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CUI

Controlled by: DLA DCSO – Philadelphia (DCSO-P) CUI Category: General Procurement and Acquisition / Source Selection Information see FAR 2.101 & 3.104 Distribution/Dissemination Controls: FED ONLY POC: Helena.Tuzi@dla.mil / (215) 737-2758

Controlled Unclassified Information (CUI) Source Selection Sensitive Information - See FAR 2.101 & 3.104

DEFENSE LOGISTICS AGENCY

DLA CONTRACTING SERVICES OFFICE - PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

JUSTIFICATION AND APPROVAL

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 REQUIRING AGENCY AND CONTRACTING

ACTIVITY.

REQUIRING AGENCY:

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

CONTRACTING ACTIVITY:

DLA Contracting Services Office – Philadelphia (DCSO-P) 700 Robbins Avenue Philadelphia, PA 19111

Justification and Approval for Other than Full and Open Competition Cardinal Health SupplyLine

Controlled Unclassified Information (CUI) Source Selection Sensitive Information - See FAR 2.101 & 3.104

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

The government intends to negotiate a logical follow-on Task Order procurement with (Cardinal Health, LLC). The current contract number SP4701-21-C-0064, expires 09/25/2024. Cardinal Health, LLC is the incumbent contractor.

This justification authorizes the use of other than full and open competition for the procurement of a Data Service Agreement contract for a medical and surgical product classification process known as Cardinal Health™ SupplyLine® which provides determinations of functional equivalences used within DoD systems to identify equivalent products. The results of this classification data support Readiness Management and other logistics functions performed by Defense Medical Logistics Standard Support-Wholesale (DMLSS-W) and are provided to DoD Customers including the Veterans Health Administration (VHA) in support of the Defense Medical Logistics - Enterprise Support (DML-ES). The DMLSS requirement for unique classification and identification of functionally equivalent medical and surgical products is provided under the current contract with Cardinal Health SupplyLine, which is due to expire on September 25, 2024. A follow-on contract is needed for uninterrupted use of this service. The Government anticipates the award of a Firm-Fixed Price (FFP) contract for one (1) base period of twelve (12) months and two (2) 12-month option periods. The sole source that can satisfy this requirement is Cardinal Health 200 LLC.

The Cardinal Supply Line provides a service to the government for submitted products to clinically evaluate each product using clinical criteria and establish a clinical equivalence between products from different supply sources used for the same exactly medical task. The government does not purchase data from Cardinal Supply Line, it is purchasing a service. This information is then available in our MMC application to enhance price competition and save money for our customers.

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

AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT.

DLA has a requirement to renew an existing Data Service Agreement for a medical and surgical classification system with Cardinal Health 200 LLC which provides determinations of functional equivalences for medical and surgical products. Cardinal Health is the only known source that produces a classification system that is capable of fully integrating with existing DLA Troop Support and other military databases that currently support various logistics and planning activities. SupplyLine is essential to the Government’s requirements for identifying functionally equivalent health care products for cost saving opportunities through data aggregation and evaluation. In addition to cost savings, the benefits of SupplyLine include faster service, reduced waste and excess, improved inventory controls and improved utilization management and outcome analysis. No other brand name classification system is compatible with the Cardinal Health SupplyLine data feed used in DMLSS data standardization and synchronization processes. Only Cardinal Health SupplyLine continued data feeds will integrate seamlessly with the existing algorithms and software code developed and owned by DLA. The DLA Medical

Controlled Unclassified Information (CUI) Source Selection Sensitive Information - See FAR 2.101 & 3.104

Directorate and the DMLSS-W program office do not have a need nor a budget line to recode all government application program code to accommodate a new, different data feed with the required data elements, even if one could be found.

The proposed contract will be a 12-month base year and two (2) 12-month option periods, with an anticipated start date of September 26, 2024. The total estimated dollar value is $4,484,130.00.

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” Cardinal Health SupplyLine® is a brand name product of Cardinal Health 200 LLC.

5. 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 pricing analysis in accordance with FAR 15.404-1. It is anticipated that the Government will use various prices analysis techniques including, but not limited to: 1) comparison with competitive published price lists (reference FAR 15.404-1(b)(2)(iv); and 2) comparison of proposed prices with prices obtained through market research of the same or similar items (reference FAR 15.404-1(b)(2)(vi), in order to obtain a fair and reasonable price.

6. A DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT

CONDUCTED.

The DLA Medical Directorate conducted market research in April 2024 to compare service offerings of the incumbent vendor (Cardinal Health™ SupplyLine®) with alternative solutions 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 and GSA websites for other vendors with similar data service offerings. Primary comparative factors used to analyze alternatives included technical service offerings, functional familiarity, and cost to the DLA Medical Directorate.

Results of market research conducted were as follows:

Controlled Unclassified Information (CUI) Source Selection Sensitive Information - See FAR 2.101 & 3.104

Controlled Unclassified Information (CUI) Source Selection Sensitive Information - See FAR 2.101 & 3.104

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

OPEN COMPETITION

Today, the Supply Line data feed is already programmed into the MMC and MedPDB (for more than 20 years) monthly build process and algorithms. More than 80% of Med/Surge products (millions of records) have been processed through the Supply Line service resulting in embedded interaction of government data. Any change of the existing process will result in enormous cost and time to the government. There is no approved budget or justifiable business need for reengineering the current service from Cardinal Supply Line to accommodate that of an alternative source for this service. DMLSS-DLA has no budget or business approvals for conducting such an analysis and in reengineering the current data feed.

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

INTEREST IN THE ACQUISITION.

Cardinal Health 200 LLC

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

REMOVE OR OVERCOME ANY BARRIERS THAT LED TO COMPETITION

BEFORE ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES

REQUIRED.

At this time, Cardinal Health SupplyLine medical and surgical product classification system service agreement are the only services that will support this agency 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, both in industry and the Government. 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.