Limiting Sources Justification - Pharmacy Automated Dispensing Cabinets (COVID-19) (Redacted).pdf

VHAPM Part 808.405-6 Limiting Sources Page 1 of 4 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

LIMITED SOURCES JUSTIFICATION

PHARMACY MEDICATION DISTRIBUTION SYSTEM

(EMERGENT REQUIREMENT (COVID-19))

Acquisition Plan Action ID: 362C249-20-AP-1780

(1) Contracting Activity: Department of Veteran Affairs (VA), Network Contracting Office 9 (NCO- 9), 1639 Medical Center Parkway, Suite 400, Murfreesboro, TN 37129.

2237 Number: 621-20-3-091-0119

(2) Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501).

This is an urgent action in support of the COVID-19 Pandemic National Emergency for an expansion of the Pharmaceutical Automated Dispensing Cabinet (ADC) Medication Distribution System for the James A. Quillen VA Medical Center in Mountain Home TN. This acquisition consists of the purchase of Omnicell XT cabinets, including 60 Omnicell ADC, 10 Anesthesia Workstations, 401 drawers, single point and Analytics software, with the addition of Windows 10 (Win10) upgrade, installation, and one year of maintenance support. The newly acquired Omnicell XT cabinets will replace the current cabinets on site. The action will be awarded as a Delivery Order from an existing Federal Supply Schedule (FSS) contract awarded by the VA National Acquisition Center (NAC).

Order against: FSS Contract Number: V797D-30111

Name of Proposed Contractor: Omnicell, Inc.

Street Address: 590 East Middlefield Road

City, State, Zip: Mountain View, CA 94043

Phone: (650) 251-6000

(3) Description of Supplies or Services:

The estimated value of the proposed action is $3,082,359.58

This is a procurement for equipment and components for the ADC system at the Mountain Home VAMC in support of ward and bed expansions for COVID-19 infections. The expanded capacity and capabilities will allow enhanced medication security and accountability in the COVID treatment areas. Additional capacity will allow scalability and additional capacity to support anticipated increases in patients and medication needs due to the COVID-19 pandemic.

The capacity increase also lessens restocking needs by staff, which will lower staff exposure risk http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 https://www.gpo.gov/fdsys/pkg/USCODE-2011-title40/pdf/USCODE-2011-title40-subtitleI-chap5-subchapI-sec501.pdf

VHAPM Part 808.405-6 Limiting Sources Page 2 of 4

Revision 02 Eff Date: 02/21/2020 in the COVID-19 cohort areas. The enhanced locked drawer capability permits full accountability and security of all medications, including potentially divertible medications with possible use in treating COVID-19 infections. The items are available on VA NAC FSS Contract V797D-30111, awarded to Omnicell, Incorporated, a LARGE business.

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

This acquisition is in direct support of the COVID-19 Pandemic National Emergency. The required components and equipment will allow for ADC expansion and provide an increased medication dispensing capacity throughout the Mountain Home facility to handle the anticipated influx of COVID-19 patients.

FAR 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;

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination:

The proposed prices for the requirement equipment and components will be established against the existing FSS schedule pricing.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

VHAPM Part 808.405-6 Limiting Sources Page 3 of 4

Revision 02 Eff Date: 02/21/2020

Biomedical Engineers and Pharmacy Services personnel at the Mountain Home VAMC have conducted preliminary market research and found that only Omnicell manufactured ADC equipment possesses the capability to support the needs to fulfill this urgent requirement.

NCO 9 contracting personnel performed a review of the VA NAC contract holders through the General Services Administration’s (GSA) Electronic Library (eLibrary) and was not able to identify additional holders capable of fulfilling the current requirement.

(7) Any Other Facts Supporting the Justification:

The Mountain Home VAMC maintains a current contract with Omnicell to fulfill existing ADC needs, and only Omnicell manufactured equipment will integrate with the current ADC and existing software used across the facility. The proposed Omnicell system must be compatible with the existing cabinets previously installed, including the server and other software products. All existing HL7 interfaces, Virtual Local Area Networks (VLANs) must be leveraged such that the proposed ADCs integrates with the Veterans Health Information Systems and Technology Architecture (VistA). Omnicell is the authorized dealer/distributor of Omnicell products, software and maintenance service, and is capable of fulfilling the request in its entirety.

Procuring the needed items from the manufacturer of the existing equipment will additionally save the government thousands of dollars by eliminating the need for integration, implementation, and any training involved with incorporating a new ADC.

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

Actions required to remove or otherwise change the current system would cause significant disruptions to patient care and present overwhelming technical and training challenges, resulting in cost related risks to the government. Therefore, no plans are being considered at this time to replace the current system.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

John A. Seneker Date Chief, Pharmacy Service VAMC Mountain Home

VHAPM Part 808.405-6 Limiting Sources Page 4 of 4

Revision 02 Eff Date: 02/21/2020

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Darrin J. Nicholson Date Contracting Officer, NCO 9

b. Branch Chief (Recommendation): I certify the justification meets requirements for limiting competition.

Stephen A. Clabough Date Branch Chief, Supply East

NCO 9

c. Division Chief (Recommendation): I certify the justification meets requirements for limiting competition.

Robert M. Kellner Date Division Chief, NCO 9 Supplies, Construction

d. Director of Contracting (Concurrence): I Concur / Non Concur that the justification meets requirements for limiting competition.

Marie L. Smith Date Director of Contracting

NCO 10

e. VHA RPO HCA Review and Approval (over $700,000 to $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Terry L. Spitzmiller Date Executive Director Regional Procurement Office Central (VHA) https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx