final_PMI-ATS Limited sources JA_Redacted.pdf

Limited Sources Justification and Approval (J&A)

CONTROLLED UNCLASSIFIED INFORMATION

April 2024 CONTROLLED UNCLASSIFIED INFORMATION Page 1 of 7

Contracting Activity: 763rd Enterprise Sourcing Squadron (ESS) - Flight B

Purchase Request / Local ID Number:

Program / Project (and PE, if applicable): Patient Movement Items - Asset Tracking System (PMI-ATS) Support

Program Type (PEO or Other Contracting): Other Contracting

Authority: Multiple Award Schedule Program (FAR 8.405-6)

Estimated Contract Cost (including options):

Is this a Bridge Action? Yes No

Description of Limitation:

Conexus’ Plexus Vision Information System (IS) is a commercial off-the-shelf (COTS) software platform that enables tracking and management of assets using multiple technologies including radio-frequency identification (RFID), wireless real-time locating systems (RTLS), and barcode. Plexus offers the capability of real time asset location across a collection of facilities, as well as the ability to consolidate tracking data from multiple locations into a single enterprise master view. Additionally, Conexus is the sole provider of Air Mobility Command Surgeon Directorate Medical Readiness Logistics Branch’s (HQ AMC/SGXL) solution to an RFID asset tracking information system. PMI-ATS software is proprietary (owned by Conexus) and use of any other software would require certifications that would take a minimum of 18 months to two years to obtain. The manufacturer would be required to obtain the following certifications/authorizations:

- Authority to Operate (ATO)

- Approval to Connect (ATC)

- Joint Medical Logistics Functional Development Center (JMLFDC) approval

- Published in the DML-ES-Asset Tracking System Interface Specification, V2.0, Interface Control Document (ICD)

- Cybersecurity/Information Assurance

COORDINATION (DAFFARS 5306.304(a))

Date

23 Sep 2024

Project Lead / Program Mgr / Requiring Activity

Christopher Reely

AMC/SGXL/

Signature

Date

23 Sep 2024

Contracting Officer

Lisa Pendragon 763rd ESS-PKB /

Signature

Date

23 Sep 2024

Local Legal Reviewer

Bryan T. Martin

AMC/JAQ /

Signature

Date Chief of the Contracting Office (COCO)

Lisa Gross 763rd ESS /

Signature

Date

23 Sep 2024

Competition Advocate

Command Competition Advocate/Approval Authority Susan R. Madison, NH-IV, DAFC AFICC KM-OL AMC /

Signature

APPROVAL (DAFFARS 5306.304(a))

REELY.CHRISTOPHER.MA

RTIN.

Digitally signed by

REELY.CHRISTOPHER.MARTIN.

Date: 2024.09.23 13:12:05 -05'00'

PENDRAGON.LISA.R. Digitally signed by

PENDRAGON.LISA.R.

Date: 2024.09.23 13:31:17 -05'00'

MARTIN.BRYAN.T. Digitally signed by

MARTIN.BRYAN.T.

Date: 2024.09.23 13:56:29 -05'00'

GROSS.LISA.A. Digitally signed by

GROSS.LISA.A.

Date: 2024.09.23 14:03:24 -05'00'

MADISON.SUSA

N.R.

Digitally signed by

MADISON.SUSAN.R.

Date: 2024.09.23 14:18:55 -05'00'

April 2024 CONTROLLED UNCLASSIFIED INFORMATION Page 2 of 7

April 2024 CONTROLLED UNCLASSIFIED INFORMATION Page 3 of 7

I. Contracting Activity.

The Department of the Air Force (DAF), Air Force Installation Contracting Center (AFICC), 763rd Enterprise Sourcing Squadron (ESS), Flight B, located at 510 POW/MIA Drive, Bldg. P40, Scott AFB, IL 62225-5022, is the contracting activity responsible for the proposed Limited Sources Justification for Patient Movement Items - Asset Tracking System (PMI-ATS) support services.

