FAR 13.5 Sole Source Justification - Over SAT-1_V5 Pill Packagers.pdf

13.5 Simplified Acquisition Procedures for Certain Commercial Items Sole Source Justification

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: VA-24-00076149

1. Contracting Activity: Department of Veterans Affairs, VISN 05 VA Capitol Healthcare Network

2237# - 482-24-4-9163-0018

2. Nature and/or Description of the Action Being Processed: The VISN 5 VA Capitol Healthcare Network Pharmacy service is requesting procurement of four (4) pill packager autoverification unit systems to use in conjunction with the GSA/eBUY procurement of four (4) replacement pill packaging units. These autoverification units must be awarded to the same vendor as the pill packaging units, as the interfaces, integrations, and licensing are proprietary in nature.

Contractor: Chudy Group LLC The estimated value of the proposed action is: $557,310.

A summary of the supplies and services needed is as follows:

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This J&A encompasses four (4) pill packager autoverification unit systems, integrations and licensing that are open market valued items. In order to meet the needs specified in the SOW, the vendor selected within the comparative (best value) selection process is the only vendor capable of supplying the autoverification unit as summarized in the table above.

Total estimated value of the acquisition: $557, 310.00 Period of Performance: installations of all four units shall be completed within 365 days after award.

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:

Item # Quantity Unit Cost Description

Perl 1 plus licensing 8 $125,600.00 $502,400.00

Implementation services -

PERL

4 $9,075.00 $36,300.00

SMA Perl 4 $4,652.50 $18,610.00

(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 Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Only one Responsible Source and No Other Supplies or Services will satisfy agency requirements – these open market items must be provided by the vendor selected in the GSA/eBUY selection, as the autoverification units use interfaces, integrations, and licensing that are proprietary in nature and integrated with the NDCs that have been built out within the pouch packaging system.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: This requirement was posted as a best value solicitation for all vendors capable of meeting the requirements outlined in the SOW. The solicitation was posted on the GSA/eBUY channels for vendors to bid on.

A sources sought was published on SAM.gov on May 28, 2024. 36C24524Q0562. It contained the SOW used for this procurement.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable: The contracting officer will find the price fair and reasonable using competition and IGCE. See S19 in briefcase. The price was comparaed to other quotes in the solitation that had open market items in their quotes. Please see S15 Technical Evaluation Document in briefcase for technical evaluation.

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

Market Research Was Not Conducted: Market research for the pill packager procurement was performed from January – April 2024. Vendor informational demonstrations included discussion of autoverification units and capabilities associated with these units. Disclosure of these units being proprietary in nature and not cross-vendor compatible was disclosed. No additional market research on these units was performed after submission of package due to this finding.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: These open market items must be provided by the vendor selected in the GSA/eBUY selection, as the autoverification units use interfaces, integrations, and licensing that are proprietary in nature and integrated with the NDCs that have been built out within the pouch packaging system.

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

Parata Systems LLC / Chudy Group LLC 106 Roche Drive Durham, North Carolina 27703 Company Point of Contact:

Cody Manley cmanley@parata.com

(262) 279-2372

Omnicell Inc.

4220 North Freeway Fort Worth, TX 76137 Company Point of Contact:

Bradley Galbreath bradley.galbreath@omnicell.com

(817) 239-0308

ScriptPro 5828 Reeds Road Mission, KS 66202 Company Point of Contact:

Andy Williams awilliams@scriptpro.com

(913) 403-7196

Trillamed (CTA with Omnicell Inc.)

30100 Telegraph Road Suite 366 Bingham Farms, MI 48025 Company Point of Contact:

Tejas Smart tsmart@trillamed.com

(248) 203-9734 10.

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: This is a one-time procurement of four (4) pill packagers with no subsequent supply purchases determined in the immediate future.

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.

Frances M. Arnold Biomedical Engineer VISN 5, Capitol Health Care Network

Date

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

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

Joseph J. Krupa Contracting Officer NCO 5, Martinsburg VAMC

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Phillip G. Duba Branch Chief NCO 5, Martinsburg VAMC https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx