P03 - JA - APFS Integration CASI Module Murfreesboro - HCA Signed._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-0895

Contracting Activity: Department of Veterans Affairs, VISN 15, VA CMOP Murfreesboro, Elam Farms Parkway, .

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 Universal Logic Inc. The acquisition is to obtain Hardware Integration services to be performed in accordance with the Statement of Work (SOW) which include key performance milestones and deliverables necessary to overhaul and integrate the existing Automated Fulfillment System. This includes the tablet counting automation (TCA) system at Elam Farms with components of the TCA system being relocated from the Rivers Avenue CMOP located in Charleston, South Carolina.

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

This sole source requirement is for Hardware Integration services to support the transition plan for the Mid-South CMOP in the wake of a contract termination effective June 1, 2021 with the current APFS Due to the shut down on June 1, 2021 of the current system, orders are currently being filled at less than required capacity in a highly labor-intensive manual fill/pack operation at Elam Farms. The new Hardware Integration will aide in fulfilling the current and future prescription demand for Veteran patients.

A 12-phase transition plan to retrofit the current inadequate APFS system has been developed to ensure the Murfreesboro CMOP can continue to provide prescription fulfillment services to Veteran patients during the retrofit and will be included as an attachment to the proposed contract . This will ensure that the Government’s requirements and timelines are being met and understood by both parties. The result of the transition plan will be a successful retrofit of the current APFS system to an APFS system that can meet the workload demands necessary to continue order fulfillment operations during the transition phase and into the future. The proposed contract includes support for the Murfreesboro CMOP to retrofit the current APFS system and includes the following subsystems:

Tablet/Capsule Automation (TCA) Unit of Use Automation (UoU) Automatic Labeling Manual and Bulk Processing Automated Packaging Equipment

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

The proposed retrofit design for Murfreesboro CMOP includes replacement of current pharmacy automation and conveyance hardware where required and moving equipment from Charleston CMOP as needed to ensure efficient patient order fulfillment. Therefore, Murfreesboro CMOP seeks Hardware Integrator services that can modify the existing TCA system and can also remove and reinstall numerous components of the existing TCA system from the Charleston CMOP to the Murfreesboro CMOP. The Hardware Integration services are a one-time buy and have an estimated value of $6,100,000.00.

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

( ) (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;

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

An emergency need was identified to develop mechanical and robotic corrections to several of the existing APFS modules that currently reside within the order fulfillment system. Specialized experience and capabilities are needed to rework these components of the system for reuse and salvage of the existing failed automation equipment. These specialized capabilities are needed to recapture the use of this equipment in the system transition .

Engineers at the St. Onge Company, the VA’s consultant company, identified Universal Logic Inc. as a responsible source while doing market research in early June 2021. Universal Logic Inc. is near the Murfreesboro CMOP location and has past experience with complex robotic projects.

Given the complexity of the project, it is highly advantageous that a local company lead this effort.

The supplier is local to Murfreesboro CMOP (25 miles from Elam Farms). Universal Logic Inc. has warehousing facilities in the area and plans on removing the TCA modules from Elam Farms and conducting the overhaul at their facilities. Major equipment moved from the Charleston CMOP would be upgraded at Universal Logic Inc. facility prior to transport to Elam Farms. Use of a local company to lead this effort will significantly reduce travel and shipping costs and will allow CMOP personnel to routinely monitor progress of the project in person.

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

Universal Logic Inc. is the only identified vendor that possesses the qualifications, local footprint, implementation experience and most importantly the required automation integration skills to include an intimate understanding of the complexities of the future Murfreesboro CMOP APFS system. Universal Logic Inc. has the required familiarity with the transition plan to meet the Government’s urgent needs. This knowledge was gained through site visits. They also have knowledge of multiple complex system implementation engagements in broader industry verticals.

Based on Universal Logic Inc.’s comprehensive understanding of the scope required to successfully bring the project to a close, Universal Logic Inc. is the only source qualified to meet the Government’s immediate need to design and oversee the retrofit of the current TCA to an acceptable level of production.

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 to other CMOP facilities. This offloading of work to the other CMOP facilities would result in further cost to the Government by requiring the ramping up of operations that would equate to increased operational costs (e.g. overtime hours, utilities) to meet the additional workload.

The following considerations also supplement the reason for a sole source award to Universal Logic Inc.:

The highly specialized nature of CMOP processes and equipment Funds already expended for integration services to devise a rapid transition to production status for Murfreesboro CMOP Time constraints for having an APFS that meets production needs Idle costs Increased operational costs due to offloading workload and Necessity for the retrofit software, controls programming, hardware design and interface architecture to replace the current system.

Murfreesboro CMOP, National CMOP, and St. Onge Company have determined that Universal Logic Inc. is the only responsible 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 Universal Logic Inc. 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:

Due to the time sensitiveness of the requirement, an RFI was not issued for this project. However, St. Onge Company did perform market research and survey the industry. The VA’s consultant, St.

Onge Company recommends Universal Logic Inc. for the reasons above.

Universal Logic Inc.

P.O. Box 171062 Nashville, TN 37127

OFOC SOP Revision 11 Page 4 of 6 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

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. These previous purchases anticipate costs of the work to be performed. In addition market research by St. Onge ompany on behalf of VA CMOP in line with contracts of similar scope

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

Due to the time sensitivity, an RFI was not issued for this acquisition. However, the St. Onge Company performed market research for the VA and determined that Universal Logic Inc. was the best qualified source in that the company has the capability to perform advance robotics work, a requirement of this acquisition.

Based upon the market research and analysis, the Government does not have a reasonable expectation of receiving at least two qualified offers from SDVOSB/VOSB businesses, therefore the VA Rule of Two cannot be met.

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 consultants recommended to VA CMOP leadership a TCA solution consisting of portions of the existing Mid-South TCA system merged with the existing Charleston CMOP system.

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

Conversations have been held with the following sources:

Universal Logic Inc.

RXAS/McKesson McKesson (now the owner of RXAS) engineers were contacted in 2019 by CMOP Charleston and provided budgetary input for moving the replenishment dispensing system from the Rivers Ave.

CMOP in Charleston to a generic CMOP location. The budgetary proposal required an identical installation to that in Charleston. Such an installation is not possible within the given footprint and is contrary to CMOP guidance on reuse of some components of the current system.

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

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.

Byron Abshier Date Chief Engineer National 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 Network Contracting Office (NCO) 15

Lori J. Nichols Fellows 1029477

Digitally signed by Lori J. Nichols Fellows 1029477 Date: 2021.09.13 08:41:36 -05'00'

BYRON A.

ABSHIER 217492

Digitally signed by BYRON

A. ABSHIER 217492

Date: 2021.09.13 10:35:02 -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 Network Contracting Office (NCO) 15

Andrew J. Raiber Date Director of Contracting Network Contracting Office (NCO) 15

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 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 12:00:32 -05'00'

September 17, 2021

LOYD

JACKSON

Digitally signed by LOYD

JACKSON

Date: 2021.09.17 01:40:23 -05'00'

ANDREW J.

RAIBER 292563

Digitally signed by

ANDREW J. RAIBER 292563

Date: 2021.09.17 10:28:23 -05'00'

09/17/2021

TERRY

SPITZMILLER

Digitally signed by

TERRY SPITZMILLER

Date: 2021.09.17 13:18:47 -05'00'

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N 6, 0, Attachment 2: Market Research Report Template

VHAPM Part 810 Market Research SOP Page 2 of 12 Revision: 08, Effective Date: 04/27/21

Bill Irwin COR Murfreesboro

CMOP

(615) 620- 8427 Bill.Irwin@va.gov

Tammie Lamb

Logistics Manager

Murfreesboro

CMOP

(615) 620- 8432 Tammie.Lamb@va.gov

Type of acquisition (service or supply) - Services Expected dollar value of requirement - $6,100,000.00 Suggested NAICS code(s) – 541614 (Process, Physical Distribution and Logistics Consulting Services) Time frame in which the market research was conducted – June 2021

III. Initial Requirements

Describe the Government’s requirement in terms of:

o Functions to be performed To establish a contract for Hardware and Software Integration Services for the existing Automated Prescription Fulfillment System (APFS) Cornerstone Automation System (CASI).

o Services or Performance required and/or Contractor must perform hardware and software integration services and perform removal and transfer of the existing Tablet Count Automation (TCA) equipment from the Charleston CMOP to the Murfreesboro CMOP in accordance with the PWS to include key performance milestones and deliverables necessary to sustain operations that meet required current and future productivity levels at the Murfreesboro CMOP.

o Essential physical characteristics N/A

Describe schedule requirements, e.g., performance periods and/or delivery due dates.

This contract is a one-time purchase for services with no option years.

Requirement must be awarded by September 30, 2021.

Contractor will be required to provide a delivery schedule for approval by VA.

Discuss any cost effectiveness issues associated with the requirements

Purchasing hardware integrator services that can modify the existing CASI TCA system and removing and reinstalling numerous components of the existing TCA system from the Charleston CMOP to the Murfreesboro CMOP is more cost effective than creating a whole new system for the Murfreesboro

CMOP.

