JOFOC Brand Name 36C257-25-AP-2391 Final HCA Approved.pdf

Request for Sole Source Justification >SAT-$7.5M under FAR13.5

Effective Date: 11/15/24 Page 1 of 5

REVISION: 01

Acquisition ID#: 36C257-25-AP-2391

DEPARTMENT OF VETERANS AFFAIRS

BRAND NAME JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C257-25-AP-2391 RPOW JOFOC Tracking No.: FY25-NCO 17-1757

1. Contracting Activity:

Department of Veterans Affairs (VA), Network Contracting Office (NCO) 17, located at 5441 Babcock Rd., Ste 302, San Antonio, TX 78240, in support of Veterans Integrated Services Network (VISN) 17, Pharmacy Service, VA North Texas Healthcare System (NTX), located at 4500 S. Lancaster Rd., Dallas, TX 75216.

Purchase Request Number: 549-25-4-096-1032

2. Nature and/or Description of the Action Being Processed:

This procurement is for Omnicell XT Cabinet System operating system software upgrades in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR

13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still requires a justification using the format of FAR 6.303-2.

The NTX Pharmacy requires an update to the operating system (OS) used for the Omnicell XT Cabinet System. The OS currently used is Windows 7, which has become obsolete and, to ensure that the equipment remains operational, needs to be upgraded to Windows 10 LTSC 2021. This will be a firm fixed price contract.

The maintenance services for the equipment are provided under Federal Supply Schedule (FSS) Order 36F79723D0073 36C25724N0150. However, the FSS Schedule contract does not include the software upgrade from Windows 7 to Windows 10 LTSC 2021.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

Software upgrades from Windows 7 to Windows 10 LTSC 2021 are required for the following items:

Equipment Description Quantity

AWS XT Cabinet 16

Half-Height XT Cabinet 19

Full-Height XT Cabinet 105

Services are to be rendered within 180 days of contract award. There are no options available for this requirement; this is a one-time purchase.

The total estimated value of this requirement is $1,831,200.00.

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented

Effective Date: 11/15/24 Page 2 of 5

Acquisition ID#: 36C257-25-AP-2391 by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

The XT Cabinet System is an automated prescription dispensing system used to fill patient prescriptions sent to the system sent through a proprietary software application called the Omnicenter. To protect their proprietary software and data, the original equipment manufacturer (OEM), Omnicell, Inc., limits the number of authorized third-party field service engineers (FSEs) that can perform services on the equipment they manufacture. One vendor that has authorized FSEs is a Service-Disabled Veteran-Owned Small Business (SDVOSB), Trillamed, LLC.

If the OS for the existing system is not upgraded, then all existing cabinets would need to be replaced with cabinets with the upgraded OS already included. This would cause a substantial duplication in costs as the cost of upgrading the existing software is significantly lower than purchasing new equipment outright. Based on the Contracting Officer’s knowledge, the cost of replacing cabinets at the South Texas Veterans Healthcare System under FSS BPA Order 36C25718A0011 36C25719N0775 was valued at $3,599,76.57 for 132 cabinets. Pricing for each item has increased since the FSS BPA expired on 3/11/2023. If the equipment were to be replaced, there would also be unacceptable delays in providing prescription medications for patients. The replacements would need to be acquired through a new procurement, and there would be a delay in the Pharmacy’s ability to fill prescriptions with the new system as equipment must be delivered, installed, and all prescriptions must be entered into the Omnicenter application before the equipment could become fully functional.

Accordingly, Omnicell, Inc., and Trillamed, LLC, are the only firms found capable of providing the brand name services described in Section III above without the Veteran’s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

Market research was conducted (see Section VIII below) to determine if there were multiple vendors capable of providing the upgrades required. As the upgrade is specific to an existing proprietary dispensing system, competition would be limited to those with the appropriate knowledge of the existing system. Market research found two vendors, Omnicell, Inc., and Trillamed, LLC, capable of providing the required services to the brand name equipment. Since no two (2) or more SDVOSBs, VOSBs, or other small businesses were found and only two (2) vendors from any business-size

Effective Date: 11/15/24 Page 3 of 5

Acquisition ID#: 36C257-25-AP-2391 category were found, it is recommended that a solicitation be issued on the open market as unrestricted to ensure that any other capable vendors not found during the course of the market research process are able to respond to a solicitation.

