JA_766 Collation-Bottle Plus Enhancement Redacted.pdf

Request for Sole Source Justification Format >SAT

VHAPG Part 806.3 OFOC Page 1 of 4 Revision: 03 Effective Date: 04/15/24 Acquisition ID#: __________________

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID 36C77024AP0817

1. Contracting Activity:

Department of Veterans Affairs, RPO Central, Contracting Charleston CMOP, Station 766 NCO 15 CMOP Contracting 4136 Carolina Commerce Pkwy. 3450 S. 4th Street Ladson, S.C. 29456 Leavenworth, Ks. 66048

2237: 766-25-1-415-0001

2. Nature and/or Description of the Action Being Processed:

This procurement is for the modification of the APFS in accordance to expand the functionality of the Collation Subsystem, specifically the Bottle Plus features. This would add more flexibility within the Bottle-Plus collation subsystem to increase capacity on an as-needed basis.

Type of Contract: Firm Fixed-Price (FFP) Estimated Cost: $463,586.10

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

Modification of the Collation System to add a configurable Bottle-Plus collation (pairing bottles to tote products) for Rx Collect PODs 4-9. This requires not only additional conveyor and associated hardware, but updated software and logic controls to allow configuration of the Collation Subsystem “on the fly.”

• Hardware modifications include, but not limited to:

o Modification of infeed conveyors to Collation PODs 4-6 o Extension of the mainline full tote conveyor at Collation POD 7 to Collation PODs

4-6 o Adding diverts and RFID readers to feed full totes to Collation PODs 5 & 6 o Adding traffic control stops, sensors, readers, and concentrators as needed

• Software modifications include, but not limited to:

o Changing PLC programs in Motor Control Center (MCC) CE-4 o Changing HMI programs and graphics for MCC CE-4 o Modifying the drawings and alerts in MCC CE-4 o Modifying the configurations within Nexia to interface with the new FlexLink logic

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

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy

VHAPG Part 806.3 OFOC Page 2 of 4

Acquisition ID#: __________________

Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR

6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

The APFS is the major system that provides 90% of the prescriptions processed for Veteran patients. Without the full function of this system, CMOP would not be able to meet the requirements to provide service to Veterans and comply with the VA’s Mission Statement.

This highly specialized equipment is not readily available on the Open Market. The conveyance system and combination of subsystems is highly dependant on Pharmacy Formulary and the facility size and floorplan. All of these factors create a unique scenario that pulls a variety of equipment together to form a system where the designer ultimately has the best understanding of how each piece interfaces with all of the other sections.

iA designed the APFS which includes the Collation Subsystem. They are the only ones who fully understand the overall design, the workload allocation, and the interaction between all the subsystems. The APFS is designed using proprietary software developed by iA that cannot be modified by any entity other that iA.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

Currently, no efforts are being made to find multiple sources. The iA Nexia and Symphony software are proprietary and cannot be modified by any entity other than iA. Additionally, the system is under an extended warranty for two more years. Bringing in another vendor to work on the system during the warranty period would void the warranty on the collation subsystem and could jeopardize the functionality of the entire system.

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

Reasonable:

To assist in determining a fair and reasonable price, offeror will be required need to provide a detailed list of equipment/parts needed to support the change and the # of hours needed to implement the changes. In addition to the initial cost, any associated annual maintenance cost will also be looked at. This information will be compared to the overall benefit to the government to assist in determining a fair and reasonable cost.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

VHAPG Part 806.3 OFOC Page 3 of 4 Revision: 03 Effective Date: 04/15/24 Acquisition ID#: __________________

Limited Market Research was conducted as this action will need to comply with the terms of the extended warranty and due to the proprietary nature of the Nexia/Symphony software, the complex conveyor design, and the impact of the extended warranty.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

Research, Reverse-Engineering and subsequent design of the modification would involve a lengthy process and add cost when compared to using iA to perform the modification / upgrade of the Bottle – Plus collation subsystem. Any such modification utilizing another vendor would require the assistance from iA for the Nexia configuration and programming changes, which would just add to the overall cost.

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

Innovation Associates (DBA iA)

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:

No significant plans exist to overcome barriers to competition at this time. The extended warranty has two years remaining. The proprietary nature of the software and the complex relationship between the iA software and controls makes the potential for additional competition extremely limited and potentially cost-prohibitive. The pharmacy automation market is a niche market with limited vendors and solutions. The size and complexity of these major APFS systems make design modifications challenging by parties outside of the original manufacturer and installer. The time required to fully understand the nuanced design and implementation of controls logic, hardware / software interface, and overall function of the configuration is lengthy and would be cost prohibitive for vendors that did not design the system.

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.

(This signature is the requestor’s supervisor, fund control point official, chief of service, someone with responsibility and accountability)

Date

William Lavinghousez Associate Director Charleston CMOP

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: This part if filled out by Contracting Staff as part of the Justification

VHAPG Part 806.3 OFOC Page 4 of 4

Acquisition ID#: __________________

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

Name: Larry Zaritz Date Title: Contracting Officer Facility: NCO 15 CMOP Team 3

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.

Name: Christy Pendlay Date Title: Branch Chief Facility: NCO 15 CMOP Team 3