Limited Source Justification Signed FY20 DJ047.pdf

LIMITED SOURCES JUSTIFICATION

FAR Subpart 8.405-6 ScriptPro Inventory Pharmacy Management System

Support Services

1. Contracting Activity:

Department of Veterans Affairs Office of Acquisition Operations Strategic Acquisition Center (SAC) 10300 Spotsylvania Ave, STE 400 Fredericksburg, VA 22408

2. Description of Action:

This proposed action is for a twelve (12) month firm-fixed price (FFP) task order with two (2) six

(6) months option periods for procurement of Inventory Management System Software and services. This effort is being conducted under the authority of the Multiple Award Schedule Program; the proposed effort will be awarded under the General Services Administration (GSA) Federal Supply Schedule (FSS) 36F79719D0135 to ScriptPro USA, Inc, 5828 Reeds Road, Shawnee Mission, KS 66202.

3. Description of supplies or services:

The proposed action is to provide of Inventory Management System Software and services.

The Government Accountability Office (GAO) reviewed the pharmacy inventory management program at five (5) VA pharmacies and identified gaps in the VA Facility pharmacy’s inventory management system (refer to GAO Report 18-658, Pharmacy Inventory Management Could Benefit from System- Wide Oversight – Exhibit A). While all five facilities used similar processes, three of the five used automation to track inventory and one of those three tracked all inventory perpetually. The GAO cited this process as a best practice as it allowed the facility to reduce waste and improve the pharmacy staff workflow as staff did not have to spend time tracking down inventory. Additionally, it allowed the site to track medication by National Drug Code (NDC) and lot number allowing it to identify recalled and expired medication quickly and efficiently. In addition, the GAO had previously recorded a deficiency as VA pharmacies could not maintain real-time inventories across the VA.

While the Cerner Electronic Medical Record will include system-wide inventory management, there will be a significant transition period and some facilities must continue using the VistA system for at least 8 more years. System-wide oversight would require significant programming upgrades to the VistA Drug Accountability program and is not a viable option. A Commercial-Off-The-Shelf (COTS) program is therefore required to provide inventory management at the facility level that will provide for oversight without requiring new VistA computer development. There are three COTS inventory management systems that were considered in market research that could potentially meet this need: the Omnicell Autonomous Pharmacy, ARxIUM’s RxWorks Pro and the Scriptpro Inventory Management System

(SIM).

After thorough technical research, it was determined that the ScriptPro Inventory Management will provide a perpetual inventory management system with analytics allowing facility pharmacy management to provide oversight. ScriptPro is used in 214 VA Pharmacies and CBOCs accounting for 91% of VA facilities. The other systems (Omnicell and ARxIUM) are primarily focused to meet the needs of a retail pharmacy operation rather than an institutional pharmacy such a Veterans Administration Pharmacy. Given the significant investment in hardware within the VA system, the ScriptPro SIM is the only reasonable product that will fulfill the current requirements.

The software will be monitored for stability immediately after installation and any performance issues corrected promptly. The Independent Government Cost Estimate (IGCE) and Market Research revealed an estimate value of $6,638,220.92, with a Base Period estimate valued at $4,337,809.60, and two six (6) month Option Periods estimate value at $2,300,411.32.

4. Authority:

Federal Acquisition Regulation (FAR) Part 8.405-6(a)(1)(B), Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

ScriptPro is currently used in 214 VA Pharmacies and CBOCs accounting for 91% of VA facilities.

ScriptPro is a proprietary system and the use of any secondary contractor to modify the current and new proposed software will negate any warranty on the equipment and software (refer to Statement of Proprietary Equipment - Exhibit B). As previously stated, the ScriptPro hardware is currently installed in 91% of VA pharmacies making it the best offeror to meet the VA Pharmacy’s current need. ScriptPro has given notice to the VA Pharmacy Service that any unauthorized alteration in ScriptPro hardware or software would negate the warranty for this equipment.

5. Determination of Best Value:

The application of limited sources under FAR Subpart 8.405-6(a) is in the best interest of the government and provides the greatest overall benefit in response to this requirement. After thorough market research and considering all acquisition alternatives, the Contracting Officer has determined that placing an order to ScriptPro against their Federal Supply Schedule (FSS) contract #36F79719D0135 represents the best value to the government and is the lowest cost alternative (considering price and special features as described herein) that will satisfy the VA’s needs in meeting VA pharmacy inventory management. In accordance with FAR Subpart 8.404(d), the VA will seek additional discounts before placing the order.