A Sources Sought Notice was not issued for this requirement as at least two (2) vendors were found during market research to provide the required OS upgrade on the XT Cabinet System equipment.

This justification will be included in the solicitation issued in accordance with the posting requirements at FAR 5.102(a)(6) and FAR 6.302-1(c).

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

Price fair and reasonableness will be determined based on competition and a comparison to a recent contract, 36C25025P0441. Price will be determined for reasonableness in accordance with

FAR 12.209.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted:

Market Research was conducted in accordance with FAR part 10, VAAR part 810, and VAAM part M810 from June to July 2025.

Searches were conducted on the Small Business Administration’s (SBA) Dynamic Small Business Search (DSBS), General Services Administration’s (GSA) eLibrary, contacting the OEM, Ability One, Federal Prisons (UNICOR), Internet Search, and the Federal Procurement Data System (FPDS).

a. SBA DSBS: A search for North American Industry Classification System (NAICS) Code 339113, restricted only to vendors with an active SAM registration, resulted in five (5) SDVOSBs, one

(1) Woman-Owned Small Business (WOSB), and 14 small businesses.

b. GSA eLibrary: A search for “Omnicell” resulted in one (1) FSS, 65 II A/A-92. The schedule description is for new pharmacy supplies, and does not include the OS upgrade required.

c. Contacting the OEM: Omnicell was contacted in June 2025 to determine if there were any SDVOSB, Veteran-Owned Small Business (VOSB), or other small business distributors capable of providing the required software upgrade. Omnicell provided a letter dated January 20, 2025, stating that Trillamed, LLC, a SDVOSB, was a vendor authorized to perform the upgrade services.

d. Ability One: A search for “Omnicell” provided no results.

e. UNICOR: A search of available Federal Supply Codes for UNICOR did not include J065.

f. Internet Search: A search for “Omnicell XT cabinet software upgrade” only resulted in one

(1) vendor, Omnicell, Inc.

Buy American Act (BAA) and Trade Agreements Act (TAA) Applicability: The BAA does not apply to this requirement per FAR 25.104(e), Information Technology that is a commercial product. The TAA does not apply, per FAR 25.401(a)(5) as this requirement is competition is being limited.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

None.

Effective Date: 11/15/24 Page 4 of 5

Acquisition ID#: 36C257-25-AP-2391

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

a. Omnicell, Inc.

590 Cranberry Woods Dr.

Cranberry Township, PA 16066 650-251-6100 Bradley Galbreath Bradley.galbreath@omnicell.com

b. Trillamed, LLC 30100 Telegraph Rd., Ste. 366 Bingham Farms, MI 48025 248-410-2767 Tejas Smart tsmart@trillamed.com

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to

Competition before Making subsequent acquisitions for the supplies or services required:

In the future, if a pharmacy dispensing system requires a one-time OS update, the facility and the contracting office will work to determine if the equipment is near the end of its useful life, which would allow for the solicitation of a new system already programmed with the most up-to-date OS.

12. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Tony Pham Date Biomed Engineer VA North Texas Healthcare System

Effective Date: 11/15/24 Page 5 of 5

Acquisition ID#: 36C257-25-AP-2391

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer or Designee’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Delphia Schoenfeld Date Contracting Officer Lab Services Support Network Contracting Office 17

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Michael J. Tusinger Date Branch Chief Lab Services Support

c. Director of Contracting: I certify the justification meets requirements for other than full and open competition.

Mark A. Layman Date Director of Contracting

d. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Curtis M. Jordan Date Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA) https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

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