J-and-A-Federal-Supply-Schedule CLSU 2026 Solventum - Signed.pdf

Template for a Federal Supply Schedule (FSS) Limited-Sources Justification

Completion Instructions: HHS has established a standard template for the preparation of a Limited-Sources Justification (LSJ) pursuant to FAR Subpart 8.4. This template is for use with orders issued under the Federal Supply Schedule (FSS) program where the value exceeds simplified acquisition threshold and competition is restricted: (1) to fewer schedule contractors than required in FAR 8.405-1 or 8.405-2, or (2) to an item peculiar to one manufacturer. See FAR Subpart 8.4 for additional guidance. This template is not for use with acquisitions other than those under FAR Subpart 8.4.

Tailor all aspects of this template to the individual acquisition. Consult FAR 8.405-6 for guidance.

Delete the highlighted portions of this document prior to signature. Do not include these instructions in the final document or contract file.

FEDERAL SUPPLY SCHEDULE

LIMITED-SOURCES JUSTIFICATION

Acquisition Title: Medical Record Coding Software

Agency: IHS

Acquisition Year: 2026

Author: Chastidy Chastek-HIM Director

2. Description of Action:

Nature: New Requirement Follow-on Requirement

Modification to Existing Purchase Order/Contract Number:

Pricing: Firm-Fixed Price Time & Materials Cost

Other:

Funds: OMA Other Funds:

<For each proposed contractor if more than one (e.g., brand name):>

Name of Proposed Contractor(s): Solventum Health Information Systems-Solventum Health Care

Street Address: 575 West Murray Blvd.

City, State, Zip: Murray, UT 84123-4611

Remove ContractorAdd Contractor

3. Description of Supplies or Services:

The medical record coding function is an integral part of the Cass lake Service Unit’s third party billing and reimbursement process. A major part of the coding function is managing the complex, rules, guidelines and terminology of ICD-10-CM coding.

The estimated value of the proposed action, including all options, is $ 186,724.83

Briefly describe the supplies or services to be provided, including make & model number where appropriate. Indicate whether the item to be procured is peculiar to one manufacturer (e.g., a particular brand name, product, or a feature of a product, peculiar to one manufacturer). If applicable, include quantities of supplies or period of performance for services. Provide information for any options included in the order. If the action is a modification to an existing order, distinguish clearly between the work covered by the basic order and the work to be obtained by the proposed modification.

The purpose of this contract is to put into place a base plus 4 option year service agreement to provide medical record coding software to assist with the medical record coding function as an integral part of the Cass Lake Service Unit’s third party billing & reimbursement process. A major part of the coding function is managing the complex, rules, guidelines & terminology of ICD-10-CM coding. With the complexity of over 69,000 ICD-CM diagnosis codes & over 70,000 ICD-10 PCS procedure codes navigating the correct specified code by the book is not feasible anymore. We need current up-to-date codes at our fingertips today and everyday until the role out of PATH EHR.

4. Authority:

ORDER AGAINST FSS: Authority of the Multiple Award Schedule Program, Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et seq.); Title 40 U.S.C. 501, Services for Executive Agencies; and Section 803 of the National Defense Authorization Act of 2002 (PL 107-107) and implemented by FAR 8.405-6. Mark the applicable exception and for each discuss how the cited authority applies in accordance with FAR 8.405-6(c)(2)(iv).

An urgent and compelling need exists, and following the procedures would result in unacceptable delays (FAR 8.405-6(a)(1)(i)(A));

Only one source is capable of providing the supplies or services required at the level or quality required because the supplies or services are unique or highly specialized (FAR 8.405-6(a)(1)(i)(B)); or

In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited sources procedures (FAR 8.405-6(a)(1)(i)(C)); or

An item peculiar to one manufacturer can be a particular brand name, product, or a feature of a product, peculiar to one manufacturer). A brand name item, whether available on one or more schedule contracts, is an item peculiar to one manufacturer. (FAR 8.405-6(b);

Describe in detail why a particular brand name, product, or a feature of a product, peculiar to one manufacturer must be used. Also, describe in detail the existence of other than the “Name Brand” product and discuss why they cannot be used.

3M encoding software is unique that it contains both ICD-9 and ICD-10 codes. We have used the 3M encoding software for more than a decade because of its unique qualities. The cost to the Cass Lake Service Unit is fair and reasonable, as it is all-inclusive for the year. Price of the software has actually decreased while staff productivity increases through utilization of this product in comparison to using a standard codebook. 3M encoding software includes many coding reference materials, which saves us from purchasing reference books. 3M has extensive experience with encoding software and software support. 3M was actually contracted by the US Government to produce a preliminary design for replacement of ICD and ultimately came up with the format and codes for ICD-10.

Coding staff at Cass Lake are highly trained in utilizing the 3M encoding system. Market Research has determined that other vendors offer coding software, but do not have the ability to interface with the IHS Resource Patient Management system which we are mandated to use.

5. Market Research:

Describe the extent of the market research conducted among the schedule holders and the results, or a statement of the reason that market research was not conducted. Brand name specifications shall not be used unless the particular brand name, product, or feature is essential to the Government’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 agency’s need.

Market Research has determined that other vendors offer coding software but do not have the ability to interface with the IHS Resource Patient Management system which we are mandated to use.

6. Actions to Increase Competition:

Describe the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration prior to any subsequent acquisition for the supplies or services is made. If no such actions have been taken, explain why.

Our coding needs will continue permanently into the future and encoding software is an integral part of the coding function.

Future plans include establishing a multi-year contract.

7. Any other facts supporting the justification:

An integral part of the 3M Encoding Software is the additional coding references materials that come with the software and do not need to be ordered separately and in paper format.

Solventum encoding software is unique that it contains both ICD-9 and ICD-10 codes. We have used the Solventum encoding software for more than a decade because of its unique qualities. The cost to the Cass Lake Service Unit is fair and reasonable, as it is all-inclusive at $37,387.22 for the year. Price of the software has actually decreased while staff productivity increases through utilization of this product in comparison to using a standard codebook. Solventum encoding software includes many coding reference materials, which saves us from purchasing reference books. Solventum has extensive experience with encoding software and software support. Solventum was actually contracted by the US Government to produce a preliminary design for replacement of ICD and ultimately came up with the format and codes for ICD-10. Coding staff at Cass Lake are highly trained in utilizing the Solventum encoding system.

8. Technical / Requirements Certification: By my signature below, I certify that the supporting data under my review which is included in this Limited-Sources Justification is accurate and complete.

Program Manager

Name: Chastidy Chastek

Position Title: Medical Records-HIM Director

Email address: chastidy.chastek@ihs.gov

Phone: 218-335-3373

Program Manager Supervisor (or one level above Program Manager)

Name: Joanna Ferraro

Position Title: Acting CEO

Email address: joanna.ferraro@ihs.gov

Signature

Date:

9. Best Value Determination. By my signature below, after review of the relevant documents, I have determined that the order subject to this Limited-Sources Justification represents the best value for the Government as set forth in FAR 8.404(d), and constitutes a fair and reasonable price. The basis for my determination is as follows:

Describe in detail the basis for the determination that this order providers the best value, and that the price is fair and reasonable.

Attach and/or summarize applicable market research, commercial prices lists, comparable GSA schedule pricing or other markers that were used in this determination.

10. Contracting Officer's Approval (Required for proposed contract not to exceed $700,000 (value calculated including all options)): I hereby certify that this justification is accurate and complete to the best of my knowledge. I approve this sole source justification subject to availability of funds, and provided that the services and supplies herein described have otherwise been authorized for acquisition.

Name: JENNIFER RICHARDSON Phone:

Signature: Date:

11. Legal Review:

All J&As equal to or greater than $68 million must have a legal review from the General Law Division of the Office of the General Counsel prior to sending it to the Department.

12. OPDIV Competition Advocate Approval (Required for proposed contract over $700,000 but not exceeding $13.5 million value calculated including all options)):

I have reviewed this justification and find that it adequately supports other than full and open competition.

Name: Phone:

Signature: Date:

13. Office of Small and Disadvantaged Business Utilization I have reviewed this justification and find that it adequately supports other than full and open competition.

Name: Phone:

Signature: Date:

14. OPDIV HCA Approval (Required for proposed contract over $13.5 million but not exceeding $68 million value calculated including all options)):

Name: Phone:

Signature: Date:

(The below approval paragraph is required if the cumulative contract value, including all options, equals or exceeds $68 million.)

HHS Senior Procurement Executive (SPE) Approval Based on the foregoing justification, I hereby approve the procurement of (state supplies/services being procured) on an other than full and open competition basis pursuant to the authority of (state the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 251), as implemented by FAR 8.405-6), subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

Name: Phone:

Signature: Date:

Template for a Federal Supply Schedule (FSS) Limited-Sources Justification

Completion Instructions: HHS has established a standard template for the preparation of a Limited-Sources Justification (LSJ) pursuant to FAR Subpart 8.4. This template is for use with orders issued under the Federal Supply Schedule (FSS) program where the value exceeds simplified acquisition threshold and competition is restricted: (1) to fewer schedule contractors than required in FAR 8.405-1 or 8.405-2, or (2) to an item peculiar to one manufacturer. See FAR Subpart 8.4 for additional guidance. This template is not for use with acquisitions other than those under FAR Subpart 8.4.

Tailor all aspects of this template to the individual acquisition. Consult FAR 8.405-6 for guidance.

Delete the highlighted portions of this document prior to signature. Do not include these instructions in the final document or contract file.

FEDERAL SUPPLY SCHEDULE

LIMITED-SOURCES JUSTIFICATION

2. Description of Action:

Nature:

Pricing:

Funds:

<For each proposed contractor if more than one (e.g., brand name):>

3. Description of Supplies or Services:

Briefly describe the supplies or services to be provided, including make & model number where appropriate. Indicate whether the item to be procured is peculiar to one manufacturer (e.g., a particular brand name, product, or a feature of a product, peculiar to one manufacturer). If applicable, include quantities of supplies or period of performance for services. Provide information for any options included in the order. If the action is a modification to an existing order, distinguish clearly between the work covered by the basic order and the work to be obtained by the proposed modification.

4. Authority:

Describe in detail why a particular brand name, product, or a feature of a product, peculiar to one manufacturer must be used. Also, describe in detail the existence of other than the “Name Brand” product and discuss why they cannot be used.

5. Market Research:

Describe the extent of the market research conducted among the schedule holders and the results, or a statement of the reason that market research was not conducted. Brand name specifications shall not be used unless the particular brand name, product, or feature is essential to the Government’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 agency’s need.

6. Actions to Increase Competition:

Describe the actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration prior to any subsequent acquisition for the supplies or services is made. If no such actions have been taken, explain why.

7. Any other facts supporting the justification:

8. Technical / Requirements Certification: By my signature below, I certify that the supporting data under my review which is included in this Limited-Sources Justification is accurate and complete.

Program Manager Name:

Position Title:

Email address:

Phone:

Program Manager Supervisor (or one level above Program Manager) Name:

Position Title:

Email address:

Signature Date:

9. Best Value Determination. By my signature below, after review of the relevant documents, I have determined that the order subject to this Limited-Sources Justification represents the best value for the Government as set forth in FAR 8.404(d), and constitutes a fair and reasonable price. The basis for my determination is as follows:

Describe in detail the basis for the determination that this order providers the best value, and that the price is fair and reasonable. Attach and/or summarize applicable market research, commercial prices lists, comparable GSA schedule pricing or other markers that were used in this determination.

10. Contracting Officer's Approval (Required for proposed contract not to exceed $700,000 (value calculated including all options)): I hereby certify that this justification is accurate and complete to the best of my knowledge. I approve this sole source justification subject to availability of funds, and provided that the services and supplies herein described have otherwise been authorized for acquisition.

Name:

Phone:

Signature:

Date:

11. Legal Review:

All J&As equal to or greater than $68 million must have a legal review from the General Law Division of the Office of the General Counsel prior to sending it to the Department.

12. OPDIV Competition Advocate Approval (Required for proposed contract over $700,000 but not exceeding $13.5 million value calculated including all options)):

I have reviewed this justification and find that it adequately supports other than full and open competition.

Name:

Phone:

Signature:

Date:

13. Office of Small and Disadvantaged Business Utilization I have reviewed this justification and find that it adequately supports other than full and open competition.

Name:

Phone:

Signature:

Date:

14. OPDIV HCA Approval (Required for proposed contract over $13.5 million but not exceeding $68 million value calculated including all options)):

Name:

Phone:

Signature:

Date:

(The below approval paragraph is required if the cumulative contract value, including all options, equals or exceeds $68 million.)

HHS Senior Procurement Executive (SPE) Approval Based on the foregoing justification, I hereby approve the procurement of (state supplies/services being procured) on an other than full and open competition basis pursuant to the authority of (state the full statutory authority and FAR cite and title, consistent with paragraph 4, e.g. 41 U.S.C. 251), as implemented by FAR 8.405-6), subject to the availability of funds, and provided that the services herein described have otherwise been authorized for acquisition.

Name:

Phone:

Signature:

Date:

11.0.0.20130303.1.892433.887364 Justification & Approval - Federal Supply Schedule Health and Human Services Justification & Approval - Federal Supply Schedule

Solventum encoding software is unique that it contains both ICD-9 and ICD-10 codes. We have used the Solventum encoding software for more than a decade because of its unique qualities. The cost to the Cass Lake Service Unit is fair and reasonable, as it is all-inclusive at $37,387.22 for the year. Price of the software has actually decreased while staff productivity increases through utilization of this product in comparison to using a standard codebook. Solventum encoding software includes many coding reference materials, which saves us from purchasing reference books. Solventum has extensive experience with encoding software and software support. Solventum was actually contracted by the US Government to produce a preliminary design for replacement of ICD and ultimately came up with the format and codes for ICD-10. Coding staff at Cass Lake are highly trained in utilizing the Solventum encoding system.