JA_Censitrac_Final_Redacted.pdf

Control Number: VA-24-00075130

JUSTIFICATION

OTHER THEN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of Veterans Affairs (VA) Office of Procurement, Acquisition, and Logistics

Technology Acquisition Center 23 Christopher Way Eatontown, NJ 07724

2. Description of Action: The proposed sole source action is for a firm-fixed-price effort for the renewal of CensiTrac Instrument Tracking System (ITS) software subscriptions inclusive of maintenance and support at Veterans Integrated Service Network (VISN) 16 sites with Censis Technologies, Inc. (Censis), 830 Crescent Centre Drive, Suite 610, Franklin, Tennessee 37067.

3. Description of the Supplies or Services: The proposed action is to renew the existing CensiTrac Instrument Tracking System software currently installed at 10 locations within VISN 16 and includes services required for software support, clinical telephone support, and software upgrade and updates. The VISN 16 facilities are using a Real-Time Location System (RTLS) to improve the workflow of their Sterile Processing Services (SPS) departments and to track Reusable Medical Equipment (RME) throughout its operational cycle from sterilization, to surgery, and back. Censis’ ITS, CensiTrac, is currently a component of the enterprise RTLS solution and is used for tracking RME through the workflow of Sterile Processing Workflow (SPW). CensiTrac works by scanning 2-Dimensional (2D) barcodes that are electro-chemically marked into the RME to identify instrument containers, case carts, peel packs, endoscopes, and their locations. All VA facilities with in VISN 16 currently use CensiTrac for SPW.

Nomenclature standards are tagged and tracked in RTLS (across several VISNs VA-wide). This standardization promotes patient safety, as it provides a proven way to track medical instruments used in surgeries. This ensures that physicians have what they need for Veterans during surgery and that medical instrument’s sterilization is tracked accurately. Furthermore, the main server of the system is currently hosted in Austin Information Technology Center (AITC) in Austin, TX. A Graphical User Interface (GUI) is used to view all RTLS components at the facility at once. CensiTrac operates as a standalone software package with the capabilities to integrate its data into existing VA ecosystems (Operating Room scheduling, sterilizers, washers, and disinfectors).

The Government requires the renewal of the CensiTrac ITS which is comprised of the core capability, Instrument Trac, which tracks usage and compliance of surgical instruments, as well as additional CensiTrac solution modules such as ScopeTrac for tracking endoscopes, CensisAI2 for analytics reporting, and the virtual server to host CensisAI2, and LoanerLink for tracking loaner instrument trays. The Government requires the renewal of the following subscription, licenses and modules: 10 CensiTrac Gov Cloud Subscription Renewals, 10 Service + Subscription Renewals, 10 Scope Track Advanced Subscriptions,10 CensisAI2 Subscriptions, 10 Instrument Trac Subscriptions, 4 Loaner Link subscriptions, and 1 Virtual Server. The period of

CensiTrac Instrument Tracking VISN 16 Control Number: VA-24-00075130 Sustainment performance will be 12 months with two 12-month option periods. The total estimated price of the proposed action, inclusive of options, is

4. Statutory Authority: Pursuant to Federal Acquisition Regulation (FAR) 6.302-1, the following brand name requirement is being justified and approved as an exception to fair opportunity under the statutory authority of Section 41 U.S.C. 3304(a)(1) as implemented by FAR 6.302-1, entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements”.

5. Rationale Supporting Use of Authority Cited Above: Based on the market research, as described in Section 8 of the document, CensiTrac software is the only ITS that meets all of the Government’s requirements. Furthermore, Censis products are proprietary and Censis is the only authorized provider of the required CensiTrac ITS.

The CensiTrac ITS subscription, modules, and licenses interface with the existing CensiTrac system used by VA. The additional solution modules, ScopeTrac, CensisAI2, and LoanerLink only operate with the core CensiTrac software and cannot integrate with any other software. Although, LoanerLink can stand alone, it currently interfaces with CensiTrac’s software within VA VISN 16.