VHAPM Part 810 Market Research SOP Page 9 of 12 Revision: 08, Effective Date: 04/27/21

VI. Identify Product/Services and Sources Able to Meet the Requirement

Identify or describe:

o Product/Service, include any brand name product information o Pharmacy Hardware and Software Integration services, transportation services.

o Product/Service characteristics and/or capabilities o The capable vendor must be able to provide hardware and software integration services. The capable vendor must also be able to remove and transfer components of the TCA system from the Charleston CMOP to the Murfreesboro CMOP. The contract will include key performance milestones and deliverables needed to remove and transfer the existing TCA system and provide the hardware and software integration services required to meet current and future productivity levels at the Murfreesboro CMOP.

o Company information (e.g., name, POCs, address, telephone number, e-mail address, website) o Company characteristics, past performance, and business size category If sole source, describe efforts to locate additional sources – A search was conducted in VIP to search for any SDVOSB/VOSB vendors that have capability to provide hardware & software integration services as well as support transfer services.

The VIP site was searched using NAICS code 541614 and key words “hardware integration services”. This yielded zero results. The VA’s Consultant company St.

Onge Company also conducted market research in the industry and held interviews. Interviews were held with McKesson, a large vendor (due to their knowledge of the RXAS system) and with local vendor Universal Logic Inc. As a result, there was only one (1) responsible source, Universal Logic Inc.

Business Category Name of Potential Source(s)/Other POC

Information Small Business Universal Logic Inc.

VHAPM Part 810 Market Research SOP Page 10 of 12 Revision: 08, Effective Date: 04/27/21

VII. Description of the Commercial Marketplace and Prevalent Business Practices

Describe the marketplace The requirement will be sole sourced.

Identify availability of commercial or non-developmental items that satisfy requirements (value or shortcomings of each) and sub-components This is a commercial requirement.

State Nonmanufacturer Rule (NMR) Findings (if the acquisition is for manufactured products or other supplies) (See the Nonmanufacturer Rule Decision Tree to assist with this determination):

The NMR does not apply.

Identify standard/customary terms and conditions and industry business practices that differ from the standard Government practices (include information on payment, freight delivery, acceptance, and warranties)

None

Discuss if contract financing is applicable. If so, ensure compliance with FAR 32.202-3, Conducting Market Research About Financing Terms

Contract financing is not applicable.

Discuss any regulations unique to the requirement, if known None

VIII. Pricing and Market Issues

Identify price sources (e.g., market price, catalog, GSA, etc.), price ranges, and price variations

Based on market research performed by VA’s Consultant Company, St. Onge Based on Independent Government Cost Estimates

Describe market trends for product or service, e.g., technical, business, and pricing No Market Trends

IX. Other Considerations

Identify other considerations gathered from market research, e.g., opportunities for small business participation

VHAPM Part 810 Market Research SOP Page 11 of 12 Revision: 08, Effective Date: 04/27/21

Small businesses opportunities do exist as the vendor, Universal Logic Inc. is a small business.

Discuss qualifying factors, including such issues as past performance, references, product testing or evaluation, customer satisfaction, warranties, and quality problems St. Onge Company prepared a Statement of Work and held interviews with industry vendors. The selected vendor has the specialized experience and capabilities needed to revise the components of the TCA equipment. The selected vendor also has advanced Artificial Intelligence (AI) sensor/motion control software products which will be used to help replace the former software for the TCA picking robot operation.

Describe consideration of green (sustainable products and services https://sftool.gov/greenprocurement and http://www.gsa.gov/portal/content/105365. Include discussion of energy efficiency standards of market products, if applicable

N/A

Discuss consideration to Buy American Statute. Does Buy American, Trade Agreement or an Exception to Buy American apply (FAR Part 25). Are there domestic end products available for this acquisition?

N/A – This will be sole sourced .

X. Market Analysis Summary

Provide market research conclusions and recommendations This requirement will be sole sourced as there are no other businesses that can provide to meet the immediate need for hardware integration and equipment transfer services for the Murfreesboro CMOP.

XI. DETERMINATION: Market research determined that Universal Logic Inc. is the only vendor that possesses the qualifications, local footprint, implementation experience and most importantly the required automation integration skills to include an intimate understanding of the complexities of the future Murfreesboro CMOP AFPS needs, and has the required familiarity with the transition plan to meet the Government’s urgent needs.

IV. PROPOSED PROCUREMENT METHOD

Based upon the market research and IAW FAR Part 6.302-1 there is only one responsible source that has the qualifications and capability to provide both the hardware integration services and the transfer of equipment from the Charleston

VHAPM Part 810 Market Research SOP Page 12 of 12 Revision: 08, Effective Date: 04/27/21

CMOP to the Murfreesboro CMOP. This recommendation will be provided in the formal acquisition plan or will stand alone as the sole acquisition strategy document for small business determination for informal acquisition planning.

This market research information is not more than 12 months old.

_______________________________ Date: __________________ Lori J. Nichols Fellows Contracting Officer

Lori J. Nichols Fellows 1029477 Digitally signed by Lori J. Nichols Fellows 1029477 Date: 2021.09.07 08:16:05 -05'00'