HT941026N0069 Justification and Approval RFO Part 6 FY26 6212026.pdf

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Control Number: FY26-0784

Controlled by: Defense Health Agency (DHA) Controlled by: Healthcare Contracting Division – West (HCD-W) CUI Category(ies): Source Selection Limited Dissemination Control: FEDCON POC: Cha-on P. Gordon, cha-on.p.gordon2.civ@health.mil

Source Selection Information - See FAR 2.101 and 3.104-4

1 OCT 2024

Justification and Approval (J&A) for Other than Full and Open Competition Revolutionary Federal Acquisition Regulation (FAR) Overhaul (RFO) Parts 6 and 12

Implemented by Class Deviation 2026-O0017, Revision 1

1. Identification of the Agency and Contracting Activity:

This justification is executed by the Defense Health Agency Contracting Activity (DHACA), Healthcare Operations Division - West (HCD-W), San Diego, CA, on behalf of the Department of Pharmacy at Madigan Army Medical Center at Joint Base Lewis-McChord (JBLM) in Tacoma, WA.

2. Nature and/or Description of Action being Approved:

DHACA HCD-W intends to negotiate and award a firm-fixed price Blanket Purchase Agreement (BPA) with a 5-year ordering period on a sole source basis to Central Admixture Pharmacy Services, Inc.

(CAPS) (UEI: NDPWXJSVYVH9 CAGE: 3S5G9) for the Pre-Mixed IV Fluids, cardioplegic solutions, and specialized Total Parenteral Nutrition (TPN) solutions, including TrophAmine, Plenamine, Nutrilipid, and SMOF Lipid.

Product List:

Item Description TPN Volume Qty per Month

TrophAmine® / Plenamine™ 15% 1 - 1000 mL 30

1001 - 1500 mL 15

1501 - 2000 mL 15

2001 - 2500 mL 10

2501 - 3000 mL 5

3001 mL or greater 5

Nutrilipid® 20% in 3-in-1 TPN Per 100 mL 5

SMOF Lipid in 3-in-1 TPN Per 100 mL 5

TPN Delivery Per Delivery 30

3. Description of Supplies/Services and Estimated Value:

The Pharmacy Department at Medical Treatment Facilities (MTFs), supported by the HCD-W, is requesting a follow-on 5-year Blanket Purchase Agreement (BPA) for the supply and delivery of Pre- Mixed IV Fluids, cardioplegic solutions, and specialized Total Parenteral Nutrition (TPN) solutions, including TrophAmine, Plenamine, Nutrilipid, and SMOF Lipid. These specialized solutions are critical to maintaining medical stability for neonates suffering from pulmonary hypertension and other pulmonary diseases. This supply requirement consists of Pre-Mixed IV Fluids to support the critical and time-sensitive needs of specialized inpatient populations. The required products must be available for ordering with guaranteed same-day delivery, seven days a week.

The objective of this sole source award is to establish a Blanket Purchase Agreement with a 5-year

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Source Selection Information - See FAR 2.101 and 3.104-4

OCT 2024

ordering period for: the supply and delivery of Pre-Mixed IV Fluids, cardioplegic solutions, and specialized Total Parenteral Nutrition (TPN) solutions, including TrophAmine, Plenamine, Nutrilipid, and SMOF Lipid

Delivery Period Estimated Value Type of Funding Contract Type Location 1 October 2026 to 30 September

$900,000.00 Operations and Maintenance (O & M)

BPA Firm-fixed-price

Madigan Army Medical Center, Department of Pharmacy

4. Statutory Authority Permitting Other Than Full and Open Competition:

Statutory Authority Cited permitting other than full and open competition: Acquisition of commercial item(s) conducted pursuant to RFO 12.201-1(e)(3) in accordance with 41 U.S.C. 1901 Simplified Acquisition Procedures.

5. Rationale Justifying Use of Authority Cited:

This sole source justification is prepared using the format at RFO 6.103-1(c)(2)(i), modified to reflect the procedures in RFO 12.201-1(e)(3) in accordance with 41 U.S.C. 1901. Based on extensive market research and previous acquisition history, it has been determined that the only vendor capable of meeting the Government’s requirements is:

Central Admixture Pharmacy Services, Inc.

(CAPS) (UEI: NDPWXJSVYVH9; CAGE: 3S5G9)

Critical Requirement:

DHA, supporting Madigan Army Medical Center (MAMC) at Joint Base Lewis-McChord (JBLM) in Tacoma, WA, has a critical requirement for outsourced pharmacy intravenous (IV) compounding services. Specifically, MAMC requires the procurement of Pre-Mixed IV Fluids, cardioplegic solutions, and specialized Total Parenteral Nutrition (TPN) solutions, including TrophAmine, Plenamine, Nutrilipid, and SMOF Lipid.

Rationale for Sole Source:

The justification for restricting competition to CAPS is driven by the intersection of strict clinical specifications and rigid logistical constraints:

1. Clinical Exactness: Due to the exacting clinical specifications of these medical products which are life-sustaining for vulnerable specialized inpatient populations (including neonates) no formulary substitutes are permissible.

2. Logistical and Geographic Constraints: To support time-sensitive critical care, the required products must be available for ordering with guaranteed same-day delivery, seven days a week.

CAPS is the only identified company that physically manufactures and distributes these specific Pre-Mixed IV Fluids within the state of Washington. Their geographic proximity to JBLM makes them uniquely positioned, and the sole source capable, of fulfilling the mandatory seven-days-a-week ordering and same-day delivery mandate.

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Source Selection Information - See FAR 2.101 and 3.104-4

Market Research Summary:

Extensive market research was conducted in accordance with FAR Part 10 to determine the availability of commercial sources.

Mandatory Sources & Schedules: A review of mandatory sources under FAR 8.002(a)(1)(i) through (iv), including Federal Prison Industries and AbilityOne, determined these avenues are not applicable. Further research into FAR 8.002(a)(1)(v) and FAR 8.003 yielded no possible sources through GSA, FSS, or other mandatory sources. Broad database searches across FPDS- NG, GSA Advantage, GSA eLibrary, GSA Global Supply, NASA SEWP, and VA FSS using keywords such as “Pre-Mixed IV Fluids” and “Central Admixture” yielded zero contractors capable of providing the exact or equal supplies required.

Internal Review: A review of internal contracting activity via the BPA Tracker revealed no similar contracts currently in place to leverage.

Open Market: Open market research, including internet searches and telephone contacts, confirmed that while "Pre-Mixed IV Fluids" are commercially available per FAR 8.004 and FAR 12.1, only CAPS can meet the agency's strict delivery and formulary requirements. Four companies with IV outsourcing capabilities were identified, including ICU Medical and Chemique Pharmaceutical Inc. However, inquiries revealed that these alternative vendors do not offer cardioplegic solutions, lack a complete formulary of the required TPNs, and cannot provide the necessary same-day delivery to JBLM.

Because no other vendor can adequately address the agency’s unique medical and logistical needs, a Notice of Intent (NOI) to sole-source (HT941036N0069) was posted on SAM.gov from 15 to 30 June 2026. To date, this posting has resulted in no additional respondents capable of meeting the requirement.

6. Efforts to Obtain Competition:

Market research was conducted by technical experts in June 2026. This research consisted of reviews of similar previous procurements, using search engines in an effort to find open market contractors, reviewing mandatory sources, and posting a Notice of Intent to Sole Source. Search engines utilized include SAM.gov, FPDS-NG, DHA Inventory, Excess Personal Property, Federal Prison Industries (FPI), Ability One, ECAT-DLA, GSA Advantage, and the VA to identify potential sources that can meet the Government's requirements. Based on the analysis of the market research completed, only one (1) vendor, Central Admixture Pharmacy Services, Inc., was found capable of meeting the Government's requirements.

7. Actions to Increase Competition/Remove or Overcome any Barriers to Competition:

In accordance with the basis for award procedures at RFO 6.104-2, the Contracting Officer will utilize a comparison of the proposed price with prices found reasonable on previous purchases and a comparison of the price to the independent Government estimate provided by the requiring activity to determine the vendor's quoted price fair and reasonable. Additionally, the Government has historical pricing information from similar contracts that provided similar services. The cumulative data available to the Contracting Officer provides for the ability to determine a fair and reasonable price in accordance with RFO 6.104-1(a)(7).

8. Market Research:

Market research was conducted by technical experts in June 2026 and included mandatory source searches (AbilityOne, UNICOR, and ECAT); vendor capability searches on SAM.gov, SBA Dynamic Small Business Search (DSBS), and GSA Advantage; a review of commercial off-the-shelf (COTS) surgical planning tools; and consultations with other DoD training centers currently using virtual surgical

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Source Selection Information - See FAR 2.101 and 3.104-4 planning (VSP) software. Madigan Army Medical Center at Joint Base Lewis-McChord (JBLM) in Tacoma, WA, has a critical requirement to support the critical and time-sensitive needs of specialized inpatient populations, the required products must be available for ordering and guaranteed same-day delivery, seven days a week. Market research identified four companies with IV outsourcing capabilities, including ICU Medical and Chemique Pharmaceutical Inc. However, inquiries revealed that these vendors do not offer cardioplegic solutions, lack a complete list of the required TPNs, and cannot provide the necessary same-day delivery. CAPS is the incumbent and the only known company that physically manufactures and distributes these specific Pre-Mixed IV Fluids within the state of Washington, making them uniquely positioned to fulfill the seven-days-a-week ordering and delivery mandate. Because no other vendor can adequately address the agency's unique medical and logistical needs, current market conditions do not justify switching vendors, necessitating a sole source award to CAPS.

9. Other Facts:

a. Procurement History:

(1) Is this a new requirement? No

(2) If 9.a.(1) is No, was the action just prior to this one competed? No, Defense Health Agency Contracting Activity (DHACA) though MRCO Pacific awarded Indefinite Delivery Indefinite Quantity (IDIQ) W81K0222D0007 as a Sole Source on 29 April 2022.

(3) If 9.a.(2) is Yes, what has changed where this action cannot be competed? N/A

b. Additional Information:

DHACA HCD-W will continue to survey and engage the market for any potential vendors.

10. Interested Sources:

No additional sources submitted capabilities statements for the Government's consideration.