and was told that there is this XTExtend upgrade needed for the cabinet console. Searched GSA for the Omnicell console item #, the console we are upgrading is not on Omnicell’s GSA schedule.

Searched Omnicell’s website and obtained a brochure of the console we are upgrading along with the description of why it is being upgraded.

CS reached out to the Omnicell representative and asked the following questions:

- Is this proprietary to Omnicell? Yes, proprietary to Omnicell and the only source for Omnicell solutions.

- Do you work with any authorized small business distributors who provide this item? If so can you please provide me with their information. We do work with an SDVOB called Trillamed

Omnicell is the brand name manufacturer of the item we are seeking, and the item is only available from two sources, the large business manufacturer, and an SDVOSB distributor, Trillamed. With this all being said and given the NMR rule, this procurement is to be done as a brand name only, unrestricted procurement on the open market.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Items being sought are for an upgrade to an Automated Dispensing Cabinet that is already purchased and in place and is in need of a console software update to continue seamlessly functioning.

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

Omnicell Inc.

500 Cranberry Woods Drive

Cranberry Township, PA., 16066

POC: Connor Lent, Area Account Executive – PA, MD / DC, DE (717) 669-6191

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:

Current version of Windows 10 installed will no longer be supported by Microsoft by October 2025.

The enterprise version of windows 10 has an extension of service, support, and windows updates provided by Microsoft until 2030. In addition to the operating support, the XTE Console Upgrade further extends the service support for the Omnicell cabinet(s).

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.

Benjamin Villasenor Date Contracting Officer NCO4, Commodities 1