P03 JA_36C77021AP0876_Systems Software Overlay_SIGNED by HCA._Redacted.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 5: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 11 Page 1 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID:_36C770 21 AP 0876______

1. Contracting Activity: Department of Veterans Affairs, VISN 15, VA CMOP Murfreesboro Elam Farms Parkway, 764 21 4 915 0042.

2. Nature and/or Description of the Action Being Processed:

This is a new requirement to be awarded as a sole source contract with firm fixed pricing and is COVID 19 related. A sole source firm fixed contract will be awarded to E2/Körber, systems integrator for a new overarching pharmacy software management system. The acquisition is to obtain competent services from the selected system integrator, E2/Korber to implement a robust overarching software management system also known as RxMS. The selected vendor will also provide related support services and a software platform in accordance with the Performance Work Statement (PWS) to include key performance milestones and deliverables necessary to stand up the existing underperforming Automated Prescription Fulfillment System (APFS). The goal is to sustain operations and meet required current and future productivity levels at the Murfreesboro CMOP. It is the intent to request that a Contract Execution Plan (CEP) be submitted that reflects a performance based contracting approach. Deliverable identification/acknowledgement and schedule will be requirements of the CEP.

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

This sole source is for a new overarching pharmacy software management system (RxMs) to support the APFS transition plan at VA CMOP Murfreesboro, Elam Farms location. This contract is to replace the systems component of the previous software system at the Murfreesboro CMOP

This new pharmacy software system will aide in fulfilling the current and future prescription demand for Veteran patients and the relocation from the Sam Jared facility. This new pharmacy software management system (RxMS) is a one time buy and has an estimated value of $6,600,000.00.

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

(X) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302 1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302 2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302 3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302 4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302 5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302 6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302 7;

OFOC SOP Revision 11 Page 2 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

With CMOP oversight, St. Onge Company, the VA’s consultant company administered and facilitated the market research exercise from January July 2021 for qualified suppliers to provide software platforms and systems as a contingency plan

Further explanation on the market research performed is given below in Section 6.

Of those suppliers that showed interest in the market research exercise and who also met the requirements for the major system at the Murfreesboro CMOP, there was only one vendor, E2 Solutions/ Körber who demonstrated the sufficient capability to include development of the required traceability matrix. E2/Körber is a systems integrator that specializes in implementation of top tier Supply Chain Execution Systems (SCES), is a leading integrator, has Warehouse Control System (WCS) expertise as part of any integration with various islands of automation in the proposed design, offers WCS software which is required for the future state of the Murfreesboro transition plan and is already included in the offering from this supplier. E2/Körber’s capability to provide an overarching pharmacy software management system was assessed using key criteria:

functional capabilities and fit, technical alignment to requirements, supplier characteristics, maintenance and support capabilities and total cost of ownership. This supplier being an integrator has several advantages which include 100% focus only in implementing SCES, has no hardware business unit to position for potential business with VA CMOP, is used to integrating SCES with heterogeneous material handling equipment such as conveyors, sorters, A Frame, Automated Storage & Retrieval System, Pick to light systems, robotic cells, etc.

E2/Körber is the only vendor that possesses the qualifications, implementation experience, and most importantly the required automation integration skills to include an intimate understanding of the complexities of the future Murfreesboro CMOP APFS needs. E2/Körber has the required familiarity with the transition plan to meet the Government’s urgent needs; this knowledge being gained through their multiple complex systems implementation engagements in the broader industry verticals. Based on E2/Körber’s comprehensive understanding of the software, controls programming, hardware design and interface architecture for future Murfreesboro CMOP, E2/Körber is the only source qualified to meet the Government’s immediate need to design and oversee the retrofit of the current APFS to an expected level of production.

Other sources declined for multiple reasons or did not possess the in depth functional knowledge of Murfreesboro CMOP’s operations and APFS integration necessary to retrofit the current APFS and would require a substantial investment in resources (e.g. time and funds) that the Government would not be able to recover through further competition. Additionally, if awarded to any other vendor, the Government would experience unacceptable delays in fulfilling its requirements. Delays in the immediate execution of the transition plan to retrofit the current APFS to the required production capacity could result in an interruption of prescription service to Veterans, disruption to the VA pharmacy supply chain, and place additional burden on CMOP operations by having to offload work to the other CMOP facilities. This offloading of work to the other CMOP facilities would result in further costs to the Government by requiring the ramping up of operations which would equate to increased operational costs (e.g. overtime hours, utilities) to meet the additional workload.

OFOC SOP Revision 11 Page 3 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

Murfreesboro CMOP and National CMOP (with the technical assistance of St. Onge Company) have determined that E2 Solutions/Körber is the only qualified source that can meet the immediate needs of the Murfreesboro CMOP’s request for this major system. The CMOP Program Office and Contracting Officer, therefore, recommend a sole source award to E2 Solutions/Körber. This award is considered to be in the best interest of the CMOP, Government and general public.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

1. St. Onge Company, contracted under a VA CMOP task order, undertook a comprehensive market research exercise during Jan July 2021 to determine the competitive environment and capabilities of multiple pharmaceutical and non pharmaceutical based systems vendors. As part of this exercise, St. Onge Company first sought industry interest in the ‘Federal Pharmacy’ requirement.

A.

2. St. Onge Company then proceeded to compile a list of pre qualified potential suppliers who expressed interest in participating in the subsequent exercise.

3. St. Onge Company also prepared a robust Functional Systems Description (FSD) and a Requirements Traceability Matrix (RTM). These documents became a part of the Murfreesboro CMOP capabilities assessment.

