P03 - 36C259-25-AP-1777-FY25-1430 JOFOC NCO19 Omnicell Upgrades - HCA Approved_R_Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

Effective Date: 11/15/24

REVISION: 01

Acquisition ID#: 36C259-25-AP-1777

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN

ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C259-25-AP-1777

RPOW JOFOC Tracking: FY25-NCO19-1800

1. Contracting Activity: Department of Veterans Affairs (VA), Network Contracting Office (NCO) 19, located at 6162 S. Willow Drive, Suite 300, in support of Veterans Integrated Services Network (VISN) 19 VA Medical Center (VAMC) and Health Care System (HCS) locations identified below:

a. Fort Harrison VAMC 3687 Veterans Drive Fort Harrison, MT 59636 2237: 436-25-2-083-0302

b. Cheyenne VAMC

2360 E. Pershing Blvd.

Cheyenne, WY 82001 2237: 442-25-2-052-0013

c. Sheridan VAMC

1898 Fort Road Sheridan, WY 82801 2237: 666-25-2-984-0038

d. VA Eastern Colorado HCS

1700 N. Wheeling ST Aurora, CO 80045 2237: 554-25-2-087-0045

e. VA Western HCS 2121 North Avenue Grand Junction, CO 81501 2237: 575-25-2-892-0036

f. Eastern Oklahoma VA HCS

1011 Honor Heights Drive Muskogee, OK 74401 2237: 623-25-2-3184-0014

g. Oklahoma City VA HCS System

921 N.E. 13th Street Oklahoma City, OK 73104 2237: 635-25-2-455-0195

Effective Date: 11/15/24

REVISION: 01

Acquisition ID#: 36C259-25-AP-1777

2. Nature and/or Description of the Action Being Processed: This procurement is for a full system upgrade to existing Omnicell Inc. pharmacy cabinets at each VISN 19 VAMC in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2. This requirement includes the purchase and installation of all necessary hardware and software upgrades to function, such as cabinets, touchscreen monitors, keyboards, and licenses for both the production and test servers for each facility. The upgrade is necessary for approximately 79 cabinets, workstations, and 10 servers across VISN 19. This action will be awarded as a new firm-fixed-price contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Omnicell Inc. will provide all necessary items required to complete the upgrades, including installation and configuration. The requirement includes touchscreen monitors, keyboards, licenses, test servers, consoles, printers, and barcode scanners as necessary per location. The cabinet upgrade also includes Windows 10 XTE All-in-One workstations. The estimated value of the proposed action is Delivery and installation must be completed by December 2025, as this is the end of life for the current operating system.

4. Statutory Authority Permitting Other than Full and Open Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason marked below:

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements () Unusual and Compelling Urgency () Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services () International Agreement () Authorized or Required by Statute () National Security () Public Interest

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Omnicell Inc. provided a sole source statement from Brad Galberth, Account Management Executive Federal, in October 2024 stating:

“Omnicell is the sole manufacturer, developer, and provider of Omnicell products and support services of equipment in the United States; we do not have authorized personnel outside of our company to provide the required products and or services for this procurement.”

Due to the proprietary nature of Omnicell Inc.’s cabinets, pharmacy equipment, and infrastructure, purchasing from another manufacturer would require the VA to purchase all new cabinets and infrastructure. The program office requested market research estimates from Omnicell Inc. and DB

Effective Date: 11/15/24

REVISION: 01

Acquisition ID#: 36C259-25-AP-1777

Pyxis for new replacement cabinets. The range of pricing to replace cabinets specific to the VA Healthcare Systems was approximately each station. Additionally, purchasing new cabinets and infrastructure would result in additional training, new protocol establishments, and would require additional accessories, such as refrigerators and carousels to be purchased. The completion of this upgrade will provide the VA with an additional five (5) years of life on the current cabinets in place.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: An Intent to Sole Source Notice (36C25925Q0261) was posted to the System for Award Management at SAM.gov on March 7, 2025, and closed on April 4, 2025. Trillamed LLC, a Service-Disabled Veteran Owned Small Business (SDVOSB) responded by saying they can perform the requirement. It was determined that though Trillamed LLC can provide the equipment and hardware to satisfy this requirement, they cannot perform the necessary installation and configuration. Trillamed LLC is not authorized by Omnicell Inc. to perform installation and configuration of Omnicell Inc. products. Additionally, the nonmanufacturer rule cannot be met as the manufacturer is a large business. This requirement will be a sole-source award to the original equipment manufacturer (OEM) Omnicell Inc., which is a large business. In accordance with FAR

6.305 Availability of the justification, a copy of the redacted justification will be posted to the government point of entry within 14 days after contract award.

