1.5.1 FAR 13.5_SSJ REVISED Amount_Pharmacy Services Final_REDACTED forSAM.gov.pdf

OFFICE OF ACQUISITION MANAGEMENT

ICE Acquisition Manual 3006.301-90

SOLE SOURCE JUSTIFICATION: SIMPLIFIED PROCEDURES FOR CERTAIN

COMMERCIAL ITEMS EXCEEDING SAT, INCLUDING BRAND NAME

J&A-23-00124

Pursuant to the requirements under the authority of simplified procedures for commercial items at 41 U.S.C. 1901 or the authority of 41 U.S.C. 1903 Special emergency authority as implemented by Federal Acquisition Regulation (FAR) Subpart 13.501 and consistent with the content requirements of FAR 6.303-2.

1. Agency and Contracting Activity.

The Department of Homeland Security, U.S. Immigration and Customs Enforcement, Office of the Chief Information Officer proposes to enter into a contract on behalf of the Solutions Delivery Division, Enforcement and Removal Operations (ERO) Portfolio Branch on a basis of other than full and open competition.

2. Nature and/or description of the action being approved.

(a) Type of action: Firm-fixed price contract – new contract

(b) Amount the current J&A is justifying: $_________

(c) Brief Description: OAQ intends to procure, on a sole source basis, full range of software development, technical and project management services required to support and sustain the pharmacy services (CIPS) and eMAR (sMARt) applications that are a part of the electronic Health Record (eHR) system. This action is pursuant to the authority of FAR 13.501. The vendor listed below is the only company that can provide the required services.

KALOS Inc./dba Fusion Health 3518 SE 21st Street Suite B Topeka, KS 66607-2371

3. Description of Supplies/Services. Describe the supplies or services to be acquired.

Provide the estimated total value (including options, if any).

This requirement is to provide five (5) years of software development, technical and project management services required to support and sustain the pharmacy services (CIPS) and eMAR (sMARt) applications that are a part of the electronic Health Record (eHR) system at an estimated cost of $____. These services are necessary to facilitate the ICE Health Service Corp’s mission which includes effectively addressing health care delivery gaps to the detainee population within ICE facilities.

http://uscode.house.gov/

SOLE SOURCE JUSTIFICATION: SIMPLIFIED PROCEDURES FOR CERTAIN

Period Time Price Total Base 12 mos. $__________ $__________ Option Year 1 12 mos. $__________ $__________ Option Year 2 12 mos. $__________ $__________ Option Year 3 12 mos. $__________ $__________ Option Year 4 12 mos. $__________ $__________

TOTAL $___________

4. Identification of the authority.

This action is being taken under the authority of Simplified Procedures for Commercial Items, 41 U.S.C. 1901

5. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

ERO has a requirement for a sole source procurement of KALOS LLC (dba Fusion Health) commercial-off-the-shelf (COTS) software to support the pharmacists and medication administrators at ERO’s detention health clinics. Their Correctional Institution Pharmacy Software (CIPS) and electronic Medication Administration Record (eMAR) system have been implemented throughout the ICE health clinics managed by ICE Health Services Corps (IHSC). Since 2001, work processes of the IHSC pharmacists have all centered around CIPS.

Application programming interfaces (APIs) for these two products and ICE’s electronic Health Records (eHR) are also available from KALOS to improve efficiencies and reduce errors from duplicate manual data entries. KALOS, Inc., the developer and owner of CIPS product, has provided software maintenance support for CIPS since its inception. As proprietary software product that was customized to meet the unique automation and business needs of IHSC and enhanced over the years with improved functionally to continue meeting those needs, Kalos is uniquely qualified to continue supporting IHSC. KALOS is responsible for its proprietary software support, maintenance and training for Correctional Institution Pharmacy System (CIPS) software. The software is a complete pharmacy system designed specifically to optimize prison or jail pharmacy services by providing efficient prescription-filling using quick and simple operation, which makes it easy to learn and operate in rapid training for new employees or relief pharmacists. For these reasons, KALOS proprietary software product is the only source with unique capability to satisfy ICE OCIO minimum needs.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

OAQ has issued multiple RFIs through multiple venues due to changes in the requirements submitted by the IHSC customer and to submit the document to a larger pool of potentially eligible candidates. The RFIs were submitted through SAM.gov to ensure a large pool of potential vendors could ask questions and potentially bid for the contract. The RFI’s were

SOLE SOURCE JUSTIFICATION: SIMPLIFIED PROCEDURES FOR CERTAIN

submitted to SAM.gov on December 17, 2022 and January 20, 2023. An additional RFI was submitted to NITAAC on February 23, 2023.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

After comparing KALOS pricing to the published price lists on GSA and CIO-SP3 from the vendors that responded to the RFI, it can be determined that the anticipated price of the new contract will be fair and reasonable. This analysis is based on the costs of current development work for this contract and the current IGCE.