6. Market Research:

Market research was conducted and an RFI was issued. The RFI resulted in eleven offerings.

Responses were reviewed against the Pharmacy Service’s current need for a commercial inventory management system that could be interfaced with the VistA pharmacy computer program without any further interface development or additional hardware purchase. Following this technical review, ScriptPro, LLC, was determined to be the only technically acceptable option as well as a responsible source with a product that is aligned with the current needs of the VA Pharmacy Services. A review of their Representations and Certifications was conducted in the System for Award Management (SAM); ScriptPro, LLC is not an excluded entity. The 11 respondents are as follows:

a) Lima Charlie Management and Analytics, Inc

b) Shipcom Wireless

c) L20 Digital

d) Datarithm, LLC

e) ARxIUM, Inc

f) SOFTEON

g) Four Points Technology

h) RV Global Solutions Inc.

i) Principle Information Technology Company DBA: PRINCIPLE GROUP

j) Omnicell Inc.

k) ScriptPro

7. Other Facts:

The ScriptPro Inventory Management System (SIM) can be installed without risk and without any additional software or interface development. Additionally, ScriptPro has provided the VA with notification that any unauthorized alteration of the systems’ hardware or software would negate the warranty provided with currently installed equipment (refer to Exhibit B).

The long-term solution for pharmacy inventory management is incorporated in the VA’s Cerner system; therefore, future acquisitions will not be required following the VA’s full transition to Cerner.

The VA Regions using the Cerner electronic health record are using a program that includes a perpetual inventory system and management oversight. The sites under VistA must implement this GAO recommended solution for perpetual inventory management. System-wide oversight would require significant programming upgrades to the VistA Drug Accountability program and is not a viable option. A Commercial-Off-The-Shelf (COTS) program is therefore required to provide inventory management at the facility level. The long-term solution for the VA is the VA’s planned transition from VistA to the Cerner electronic health record; once all regions are transitioned to the Cerner software, future acquisitions for this product will no longer be required.

8. Efforts to Obtain Competition:

A Sources Sought Notice (SSN)/Request for Information (RFI) #36C10B20Q0091 was published on December 19, 2019 through the Government Point of Entry (GPE), Federal Business Opportunity website. A total of eleven interested vendors responded to the SSN/RFI as potential sources for the requirement. Only three of the eleven systems were classified as Biomedical Equipment which could meet the requirement; those three received further review.

The vendor ARxIUM Rx Works product would require a significant purchase of hardware and would only track inpatient inventory making it unsuitable for use in community-based outpatient clinic (CBOC) pharmacies which only provide outpatient services. Although the Omnicell Autonomous Pharmacy is better suited to a retail pharmacy setting, the hardware and/or additional coding it would require in order to provide compatibility with the VistA pharmacy program is well beyond the scope of this acquisition. Further, the Omnicell Autonomous Pharmacy is suited to meet the needs of a retail community pharmacy only including customer call back services and other unwanted services as this functionality is already available and thus it does not meet the current pharmacy service need. The final offering in this category was the ScriptPro SIM which meets the technical requirement and presents the best value to the Government.

A notice shall be posted on Beta.SAM.Gov, formerly FBO in accordance with FAR Part 5.

9. Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Terri Duenas Date Contracting Officer

10. Technical and Requirements Certification:

I certify that the foregoing justification is complete and accurate to the best of my knowledge and belief.

____________________ August 20, 2020 Marian Daum, Pharm D Date Project Manager

For acquisitions over $700,000 but not exceeding $13.5M

In my role as Agency Competition Advocate, based on the foregoing justification, I have determined that only one source is capable of providing the services required and approve the acquisition of Inventory Management System software and services pursuant to the authority cited in paragraph 4 above, subject to availability of funds, and provided that the property and services herein described have otherwise been authorized for acquisition.

Donald J. Jones Date Competition Advocate SAC VA Competition Advocate Tracking Number ________

REFERENCES:

Exhibit A – GAO Report Exhibit B – Statement of Proprietary Equipment vacojonesd12 Typewritten Text 8/20/2020 vacojonesd12 Typewritten Text

DJ047

2. Description of Action: