C01 JnA Redacted.pdf

Real Time Location System Expansion Control Number VA-22-00051670

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of Veterans Affairs (VA) Office of Procurement, Acquisition and Logistics Technology Acquisition Center 23 Christopher Way Eatontown, NJ 07724

2. Description of Action: The proposed action is for an open market, firm-fixed-price contract for a new Real Time Location System (RTLS) Asset Tracking (AT) solution at the VA Caribbean Healthcare System (VACHS) in Veteran Integrated Service Network (VISN) 8, including hardware and software, installation and configuration, warranty, maintenance, and training.

3. Description of the Supplies or Services: The proposed action is to procure hardware, and software, installation and configuration, warranty, maintenance, and training services for the implementation of a new RTLS AT solution at the VACHS.

RTLS AT is an umbrella term that includes multiple technologies for locating and tracking items. It includes Wi-Fi-based location finding, active and passive Radio Frequency Identification (RFID), and many other location technologies, including ultrasound and infrared. RTLS technology combines this variety of signaling and wireless communication methods to determine the location of tagged assets which speeds up and improves asset management and annual inventory, locates equipment, reduces theft/loss, and improves clinical workflow which improves the quality of Veteran patient care. Virtual server platforms residing on the physical infrastructure shared across VA comprise the VA-wide RTLS system, with which VACHS’s RTLS AT solution will need to connect. Sharing of virtual production servers allows processing capacity to be optimized. This results in fast turnaround for front end users of the asset tracking system. Further, a portion of the shared infrastructure is a disaster recovery system. The system provides the infrastructure to ensure that in the event of a disaster, the asset tracking system would be restored within 12 hours. VACHS requires an RTLS AT solution, providing real time location of clinical grade hardware. The solution shall be integrated to VA’s central RTLS AT solution that is comprised of brand name CenTrak® and Infor® hardware, software, and middleware. The Contractor will need to work directly with Original Equipment Manufacturers (OEMs), CenTrak® and Infor®, to expand the system and complete installation. The CenTrak® proprietary algorithm is used on the data collected to determine the location of an asset. The contractor will need to work with Infor® to complete configuration of the software and create the approved business rules, update location fields in the CenTrak® and Infor® software and in the VA Engineering Management System /Medical Equipment Reporting System (AEMS/MERS) space file. VACHS requires warranty and maintenance of the system to ensure the RTLS solution continues to function as intended. In addition, VACHS requires user training, system repair and maintenance training, and system administration training for VA users of the system. The period of performance is 12 months from the date of award, with two 12-month option periods. Delivery, installation, configuration and training services are to be completed within 120 days. The value of the proposed action, inclusive of all options, is .

4. Statutory Authority: The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(1) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-1 titled, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Rationale Supporting Use of Authority Cited Above: Based on market research, as described in paragraph 8 of this justification, it was determined that limited competition is available for this procurement. Only CenTrak® and Infor® brand name hardware and software is interoperable and compatible with the existing VACHS RTLS infrastructure. The current VA RTLS AT infrastructure is comprised of CenTrak® clinical grade readers, active asset tags, location software package and centralized servers. CenTrak® designed the layout of the readers and configured and validated the system in the CenTrak® software. VA’s RTLS infrastructure also relies on Infor® RTLS user interface software to modify the floor plans/maps so that end user has a graphical interface to view equipment, and identify which room the equipment is located in. Therefore, VACHS requires its RTLS solution to integrate with its existing CenTrak® location engine with Infor® software. Furthermore, several interfaces have been developed between the CenTrak® RTLS solution and the Veterans Integrated System Architecture (VistA), Defense Medical Logistics Standard Support (DMLSS) and Department of Defense (Cerner). Within the Infor® software is a field that allows the VistA AEMS/MERS interface to update an asset’s location and last inventory date in AEMS/MERS with the location obtained from the RTLS solution. The current CenTrak® and Infor® infrastructure is only compatible with CenTrak® and Infor® software due to the proprietary elements of VA’s existing infrastructure, including CenTrak® and Infor® proprietary source code. The use of any other RTLS provider’s solution would require substantial development to be able to successfully interface VistA, DMLSS, Cerner, and AEMS/MERS. For example, a solution comprised of alternative brands would require the development of software and interface modules that meet VA’s security requirements to communicate with existing CenTrak® and Infor® software, as well as VistA, and then be extensively tested and validated by VA to gain approval. This effort is estimated to take 12-24 months to develop and test, and is estimated to cost the Government approximately in development costs before procurement of any alternative system. The existing infrastructure only consists of CenTrak® and Infor® software which can only communicate with the CenTrak® and Infor® brands. Due to proprietary constraints, the use of any other brand name software will not be able to communicate with the existing CenTrak® and Infor® items, such as hardware servers, asset tags, software, and interfaces, all of which have been deployed and configured to VA and CenTrak® and Infor® specifications and which use CenTrak® and Infor® proprietary code to communicate. This proprietary code is also required to develop and push updates and upgrades to the existing CenTrak® and Infor® infrastructure. If any other source is used to provide these warranty and maintenance services without the CenTrak® and Infor® proprietary source code, the source would not be capable of testing and tuning RTLS infrastructure, pushing upgrades and updates to maintain, fix and configure the existing CenTrak® and Infor® RTLS infrastructure. If any other source is used to provide the ancillary support services including those for training and installation, they would not be authorized by the Original Equipment Manufacturer and would have a negative impact on VA’s implementation and warranty. Furthermore, due to those proprietary constraints, use of any other brand name item would necessitate replacement of all the existing CenTrak® and Infor® hardware and software currently fielded. This will result in delays and duplicative costs for the RTLS infrastructure, estimated at over that would not be recovered through competition. This does not include the time and investment VA would need to incur to get another brand name RTLS solution into production, as mentioned above. These estimates are based on previous efforts for hardware/software solutions of similar size and scope.