Labor Category Sapphire Health

VSolvit

(GSA)

Agile Trailblazers

(GSA)

DK Shin Laboratories

Deloitte

(CIO-SP3)

KALOS

Applications Developer (Senior) NA $ $ NA $ $ Project Manager NA $ $ NA $ $ Requirements / Business Analyst (Intermediate) NA $ $ NA $ $ Test Engineer (Intermediate) NA $ $ NA $ $

J&A-23-00124 was previously approved at $_____ however due to the significant underestimation of the Independent Government Cost Estimate (IGCE) this J&A is being resubmitted for $______ which is highlighted above in sections 2b and 3. The increase in cost from $__million to $__million has to do with the type of contract that is being offered now vs. the previous contract. Earlier, this work was issued under a commercial contract for goods. This contract contained two “Over-And-Above” CLINS which potentially captured all software development work for the CIPS and sMARt applications. When faced with recompeting the contract, the program office was instructed to identify this work as software development work and not place this under a goods and services contract. When completing the initial research for the contract the program team felt it necessary to identify the required labor categories and percentage of labor hours for required personnel. This research drove the initial IGCE cost structure to the prior estimated $__M. This is a development contract, not a commercial/goods contract and the $__million price point (over 5 years) is in line with software development work of this nature. Additionally, Kalos is the only vendor that can continue to provide unique software requirements based upon the specific needs of the IHSC customer.

8. Description of market research.

Extensive market research was conducted. Based upon the market research performed and the responses received after putting the RFI out three times, no one vendor could do the work exclusively according to the IHSC customer who evaluated all responses and submitted the requirements. Six potential contractors responded to RFI and none of them responded to their ability to provide the full range of software development, technical and project management services required to support and sustain the pharmacy and eMAR applications that are a part of the electronic Health Record (eHR) system.

SOLE SOURCE JUSTIFICATION: SIMPLIFIED PROCEDURES FOR CERTAIN

The following types of market research was performed:

• Acquisition history reviewed

• Other recent market research reviewed

• Interviewed knowledgeable individuals in industry

• Government databases reviewed

• Commercial databases reviewed

• Source lists of DHS and other Government agencies reviewed

• System for Award Management (SAM) at:

https://www.sam.gov/portal/public/SAM/)

• Sources Sought Notices: Requests for Information (RFI)

• Pre-solicitation engagement

• One-on-one vendor discussions

The inability of other vendors to provide these services (after extensive research and submission of the RFI three times) leads us to the conclusion that KALOSs is the only vendor that can provide pharmacy and administrative services to the IHSC Electronic Health Records System. Additionally, KALOS has responded favorably to the CO and informed her that they are interested in continuing to work on the contract after the current option year ends.

9. Any other facts supporting the justification.

KALOS is uniquely qualified to continue providing services to ICE Health Service Corps on an uninterrupted basis and to allow for a smoother transition and continuation of pharmacy services, than would occur if a new vendor, unfamiliar with these electronic Health Records system, and its ancillary applications, were to engage at this point. The interdependency of the CIPS and sMARt applications with the EHR and custom workflows within the EHR system, provides a continuum of care for this patient population.

The five-year contract is standard for the development teams on this program. Since these contracts were initiated around the same time, the objective was for everything to wind down around the same time and to engage with either one contractor who can provide all these services or use several different contractors to provide the different solutions. ICE ERO is pursuing a five-year sole source to align with the procurement period of the current vendors within the Electronic Health Records systems, eCW 70CTD020C0000001& Amar 70CTD20FR0000055 contracts which end mid FY25. ICE ERO needs to ensure that the pharmacy and administrative services vendor is in place in light of a new EMR being procured. There cannot be a stop in vital pharmacy, nursing and administrative services while going through the procurement process for the electronic medical records database.

ICE ERO can’t have these procurement activities on the same schedule. If ICE is successful in obtaining one vendor that can provide the eMR database and other ancillary services, then we will not exercise all the option years on this five-year contract.

10. A listing of the sources, if any that expressed, in writing, an interest in the acquisition.

• Cerner https://www.sam.gov/portal/public/SAM/

SOLE SOURCE JUSTIFICATION: SIMPLIFIED PROCEDURES FOR CERTAIN

• Deloitte

• VSolveit

• Sapphire

• Agile Technologies

• DK Shin

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 supplies or services required.

Currently, the software services requested pose no barriers to competition based upon the architecture of the electronic Health Records system, which consists of an aggregate system of applications. The goal is to find one company that can do all the work that is on 3 separate IHSC contracts (eCW, AMAR & Kalos). eCW and Amar have one option left on them (they end mid FY25). The government issued an RFI to see if there are companies that can do all the work that are on 2 separate contracts. In the future the agency may wish to invest with a vendor that provides all ancillary services and a database to send and receive required patient data, which would alleviate the dependency on ancillary services through separate applications that provide the different services. The agency will continue to proactively do market research via RFI’s to see if other vendors can provide the services being requested to obtain competition in future acquisitions.

12. DHS intends to post the requirement pursuant to FAR 13.501(a)(1)(iii) and 6.305(a) or for brand name FAR 13.501(a)(1)(iv) and 5.102(a)(6).

13. Technical/Requirements Personnel Certification.

I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

Technical Representative/COR Date

14. Contracting Officer’s Certification.

SOLE SOURCE JUSTIFICATION: SIMPLIFIED PROCEDURES FOR CERTAIN

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Contracting Officer Date

15. Approval.

Competition Advocate Date