LSJ Omnicell Redacted.pdf

VHAPM Part 808.405-6 Limiting Sources Page 1 of Original Date: 08/30/2017 Revision 03 Eff Date: 03/18/2021

LIMITED SOURCES JUSTIFICATION (LSJ)

ORDER >SIMPLIFIED ACQUISITION THRESHOLD (SAT)

FEDERAL ACQUISITION REGULATION (FAR) PART 8.405-6

Acquisition Plan Action ID: 36256-21-AP-2734

(1) Contracting Activity: Department of Veterans Affairs (VA), Network Contracting Office 16 (NCO 16) located at 2002 Holcombe Boulevard (90C), Houston, TX 77030. Program Office:

VA, Gulf Coast Veterans Health Care System (GCVHCS) located at 400 Veterans Avenue, Biloxi, MS 39531. 2237 numbers are 520-21-3-899-0118; 520-21-3-899-0117; 520-21-3-031- 0055; 520-21-3-031-0077; and 520-21-3-031-0102.

(2) Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 US.C. 152(3)) and 40 U.S.C. 501). The VA, GCVHCS’ OmniRX automated dispensing system (OmniRX) requires a components upgrade from the current Omnicell G4 Automated Dispensing Cabinets and G4 Anesthesia Workstation legacy components to the Omnicell XT Automated Dispensing Cabinets and Anesthesia Workstation components. The OmniRX automated dispensing system will support the Biloxi, Mississippi and Pensacola, Florida facilities within the GCVHCS.

Order against: Federal Supply Schedule (FSS) Contract Number: V797D-30111

Name of Proposed Contractor: Omnicell, Inc. (Omincell)

Street Address: 590 East Middlefield Road

City, State, Zip: Mountain View, CA 99404

Phone: 901-383-3881

(3) Description of Supplies or Services:

GCVHCS’ current Omnicell G4 Automated Dispensing Cabinets and G4 Anesthesia Workstation equipment will be discontinued. GCVHCS must upgrade and replace the discontinued equipment with Omnicell’s Omnicell XT Automated Dispensing Cabinets and Anesthesia Workstation.

This is a new requirement with no options. All warranties, installation, and maintenance support are included and in accordance with VA FSS contract V797D-30111. The estimated value of the proposed action is . The following are the required items to be purchased:

VHAPM Part 808.405-6 Limiting Sources Page 2 of

Revision 03 Eff Date: 03/18/2021

Description/Part Number Quantity

VIRTUAL TEST SERVER 1

XT MED 1-CELL CABINET 50

DRAWER,8 BIN LOCKING,AWSXT 4

DRAWER,12 BIN LOCKING,AWS-XT 8

XT ANESTHESIA WORKSTATION W/SL PRINTER 4

XT MED AUX 2-CELL CABINET 2

XT MED AUX 1-CELL CABINET 41

PCA OPEN CONFIGURABLE DRAWER 290

PCA METAL LOCKING DRAWER 589

OC REMOTE ACCESS WIN2016 (NEW / SINGLE) 98

OMNICENTER UNITY SOFTWARE 1

OC BASE SERVER 2016-UNDER 200 DEVICES 2

Virtual Appliance Upgrade, (VSR) OmniCenter, DIACAP 1

(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:

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;

The Omnicell XT Automated Dispensing Cabinets and Anesthesia Workstation has US Patent application numbers 62/830,215 and 62/873,610 publicly filed with the World Intellectual Property Organization on 10/08/2020, publication number WO 2020/206154 A1. Omnicell does not authorize any resellers or distributors to provide their products.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed. The required equipment is peculiar to one manufacturer, Omnicell.

GCVHCS owns the Omnicell OmniRX Automated Dispensing System (OmniRX) and based on the proprietary nature of the required components of the OmniRX, any other automated dispensing brands and their components are not compatible with the OmniRX. Furthermore, the incompatibility of another brand would compromise the ability of pharmacists to effectively monitor medication levels. The Omnicell XT Automated Dispensing Cabinet and Anesthesia Workstation components are the upgrades that interoperate with existing GCVHCS’ OmniRX network and infrastructure. There are other similar products, but medication dispensing cabinets are unique to each automated dispensing systems.

To comingle components of different automated dispensing systems that rely on the existing system and network infrastructure for medication management, cannot be modified to

VHAPM Part 808.405-6 Limiting Sources Page 3 of

Revision 03 Eff Date: 03/18/2021 interoperate with the existing system. Therefore, replacing the existing OmniRX in order to competitively acquire other brand name automated dispensing components is an estimated which is cost prohibitive, a duplication of costs, additional labor hours, and unnecessary delays in procuring this requirement would directly affect patient safety.

Due to these facts the specific brand name components are needed for compatibility purposes with existing OmniRX and if these brand name components are not obtained, it will disrupt the Veterans Health Administration (VHA) treatment plans of the Veterans of GCVHCS.

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:

This requirement will be procured from VA FSS contract V797D-30111. Given that GSA has already determined that VA FSS contract prices are deemed fair and reasonable, and that discounts will be sought during the acquisition, there is a reasonable expectation that pricing will be determined fair and reasonable based on the IGCE and market prices in the commercial marketplace.

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

A source sought notice 36C25621Q0980 was posted on Federal Contracting Opportunities (FCO) on 5/20/21 and closed on 5/27/21; and a sources sought notice was posted in GSA e-Buy under SIN 65 II A, category A-92, Medication and Supply Packaging and Dispensing Equipment on 6/03/21 and closed on 6/09/21. The manufacturer Omnicell (a large business) responded to the sources sought notice posted on GSA e-Buy. After an e-mail query to the manufacturer about authorized distributors, the manufacturer stated that there is only one SDVOSB authorized distributor of their products--TrillaMed. TrillaMed responded to the sources sought on FCO.

Based on the market research (attached), there is no expectation that at least two (2) VIP verified SDVOSBs or VOSBs are capable of meeting this requirement. In addition, no small business in