VA requires a single integrator to coordinate efforts with CenTrak® and Infor for the configuration, integration, testing and training of the RTLS AT system. The Contractor will need to work with CenTrak® and Infor simultaneously as separating the work into two requirements would be inefficient and cause tremendous delays during the testing process. CenTrak® and Infor’s engineers work very closely during the integration. CenTrak® hardware’s unique ID number is entered into the Infor database. Often, the hardware can be replaced during the setup process as they may fail, which requires an update in the Infor application. If the two subcontractors are not able to work on this effort jointly, the Infor database would be compromised and result in inaccurate location information. CenTrak® location information is streamed to the Infor Connector server and then sent to the Infor platform server for visibility of the data on the RTLS user application. If the subcontractors are not able to work together during this process, it would cause significant delays and technical issues, such as not providing location updates to the end user. Not implementing an RTLS solution comprised of CenTrak® and Infor® brand name hardware and software would have a negative impact on patient care, hindering the care provider’s ability to locate medical equipment, such as infusion pumps or mobile ultrasound, in a timely manner, which ultimately affects the quality of treatment Veterans receive.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in section 8 of this justification. This effort did not yield any additional sources that can meet the Government's requirements. However, the undersigned VA technical representative determined that limited competition is available for the required brand name CenTrak® and Infor® items, as well as installation and configuration, warranty, maintenance, and training. In accordance with FAR 6.302-1(c)(1)(ii)(c) and 5.102(a)(6) this justification shall be posted with the solicitation. Furthermore, the proposed action will be synopsized on the Federal Business Opportunities Page in accordance with FAR 5.201. Any proposals that are received shall be evaluated.

7. Actions to Increase Competition: The Government will continue to conduct market research to learn if there are changes in the marketplace that would enable future actions to be competed.

8. Market Research: The Government’s technical experts conducted market research in December 2021 to ascertain the ability of other, similar RTLS solutions to meet VA’s needs. Specifically, market research was conducted through review of technology information catalogs, email communication with contractors involved with previous RTLS contracts throughout VA, including the previous RTLS provider for VACHS, and research on products comparable to the existing RTLS infrastructure, including Midmark, Plexus Vision, and various unbranded Bluetooth Low Energy (BLE) solutions. The VA technical experts analyzed these alternativesolutions and determined they do not meet the Government’s requirements, as outlined in Section 5 of this justification, as they do not have access to the source code required to communicate with VACHS’s existing RTLS AT solution, VistA, DMLSS, Cerner, AEMS/MERS and existing CenTrak® servers.

While other RTLS solutions exist, no other manufacturers can access the CenTrak® and Infor® source code and proprietary protocols and algorithms which are interoperable with VA’s existing RTLS infrastructure, in order to integrate, maintain, and support the existing RTLS infrastructure already installed and operating VA-wide. Due to proprietary constraints, use of any other brand name item or service would necessitate substantial development of many interfaces with the existing VA systems including VistA, DMLSS, Cerner and AEMS/MERS. The use of any alternative brand would also require a complete replacement of CenTrak® and Infor® hardware and software currently fielded. At present, there is no other alternative brand items or services available in the marketplace that can meet this requirement or avoid duplicative time and costs as outlined in Section 5 of this justification. Additional market research was conducted by reviewing reputable industry periodicals which validated that the use of proprietary protocols and algorithms make interoperability between OEMs impossible. Based upon the above market research, the Government’s technical experts have determined that only the CenTrak® and Infor® brand names hardware and software, installation and configuration, warranty, maintenance, and training can meet all of VA’s requirements.