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

Prices will be compared to the Independent Government Cost Estimate (IGCE), existing contracts, and/ or list pricing to determine the price fair and reasonable in accordance with FAR 13.106-3(a)(2).

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted across various platforms, including the Small Business Administrations (SBA) Dynamic Small Business Search (DSBS) site, Veteran Small Business Certification (VetCert), Federal Procurement Data System (FPDS), General Services Administration (GSA) eLibrary, VA Analytics, Data, and Decision Support Unified Platform (VA ADDS UP), and System for Award Management (SAM), to identify potential Service-Disabled Veteran- Owned Small Business (SDVOSB) vendors for Dispensing Cabinets Upgrade.

A search on SBA DSBS and VetCert was conducted on 3/21/2025 and yielded over four thousand (+4000) small business concerns, utilizing NAICS code 339112. Another search was conducted using North American Industry Classification System (NAICS) code 339112 and the keyword “Dispensing Cabinets” yielding zero (0) results. A search on VetCert returned 668 SDVOSB or VOSB results.

A search on Federal Procurement Data System (FPDS) for companies with NAICS 339112 was conducted on 3/21/2025 and returned over one million companies (+1,000,000), an additional search was conducted using “Dispensing Cabinets”, which identified Trillamed, an SDVOSB, and Omnicell Inc., which is the original equipment manufacturer (OEM).

A search on GSA eLibrary under NAICS 339112 was conducted on 3/21/2025 and returned three potential vendors. However, there was no clear mention of the ability to provide the required products to satisfy this specific requirement to upgrade the existing pharmacy cabinets. Omnicell Inc. was identified as being the source manufacturer able to meet the requirement. Omnicell Inc. is the original equipment manufacturer (OEM) of the Omnicell Medication Dispensing cabinets. A Federal Supply Schedule contract (36F79723D0073) under GSA Schedule 65-II-A for Medical Equipment and Supplies does exist for Omnicell products.

Effective Date: 11/15/24

REVISION: 01

Acquisition ID#: 36C259-25-AP-1777

A search on VA ADDS UP using NAICS code 339112 was conducted on 3/21/2025 and revealed five SDVOSBs, but there is no clear evidence of capability to provide the required products. A second search was conducted utilizing the keyword “Dispensing Cabinets,” which revealed Omnicell as the only vendor able to meet the requirement.

An Intent to Sole Source was posted to SAM (36C25925Q0261) on March 7, 2025, and closed on April 4, 2025. Trillamed responded by saying they could furnish the equipment and hardware to satisfy this requirement, but could not perform the installation and configuration.

Omnicell Inc. was contacted to ask if they had an authorized small business distributor that could meet the requirement. Omnicell Inc. responded by stating Trillamed, an SDVOSB, is an authorized distributor, but they cannot perform the necessary installation and configuration to upgrade current systems and would subcontract to Omnicell Inc. Omnicell Inc. does have a GSA Federal Supply Schedule (FSS). However, most of the items being requested are not on the current GSA FSS. In conclusion, it is in the best interest of the Government to award a sole-source contract to Omnicell Inc.

It's been confirmed that Omnicell products are manufactured in the United States, Mountain View, California.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: There are no other facts or circumstances supporting this justification.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Trillamed expressed interest. Trillamed can provide the necessary equipment and hardware; however, they cannot perform the required installation and configuration to fully satisfy the requirement. Omnicell Inc., the OEM, has expressed interest and can fulfill this requirement.

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required:

The Government will continue to conduct market research to monitor industries’ ever-changing technologies. With the exponential growth of technology, the current system may reach obsolescence sooner than expected, at which time a replacement would require competition.

12. 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 and belief.

Effective Date: 11/15/24

REVISION: 01

Acquisition ID#: 36C259-25-AP-1777

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition.