Justification and Approval_36C77025P0248_Sole Source_APFS Sys Mgr.pdf

Attachment 1: Request for Sole Source Justification Format >SAT

VHAPG Part 806.3 OFOC Revision: 03 Effective Date: 04/15/24 Acquisition ID#: 36C770-25-AP-0302

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C770-25-AP-0302 2237: 766-25-2-604-0030

1. Contracting Activity: Department of Veterans Affairs, NCO15, Consolidated Mail Outpatient Pharmacy (CMOP) Charleston-766.

A contract for a Sole Source, Firm Fixed Price contract with Innovation Associates (dba iA) for an on-site Automated Pharmacy Fulfillment Systems (APFS) Manager. The cost of the contract is $366,800.00 including one (1) option year.

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

This procurement is one on-site Systems Manager of the APFS 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 require justification using the format of FAR 6.303-2.

The Charleston CMOP requires additional on-site staff to manage the APFS. The current Extended Warranty on the equipment contract provides two on-site System Managers to support the maintenance, repair, technical oversight and operations management of software components through the warranty period as negotiated during a concessions negotiation.

However, there is a gap in the existing schedule and the current support in which no on-site managers are available to the CMOP during periods of the production shift.

This procurement is for a System Manager to fill the gap in coverage. The required on-site staff will provide the services in accordance with the duties and responsibilities as written in this contract. Charleston CMOP requires coverage for a mid-shift position to allow for more expertise during the shift maintenance period and to provide continuity of communication. This requires a mid-shift System Manager to have a face-to-face turnover with both the First and Second Shift System Managers.

This procurement will be a new requirement utilizing a Firm Fixed-Price (FFP) contract.

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

The System Manager will need to be an employee of iA due to the current APFS contract and warranty of the equipment that is in place, and as such, cannot be opened to any other vendors. If another company was used the current warranty on the system would become null and void. This position cannot be staffed by VA Staff or from any other technical staffing contractor due to the specific access needed to iA systems, processes, and proprietary

Revision: 03 Effective Date: 04/15/24 Acquisition ID#: 36C770-25-AP-0302 systems.

This procurement is for one APFS systems manager for a base year plus one option year with a period of performance from September 2025-2027. The current need is for one full-time equivalent employee (FTEE) up to 8 hours a day, 40 hours per week. The total cost of the contract is approximately $366,800.00.

4. Statutory Authority Permitting Other than Full and Open Competition:

(X ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR

6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

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 APFS is the major system that provides 90% of the prescriptions processed for Veteran patients. Without the full function of this major system, CMOP would not be able to meet the requirements to provide service to Veterans and comply with the VA’s Mission Statement.

This highly specialized equipment is not readily available on the Open Market. The conveyance system and combination of subsystems is highly dependent on Pharmacy Formulary and the facility size and floorplan. All these factors create a unique scenario that pulls a variety of equipment together to form a system where the designer ultimately has the best understanding of how each piece interfaces with all the other sections.

As such, the System Manager needs to be fully trained on the specialized iA equipment. The manager must be intimately familiar with the company’s process to identify, procure, and stock spare parts. The manager needs to have training and mastery of the company’s Customer Experience System so that they can submit, manage, and oversee trouble tickets for the repair of hardware, software or equipment controls logic. The manager needs to understand and have access to the proprietary iA Nexia and Symphony software suite. As the direct liaison between the VA and iA, this position needs to have access to all company Points of Contact within the various iA Departments. Only an employee of iA would have those specific skill sets, the accessibility, and the knowledge to fulfill this role.

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

iA Nexia and Symphony software is proprietary and supports a major system that cannot

Revision: 03 Effective Date: 04/15/24 Acquisition ID#: 36C770-25-AP-0302 be provided by any other businesses as it is exclusive and cannot be modified by any entity other than iA. Additionally, the system is under an extended warranty for two more years. The nature of this position requires it to be an employee of iA or it would void the warranty.

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

The anticipated cost is considered fair and reasonable. Market research showed an entry-level Systems Manger salary as of January 8, 2025 is approximately $75,000 per year.

Additionally, the average Systems Manager annual salary is between $107,156.00 ($51.52 hourly rate) to as high as $152,000.00 ($73.08 hourly rate). The annual salary as previously stated is consistent with the South Carolina Bureau of Labor Statistics snapshot shown below.

*From the South Carolina U.S. Bureau of Labor Statistics: 11-3021 Computer and Information Systems Managers. Computer and Information Systems Managers

Websites used in Market Research.

o South Carolina - May 2023 OEWS State Occupational Employment and Wage

Estimates o Systems Manager Salary (February 2025) - Zippia o Systems Manager, IT Salary in 2025 | PayScale

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Limited Market Research was conducted because this action must work in conjunction with our current system warranty which uses proprietary software. Additionally, a Business Associate Agreement (BAA) is required for this project and iA already has an existing BAA with the VA.

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

Revision: 03 Effective Date: 04/15/24 Acquisition ID#: 36C770-25-AP-0302

As stated previously, this position is required to be iA staff.

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

Innovation Associates (dba iA).

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:

No significant plans exist to overcome barriers to competition at this time. The extended warranty has two years remaining. This staffing position is required to be an iA employee to not void the warranty of the APFS.

Actions to remove barriers to competition are limited until APFS equipment is replaced or iA no longer maintains proprietary rights to its technologies. The CMOP organization will be less dependent upon this service as new systems are planned in the future that will replace the current systems.

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.

9/6/2025 WILLIAM LAVINGHOUSEZ Date Associate Director Charleston VA CMOP

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

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

RENEE KREUTZER Date Contracting Officer NCO 15, CMOP Services

Revision: 03 Effective Date: 04/15/24 Acquisition ID#: 36C770-25-AP-0302

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.

CHRISTY PENDLAY Date Services Branch Chief NCO 15, CMOP Services