The Contract Specialist (CS) conducted additional market research in April and May of 2022, by posting sources sought notices to the National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V Government-wide Acquisition Contract (GWAC), General Services Administration (GSA) eBuy, and System for Award Management (SAM) Contracting Opportunities web page. The sources sought notice included a summary of the Performance Work Statement and stated that the contractor shall provide a CenTrak®-based RTLS solution that is interoperable with existing CenTrak® servers and interface with the VA’s existing VistA, DMLSS, Cerner and AEMS/MERS platforms. The sources sought notice directly informed industry that

VA intends to issue a Request for Quotation on an other than full and open competition basis and provided additional information on the use of CenTrak® and Infor®. Further, the sources sought notice stated that if an alternative solution was offered, then only a Commercial-Off-The-Shelf product requiring no development would be considered. Seven responses, including multiple Service-Disabled Veteran-Owned Small Businesses (SDVOSB), were received as follows:

Contractor Business Size Contract Vehicle Offered Solution MGM Computer Systems

SDVOSB SAM Contracting Opportunities

CenTrak® and Infor®

AgileRank SDVOSB SAM Contracting Opportunities

CenTrak® and Infor®

Claflin Service Company

Small Business SAM Contracting Opportunities

Midmark®

Standard Communications

SDVOSB FSS GSA CenTrak® only

Mission First Solutions

Small Business FSS GSA Plexus® Vision

Standard Blazar SDVOSB NASA SEWP V

GWAC

CenTrak® only

ThunderCat Technologies

SDVOSB NASA SEWP V

GWAC

BLE-based

The Government’s technical experts reviewed all of the responses, which is documented in detail in a separate memorandum. The technical experts determined that the solutions offered by Claflin Service Company (Midmark), Mission First Solutions (Plexus Vision), ThunderCat Technologies (BLE-based) and Standard Communications and Standard Blazar (branches of the same company) would require substantial development to enable interfacing and communication with VA existing CenTrak servers, VistA, DMLSS, Cerner and AEMS/MERS. While the responses from both Standard Communications and Standard Blazar offer CenTrak®, neither referred to Infor® or any other similar software which is necessary to enable the RTLS solution to interface with VistA, DMLSS, Cerner and AEMS/MERS. Both MGM Computer Systems and AgileRank offered the CenTrak® and Infor® RTLS AT solution.

The Government technical experts then reviewed the market research conducted on previous recent requirements for similar RTLS AT solutions in an effort to determine any other potential brands and sources. This previously conducted market research found that three other SDVOSBs could meet the full requirement (i.e., each had previously responded with CenTrak® and Infor®) via SAM Contract Opportunities:

Trofholz, ThunderYard Liberty Joint Venture and RJY Group. The Government technical experts emailed points of contact for each company the same information provided in the sources sought notice. The Contractors were asked if they would be interested in responding to a solicitation for the brand name CenTrak® and Infor® RTLS AT expansion solution. No response was received from Trofholz. Both

ThunderYard and RJY Group confirmed their interest and that each provides CenTrak® and Infor® RTLS AT solution.

On May 11, 2022, the CS issued notices on the NASA SEWP V GWAC, GSA eBuy and SAM Contracting Opportunities informing all respondents to the sources sought notices that the results of market research confirmed the Government’s need for brand names CenTrak® and Infor® for the required RTLS AT solution, as well as the Government’s intent to issue the brand name solicitation on SAM Contracting Opportunities as a total SDVOSB set aside. No responses were received in response to this last notice.

Based upon the above market research, the Government’s technical experts determined that although the other companies' products provide similar capabilities, no other product is capable of supporting VA's existing infrastructure protocols, interoperability, and compatibility requirements, and that CenTrak® and Infor® are required to complete the requirement.

9. Other Facts: None.

10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Date: ________________________________

Biomedical Specialist Signature: _ _ Information Systems

11. Determination of Best Value: I hereby determine that the proposed contract action will represent the best value to the Government consistent with FAR 15.404-1(b).

Price competition is expected for this action.

Date: ____ ____________________

Procuring Contracting Officer Signature: _ _____

12. Procuring Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

Date: _____ __________________

Procuring Contracting Officer Signature: _ ________

7/14/2022

Approval

In my role as procuring activity Advocate for Competition, based on the foregoing justification, I hereby approve the acquisition of the RTLS AT solution including hardware and software, installation and configuration, warranty, maintenance and training at the VACHS on an other-than-fair-opportunity basis pursuant to the authority cited in Section 4 above, subject to availability of funds, and provided that the property and services herein described have otherwise been authorized for acquisition.

Date: ____________ Signature: _ ___ _____________

Advocate for Competition Technology Acquisition Center Office of Procurement, Acquisition, and Logistics