LSJ_FINAL_Symphony Procurement Suite_20230331_REDACTED_Redacted.pdf

FOR OFFICIAL USE ONLY - Source Selection Information – See FAR 2.101 and 3.104

Justification and Approval for Other than Full and Open Competition Limited Sources Justification for Brand Name Acquisition

1. Identification of the agency and contracting activity: Defense Health Agency (DHA), Enterprise Medical Support - Contracting Division (EMS-CD), Joint Base San-Antonio, TX 78234.

2. Nature and/or Description of Action being approved: The EMS-CD requests approval to award a sole source contract for the purchase of Symphony Procurement Suite (Symphony) software and maintenance support licenses.

3. Description of Supplies/Services: The DHA, Program Management Office - Enterprise Medical Services (PMO-EMS) has a requirement to renew existing Symphony licenses that support Multiple Award Contract (MAC) programs within the DHA. The Symphony software is manufactured by Apex Logic Inc. and provides the Government with a web-based contract vehicle management and automation tool that helps to standardize and manage order placement and contract administrative functions for the MAC programs.

Quantity: each ( -month license)

Estimated Value: $

Delivery Date(s): 1 May 2023 (1 each) and 1 May 2024 (1 each)

Proposed Contract Type: Firm Fixed Price (FFP)

Funding Type: Defense Health Program (DHP)

4. Statutory Authority Cited permitting other than full and open competition: 41 U.S.C. 1901; as implemented at Federal Acquisition Regulation (FAR) 13.106-1(b)(1), soliciting from a single source for purchases not exceeding the simplified acquisition threshold.

5. Rationale Justifying Use of the Statutory Authority Cited: This requirement is for the renewal of Symphony software maintenance and support licenses currently in use by the EMS-PMO. Apex Logic is the Original Equipment Manufacturer (OEM) for the Symphony licenses and owns the proprietary rights to their products. Due to the proprietary rights, Apex Logic is the only source capable of renewing the existing licenses.

The existing Symphony licenses support two of DHA’s Strategic Sourcing MAC programs; Medical Q- Coded Services (MQS) and Medical Support Services (MSS) which support mission critical requirements for physician services, dental services, ancillary services, medical support services and nursing services.

Failure to renew the existing licenses will result in a loss of ordering capabilities under both programs and will negatively impact the delivery of medical care across the MHS.

In accordance with Federal Acquisition Regulation (FAR) 13.106-1(b)(1)(i), “Contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand-name or industrial mobilization).” The Symphony licenses are critical to the DHA mission and are only offered for sale by the OEM, Apex Logic, Inc. The MQS and MSS programs, which combined, are approximately $ in size are configured to use the Symphony software. Medical Q-Coded Support and Services- Next Generation (MQS2-NG), under which the requirements met by MQS and MSS would be provided, has been delayed. MQS2-NG a $ program will have its own software, which will be competitively acquired.

Approximately 1,750 of personnel are currently trained in the use of Symphony. Using another system

FOR OFFICIAL USE ONLY - Source Selection Information – See FAR 2.101 and 3.104 would require training the personnel which could be both timely and costly. Retraining would require thousands of labor hours. Additionally, Symphony handles source selection information. Obtaining the certifications for new software would require at least 6 months and additional expense. Inefficiencies incurred from unfamiliarity with a new software would hinder the ability to acquire healthcare services for the MHS, adversely affecting the availability and quality of care render to our patients. The additional costs, and adverse mission effects of attempting to change software support, for the period before the new software is competitively acquired greatly outweigh the benefits of seeking to use another product. It is expected that the MQS2-NG suite of contracts, and its supporting IT software contract, will be awarded within 18 months.

6. Efforts to Obtain Competition: The required licenses are only available from the OEM. The current licenses support ordering for the MSS and MQS MACS which are currently being procured under the MQS2-NG acquisition. The Government intends to facilitate a competitive acquisition to establish a new ordering platform in support of the MQS2-NG MAC program. The notices required by FAR 5.202 will be posted.

7. Determination that Anticipated Cost to the Government will be Fair and Reasonable: In accordance with FAR 13.106-3(a)(2) in acquisitions, the contracting officer may base the statement of price reasonableness on competition; market research; comparison of the proposed price with prices found reasonable on previous purchases; current price lists, catalogs, or advertisements; a comparison with similar items in a related industry; contracting officer’s personal knowledge of the item being purchased;

comparison to an independent Government estimate; or any other reasonable basis. The contracting officer intends to utilize one or a combination of the mentioned methods in determining the proposed price as fair and reasonable.

8. Market Research: Market research did not identify any alternative solution that could provide the required licenses. The only product capable of providing support and maintenance for the Symphony Procurement Suite is the Symphony software license. The Government is currently conducting market research to support the competitive acquisition to establish a new ordering platform in support of the MQS2- NG MAC program.

9. Other Facts: N/A

10. Interested Sources: To date, no sources have expressed interest in this requirement. The Government facilitated a Sources Sought to query the commercial market for sources that have the capability of providing an ordering platform in support of the MQS2-NG MAC program which will replace the MQS and MSS MACs. In response to the notice, 15 vendors expressed interest in supporting the new requirement.

Interested vendors will be provided the opportunity to participate in the new requirement that will replace the current ordering platform.

11. Actions to overcome barriers:

(a) Efforts to Obtain Competition: The OEM is the sole provider of the required licenses.

(b) Actions to Increase Competition: The Government is facilitating a competitive acquisition to replace the current Symphony Procurement Suite contract. The required licenses support the existing MQS and MSS programs which are set to expire in Fiscal Year (FY) 2023 and 2024. Upon expiration of the MAC programs the brand name licenses will no longer be needed.

(c) Follow-on Order: The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future requirements for Symphony licenses to be competed.