JEFO INNOVATION iARx Hawaii and Guam FINAL REDACTED.pdf

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY (JEFO)

Innovation Associates, Inc. SPE2D1-19-D-0017

1. Defense Logistics Agency (DLA) Troop Support, Medical Supply Chain, Capital Equipment

Division, is the contracting activity.

2. The action submitted for approval is a JEFO for the purchase and installation of an update to the existing NEXiA pharmacy automation software/system including revised equipment, at the Tripler Army Medical Center, Schofield Barracks/Desmond Doss, Naval Health Clinic (NHC) Makalapa, NHC Kaneohe Bay, Naval Hospital (NH) Guam, and NH Guam Apra Harbor to be purchased from Innovation Associates, Inc (iARx) (CAGE Code: 2N269) Patient Monitoring and Capital Equipment (PMCE) Program contract SPE2D1-19-D-0017, valid through July 22, 2029.

3. The purchase includes NEXiA integrating with the Electronic Health Record (EHR) and all other pharmacy automation software/system, including, but not limited to, ScriptPro, Parata, BD Intellicab, Q-Flow, Asteres ScriptCenter, etc. NEXiA’s integration into pharmacy workflow enhances medication patient safety by ensuring that the correct information ordered by providers is filled and dispensed to the right patient. This solution also allows for integration of multiple pharmacies by utilizing a single server for each island (one for Hawaii, one for Guam). With this one server for all pharmacies, all prescriptions can be filtered, seen, or acted on by any pharmacy staff regardless of the location throughout the entire health network. For example, a relocated patient can access their prescriptions at their new MTF.

The purchase also includes installation of the associated peripheral equipment shipped and sold by iARX (barcode scanners, signature pads, label printers, Network Integration Cards (NIC) Cards) and any other existing pharmacy automation connections to be connected to the established server already at each site with an estimated cost of . There are only certain models and types of peripherals that are compatible with NEXiA. The ones sold by Innovation are the proprietary model and required items that are used across all Medical Treatment Facilities (MTFs) on the NEXiA systems.

The estimated total dollar value of this acquisition is .

4. The authority waving the competition requirements is FAR 16.505(b)(2)(i)(B), only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

This requirement will update the current sites with outdated pharmacy workstations and workflow software such as P2K (BD Parata) or ScriptPro. The current workflows do not meet the specifications required for processing prescriptions, allowing interface and communication with multiple pharmacies across their various Authorized Organizational Representatives (AORs), nor are they within Cyber Security requirements (currently Plan of Action and

Milestones (POAMs) to be justified). There is an existing NEXiA server, produced and maintained by iARX, for Anderson Air Force Base (AFB) servicing Guam and a second NEXiA server, also produced and maintained by iARX, in Hawaii serving Hickam AFB which are both currently on Microsoft 2016. However, this project is to add all remaining MTFs on the two islands to the existing server and upgrade this server to the newest Microsoft operating system version (2019 or 2022) depending on the availability at time of installation based on Authority to Operate (ATO) approvals. This project will also include installing NEXiA on existing Government Furnished Equipment (GFE) provided by the remaining MTF sites in each region and configuring all the peripherals to work on the system and point to these existing and upgraded NEXiA servers. If all sites are on the same NEXiA server, this enables cross communication between all MTFs on that server, which allows these MTFs to complete tele pharmacy actions for all pharmacies on the server allowing interoperability amongst all MTFs for tasks such as remote verification, tracking, out of stock notifications and patient communication.

Currently, all MTFs have their own individual server so they can only see their MTF operations and have no interoperability across any additional locations. The tele pharmacy capabilities provided by having multiple MTFs on the same NEXiA server cannot be replicated by other vendors such as BD Parata or ScriptPro due to the architecture designs of those systems. Only iARX is capable of providing these upgrades due to the proprietary iARX produced NEXiA servers. Additionally, BD Parata and ScriptPro do not support interfaces or communication with all the automation within the pharmacy such as Q-Flow, Q-Anywhere, Artera/Audiocare, ScriptCenter, etc. – only iA’s NEXiA product allows for these interfaces between all facets of automation within the pharmacy. iARX maintains proprietary access to their servers. This migration to NEXiA will allow pharmacy workflow software to meet the requirements needed for Defense Health Agency (DHA) pharmacies to complete appropriate tasks and be in compliance with ATO and Windows Operating System (OS) needs. Along with the installation of NEXiA on designated workstation Personal Computers (PCs) and server, software support and upgrades to newest version of iARX, training of staff on NEXiA software and hardware, on-site technician support during preparation, go-live, and through implementation and virtual support and project management in advance for planning and throughout implementation of project is included.

While there are other vendors who produce similar products for use in a hospital setting, only iARX produces the proprietary NEXiA servers and maintains proprietary access to their servers and peripherals. iARX produces proprietary NEXiA software and servers. They also maintain access to their servers and peripheral products. Their integration with multiple systems and other vendors is also proprietary. iARx is the sole developer, patent holder, and manufacturer of NEXiA pharmacy workflow. iARx is the sole provider of the software subscription and maintenance support required to operate and maintain the NEXiA system. iARx has not entered into any agreements with other companies to resell their products or services; therefore, third party offerings are unavailable.

DLA Troop Support has continually conducted market research during the life cycle of the Electronic Catalog (ECAT) Program and PMCE acquisition planning, spanning from September 2013 through the present, typically completed in May each year. The most recent market research was performed in early May 2025. Market research was performed and based on