FAR 12.102_Commercial Sole Source Justification.pdf

Effective Date: 12/30/2025 Page 1 of 5 Revision: 02 Acquisition ID#: 36C255-26-AP-1165

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH Revolutionary FAR Overhaul (RFO) 12.102(b)

Acquisition Plan Action ID: 36C255-26-AP-1165

1. Contracting Activity: Department of Veterans Affairs (VA), VISN 15, Veterans Integrated Service

Network (VISN) 15, Network Contracting Office (NCO) 15, in support of Columbia VAMC, Rolla CBOC, 311 Hedge Lane Rd., Paola, KS 66071

Purchase Request Number: 589-26-2-7311-0067

2. Nature and/or Description of the Action Being Processed: This procurement is for a sole source, Firm-Fixed Price, award to the original equipment manufacturer (OEM) PAR Excellence Systems, Inc., to purchase the PAR Bins System with the direct VistA Generic Inventory Package (GIP) interface, and incidental services for installation and training.

3. : The Rolla CBOC requirement is for the purchase of the PAR Bins Systems a weight-based inventory management system, with direct VistA-GIP interface, equipment and software with incidental service for installation/training and to be EHRM compliant. The estimated delivery date is 120 days after receipt of award and the installation and training will be completed on or before the expiration of the contract.

The estimated total value is $992,499.15.

4. Statutory Authority Permitting Restricted Competition:

RFO 12.102(b) Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of RFO 12.102(b) is 41 U.S.C. § 1901 and is implemented by RFO 12.102(b) 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 ( ) 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 C Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Currently in use, at the Rolla CBOC, is a non-weighted bin based Point of Use (POU) system which is a manual count system and equates to an analog telephone. This system is not with PAR Excellence Systems, Inc., and cannot achieve an accurate account of supplies because it must be accomplished with a physical count.

Effective Date: 12/30/2025 Page 2 of 5

Acquisition ID#: 36C255-26-AP-1165

The Rolla CBOC is in need of the PAR Bins System in order to be EHRM compliant. The PAR Bins System is the only weight-based electronic inventory system that takes the human factor out of the equation and directly interfaces with VistA GIP. The PAR Bin System allows accurate accounts of inventory stock 24 hours per day, 7 days per week, 365 days a year. This system provides data mining capabilities that shall include, at a minimum, current stock level, recommended order points, average usage levels per item, and ability to track medical supply usage per patient treated.

The PAR Bins System is directly interfaced with VistA GIP. The primary purpose of the interface is to identify out of balance on-hand quantities and values between VistA GIP and the PAR Bins System.

The PAR Bin System identifies out of balance on hand quantities and values, accounting for any due out or due ins. If the out of balance condition is caused by a pending due in or due out item, it will be displayed separately to easily identify. The PAR Bins System due-ins and due-outs will automatically be removed when GIP due-in and due- Government is substantially increased efficiency in on-hand inventory management of expendable supplies and enhanced logistic support to clinicians providing on-time availability of medical supplies.

The PAR Bins with direct VistA GIP interface will ensure proper storage of medical and surgical products and provide accessible real-time/accurate readings of the supply quantities by the web-based program. This benefits to the Government are not over ordering and wasting funds and/or n

The PAR Bins System equipment is a highly specialized system that, if improperly implemented and/or improperly pieced together, does not work as it should. This issue is known because the improper implementation of the system was experienced previously at the VA National level. The product requires the PAR Bins System to be compatible with their proprietary software in order to function and pass along data as designed.

PAR Bins System automates usage capture, and eliminates manual inventory counting through real-time scale data. An example, the end users simply remove products from the bins, the system gets notified as to how many were removed or added and send those transactions directly to VISTA GIP to decrement or credit the inventory, keeping a real time accurate inventory.

Weight based is the key here as there are other inventory management systems that interface with Vista GIP, such as Pyxis and Omnicell; however, these are point-of-use (POU) systems that rely on end users to manually track inventory by logging in and touching a button at the exact amount of the times as the quantity of items being removed at the time of use. This is time consuming for the end user which causes the inventory to be inaccurate due to rushed picks and inaccurate manually counting processes which can cause patient safety events.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Market research was conducted, details of which are in section 8 of this requirement. There is no competition anticipated for this acquisition. In accordance with FAR 5.301 Publicizing Postaward, this justification will be posted with the award notice on www.sam.gov.

