Justification for Sole Source_Plexus Tracking System_09.30.26.pdf

Control Number: FY26-0878

Sole Source Justification (SSJ) Revolutionary FAR Overhaul (RFO) Federal Acquisition Regulation (FAR) Part 8.4

1. Identification of the Agency and Contracting Activity:

Defense Health Agency (DHA), DHA Contracting Activity (DHACA), Healthcare Contracting Division (HCD) - West

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

Naval Hospital Camp Pendleton (NHCP) requests a new Firm Fixed Price, Federal Supply Schedule order (under GSA/MAS Contract: 47QTCA24D005P) for Plexus Location Asset Tracking System Installation and Maintenance Services. This procurement is not merely a new purchase but an upgrade and continuation of the existing asset tracking system, making compatibility and integration critical. Previously, this system was implemented and maintained by this proposed vendor under Contract: GS-35F-0397P/Order: W912DY17F0881 issued by the Army Engineering and Support Center. This previous contract is not considered a follow-on as it expired in 2022.

3. Description of Supplies or Services and Estimated Value:

The proposed vendor, Conexus, Inc., is the sole source provider for Plexus Vision Asset Tracking System Installation and Maintenance services. NHCP requires a critical software upgrade, hardware expansion, and 5 years of ongoing maintenance support (Base plus 4 Option Years) for its existing Plexus Location Asset Tracking System. Conexus Inc. shall provide the following services:

• Upgrading the existing, proprietary Plexus system to the latest version;

• Expanding the system's ability to manage new hardware and application software and ensure its continued compliance with Defense Health Agency (DHA) Cyber-Authorized security standards;

• Including a bi-directional interface to the DHA/Defense Medical Logistics Support Services (DMLSS) accountable system;

• Delivering a seamless migration to update the Plexus system;

• Provision of comprehensive training and post-deployment support.

Source Selection Information - See FAR 2.101 and 3.104-4

JUNE2026

4. Authority Cited:

The authority permitting sole source procurement is: FAR 8.401 (b): When placing an order under the FSS, agencies must follow the ordering procedures established by GSA and found at Subpart

538.71. GSA ordering procedures follow all statutory requirements, including the requirements of section 863 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009, and have been coordinated with the Office of Federal Procurement Policy for consistency with government-wide acquisition policy. In addition, GSA Subpart 538.7104-4(b)(l): Items peculiar to one manufacturer. Requirement: items peculiar to one manufacturer must not be acquired unless: the particular brand name, product, or feature is essential to the ordering activity's requirements, and market research indicates other companies' similar products, or products lacking the particular feature, do not meet, or cannot be modified to meet, the need.

5. Rationale Justifying Use of Authority Cited:

Conexus is the sole creator of the software and manufacturer of the Plexus product from which the services and products can be obtained (sole source letter was provided by the vendor). After extensive research by the customer, the Plexus brand was determined to be the only asset tracking system available to meet the specific needs of NHCP. Below are the key reasoning factors:

Existing Infrastructure and Seamless Integration: The facility is already using an older version ofthe Plexus system. This upgrade is a logical follow-on that ensures a seamless transition, minimizes operational downtime, and maintains data integrity by migrating existing asset data and historical records to the new platform. A different system would require a complete replacement of hardware and software, leading to significant disruption of the required asset tracking system.

DHA Cyber-Authorization & security: Plexus is fully approved and tested to operate on Defense Health Agency (DHA) networks and complies with DoD STIGs. Procuring a competing brand would require a rigorous, lengthy DHA Information Assurance (IA) certification process (typically taking 12-18 months), introducing severe operational delays and cybersecurity risks.

Utilizing Plexus maintains standardization across more than 20 DHA facilities nationwide.

Source Selection Information - See FAR 2.101 and 3 .104-4

Active DMLSS Integration: Plexus features an active, accredited, bi-directional interface with the Defense Medical Logistics Standard Support (DMLSS) system, the DHA's authoritative system of record. It automatically syncs asset telemetry without manual dual-entry. After extensive research of several asset tracking systems by the customer, it was noted that no other brand offers this preconfigured, certified integration.

Infrastructure Preservation & Cost Control: NHCP has 30 pre-existing, fully functional Impinj Speedway xPortal readers (Speedway R640) installed in 2016 that are calibrated specifically to run on Plexus. A different brand would require a complete physical "rip-and-replace" of this government-owned infrastructure, resulting in a substantial, unrecoverable duplication of hardware and engineering costs.

BMET Training & Transition Costs: NHCP maintenance staff (BMETs), clinical staff, and property clerks are already fully certified and proficient in operating the Plexus platform.

Introducing a different brand would require a costly, multi-phase retraining program, taking technicians away from patient care. Under the Conexus upgrade proposal, all required system training is fully bundled into the base costs at no additional cost to the Government.

Schedule Constraints: Standardizing on the Plexus brand ensures the system can be deployed and validated in time to meet the mid-September 2026 Period of Performance (POP) start date, avoiding a critical gap in medical inventory readiness.

6. Market Research:

Other than the proposed contractor, Conexus, market research did not identify any other options for qualified vendors to provide installation and upgrade of the Plexus Vision Asset Tracking System.

The customer's market research researched leading hospital tracking systems (such as CenTrak, AeroScout, and Zebra), but each operates on its own closed, proprietary hardware and software thereby rendering it incompatible. As NHCP already operates on the Plexus infrastructure, alternative systems cannot integrate with our network, read our existing asset tags, or interface with our hospital-wide medical database requirements without requiring us to pull out our entire system and start over. Conexus is the exclusive vendor that owns the Plexus proprietary software rights and technical configurations required to maintain, calibrate, and expand our active tracking system without causing significant security issues or hospital workflow disruption.

A notice of intent to sole source was posted SAM.gov on Aug 11, 2026, and did not receive any capability statements from qualified vendors by the 21 AUG 2026 4:00 PST deadline. In addition, an RFI was listed on the GSA eBuy site due to vendor being under GSA Schedule 47QTCA24D005P. The RFI was posted on Aug 14, 2026, and did not receive any capability statements from qualified vendors (other than proposal received by Conexus) by the 21 AUG 2026 4:00 EDT deadline.

Source Selection Information - See FAR 2.101 and 3 .104-4

7. Other Facts:

a. Procurement history.

(1) Is this a new requirement? Yes (Previous contract was issued by the Army and expired in 2022)

(2) If 7.a.(1) is no, was the action just prior to this one competed? Not applicable.

(3) If7.a.(2) is Yes, what has changed where this action cannot be competed? Not applicable.

b. Additional Information.

Not applicable.

8. Actions to Remove or Overcome any Barrier to Competition:

In the future, DHA will examine other asset tracking systems, if the Plexus Vision Asset Tracking System fails to meet customer criteria and published capabilities to meet the needs of the customer. In accordance with FAR Part 5.101 regulations, a notice of intent to sole source will be posted on SAM.gov to see if any new vendors have entered the market that are able to meet the published criteria to meet the customer's needs and required specifications.

9. Technical Certification:

I certify the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Best Value Determination:

Consistent with GSAR 538.7102-2(d) and supplemental Department of Defense requirements, I hereby determine the action described herein represents the best value to the Government.

Basis for Determination:

Based on GSAR 538.7102-2(d) and DoD Class Deviation 2026-00049, DFARS 208.470(d), the vendor quote was analyzed to make a determination of fair and reasonable pricing when using Federal Supply Schedules (FSS).

Source Selection Information - See FAR 2.101 and 3 .104-4 JUNE2026