P03 Automated Inventory Management System Durham JA.pdf

36C246-21-AP-4729

PM Part 813.5 SAP for Certain Commercial Items Original Date: 08/30/17 Revision 03 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C246-21-AP-4729

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 6 on behalf of the Durham VA Medical Center (VAMC) PR/2237 # 558-21-3-084-0033.

2. Nature and/or Description of the Action Being Processed: Network Contracting Office (NCO) 6 intends to award a new, sole source, firm fixed price contract to Medical Marathon Corporation a Service Disabled Veteran Owned Small Business (SDVOSB) and authorized distributor for PAR Excellence a large business manufacturer.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Durham VAMC are adding

2 PAR Excellence inventory management systems with turnkey installation to their 3rd floor Medical Supply Distribution point and their COW room primary inventory point. This system will greatly reduce the workload of our Supply Chain Managers (SCM) and increase productivity through automated inventory count of stocked supplies, eliminating excess inventory, and the ability for automated reports to address critical inventory needs to avoid shortages.

The estimated delivery date will be 4 months after receipt of order (ARO) and the estimated contract value is $496,878.00.

4. Statutory Authority Permitting Restricted 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 below:

( ) 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 ( X ) Authorized or Required by Statute – 819.7007 Sole source awards to a verified Service-

Disabled Veteran-Owned Small Business (SDVOSB).

( ) National Security ( ) Public Interest

Original Date: 08/30/17

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Pursuant to 38 U.S.C. Section 8127(c) a sole source award to an SDVSOB concern is authorized where the SDVOSB concern is determined to be a responsible source with respect to the performance of the contract; the anticipated award will exceed the simplified acquisition threshold but will not exceed $5,000,000.

Marathon Medical Corporation is a verified SDVOSB on Veterans Affairs Vendor Information Pages (VIP) database. Marathon Medical Corporation (DUNS No. 122658151) has performed satisfactorily on contracts for similar supplies and services to VISN 6.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Sources sought notice RFQ 36C24621Q0738 was posted to Contract Opportunities on 5/25/2021 with a closing date of 5/31/2021. The Contracting Officer (CO) received one (1) response-vendor Marathon Medical Corporation a Service Disabled Veteran Owned Small Business authorized distributor for PAR Excellence. Intent to Sole Source Notice 36C24621Q0738_1 was posted to Contract Opportunities on 6/1/2021 with the closing date of 6/4/2021. The CO received zero (0) responses.

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

Reasonable: The Contracting Officer will determine that the prices will be fair and reasonable based on a comparison of the proposed price to similar items. Prior to award price analysis of the proposed contract price will be performed and documented to sufficiently determine that the cost to the Government of the proposed acquisition will be fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted: The following market research was conducted to identify potential sources to fulfill the requirement for Durham VAMC.

a. A search was conducted querying Government-wide database of contracts, other procurement instruments, and commercial databases. The requirement was not available via VA inventories including the VA supply stock program and VA excess, excess from other agencies, Federal Prison Industries, AbilityOne Program, Wholesale Supply Sources, and Medical Surgical Prime Vendor program.

b. Veterans Information Pages (VIP): Search conducted on 5/27/2021 utilizing NAICS code

339113 showed 128 SDVOSBs and 11 VOSBs. However these vendors were not contacted because PAR Excellence has only one authorized distributor in Marathon Medical Corporation.

c. Marathon Medical Corporation authorized distributor letter is on file.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None.

Original Date: 08/30/17

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: NCO 6 will continue to conduct market research to ascertain if there are changes in the marketplace that would enable competition for future actions.

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.

David Marquette Supply System Analyst, Durham VAMC

Date

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

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

John Summers, Contracting Officer Date

NCO 6

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.

Cherisse Hall, Contracting Officer Date Branch Chief Supply 1, NCO 6

DAVID W.

Digitally signed by DAVID W.

MARQUETTE 658498

MARQUETTE 658498 Date: 2021.08.06 16:44:58 -04'00' https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx