Cardinal Supplyline JA - E.A Redacted 2 Contains CUI (Final .).pdf

DEFENSE LOGISTICS AGENCY

DLA CONTRACTING SERVICES OFFICE – PHILADELPHIA SITE

700 ROBBINS AVENUE

PHILADELPHIA, PA 19111

CUI

Source Selection Information – See FAR 2.101 & 3.104

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I hereby approve the issuance of the contractual action described below using other than full and open competition, pursuant to the authority cited herein.

1. IDENTIFICATION OF THE REQUIRING AGENCY AND CONTRACTING

ACTIVITY.

REQUIRING AGENCY:

Defense Logistics Agency (DLA)

Medical Directorate

700 Robbins Avenue

Philadelphia, PA 19111

POC: Linda Stipa

PH: 215-737-2174

Email: linda.stipa@dla.mil

CONTRACTING ACTIVITY:

DLA Contracting Services Office - Philadelphia Site

700 Robbins Avenue

Philadelphia, PA 19111

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED.

This justification authorizes the use of other than full and open competition for the procurement of a Data Service Agreement contract for a medical and surgical product classification process known as Cardinal Health™ SupplyLine® which provides determinations of functional equivalences used within DoD systems to identify equivalent products. The results of this classification data support Readiness Management and other logistics functions performed by

Defense Medical Logistics Standard Support-Wholesale (DMLSS-W) and are provided to DoD

Customers including the Veterans Health Administration (VHA) in support of the Defense

Medical Logistics - Enterprise Support (DML-ES). The solicitation will be issued via Open

Market procedures as a Combined Synopsis/Solicitation-Request for Proposal (RFP) posted to

SAM.gov. The Government anticipates the award of a Firm-Fixed Price (FFP) contract for one mailto:linda.stipa@dla.mil

(1) base period of twelve (12) months and two (2) 12-month option periods. The sole source that can satisfy this requirement is Cardinal Health 200 LLC

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET

THE AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT.

DLA has a requirement for a Data Service Agreement with the VHA for a medical and surgical.

classification system with Cardinal Health SupplyLine® which provides determinations of functional equivalences for medical and surgical products. Key elements of the catalog information provided are product classification, standardized nomenclature and identification of functional equivalents for medical/surgical products. Cardinal Health 200 LLC is the only known source that produces a classification system that is capable of fully integrating with the existing DLA Troop Support and other military databases that currently support various logistics and planning activities.

The proposed contract will be for a 12-month base year and two (2) 12-month option periods, with an anticipated start date of June 30, 2023. The total estimated dollar value is $2,861,740.

4. IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION.

The statutory authority permitting other than full and open competition is 10 U.S.C. 3204(a)(1), as implemented by FAR 6.302-1(a)(2) “Only one Responsible Source and no other supplies or services will satisfy agency requirements” Cardinal Health SupplyLine® is a brand name product of Cardinal Health 200 LLC.

Cardinal Health SupplyLine is the only system that provides both classification and identification of functionally equivalent medical and surgical products.

Only Cardinal Health SupplyLine Product Classification System meets the Government’s requirement for readiness support of critical functionalities.

Cardinal Health SupplyLine is essential to the Government’s requirements for identifying functionally equivalent health care products for cost saving opportunities through data aggregation and evaluation. No other brand name classification system is compatible with the

Cardinal Health SupplyLine data feed used in DMLSS data standardization and synchronization processes. Only Cardinal Health SupplyLine continued data feeds will integrate seamlessly with the existing algorithms and software code developed and owned by DLA. DLA and the DMLSS program office would be required to recode all government application program code to accommodate an alternate data feed with the required data elements, even if one could be found.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE OF

THE AUTHORITY CITED.

As documented below, the DLA Medical Directorate conducted market research which determined that Cardinal Health SupplyLine is the only subscription service that meets the

Government’s needs. Only Cardinal Health SupplyLine continued data feeds will integrate seamlessly with the existing algorithms and software code developed and owned by DLA. DLA and the DMLSS program office do not have a need nor a budget line to recode all government application program code to accommodate a new, different data feed with the required data elements, even if one could be found.

