JA - DynaMed ASP Maintanence Support Redacted.pdf

DynaMed Enterprise ASP Maintenance Support VA-23-00062869

JA template - FAR 13.5_AUG_05_2019

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of Veterans Affairs Office of Procurement, Acquisition, and Logistics Technology Acquisition Center 23 Christopher Way Eatontown, NJ 07724

2. Description of Action: The proposed action is for a sole-source Firm-Fixed Price contract with a 6-month base period and four 12-month option periods with Information Control Management Corporation (ICMC) to provide critical DynaMed Enterprise ASP Maintenance support.

3. Description of Supplies or Services: The Department of Veterans Affairs (VA), Office of Information & Technology (OIT), Pharmacy Benefits Management (PBM) / Emergency Pharmacy Service (EPS) has a requirement to continue the current brand name DynaMed Enterprise ASP Maintenance support for the DynaMed EPS cache application. The DynaMed EPS cache application supports the PBM/EPS in ensuring VHA 1047 Directive - All-Hazards Emergency Cache Program is met. VA established the All-Hazards Emergency Cache Program in 2002 following the 9/11 attacks to make drugs and medical supplies available for treatment of Veterans, VA employees, and civilians in the immediate aftermath of a local mass casualty event. Because these events can occur at any time, in any location, and with little or no warning, the All- Hazards Emergency Cache Program must always be ready for immediate deployment.

The All-Hazards Emergency Cache Program stockpiles a standard supply of drugs and medical supplies at 145 VA medical facilities around the country. The PBM/EPS utilizes the DynaMed EPS cache application for managing the stockpiles of drugs and medical supplies at a central warehouse location in Hines, IL. Additionally, the PBM/EPS utilizes the DynaMed EPS cache application for documenting movement of drugs & medical supplies, site replenishment data, controlled substances audits, Shelf-Life Expiration Program (SLEP) database management, and inventory database management (product name, location, quantity, lot number, and expiration date). The DynaMed Enterprise ASP Maintenance support includes performing all updates, revisions, patches, quick fixes (known collectively as enterprise updates), and enhanced telephone support as related to the operation of the DynaMed EPS cache application. Additionally, the DynaMed Enterprise ASP Maintenance support remotely monitors the DynaMed EPS cache application and underlying hardware to ensure software availability. Finally, the DynaMed Enterprise ASP Maintenance support includes Internet Application Server Enterprise Edition support; DynaMed Application support; current OS Server environments (Linux) support; and hardware on-site maintenance and support. The period of performance for this effort shall be a 6-month base period with four 12-month options periods for continued DynaMed Enterprise ASP Maintenance support, if exercised. No new software is being purchased as part of this effort. The total estimated value of the proposed action is $299,400.00 (inclusive of option periods.)

Statutory Authority: The statutory authority permitting other than full and open competition is 41 U.S.C.3304(a)(1) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.302-1 entitled, "Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements."

Rationale Supporting Use of Authority Cited Above: The proposed source for this action is ICMC located at 12941 Midori Drive, Anchorage, AK 99516. Based on market research, as described in Section 8 of this document, the Government has determined that since ICMC is the sole vendor licensed and the holder of the intellectual property for the DynaMed brand that no other source, other than ICMC, can provide the required continuation of the current brand name DynaMed Enterprise ASP Maintenance support for the DynaMed EPS cache application which supports the VHA 1047 Directive - All- Hazards Emergency Cache Program.

Continued and seamless operation of the DynaMed EPS cache application is critical to inventory management of all 145 drug caches (throughout the United States) and ensuring all pharmaceuticals are accounted for within VA logistical management standards and ensuring all stored pharmaceutical lots remain safe for use with all Veterans. The EPS cannot operate for a single day without the DynaMed EPS cache application, and any lapse with the required DynaMed Enterprise ASP Maintenance support could result in life threatening circumstances for Veteran’s who need medicine dispensed from the EPS’ 145 drug caches in the event of a national emergency or disaster.

No other application seamlessly supports EPS operations; therefore, due to the proprietary nature of the required DynaMed Enterprise ASP Maintenance support ICMC is the only vendor who can meet the Agency’s requirements. .

Efforts to Obtain Competition: Market research was conducted, details of which are in the market research section 8 of this document. This effort yielded no additional sources that can meet the Government’s requirements and provide the Dynamed Enterprise ASP Maintenance support for the DynaMed EPS cache application. Additionally, the proposed action will be synopsized on the Contrating Opportunities website in accordance with FAR 5.201. Any proposals that are received shall be evaluated.

Actions to Increase Competition: 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.

Market Research: In accordance with FAR Part 10, the Government’s technical experts conducted market research in February 2023 by utilizing VA Market Research Assistant to ascertain if there were any other sources that could meet the Government’s requirements. The VA Market Research Assistant revealed 11 other businesses were identified that provide either Oracle or Linux IT software services, however none of the 11 businesses provided the required combined DynaMed software, Oracle, and Linux IT software services functioning together as required by the Agency. The Government’s technical experts contacted the DynaMed software

OEM , ICMC, to ascertain if there are any authorized resellers of the DynaMed products. ICMC advised the Government via a letter dated February 20, 2023 that it is the only software company that owns the exclusive and copy written rights for DynaMed products and, as such, the only provider of the required DynaMed Enterprise ASP Maintenance support. Additional market research was conducted in May 2023 by the Contract Specialist through utilizing the National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V Product Lookup tool with the keyword “DynaMed”. The Product Lookup tool confirmed that NASA SEWP is not a viable acquisition strategy since no vendors appear to be able to provide the DynaMed Enterprise ASP Maintenance support for the DynaMed EPS cache application. Based on the market research obtained, VA determined that only one source, ICMC, could provide seamless continuation of required services to maintain the existing DynaMed Enterprise ASP Maintenance support.

9. Other Facts: None.

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.

Date: ________________________________ Nikhil Bilkha

Program Manager

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 based on comparison of the proposed action to historical prices paid, as well as comparison to commercial list pricing, and the Independent Government Cost Estimate. Further price analysis will be conducted and subsequent negotiations held as necessary. Additionally, price discounts will be sought.

Brett Schwerin Date: ____________________________

Procuring Contracting Officer Signature: ________________________

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

Brett Schwerin Date: ________________________________

Procuring Contracting Officer Signature: ____________________________

Signature: _____________________

6/13/2023 Brett Schwerin 709667

Digitally signed by Brett Schwerin 709667 Date: 2023.06.13 15:14:53 -04'00'

6/13/2023 Brett Schwerin 709667

Digitally signed by Brett Schwerin 709667 Date: 2023.06.13 15:15:23 -04'00'

Approval

In my role as Procurement Service Director, One Level Above the Contracting Officer, based on the foregoing justification, I hereby approve the acquisition of DynaMed Enterprise ASP Maintenance support, in accordance with VAAM M816.505(b)(2)(ii)(C)(1), on an other than fair opportunity basis pursuant to the authority cited in Section 4 above, subject to availability of funds, and provided that the property and services herein described have otherwise been authorized for acquisition.

Date: ____________ Signature: ____________________

Carolyn Carbone

Director, Procurement Services C Technology Acquisition Center Office of Procurement, Acquisition,and Logistics U.S. Department of Veterans Affairs

06/14/2023 CAROLYN A.

CARBONE 169837

Digitally signed by CAROLYN

A. CARBONE 169837

Date: 2023.06.14 07:59:17 -04'00'