JA-IQVIA_Redacted.pdf

DEFENSE LOGISTICS AGENCY

DLA CONTRACTING SERVICES OFFICE - PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

CUI

CUI - SOURCE SELECTION INFORMATION – SEE 2.101 AND 3.104

JUSTIFICATION

FOR OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I hereby approve the issuance of the contractual action described below using other than full and open competition, pursuant to the authority cited herein.

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY

Agency Requiring Activity Defense Logistics Agency (DLA) Medical Directorate 700 Robbins Avenue Philadelphia, PA 19111

Contracting Activity DLA Contracting Services Office – Philadelphia Site 700 Robbins Avenue Philadelphia, PA 19111

Controlled by: DLA DCSO Philadelphia CUI Category: General Procurement and Acquisition / Source Selection Information see FAR 2.101 & 3.104 Distribution/Dissemination Controls: FED ONLY

Justification and Approval for Other than Full and Open Competition IQVIA Medical Subscription

SOURCE SELECTION INFORMATION – SEE 2.101 AND 3.104

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED.

This justification authorizes the use of other than full and open competition for the procurement of a brand name IQVIA Government Solutions Inc. (IQVIA) data license subscription. The data license subscription is used to support DLA Troop Support Medical Directorate’s Department of Defense (DoD) medical material purchasing programs and planning applications. IQVIA is the only responsible source for the required sales data license subscription. Accordingly, the requirement will be solicited on a brand name restricted and sole source basis to IQVIA for the continuation of the IQVIA medical/surgical and pharmaceutical sales data license subscription (data license subscription).

The Government anticipates award of a Firm-Fixed-Price (FFP) contract during a twelve (12) month base period and two (2) 12-month option periods.

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS (INCLUDING THE ESTIMATED VALUE).

The Defense Logistics Agency (DLA) is an agency of the Department of Defense (DoD). The DLA Troop Support Medical Directorate – Readiness Division uses multiple sources of industry information to stay current with pharmaceutical and medical industry sales and use trends, to better inform Defense acquisition of medical and pharmaceutical supplies. Industry data, including IQVIA sales data, is integrated into the Defense Medical Logistics Standard Support – DLA (DMLSS-DLA) application, which includes:

• Readiness Management Applications

• Medical Master Catalog (MMC)

• Medical Product Data Bank (MedPDB)

The IQVIA data license subscription provides DLA Troop Support Medical Directorate with current national commercial medical/surgical supplies and pharmaceutical sales data. IQVIA is the only source that offers a sales data and analytics data subscription license that tracks national and commercial medical/surgical and pharmaceutical sales data. The IQVIA data license subscription for medical/surgical and pharmaceutical sales data provides critical data feeds necessary for the DMLSS-W application, including a tool to track medical/pharmaceutical usage, retail and wholesale prices, and sales trends. IQVIA’s data collection processes, results, editing, and filtering processes are proprietary and there are no authorized resellers or alternative sources of supply.

The DMLSS-W system relies on and incorporates IQVIA data and uses it on a daily basis. The IQVIA Medical Device and Supply Audit (MDSA) component of the data package measures sales data of medical devices and supplies sold and acquired by U.S. hospitals. The MDSA component provides purchase details for approximately 550,000 stock keeping units (SKUs) used for tracking inventory and sales of nearly 3,000 medical supply manufacturers and industry participants selling products to U.S. hospitals. The IQVIA Pharmaceutical Sales Data, Relational Data Model for Pharmaceutical Sales Data, Medical/Surgical Sales Data, Relational Data Model for Medical/Surgical Sales Data, Medical/Surgical Synonym File, and Package Allocation for Medical/Surgical Data is supplied to Government and commercial entities on a quarterly basis, while the Comprehensive Data Dictionary is supplied under the license on an annual basis.

Market research was conducted by contacting IQVIA directly to obtain a budgetary quote.

IQVIA currently has no authorized resellers and is therefore the only source for the data license subscription. The data license subscription will be acquired using the CLINS structure listed below.

CLIN Qty Product Description Base Period: September 30, 2023 through September 29, 2024 0001 1 IQVIA sales data license subscription

1. Pharmaceutical Sales Data

2. Relational Data Model for Pharmaceutical Sales Data

3. Medical/Surgical Sales Data

4. Relational Data Model for Medical/Surgical Sales Data

5. Medical/Surgical Synonym File

6. Package Allocation for Medical/Surgical Data

7. Comprehensive Data Dictionary

Option 1 Period of Performance: September 30, 2024 through September 29, 2025 1001 1 IQVIA sales data license subscription