A Sources Sought Notice was posted to www.sam.gov, # 36C255-26-AP-1165, February 26, 2026 through March 12, 2026. The Statement of Requirements requesting to install a free-standing inventory management storage with a weight-based inventory management system that will be

Effective Date: 12/30/2025 Page 3 of 5

Acquisition ID#: 36C255-26-AP-1165 interfaced with Generic Inventory Package (GIP), to ensure proper storage of medical and surgical products. No vendors responded referencing similar weight-based inventory management bin system with the direct VistA GIP interface.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: A fair and reasonable price determination will be made by comparison to the Independent Government Cost Estimate that was formulated by using market research of available historical pricing. Certified cost and pricing data is not required under this requirement because it will be a Firm-Fixed-Price contract.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The following is based on Market Research conducted in accordance with FAR Part 10, (see also Section 6 above).

with other VA VISN facility personnel to find out if they used same or similar equipment and found that those VA facilities could not find any similar equipment with the GIP Interface and awarded sole source contracts for the PAR Bins System equipment. The CO spoke with the OEM to inquire about the PAR Bins System and find out if there were other authorized vendors that could distribute/service this equipment or if any similar system could interface with the PAR Bins System.

PAR Excellence stated due to the proprietary nature of the system that no other similar systems could interface with it and they were no longer authorizing third party vendors to distribute/service this equipment.

The CO also

Ability One No results identified.

UNICOR No results identified.

GSA Global Supply No results identified.

NAC No results identified.

PPMS No results identified.

SAC/SCMS Contracts were found with PAR Excellence for the PAR Bins System with GIP

Interface but cannot be used for this requirement as they are specifically for the facility that was awarded the contract.

HTME There are no contracts identified that could provide this requirement.

SBA Small Business Search: 153 Small Businesses were found and not all of them were

Veteran owned. Further research concluded that there are no two or more SDVOSB or VOSB vendors capable of providing this requirement.

Weight based is the key here as there are other inventory management systems that interface with Vista GIP, such as Pyxis and Omnicell; however, these are point-of-use (POU) systems that rely on end users to manually track inventory by logging in and touching a button at the exact amount of the times as the quantity of items being removed at the time of use. This is time consuming for the end user which causes the inventory to be inaccurate due to rushed picks and inaccurate manually counting processes which can cause patient safety events. Additionally, PAR Excellence Systems, Inc., provided a Sole Source Letter because they no longer authorize third party vendors to distribute or service their PAR Bins System.

In conclusion, after conducting market research and looking into the capabilities required for this PAR Bins System equipment to function properly it has been determined that PAR Excellence

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Acquisition ID#: 36C255-26-AP-1165 proprietary software is a highly specialized system that, if improperly implemented and/or improperly pieced together or using other manufacturer parts/software, does not work as it should.

This issue is known because the improper implementation of the system was experienced previously at the VA National level. The product requires the PAR Bins System to be compatible with the PAR Excellence proprietary software and GIP interface in order to function and pass along data as designed.

The OEM bins are the only equipment with the direct VistA GIP interface which is the key element in separating it from other types of similar weight-based inventory management equipment because the OEM PAR Bins are able to load information into VAMC systems, (NOT VA OIT Systems), remotely without requiring additional work arounds of transferring data that can cause corruption, or improper entries.

The OEM PAR Bins PAR Bins System is the only weight-based inventory management system that directly interfaces with VistA GIP, and takes the human factor out, that allows a ability to expeditiously reduce risk of error due to low or out of stock supplies.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None.

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

PAR Excellence Systems, Inc. (OEM) 11500 Northlake Drive, STE 135 Cincinnati, OH 45249-1655

UEI: N9LFJALEM6K7

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

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.

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Effective Date: 12/30/2025 Page 5 of 5

Acquisition ID#: 36C255-26-AP-1165

Teresa Cabanting Contracting Officer Network Contracting Office (NCO) 15

b. One Level Above the Contracting Officer (Required over $350K but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Andrew J. Raiber, CPCM Director of Contracting Network Contracting Office (NCO) 15

c. VHA Advocate for Competition and RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve $900K to $90 million for other than full and open competition.

Daryl A. Berg Executive Director, RPO Central Head of Contracting Activity