P03 FAR 8 Sole Source Justification.pdf

Effective Date: 02/01/2022 Page 1 of 5

LIMITED SOURCES JUSTIFICATION

FAR PART 8.405-6

Acquisition Plan Action ID: 36C252-24-AP-0791

(1) Contracting Activity:

Department of Veterans Affairs

VISN12

537, 550, 556, 578, 695

537-24-2-135-0007 Estimated Base Year Total: $412,377.52 Estimated Aggregated Total: $469,331.17

(2) Description of Action: This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501).

Sole Source procurement of ScriptPro preventative maintenance, emergency repair, and support services located within the VISN12 VA Medical Centers along with their surrounding Community Based Outpatient Clinics.

Jesse Brown VA Medical Center (Jesse Brown VAMC) - 537 VA Illiana Health Care System (Danville VAMC) - 550 Captain James A. Lovell Federal Health Care Center (FHCC) - 556 Edward Hines, Jr. VA Hospital (Hines VAMC) - 578 Clement J. Zablocki VA Medical Center (Milwaukee VAMC) - 695

Crown Point VA Outpatient Clinic Peoria VA Outpatient Clinic Appleton Community-Based Outpatient Clinic Green Bay Community-Based Outpatient Clinic

Order against: FSS Contract Number: 36F79719D0135

Name of Proposed Contractor:

ScriptPro USA Inc.

Street Address: 5828 Reeds Road City, State, Zip: Mission, KS 66202-2740 Phone: 913.384.1008

(3) Description of Supplies or Services:

ScriptPro USA Inc. preventative maintenance, emergency repair, and support services located within VISN12 VA Medical Centers along with their surrounding Community Based Outpatient Clinics.

https://www.acquisition.gov/far/part-8#FAR_8_405_6 http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 https://www.gpo.gov/fdsys/pkg/USCODE-2011-title40/pdf/USCODE-2011-title40-subtitleI-chap5-subchapI-sec501.pdf

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The proposed new agreement for preventative maintenance, emergency repair, and support services located within the VISN12 VA Medical Centers along with their surrounding Community Based Outpatient Clinics will be a Blanket Purchase Agreement (BPA) utilizing ScriptPro’s FSS (36F797-19-D-0135) with a start date of 2/1/2024, which will include a base year plus one (1) 2-month option period. The ultimate completion date will be 3/31/2025. To properly maintain the equipment to the OEM specifications, a service agreement is required with ScriptPro USA Inc. The long term plan is to have one BPA for all stations and this will assist in aligning all station completion dates. The agreement value for this procurement is estimated at $412,377.52 for the base year and an estimated aggregated total of $469,331.17 across the base year plus one (1) 2-month option period.

Base Year: 2/1/2024 - 1/31/2025 (12 MO) $412,377.52 Option Period 1: 2/1/2025 – 3/31/2025 (2 MO) $56,953.65

Aggregated total: $469,331.17

(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;

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:

(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:

ScriptPro USA Inc. is the sole authorized service provider of ScriptPro equipment.

An Authorized Service Provider Letter for ScriptPro USA Inc. dated July 25, 2023, from Melissa Trammell, Director, Contract Administration, states “For support renewals, Equipment moves and other additional services, please contact ScriptPro directly. As the OEM, ScriptPro is the only source for maintenance/updates, or modifications and upgrades to our system(s).

https://www.acquisition.gov/far/part-8#FAR_8_405_6 https://www.acquisition.gov/far/part-8#FAR_8_405_6

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GSA contract #36F79719D0135 states the warranty is void if the Equipment or Software has been installed or modified other than as authorized in writing by ScriptPro.”

It is in the Government’s best interest to enter into a service agreement to ensure scheduled maintenance is completed and to prevent the deterioration of the ScriptPro equipment to limit the replacement rate. If an agreement to provide service was not entered, the equipment would go into disrepair and would need to be replaced more often. No other vendor can provide these services other than ScriptPro to maintain OEM standards and warranties. Installation of new equipment would create unnecessary downtime and significant cost within the VISN12 facilities’ Pharmacy Departments and ultimately affecting patient care.

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

A VIP search was conducted for NAICS 811210 which yielded 0 results. An additional VIP search was conducted using keywords “ScriptPro” which yielded 0 results.