The Censis ITS is currently deployed throughout VA and is used in VISN 16. The software subscription renewals allow for continuity of service with the current Censis ITS. The subscription renewals are required to continue using the CensiTrac ITS. All VISN 16 instruments are currently marked with a 2D electrochemical barcode used to track the instrument through the RME process. No other ITS product, or its modules, would be compatible or interoperable with the existing Censis solution due to the proprietary constraints within the currently fielded hardware and software. Specifically, another ITS product would not be able to communicate with the existing Censis infrastructure. VA requires software interoperable with the existing infrastructure protocols and functionality for continued operational availability and is not requiring the replacement of the current ITS system. Another source would need access to Censis proprietary data and software code in order to ensure that the software is properly configured and patched through. This code ensures that the software will allow the Censis products to remain fully operational and work in the current CensiTrac based environment. There are no products that are currently compatible and interoperable with the existing VA infrastructure. Additionally, no other source other than Censis can provide the technical support services due to the proprietary constraints. Additionally, if the requirement was competed, it would require replacing the current Censis software, hardware and server infrastructure. Therefore, the use of any other ITS solution would require all new instrument tracking equipment, installation, configuration, interface development, acceptance testing, and resource training at all 10 sites within VISN 16.

These duplicative costs estimated at $3.5 Million are based on the initial deployment of the previous solution for VISN 16 and would not be recovered through competition.

Additionally, any alternative ITS would require a minimum of 15 months to complete the integration and obtain the required Authority to Operate in the VA network. Furthermore, the Censis ITS is part of the enterprise RTLS solution and is fully interoperable with other facets of RTLS technology deployed by the Veterans Health Administration

(VHA). Although, other tracking systems may be compatible with the enterprise RTLS solution, the RTLS solution is currently only configured to work with Censis. To enable any new ITS to communicate with the existing RTLS solution, additional changes will be required to the enterprise solution in addition to the changes to VISN 16 sites resulting in further costs and delays. Finally, since VISN 16 cannot operate without an ITS, VA would be required to maintain the existing solution until a new alternative solution was deployed, further duplicating costs.

Failure to renew the existing CensiTrac ITS software subscriptions would negatively impact VA’s ability to ensuring proper trackability of medical instruments, ensuring that physicians use sterilized medical instruments and have the needed medical instruments supply required for surgeries. The inability to renew the software subscriptions would adversely impact Veteran/patient care as these medical facilities would not be able to perform patient surgeries timely with the same standard of care. The software provides a proven way to track medical instruments used in surgeries and ensures that the medical instrument’s sterilization is tracked accurately. Not being able to track the sterilization of the medical instruments used in surgery would compromise the Veteran/patient’s health through risk of infection and increases risk for patient safety. No other licenses can integrate with the current CensiTrac ecosystem.

6. Efforts to Obtain Competition: Market research was conducted, 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. There is no competition anticipated for this acquisition. Additionally, the proposed action will be synopsized on the Contracting Opportunities Page in accordance with FAR 5.201. Any proposals that are received shall be evaluated.

7. Actions to Increase Competition: The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

8. Market Research: The Government’s technical experts conducted market research in February 2024 by reviewing acquisition history, conducting an industry status review, and consulting with the VA National Instrument Tracking Workgroup for information on the CensiTrac system and service. Additionally, VA technical personnel conducted market research in August 2024, which consisted of a review of similar software, including the following: Becton-Dickinson's Impress Surgical Instrument Management System, Aesculap's Instrument Tracking Software partnering with Microsystems, Microsystems as a standalone product, and SynergyTrak's Surgical Instrument Management System. The research revealed that none of these vendors can offer a solution that is interoperable with the existing Censis ITS currently installed across the VA enterprise and part of the RLTS as outlined in Section 5 of this Justification. In addition, Censis technical personnel confirmed that the source code required to provide the technical services is proprietary to Censis. Therefore, no other contractor has the capability of providing the technical services. The Government’s market research effort did not yield any additional sources that can meet its requirements. As a result of the market research, the technical experts have determined that Censis is the only source that can provide the services required. Due to proprietary software, Censis is the only vendor that can provide the software subscription renewal and support. Furthermore, VA confirmed that Censis is the sole authorized provider of CensiTrac for the North American market.

9. Other Facts:

10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

11. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable.

12. Procuring Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.