1. Pharmaceutical Sales Data

2. Relational Data Model for Pharmaceutical Sales Data

3. Medical/Surgical Sales Data

4. Relational Data Model for Medical/Surgical Sales Data

5. Medical/Surgical Synonym File

6. Package Allocation for Medical/Surgical Data

7. Comprehensive Data Dictionary

Option 2 Period of Performance: September 30, 2025 through September 29, 2026 2001 1 IQVIA sales data license subscription

1. Pharmaceutical Sales Data

2. Relational Data Model for Pharmaceutical Sales Data

3. Medical/Surgical Sales Data

4. Relational Data Model for Medical/Surgical Sales Data

5. Medical/Surgical Synonym File

6. Package Allocation for Medical/Surgical Data

7. Comprehensive Data Dictionary

The estimated dollar value for performance under a twelve (12) month base year and two (2) twelve (12) month option periods, with an anticipated start date of September 30, 2023 is

4. IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION.

The statutory authority permitting other than full and open competition is 10 U.S.C. 3204(a)(1), as implemented by FAR 6.302-1(a)(2), “Only one Responsible Source and no other supplies or services will satisfy agency requirements,” and FAR 6.302-1(c)(1), “An acquisition or portion of an acquisition that uses a brand name description or other purchase description to specify a particular brand name, product or feature of a product peculiar to one manufacturer.” The IQVIA data license subscription is a brand name product of IQVIA Government Solutions, Inc., which is the only known provider of the required license, and no other brand name license subscription provider can support the DLA Medical Directorate. Use of this brand name license in the acquisition is essential to the Government’s requirement, thereby precluding consideration of a product from another provider. The IQVIA data license subscription is particular to one manufacturer, IQVIA, and any resultant acquisition cannot not be fulfilled under full and open competition due to the absence of authorized resellers for IQVIA and its products, and no other type of supply or service will satisfy the Government’s need.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE

OF THE AUTHORITY CITED.

Since December 2015, the IQVIA brand name data license subscription has been the single, sole-source solution for optimization of the DMLSS-W system. The various components provided under the medical/pharmaceutical sales data license (Pharmaceutical Sales Data, Relational Data Model for Pharmaceutical Sales Data, Medical/Surgical Sales Data, Relational Data Model for Medical/Surgical Sales Data, Medical/Surgical Synonym File, and Package Allocation for Medical/Surgical Data) will provide DMLSS-DLA the capability to ensure that sales data and information provided by the DMLSS-W system and its users is current, accurate, and up to date.

The Government’s acquisition request has been evaluated and the data license subscription offered by IQVIA is determined to meet the definition of a brand name product which is only available from one responsible source. Barriers to competition for this acquisition arise from the unique and proprietary nature of the IQVIA data license subscription, and its data collection process. There is no other source which offers a comparable product to meet the Government’s need. Pursuant to FAR 6.302-1(c)(1)(ii)(B), the use of brand name IQVIA data license subscription for this acquisition is essential to the Government’s requirement, thereby precluding consideration of a product manufactured by another company.

Failure to procure this data license subscription, will adversely impact the DMLSS-W systems, DLA’s customers, and DLA acquisition programs if the Government does not have access to IQVIA sales data would be significant as there are no known alternative sources of supply. The data provided by IQVIA is necessary for the DMLSS-DLA readiness processes and applications to ensure accurate calculations of sales and pricing trends. Furthermore, the IQVIA algorithm allows DMLSS to forecast sales, use, and analyze trends necessary for DMLSS-DLA readiness processes and applications.

There are no other suppliers on the market that provide a comparable product that captures pharmaceutical/medical supply sales data along with sales data analysis. Thus, IQVIA is the only source that offers a solution comprehensive enough to satisfy the agency requirement to identify, by product, the monthly quantity of all pharmaceutical and medical/surgical products sold nationwide and forecast future sales trends based on patient outcomes.

Failure to obtain the highly specialized data feeds offered by IQVIA will disrupt the DLA Medical Directorate and necessitate major reprogramming of the DMLSS system, as removal of the IQVIA data feed would remove an essential component of the MMC and other DMLSS-DLA applications. Program logic and business rules applicable to using the IQVIA data within the application would be nullified and the absence of critical decision-making data would limit the ability of the MMC to support the Services and hinder DLA Troop Support Medical’s readiness capability.

While other offerors provide similar sales data solutions, no other product or offeror provides a solution that captures all of the necessary sales data feed and sales analytics required by DLMSS-DLA and necessary for the DMLSS-W system. Market analysis indicates that the sales data and analytics solution offered by IQVIA is available from no other source. Other offerors provide similar solutions, but they lack information and data formats necessary for the DMLSS- W and/or fail to provide monthly sales data and trend analysis upon which DMLSS-DLA can forecast usage to determine pricing trends and availability. Failure to acquire the IQVIA solution will result in increased analyst and developer labor costs and reprogramming time of the DMLSS-DLA application. No other product is fully comparable to the product offered by IQVIA. The ECRI PriceGuide provides medical sales benchmarking data, but lacks comprehensive data regarding industry commercial retail and wholesale data and trends and in-depth analysis. The GHX product does not offer visibility and insight into what medical materiel is being sold on the commercial side of the medical healthcare industry, nor does it gather all pharmaceutical and medical/surgical commercial sales data availability.