A VetCert search on SBA was conducted using NAICS 811210 which yielded 82 results. Of the 82 results, 0 are authorized by the OEM to perform these services. An additional VetCert on SBA was conducted using Business Name “Veterans Healthcare Supply Solutions” (an authorized distributor of ScriptPro equipment). 1 result was returned with the Vendor being a Service-Disabled Veteran Owned Small Business.

Although Veterans Healthcare Supply Solutions is an authorized distributor of ScriptPro equipment, they are not authorized to perform maintenance/support services on the ScriptPro equipment.

A Dynamic Small Business Search was conducted using criteria “SDVOSB (Active Certifications only)” and NAICS “811210” which yielded 196 matching profiles. Of the 196 matching profiles, 0 are authorized by the OEM to perform these services. An additional search was conducted using criteria “SDVOSB”, NAICS “811210”, and keyword “ScriptPro” which yielded 0 results.

A review of the Contractor Performance Assessment Reporting System (CPARS) for ScriptPro USA Inc. (UEI: RTB3DEMJ91U4) was completed on 12/18/2023. The results returned 371 results with ScriptPro USA Inc. scoring “Satisfactory” or above in ALL applicable categories within the 371 results. See contract briefcase for CPARS results.

A search on GSA eLibrary was conducted using the keyword “ScriptPro” which yielded 1 result. ScriptPro USA, Inc. is a current GSA contract holder under contract 36F79719D0135. This contract has a current option period end date of June 30, 2024.

GSA has already determined pricing fair and reasonable.

A FPDS search was conducted using keywords “ScriptPro” which yielded 6,293 results for the Department of Veterans Affairs. ScriptPro USA Inc. is an active Contractor who supports the Department of Veteran Affairs across the United States. It is extremely

Effective Date: 02/01/2022 Page 4 of 5 difficult to compare contracts as not all facilities have the exact same ScriptPro equipment.

The current contracts with ScriptPro USA Inc. within VISN12 are listed below:

Danville & Bob Michel Community-Based Outpatient Clinic (Peoria CBOC):

36C25224A0001 36C25224N0078 POP 10/1/2023 – 1/31/2024

Captain James A. Lovell FHCC: 36C25224A0001 36C25224N0079 POP 10/1/2023 – 1/31/2024

Milwaukee VA Medical Center, Joh H. Bradley Community-Based Outpatient Clinic (Appleton CBOC), & Milo C Huempfner Community-Based Outpatient Clinic (Green Bay CBOC): Agreement 36C25224A0001 / Orders 36C25224N0080, 36C25224N0081, &

36C25224N0080 POP 10/1/2023 – 1/31/2024

Jesse Brown VA Medical Center: Contract 36F797-19-D-0135 / Order 36C25220F0125

POP: 2/1/2020 – 1/31/2024

Hines VA Medical Center: Contract 36F797-19-D-0135 / Order 36C25220N0513

POP: 9/1/2020 – 8/31/2024

An Authorized Service Provider Letter for ScriptPro USA Inc. dated July 25, 2023, from Melissa Trammell, Director, Contract Administration, states “For support renewals, Equipment moves and other additional services, please contact ScriptPro directly. As the OEM, ScriptPro is the only source for maintenance/updates, or modifications and upgrades to our system(s).

ScriptPro’s GSA contract #36F79719D0135 states the warranty is void if the Equipment or Software has been installed or modified other than as authorized in writing by ScriptPro.”

A Notice of Intent to Sole Source was posted to Contract Opportunities on September 1, 2023 and closing on September 6, 2023. 0 responses were received from our Notice of Intent to Sole Source.

Based on the market research conducted, no two or more VIP verified and capable SDVOSBs or VOSBs were identified and appeared capable of performing the requirement. In addition, no small business in any of the other targeted socio-economic groups appeared to qualify for a set-aside or sole source procurement. This market research information is not more than 12 months old.

(7) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

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At this time, only ScriptPro USA Inc. is qualified for the service on ScriptPro equipment.

The Contract Specialist and Contracting Officer will continue to survey the marketplace during the agreement periods taking under consideration any new and innovative methods for the above listed equipment. Continual market research and agreement administration will assist in determining the next agreement’s procurement strategy.

(8) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4. (This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)

SIGNATURE DATE

NAME TITLE SERVICE LINE/SECTION

FACILITY

(9) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Ashley Johnson Contracting Officer

GLAC – VISN12

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.

Erika Cannaday Services Team 1 - Branch Chief

GLAC – VISN12

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