Failure to procure the follow-on classification and identification of functionally equivalent medical and surgical product data would adversely impact the medical supply chain spend analyses and sourcing processes that are designed to achieve the greatest cost savings mandated by the OMB Medical Category Management Initiative.

Cardinal Health Supplyline provides specific data attributes that are necessary to meet the government’s requirement for data associations, classifications and aggregation that are clinically vetted to support Medical Master Catalog and DOD Supply Chain.

Cardinal Health 200 LLC is the only known source that produces a classification system that is capable of fully integrating with existing DLA Troop Support and other military databases that currently support various logistics and planning activities and that provides both classification and identification of functionally equivalent medical and surgical products. Market research was done to identify other sources for this highly specialized set of classification data; additional sources were not identified.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE,

INCLUDING WHETHER A NOTICE WAS OR WILL BE PUBLICIZED AS

REQUIRED BY SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION UNDER 5.202

APPLIES.

In accordance with FAR 5.201(b)(1), a synopsis will be posted to www.SAM.gov.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE.

As the Contracting Officer, I hereby determine that pricing will be fair and reasonable based on pricing analysis in accordance with FAR 15.404-1. It is anticipated that the Government will use various prices analysis techniques including, but not limited to: 1) comparison with competitive published price lists (reference FAR 15.404-1(b)(2)(iv); and 2) comparison of http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/05.htm#P56_9614 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/05.htm#P67_10773 http://www.sam.gov/ proposed prices with prices obtained through market research of the same or similar items

(reference FAR 15.404- 1(b)(2)(vi), in order to obtain a fair and reasonable price.

8. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT

CONDUCTED.

The DLA Medical Directorate conducted market research in March 2023 to compare service offerings of the incumbent vendor (Cardinal Health 200 LLC) with similar vendors existing in the industry. Market research techniques included a review of acquisition history for contracts used by the directorate to procure similar services and a search of Contract Opportunities and

GSA websites for other vendors with similar data service offerings.

Results of market research conducted were as follows:

IQVIA Government Solutions Inc.: (https://www.iqvia.com)

IQVIA tool provides a number of valuable components of Pharmaceutical/Medical Surgical data, its main focus is on the sales data rather than the actual specific data attributes that are necessary to meet the government’s requirement for data associations, classifications and synchronizations that are clinically vetted to support Medical Master Catalog and DOD Supply

Chain.

Global Healthcare Exchange, LLC (GHX) (https://www.ghx.com)

GHX Data service provides a number of valuable components of Medical Surgical data, it does not offer specific data attributes that are necessary to meet the government’s requirement for data associations, classifications and aggregation that are clinically vetted to support Medical

Master Catalog and DOD Supply Chain.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION.

N/A

10. LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION

Cardinal Health 200 LLC

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS THAT LED TO COMPETITION

https://www.iqvia.com/ https://www.ghx.com/

BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES

REQUIRED.

At this time, Cardinal Health SupplyLine medical and surgical product classification system service agreement are the only services that will support this agency requirement and meet the

Government’s needs. However, DLA continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of new technology, both in industry and the Government. As a continuing effort, DLA utilizes a variety of vendors, manufacturers, and contracts to fulfill its requirements and will continue the practice of surveying the market to ensure full and open competition to the maximum extent practicable

12. CERTIFICATIONS.

Technical/Requirements Certification:

I hereby certify that the information provided for which I am responsible and which form a basis for this justification are complete and accurate.

Linda Stipa DATE

Program Support Manager

Contracting Certification:

I hereby certify that this justification is complete and accurate to the best of my knowledge and belief.

DATE

Contracting Officer

DLA Contracting Services Office – Philadelphia (DCSO-P)

I have reviewed and concur with this justification:

ANTHONY AMENDOLIA DATE

Supervisory Contract Specialist

DLA Contracting Services Office – Philadelphia (DCSO-P)

I have reviewed and approve this justification:

MATTHEW S. RYAN DATE

Competition Advocate

DLA Contracting Services Office