LSJ--PR-11522755--NCPDP-Sw--Redacted.pdf

DHA PGI 206.3, Attachment 1 (06-21-2018)

Justification and Approval for Other than Full and Open Competition

J&A Tracking No. PR-11522755

1. Identification of the agency and contracting activity: The Defense Health Agency, Enterprise Medical Support - Contracting Division (EMS-CD), plans to award a purchase order as a sole source on an exception to fair opportunity basis based on the statutory exception and supporting rationale provided herein.

2. Nature and/or Description of Action being approved: Approval is being requested for a new firm-fixed price contract using DHA Pharmacy Funded Program (WBS: S.0069050.4) funds for the procurement of NCPDP dataQ v3.1 Standard Output Files (Monthly File) to be awarded on an other-than-full-and-open competition basis to National Council for Prescription Drug

Programs (NCPDP), 9240 East Raintree Drive, Scottsdale, AZ 85260.

3. Description of Supplies/Services: This requirement is for NCPDP dataQ v3.1 Standard

Output Files, which are an essential component required for the Pharmacy Data Warehouse

(PDW) solution. NCPDP is the problem-solving forum and standards development organization for healthcare industry. NCPDP brings diverse stakeholders together to improve the exchange of healthcare information for patients and everyone involved in delivering care. As an outgrowth of their standards work, NCPDP distributes pharmacy profiles, credentials, and prescriber data by subscription to members. This software (SW) is used by healthcare stakeholders such as government agencies, pharmacy benefit managers (PBMs), pharmacy services administration organization (PSAOs), health plans, health payers, drug manufacturers, and distributors.

NCPDP-brand supplies and services are as follows:

Description Qty

NCPDP dataQ v3.1 Standard Output Files: Monthly File: Annual Fee 1

The requested date of award is on or before August 1, 2020. The requested delivery date is 30 days after the date of award. The estimated FY20 O&M value of this procurement is

$14,346.00.

4. Statutory and Regulatory Authority Permitting Other Than Full and Open Competition

(see FAR 6.302), or the Specification of the Statutory and Regulatory Provision Providing

Exception to 8(a) Program Competitive Requirements (see FAR 19.805-1): 10 U.S.C.

2304(c)(1) 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will

Satisfy Agency Requirements

5. Rationale Justifying Use of the Statutory Authority Cited: NCPDP dataQ v3.1 Standard

Output Files are an essential component required for DHA’s Pharmacy Data Warehouse (PDW) solution. Market analysis found that dataQ is the most accurate and up-to-date source for pharmacy contact and demographic data. This specific SW is required for this network to properly interact with the pharmacy data network to allow mission essential operation, i.e.

permitting pharmacies to keep their data accurate and up to date in order to be reimbursed promptly. No product besides the NCPDP-brand license listed above will fulfill POD’s requirements to an acceptable standard and without incurring extensive duplicative costs and unacceptable delays in fulfilling mission requirements. Based upon the agency’s market research, NCPDP, as the Original Equipment Manufacturer (OEM) as well as holder of proprietary rights to NCPDP dataQ v3.1 Standard Output Files, is the only vendor capable of providing the required NCPDP dataQ v3.1 Standard Output Files.

6. Efforts to Obtain Competition: The requested contract will be awarded on a sole source basis to NCPDP. At this time, no effort will be made to solicit from multiple offerors due to the fact that NCPDP dataQ v3.1 Standard Output Files licenses cannot be delivered and/or maintained by any other vendor. According to information received from NCPDP in writing via email, they do not authorize any other entity to resell, distribute, or maintain this product. Furthermore, the other alternative in increasing competition for hardware/software requirements, finding a different product, also does not apply for this acquisition. Per Market Research conducted by SDD and

EMS-CD, no viable alternative exists on the market.

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

The Contracting Officer will determine that the anticipated cost to the Government will be fair and reasonable through a comparison and analysis of proposed prices with historical prices paid, the Contractor’s list prices, and the Independent Government Cost Estimate.

8. Market Research: SDD conducted market research to assess the market for potential viable alternatives to NCPDP dataQ v3.1 Standard Output Files. There are no other products that can offer the following key features that are critical to the Pharmacy Data Warehouse’s daily operations:

dataQ® is a relational database comprised of simple ASCII text files allowing for easier integration into your existing systems. dataQ is a self-reported relational database that is universally used in pharmacy transactions.

NCPDP Number

Other identifiers – NPI, DEA, FEIN, Medicare

Dispenser Class and Pharmacy Type

Pharmacy address and contact information

Similar products from other brands the 7 digit unique NCPDP number for pharmacies in the

US, Chain Code and 3rd Party Relationship details, Open/Close dates, currency and accuracy of the dataQ database that comes from the use of dataQ as the go-to-source for reimbursing pharmacies.

Additional market research was conducted to assess the market place for potential resellers of

NCPDP dataQ v3.1 Standard Output Files licenses. Per market research conducted, NCPDP dataQ v3.1 Standard Output Files licenses are not available on GSA Advantage and NASA

SEWP.

EMS-CD conducted market research within several known sources including the Small Business

Administration’s Dynamic Small Business Search and Quick Market Search as well as the

Interagency Contract Directory Portal to no avail.

9. Other Facts: NCPDP is the sole provider of NCPDP dataQ v3.1 Standard Output Files licenses.

10. Interested Sources: To date, no sources have written to express interest in this requirement.

11. Actions to overcome barriers: Until the infrastructure is changed, there are no efforts to overcome barriers to proprietary systems and software other than offering the requirement to certified partners. No other manufacturer’s products have been found that will meet program needs. However, the Government will continue to survey the marketplace for other vendors and products that can meet the Government needs for future needs. Nevertheless, this and future requirements will be synopsized in accordance FAR 5.203. If other potential sources emerge, the government will assess whether competition for future requirements is feasible.

COORDINATION:

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