Contracting Officer, Lisa Pendragon, lisa.pendragon@us.af.mil

II. Nature and/or description of the action being processed.

763rd ESS intends to issue a new sole source, Firm Fixed Price (FFP) task order to Conexus, Inc., for PMI-ATS through the General Services Administration (GSA) Multiple Award Schedule (MAS) Information Technology Professional Services (Special Item Number 54151S) using GSA Contract Number47QTCA24D005P MAS, valid through 2044. This requirement will be procured utilizing Period of Performance:

Base Period: 30 Sep 24 to 29 Sep 25 Option Period One: 30 Sep 25 to 29 Sep 26 Option Period Two: 30 Sep 26 to 29 Sep 27 Option Period Three: 30 Sep 27 to 29 Sep 28 Option Period Four: 30 Sep 28 to 29 Sep 29 Extension of Services (EOS): 30 Sep 29 to 30 Mar 30

III. Description of supplies/services required to meet agency needs.

Headquarters AMC/SGXL has oversight of the PMI program and operates the RFID based automated Patient Movement Item Asset Tracking System, PMI-ATS. This tracking system is vital to ensuring mission critical PMI assets are ready, staged and available for use in treating ill or injured patients. The ability to access and track assets includes a dedicated automated process, which maximizes the efforts of the Aeromedical Evacuation (AE) and PMI staff. Specific cost efficiency objectives of this initiative include reducing the loss incurred when an inventory item cannot be located, reducing the labor commitment required to perform physical inventories and eliminating the potential for inaccurate manual data entry. In addition to cost efficiencies, the PMI-ATS increases command confidence when reporting and planning on mission readiness. These objectives contribute to the goal of effective patient care and support the stated goals of the Defense Healthcare Agency (DHA) towards achieving greater system integration and efficiencies through interoperability with multi-service Medical Treatment Facilities (MTFs). The performance requirements of this procurement are to provide ongoing support and maintenance of the current PMI-ATS hardware and software (Conexus Plexus Vision IS), support for the PMI Program Management Office (PMO) as well as additional hardware/software for sustainment of the PMI-ATS system. Further, the PWS outlines the tasks required for the sustainment and uninterrupted system availability and effectiveness in tracking and managing the PMI inventory. Sustainment of the current PMI-ATS hardware and software includes help desk services for emergency support, on-site support for up to three PMI conference meetings per year, and up to three military medical exercises per year, identified by the COR as they become available. In-service support includes system training or hardware location adjustments at any CONUS and OCONUS location identified in the PWS. Additionally, Conexus shall provide a bidirectional interface that includes: design, programming, testing, installation, configuration, delivery on-site setup and training.

Conexus' Plexus Vision Information System is a commercial off-the-shelf (COTS) software platform that enables physical location tracking using Automatic Identification and Data capture (AIDC) technology via passive barcode and Radio Frequency Identification (RFID) installed across AMC Aeromedical Evacuation (AE) locations. Plexus offers the capability of real time asset location across a collection of facilities, as well as the ability to consolidate tracking data from multiple locations into a single enterprise master view. These services will be procured using performance-based acquisition policies and procedures in accordance with FAR 37.6. Additionally, hardware/ software for system sustainment will be procured to ensure full functionality of the PMI-ATS.

April 2024 CONTROLLED UNCLASSIFIED INFORMATION Page 4 of 7

A price breakdown by performance period is shown below for this follow on effort:

Software application modification requirements to include product testing and work with Cyber Security specialists is all upfront work. Due to the software application modification requirements (Global Command View, Biomedical Equipment

Maintenance Notes Expansion w/Document attachment), deployment kits are required in the base year and option year one, which are an additional cost. HQ AMC/SGXL has a validated requirement of an additional 50 deployment kits at the time of submission for tracking at 50 locations. HQ AMC/SGXL split these up into two years for life cycle management of the assets.

Base Year: 30 Sep 24 to 29 Sep 25

CLIN 0001 - Services

CLIN 0002 - Hardware/Software

CLIN 0003 - Travel/Shipping (FFP)

CLIN 0004 - Optional 30 Deployment Kits (Hardware/Software)

CLIN 0005 - Optional 30 Deployment Kits (Travel/Shipping) (20 CONUS/10OCONUS)

SUBTOTAL

Option Year One: 30 Sep 25 to 29 Sep 26

CLIN 1001 - Services

CLIN 1002 - Hardware/Software

CLIN 1003 - Travel/Shipping (FFP)

CLIN 1004 - Optional 20 Deployment Kits (Hardware/Software)

CLIN 1005 - Optional 20 Deployment Kits (Travel/Shipping) (20 CONUS)

SUBTOTAL

Option Year Two: 30 Sep 26 to 29 Sep 27

CLIN 2001 - Services

CLIN 2002 - Hardware/Software

CLIN 2003 - Travel/Shipping (FFP)

SUBTOTAL

Option Year Three: 30 Sep 27 to 29 Sep 28

CLIN 3001 - Services

CLIN 3002 - Hardware/Software

CLIN 3003 - Travel/Shipping (FFP)

SUBTOTAL

Option Year Four: 30 Sep 28 to 29 Sep 29

CLIN 4001 - Services

April 2024 CONTROLLED UNCLASSIFIED INFORMATION Page 5 of 7

CLIN 4002 - Hardware/Software

CLIN 4003 - Travel/Shipping (FFP)

SUBTOTAL

Extension of Services (EOS): 30 Sep 29 to 30 Mar 30

CLIN X001 - Services

CLIN X002 - Hardware/Software

CLIN X003 - Travel/Shipping (FFP)

SUBTOTAL

TOTAL

IV. Identification of the justification/rationale for limiting sources and demonstration of the contractor's unique qualifications to provide the required supply/service.

FAR 8.405-6 requires an ordering activity to justify its actions when restricting consideration of schedule contractors to fewer than required in 8.405-2. In accordance with FAR 8.405-6(a)(1)(i)(B), "Only one source is capable of responding due to the unique or specialized nature of the work". A sole source acquisition is necessary due to AMC/SGXL's requirement being a small piece of a much larger system which must be compatible with the larger system. The PMI-ATS system software must operate within Defense Medical Logistics Standard Support’s (DMLSS) larger system which is composed of 73 sites.

AMC/SGXL has estimated that it would cost roughly per site, per year for five years, for a total of (before adding a 6- month Extension of Services, IAW FAR 52.217-8, which would increase the total to over ) to replace the existing equipment and software at all 73 CONUS and OCONUS locations. Should new equipment and software be pursued, the manufacturer would be required to obtain the following certifications/authorizations that would take a minimum of 18 months to two years to obtain, in addition to the time required to develop the software.

- Authority to Operate (ATO)*

- Approval to Connect (ATC)

- Joint Medical Logistics Functional Development Center (JMLFDC) approval

- Published in the DML-ES-Asset Tracking System Interface Specification, V2.0, Interface Control Document (ICD)

- Cybersecurity/Information Assurance

Market research has indicated that due to both the extensive process and the volume of systems requesting Authorization, the DOD ATO process can take several years and the cost is highly variable (industry has indicated costs that vary by almost an order of magnitude and regularly exceed $1 million). Therefore, depending on the AO assigned to the system, any potential cost savings achieved by competing this software requirement would not offset the duplication cost of replacing the DMLSS system. As a minor partner on the larger system, AMC/SGXL has no control of the system software provider.

Additionally, Conexus is the only company that has an asset tracking system that will inter-operate with the Government's currently fielded Project Management In IT Security (PMITS) system and that has the capability to share equipment tracking data with Defense Medical Logistics Standard Support (DMLSS). Compatibility with the Government's system is essential to system performance and the success of HQ AMC/SGXL's mission. Defense Medical Logistics Standard Support applications are a group of Automated Information Systems (AIS) that provides a variety of medical logistic services to the DoD Medical Logistic (DML) community. The PMI program is included and is regulated by the DMLSS PMO. Project Management In IT Security fulfills regulatory requirements that are associated to the DMLSS Program.

Conexus is the sole proprietor of the Plexus Vision IS which is a specialized COTS product that enables the Air Force to continuously track PMI required to support the Global Patient Movement mission. Required sustainment services and new hardware/software are only available from Conexus, Inc. Additionally, Conexus is the only vendor with the requisite

April 2024 CONTROLLED UNCLASSIFIED INFORMATION Page 6 of 7 knowledge available to provide sustainment services and no other vendors have rights to the program code to provide the sustainment and maintenance of the Conexus Plexus IS. It was confirmed by Conexus that they do not have any authorized resellers of their software or services per email dated 18 Jul 24. Further, Conexus stated there are elements in the software that require modification that can only be done by Conexus and must be documented in their Authorization to Operate (ATO) and Approval to Connect (ATC). Additionally, the optional deployable kits are proprietary and can only be provided by Conexus.

Changing to a system other than the Plexus Vision IS would result in a substantial duplication of cost as described above.

Additionally, there would be an unacceptable delay if the Government was to change vendors. Receiving ATO/ATC typically takes 18-24 months. In addition , cybersecurity in the development stage can take up to three years. It took three years to fully field all hardware to all locations when the Plexus Vision IS was implemented. Therefore, it could take up to six years to get to the sustainment phase that AMC/SGXL is currently in with the Plexus IS. Failure to sole source would result in a complete stoppage of Patient Tracking and ultimately death to impacted warfighters.

V. Determination by the ordering activity Contracting Officer that the order represents the best value consistent with

FAR 8.404(d).

A proposal will be requested on a sole source basis from Conexus under their GSA Federal Supply Schedule contract. In accordance with FAR 8.404 prices for supplies and services offered on GSA schedules have already been determined fair and reasonable; however, in order to negotiate a fair and reasonable price, the government will seek discounts due to duration of items in the order following FAR 8.405-4, and evaluate the proposed prices in accordance with FAR 8.405-2(d) using the independent government estimate.

Reasonableness - For a price to be reasonable, it must represent a price to the Government that a prudent person would pay in the conduct of competitive business. The Government will determine prices fair and reasonable through the use of one or more of the price analysis techniques at FAR 15.404-1(b)(2).

VI. Description of the market research conducted and the results, or explain why market research was not conducted.

A Request for Information (RFI) notice was posted on SAM.gov on 21 May 24 with a response date of 05 Jun 24 which included a draft PWS. The RFI requested business size, anticipated teaming arrangements, demonstrated ability to provide PMI-ATS support as described in the PWS and any past/current performance experience. 763rd PKB contracting team posted a Request for Information (RFI) notice on SAM.gov on 21 May 24 with a response date of 05 Jun 24 which included a draft PWS. The RFI requested business size, anticipated teaming arrangements, demonstrated ability to provide PMI-ATS support as described in the PWS and any past/current performance experience. Received responses from 3 vendors, however none were determined capable of meeting the requirement, as they are not authorized resellers of the Conexus Product line.

Survey of the marketplace showed that has a Patient Flow/Bed manager which tracks the timely movement of patients through the healthcare facility by displaying real-time patient and bed status views across the healthcare organization, optimizing patient-bed matching upon admission or transfer by providing Admitting Personnel the required details for beds/bed reassignment, and tools to block and assign beds efficiently. This tracker is more for improving financial health of the medical family and does not offer the overall functionality of the PMI-ATS tracking system. Additionally, does not have the required DoD ATO.

PMI-ATS software is proprietary (owned by Conexus) and use of any other software would require certifications that would take a minimum of 18 months to two years to obtain. The manufacturer would be required to obtain the following certifications/authorizations to put on the .mil sites:

- Authority to Operate (ATO)

- Approval to Connect (ATC)

- Joint Medical Logistics Functional Development Center (JMLFDC) approval

- Published in the DML-ES-Asset Tracking System Interface Specification, V2.0, Interface Control Document (ICD)

- Cybersecurity/Information Assurance

Market research indicates that two or more sources are not available to provide this specific capability.

April 2024 CONTROLLED UNCLASSIFIED INFORMATION Page 7 of 7

Additionally, these services cannot be provided by the AbilityOne program.

Conexus did not reply to the RFI, but did email confirming that they do not allow for any third party vendors, and that all orders must be submitted directly through the company.

Responses were received from three companies and the Government was able to confirm none could meet the requirement.

Two of the responses received did not provide adequate information showing that they could meet requirement. The other company did not show that they have the required Authority to Operate (ATO) or Authority to Connect (ATC) to the DHA.mil system. The incumbent did not initially reply to the RFI, however on 18 July 2024 they confirmed there are no authorized resellers and all purchases must go through Conexus directly.

VII. Other facts supporting the justification.

None

VIII. Actions the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services.

Survey of the marketplace shows no other capable vendors as described in the market research. Continual surveys will be conducted to gather qualified vendors. If another company were to enter the marketplace, the process could take several years and result in substantial costs before it could even be a competitor. For future acquisitions of the PMI-ATS tracking system, market research will continue, surveying the marketplace for additional vendors that have qualified themselves as suppliers or maintainers of the present, or a comparable asset tracking system.

IX. Certification by the Contracting Officer.

As evidenced by my signature above, I have determined this document to be both accurate and complete to the best of my knowledge and belief.

X. Certification by the technical/requirements personnel.

As evidenced by my (our) signature(s) above, I (we) certify that any supporting data contained herein, which is my (our) responsibility, is both accurate and complete.