4. There were 15 potential suppliers contacted by St. Onge Company. However, some showed no interest, declined to respond, or did not have the capability (i.e., a suitable product) to meet the requirements.

5. There were two (2) other suppliers familiar with VA CMOP due to their hardware and/or software managing with some of the other CMOP sites. St. Onge Company reached out to these suppliers and was met with a declination or supplier was incapable of providing a total solution.

Based on the market research, as well as the efforts from the previous solicitations and contract awards, only one vendor, E2 Solutions/Körber, can meet the needs of this requirement. Small business opportunities exist since E2 Solutions/Körber subcontracts with several small business concerns to fulfill specific highly specialized requirements when needed; these small business partnerships and performance efforts have been determined by the Government to be more than acceptable. E2 Solutions/Körber information is below:

E2 Solutions/Körber 4951 West 77th Street Suite 21 Minneapolis, MN 55435 United States of America

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

The anticipated cost to the Government will be fair and reasonable. The Government (CMOP) has a history of purchasing automated pharmacy equipment to include Automated Prescription Fulfillment Systems (APFS) and updating production software. The previous purchases for this type of equipment provided the basis for the anticipated costs (IGCE) of the work to be performed. In addition to using historical pricing, the market research that was performed by the St. Onge

OFOC SOP Revision 11 Page 4 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021 company on behalf of the VA CMOP shows that E2 Solutions/Körber’s pricing is in line with market trends for contracts of similar size and scope. The steps that will be taken by the CO to ensure the final contract price is fair and reasonable include comparing E2 Solutions/Körber’s pricing with those specific contracts that are similar in size and scope and adjust for any changes in market conditions or economic price factors.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by engaging industry (to include providing a copy of the Performance Work Statement) and requesting capability information from interested parties.

During the performance of market research by St. Onge Company, the list of potential suppliers were culminated from St. Onge Company’s extensive industry knowledge base as well as industry publications such as Gartner that provide ranking and research on leading Supply Chain Execution System (SCES) suppliers and their product offering.

Based upon the market research and analysis, the Government does not have a reasonable expectation of receiving at least two qualified offers from small business concerns (to include SDVOSV/VOSB); therefore, the VA Rule of Two cannot be met and there are no opportunities for small business set asides.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

As part of the Risk Mitigation scope of work executed during Nov 2020

St. Onge Company systems consultants recommended to VA CMOP leadership a hardware vendor agnostic software solution to manage VA CMOP in general. St. Onge Company also provided a systems architecture guideline for any future VA CMOP pharmacy management systems.

Please refer to Section 4.0 – Systems Topography in the RxMS FSD 2020.0325 A v1.2 .pdf document.

E2 Solutions/Körber supports that recommendation in full since they have no pharmacy specific hardware to offer and remain truly agnostic to the integration process.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

The following sources have expressed interest (in writing):

E2 Solutions/Körber E2 Solutions/Körber expressed interest by responding to the market research exercise and providing offers to current and previous systems software requests for software solution & support services.

E2 Solutions/Körber has the understanding and familiarity with complex systems to immediately retrofit the system to meet current and future production requirements. In addition, as a result of the thorough market research process, Murfreesboro CMOP, National CMOP, and St. Onge Company have determined that E2 Solutions/Körber will be able to provide the required services to meet current and future production requirements.

KNAPP Automation Logistics KNAPP has expressed interest by responding to the market research exercise and providing offers to previous acquisitions for part of APFS hardware & support services. KNAPP, however, does not possess the in depth functional knowledge of Murfreesboro CMOP’s operations and APFS

OFOC SOP Revision 11 Page 5 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

Market research efforts have identified other sources that provide engineering system services;

however, these sources do not have engineering expertise with the design and specifications of systems like the automated prescription fulfillment system (APFS) currently in place at the Murfreesboro CMOP. The type of engineering services required to design and oversee the retrofit of an APFS would be considered a niche market with very few capable sources.

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:

This is a one-time acquisition to retrofit the APFS at the Murfreesboro CMOP; therefore, future acquisitions for these engineering services will not be needed once the transition plan has been implemented and the retrofit completed.

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.

Tammie L. Lamb Date Logistics Manager Murfreesboro CMOP

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.

Lori J. Nichols Fellows Date Contracting Officer Networking Contracting Office (NCO) 15

Lori J. Nichols Fellows 1029477

Digitally signed by Lori J. Nichols Fellows 1029477 Date: 2021.09.13 07:09:05 -05'00'

STACEY BLADES

Digitally signed by STACEY

BLADES

Date: 2021.09.13 10:30:32 -05'00'

OFOC SOP Revision 11 Page 6 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

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.

Ralph R. Crum Date Supervisory Contract Specialist

Network Contracting Office (NCO) 15

Loyd D. Jackson Date Deputy Director of Contracting

Andrew J. Raiber Date Director of Contracting

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.

Terry L. Spitzmiller Date Executive Director Regional Procurement Office - Central Head of Contracting Activity (HCA)

Ralph R.

Crum 547284

Digitally signed by Ralph R. Crum 547284 Date: 2021.09.13 08:35:30 -05'00'

LOYD JACKSON

Digitally signed by LOYD

JACKSON

Date: 2021.09.13 12:36:23 -05'00'

September 14, 2021

ANDREW J.

RAIBER 292563

Digitally signed by ANDREW

J. RAIBER 292563

Date: 2021.09.14 12:44:51 -05'00'

09/15/2021

TERRY

SPITZMILLER

Digitally signed by

TERRY SPITZMILLER

Date: 2021.09.15 09:00:54 -05'00'