JA-Brand Name.pdf

Automated Dispensing Cabinets Upgrade 36C256-25-AP-2044

Effective Date: 11/15/24 Page 1 of 4

REVISION: 01

Acquisition ID#: 36C256-25-AP-2044

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C256-25-AP-2044

Contracting Activity: Department of Veterans Affairs, Veterans Health Care System of the Ozarks (VHSO) 1100 North College Ave.

Fayetteville AR 72703

-2-082-0027

Nature and/or Description of the Action Being Processed: This procurement is for a Windows 10 upgrade for existing Omnicell equipment in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2. The proposed action is for an open market, firm fixed-priced purchase order for brand name Omnicell Automated Dispensing Cabinets (ADC).

Description of Supplies/Services Required to Meet the Agency’s Needs: The Veterans Health Care System of the Ozarks (VHSO) has a requirement for 72 brand name Omnicell XTExtend ADC including delivery, installation, and training.

Estimated value:

Item Description QTY

XTEXTEND CONSOLE, AWS,

PHARMACY DISPENSING

XTEXTEND CONSOLE, HALF HEIGHT 38

XTEXTEND CONSOLE, FULL HEIGHT 30

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented

Effective Date: 11/15/24 Page 2 of 4

REVISION: 01

Acquisition ID#: 36C256-25-AP-2044 by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

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

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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

Based on market research, as described in paragraph 8 of this justification, it was determined that only Omnicell’s ADC provide a solution that is compatible with and can communicate and function with VHSO’s existing Omnicell system. Currently, VHSO maintains 72 ADC and these operate on VA’s Omnicenter server which functions through Omincell proprietary software.

The existing software platform for all Omnicell XT ADCs at all VHSO locations is Window 10 2015.

Omnicell will no longer provide service or support for this platform after October 14, 2025. Without the required upgrade, all 72 ADCs currently in operation will become vulnerable due to the cessation of Windows security updates. The proposed upgrade will replace all PC hardware components with each cabinet, including the touchscreen, keyboard, hard drives, and the operating system software.

The current equipment was purchased within the past seven years, and the hardware is projected to have up to 10 additional years of useful life before requiring full replacement. Upgrading the essential components—the “brains” of the unit—including the hard drive, keyboard, and peripheral hardware, while retaining the most expensive elements such as the cabinet and drawers, represents the most cost-effective approach. Converting to a different brand and replacing the entire ADC system infrastructure, including servers, across VHSO is estimated to cost over and would require an additional 6 to 12 months for installation and staff training.

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

Market research was conducted, the details of which are in section 8 of this justification. This effort did not yield any additional sources that can meet the Government's requirements. This justification shall be posted with the solicitation. Furthermore, the proposed action will be synopsized via SAM.gov.

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

It is anticipated that the price will be determined fair and reasonable through adequate competition between the original manufacturer and its authorized distributor.

Effective Date: 11/15/24 Page 3 of 4

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Acquisition ID#: 36C256-25-AP-2044

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

VA technical experts conducted market research by contacting the sales representative of the only known supplier of automated dispensing cabinets (ADCs) that could potentially meet the VA’s requirements. The experts specifically inquired whether equipment from a different brand could be integrated into the VA’s existing Omnicell proprietary server system. The manufacturer, Omnicell, confirmed that integration of non-Omnicell equipment is not possible without replacing the VA’s existing Omnicell OmniCenter server. As such, only Omnicell-brand equipment possesses the proprietary software required for interoperability with the current VA infrastructure.

Additional market research was conducted by the Contracting Officer. A search of VetBiz Vendor Information Pages (VIP) using NAICS code 339112 returned 666 Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs). Market research was also performed using the GSA eLibrary under Category SIN 892 – Medication and Supply Packaging and Dispensing Equipment – which yielded 30 contract holders. A review of each vendor’s terms and conditions determined that none could meet the requirements of this procurement.

Furthermore, a search of the SBA’s Dynamic Small Business Search (DSBS) using NAICS code 339112 and the keyword “Omnicell” returned zero results. A Request for Information (RFI) was issued on SAM.gov on May 27, 2025, with one response received from an SDVOSB, confirming their ability to provide the required upgrade and meet the Government’s requirements.

Based on the results of the market research, this requirement cannot be set aside for SDVOSBs, VOSBs, or any other small business socioeconomic category, as Omnicell-brand equipment meets all of the the Government’s technical and interoperability requirements. As such, this procurement will be competed as a brand-name requirement, limited to Omnincell and its authorized distributor, Trillamed.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None

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

Omnicell, Inc.

590 Cranberry Woods Drive Craneberry Township, PA 16066

Trillamed, LLC 30100 Telegraph Road, Suite 366 Bingham Farms, MI 48025

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:

The Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future actions to be competed. Specifically, the Government will continue to monitor the marketplace to determine whether other brands of ADCs could integrate into VA's existing infratructure.