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE,

INCLUDING WHETHER A NOTICE WAS OR WILL BE PUBLICIZED AS

REQUIRED BY SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION UNDER 5.202

APPLIES.

The Contracting Officer conducted a review of DoD Enterprise software agreement and the General Services Administration MAS solutions and Scientific Management and Solutions Category to assess whether IQVIA or another vendor provides the requirement data license subscription (see GSA eLibrary Contractor Information). Although IQVIA has an MAS contract on GSA, it only provides professional healthcare support services. Furthermore, the search resulted in a determination that no other vendor is available that can fulfill this requirement.

IQVIA has confirmed it is the only authorized source for its data license subscription.

http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/05.htm#P56_9614 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/05.htm#P67_10773 https://www.gsaelibrary.gsa.gov/ElibMain/contractorInfo.do?contractNumber=47QTCA20D007H&contractorName=IQVIA+GOVERNMENT+SOLUTIONS+INC&executeQuery=YES

Market research conducted in 2023 demonstrated that there are no authorized resellers of IQVIA’s data license subscription. IQVIA is the only known firm that provides its proprietary medical/surgical and pharmaceutical sales data license subscription.

As IQIA is the only known entity that provides this data license subscription and there are no authorized resellers of the IQVIA data license subscription, this acquisition will be solicited on a sole source, brand name basis to IQVIA. In accordance with FAR 6.305(c), a combined synopsis/solicitation will be sent to IQVIA and will be made publicly available, along with this justification on SAM.gov.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE.

As the Contracting Officer, I hereby determine that pricing will be fair and reasonable based on price analysis in accordance with FAR 15.404-1. It is anticipated that, in order to obtain a fair and reasonable price, the Government will use various price analysis techniques, including, but not limited to the following: (1) In accordance with price analysis techniques detailed at FAR 15.404-1(b)(2)(ii), a comparison of proposed prices to historical prices paid, whether by the Government or other than the Government, for the same or similar items; (2) in accordance with FAR 15.404-1(b)(2)(iv), comparison of proposed prices to competitive published price lists, published market prices of commodities, similar indexes, and discount or rebate arrangement; (3) in accordance with FAR 15.404-1(b)(2)(v), comparison of proposed prices with the IGCE; and,

(4) in accordance with FAR.15.404-1(b)(vii) analysis of data other than certified cost or pricing date provided by the offeror.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE PART 10)

AND THE RESULTS OR A STATEMENT OF THE REASON MARKET

RESEARCH WAS NOT CONDUCTED.

The DLA Medical Directorate conducted market research in 2023, as evidenced in the June 27, 2023 Market Research Report, to compare service offerings of the incumbent vendor (IQVIA) with similar vendors existing in the industry. Market research techniques included a review of acquisition history for contracts used by the directorate to procure similar services and a search of Contract Opportunities (SAM.gov) and GSA websites (GSA elibrary Welcome to GSA eLibrary & GSA assisted acquisitions for IT Information Technology Category | GSA) for other vendors with similar data service offerings.

Alternative subscription services considered included products offered by https://www.gsaelibrary.gsa.gov/ElibMain/home.do https://www.gsaelibrary.gsa.gov/ElibMain/home.do https://www.gsa.gov/technology/it-contract-vehicles-and-purchasing-programs/technology-products-services

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

N/A

10. LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION.

IQVIA Government Solutions Inc.

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY

SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED.

At this time, IQVIA is the only service provider on the market that can fulfill this requirement and meet the Government’s needs. However, DLA continues to exercise competition as often as possible and is required to conduct ongoing reviews to keep abreast of new technology. As a continuing effort, DLA utilizes a variety of vendors, manufacturers, and contracts to fulfill its requirements and will continue the practice of surveying the market to ensure full and open competition to the maximum extent practicable.

12. CONTRACTING OFFICER CERTIFICATION THAT THE JUSTIFICATION IS

ACCURATE AND COMPLETE TO THE BEST OF THE CONTRACTING

OFFICER’S KNOWLEDGE AND BELIEF.

Requirements/Technical Certification

I hereby certify that the data provided for which I am responsible, and which form a basis for this justification is complete and accurate to the best of my knowledge and belief.

Contracting Officer’s Certification and Approval

I hereby certify that this justification is accurate and complete to the best of my knowledge and

Competition Advocate Certification and Approval

I have reviewed and approve this justification.