P03 Automated Inventory Management System JA-Corrected.pdf

36C246-21-AP-3316

VHAPM Part 819.7007/7008 Page 1 of 4 Original Date: 08/30/2017 Revision 03 Eff Date: 04/03/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C246-21-AP-3316

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 6 on behalf of Salisbury VA Medical Center (VAMC), PR/2237 # 659-21-3-098-0152, Salem VAMC, PR/2237 # 658-21-3-538-0454, Charlotte Healthcare Center (HCC) and Kernersville HCC, PR/2237 # 659-21-3- 098- 0153.

2. Nature and/or Description of the Action Being Approved: Network Contracting Office (NCO) 6 intends to award a new, firm fixed price sole source contract to Marathon Medical Corporation a Service-Disabled Veteran-Owned Small Business (SDVOSB), registered in the Vendor Information Pages (VIP) for the PAR Excellence Automated Inventory Management System at the Salisbury VAMC, Salem VAMC, Charlotte HCC, and Kernersville HCC.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Salem VAMC, Salisbury VAMC, Charlotte HCC, and Kernersville HCC requires a turn-key automated weight-based inventory management system to assist supply chain management staff with the management of expendable supplies in all primary and secondary distribution points. The Salisbury VAMC requires the PAR Excellence automated weight-based inventory system for their 5th floor Operating Room which has recently been expanded.

The Salem VAMC will be installing 1 PAR Excellence system for 18 clean room locations with 4,473 PAR scales and bins products. The Salisbury VAMC will be adding 1 clean room with 1,800 PAR scales and bins products. Charlotte HCC will be adding 1 PAR Excellence system for 52 clean rooms with 4,621 PAR scales and bins products. Kernersville VAMC will be installing 1 PAR Excellence system for 47 clean rooms with 4,657 PAR scales and bins products.

The weight-based system, once established, requires the least amount of human interaction, it is the most appropriate solution for the VA based on staffing levels and the volume of commodity items passing through the system. A weight-based system seamlessly logs the inflow and outflow of supplies and disposables to reduce double ordering supplies. It also ensures that par levels are maintained. The implementation of such a system will reduce waste at the Salisbury VAMC, Salem VAMC, Charlotte HCC, and Kernersville HCC.

The estimated price of these projects are as follows:

Salem VAMC - $902,627.50 Charlotte HCC - $638,869.50 Kernersville HCC - $615,812.80 Salisbury VAMC - $239,780.34

VHAPM Part 819.7007/7008 Page 2 of 4

Estimated Total: $2,397,090.14.

The estimated delivery date will be 8 months after receipt of order.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S.

Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

( X ) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Pursuant to 38 U.S.C. § 8127(c) a sole source award to an SDVOSB 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, including whether a notice was or will be publicized as required by subpart

5.2 and, if not, which exception under 5.202 applies: 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. 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 the Salem VAMC, Salisbury VAMC, Charlotte HCC, and Kernersville HCC.

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, and Wholesale Supply Sources.

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

https://www.acquisition.gov/content/part-5-publicizing-contract-actions

VHAPM Part 819.7007/7008 Page 3 of 4 Original Date: 08/30/2017 Revision 03 Eff Date: 04/03/2020

c. Veterans Information Pages (VIP): Search conducted on 5/27/2021 utilizing NAICS code 339113 showed 128 SDVOSBs and 11 Veteran Owned Small Businesses (VOSB). However, these vendors were not contacted because PAR Excellence has only one authorized distributor in Marathon Medical Corporation.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None, according to the authority under 38 USC Section 8127(c) Contracting Officers may use non-competitive procedures to award to an SDVOSB.

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

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.

Date

Logistics Management Specialist Salisbury VAMC

8/18/2021

VHAPM Part 819.7007/7008 Page 4 of 4

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.

Cherisse Hall, Date Contracting Officer, NCO 6

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

Keeshia Newman Date Division Chief, NCO 6

c. Director of Contracting: I certify the justification meets requirements for other than full and open competition.

Nancy L. Bailey Date

Director of Contracting, NCO 6

d. 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 $68 million) or approve ($700K to $68 million) for other than full and open competition.

Joseph P. Maletta Date Executive Director, RPO-East Head of Contracting Activity (HCA) https://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx