P03_JA_VISN 4_CensiTrac Support_Final_Signed_redacted.pdf

CONTROL NUMBER:VA-26-00007261

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of Veterans Affairs (VA) Office of Procurement, Acquisition, and Logistics

Technology Acquisition Center 23 Christopher Way Eatontown, NJ 07724

2. Description of Action: The proposed action is for a firm-fixed-price contract to provide sustainment services for VA’s CensiTrac Instrument Tracking Systems solution utilizing the existing brand name CensiTrac Instrument Tracking Systems (ITS) subscriptions and maintenance support services for the medical centers within the Department of Veterans Affairs, Veterans Integrated Service Network (VISN) 4 - Logistics Hub. The contract shall be issued on a sole source basis to Censis Technologies, Inc. (Censis), 4031 Aspen Grove Drive, Suite 350, Franklin, Tennessee, 37067.

3. Description of Supplies or Services: VA, VISN 4 – Logistics Hub has a requirement for the renewal of brand name Censis CensiTrac software subscriptions and maintenance support services. The support services include CensiTrac system support, software upgrades, server maintenance and administration, CensiTrac Customer Support included 24/7 Service Desk Support, Dedicated Client Manager, and sustainment of the existing CensiTrac system. VA requires access to CensiTrac Instrument Tracking Systems proprietary data to provide sustainment services and ensure proper processing.

VA, VISN 4 Health Care Systems are currently using sterilization processes comprised of CensiTrac Instrument Tracking Systems software and require the continuity of operations needed to maintain their existing sterilization processes therefore, VA requires a solution that is compatible with its existing infrastructure .VA previously procured CensiTrac Instrument Tracking Systems following guidelines from VA Directive 116(2), Management of Critical and Semi-Critical Reusable Medical Devices, which establishes guidance for VA Sterile Processing Processes. CensiTrac Instrument Tracking Systems software provides enhanced safety and reduced risk of infection by providing accurate tracking, improved sterilization processes, traceability, improved operational efficiency, and real-time visibility for both sterile processing and facility staff.

Failure to utilize a proper Instrument Tracking system creates an overly complicated and burdensome process that has shown to create risk and harm to both patients as well as the organization.

The period of performance shall be one, 12-month base period with two, 12-month option periods. The total estimated price of the proposed action, inclusive of options, is

4. Statutory Authority: The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1 entitled, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

CensiTrac Subscriptions and Support Services CONTROL NUMBER VA-26-00007261

VISN 4

5. Rationale Supporting Use of Authority Cited Above: Based on market research, as described in Section 8 of this justification, it was determined that only Censis can meet the Government’s requirements. The CensiTrac software applications are integrated into the core CensiTrac Instrument Tracking Systems infrastructure in VISN 4 to achieve the benefits of accurate tracking, sterilization processes, traceability, operational efficiency, and real-time visibility for both sterile processing and facility staff.

The software allows the various locations within VISN 4 medical centers to provide accurate real-time visibility for both sterile processing and facility staff, thereby precluding consideration of a different Instrument Tracking solution. Any other brand of software will break that communication and will not provide the necessary user interface between the VA-owned equipment and its location within the 10 healthcare system locations. This specific CensiTrac software is used to track and maintain equipment in the sterilization process. Using an established interface with the Federal Electronic Health Record (FEHR), sterile processing receives procedure data and requirements.

The proprietary CensiTrac software interfaces with the FEHR, therefore the ability to attach any used item to a procedure is accomplished. Sterile processing then scans items directly to procedure records by utilizing unique device identifiers.

Removing and replacing the current sterile processing system would be cost prohibitive, would result in unacceptable delays, and would place patient care at risk if another provider was chosen for this requirement. The estimated cost for such a replacement would be estimated to be $4,000,000.00, inclusive of all software and hardware for the ITS. These costs are based on the initial deployment of the previous solution for VISN 4 and would not be recovered through competition. Finally, any alternative ITS would require a new interface with VA Electronic Health Record as well as an Authority to Operate in the VA network which is estimated to take 6-12 months. These duplicative costs include not only the cost required for licensing costs of system and the manpower cost required to host the system but also the extensive development, configuration, integration, migration, and personnel re-training efforts. These estimated duplicative costs and time are based upon previous development and configuration efforts of similar size and scope. These estimated duplicative costs would not be recovered through competition.

Failure to renew the maintenance of the current CensiTrac Instrument Tracking Systems software would have a negative impact on patient care and VA staff’s ability to accurately track and trace sterilization processing in a timely manner, such as surgery and endoscopy, which will affect the quality of treatment Veterans receive. Sterile processing services workflow is also vital for staff to ensure regulatory and safety requirements are met throughout the healthcare system locations. Without acquiring the CensiTrac support, the VISN 04 Medical Centers will be unable to provide the most efficient and high-quality patient care which would hamper VA’s ability to monitor and track and ultimately provide timely care to Veterans. Additionally, the Instrument Tracking System is a critical part of ensuring regulatory and safety requirements are met.

6. Efforts to Obtain Competition: Market research was conducted in May of 2025, details of which are in Section 8 of this justification. This effort did not yield any additional sources that can meet the Government's requirements. There is no competition anticipated for this acquisition. In accordance with FAR 6.302-1(c)(1)(ii)(c) and 5.102(a)(6) this justification shall be posted with the solicitation. Furthermore, the proposed action will be synopsized on the Contracting Opportunities Page in accordance with FAR 5.201. Any proposals that are received shall be evaluated.

7. Actions to Increase Competition: The Government will continue to conduct market research to learn if there are changes in the marketplace that would enable future actions to be competed, such as redesign due to hospital renovations or directives which establish guidance on Sterile Processing Processes sustainment. Additionally, VA Subject Matter Experts regularly review industry trade publications and conduct internet research to ascertain if any other brand name software is available.

8. Market Research: The Government’s technical experts conducted market research to ascertain the ability of any other source that can provide the aforementioned services.

VA technical experts conducted web-based market research in October 2025 by researching other similar brand name items. The vendor products reviewed included software and support from Steris, Getinge, Synapsis Healthcare, and Cardinal Health.

Based on reviews of these products, the Government’s technical experts determined that none of these products can meet the Government’s compatibility requirements for the VA Sterile Processing Processes previously discussed.

CensiTrac software is a proprietary software product; therefore, only Censis can provide the subscriptions and sustainment support required by VA. The CensiTrac software is manufactured by a sole proprietary company, Censis, and no other entity is authorized to sell, service, or maintain this software. Censis confirmed no other company has access or is authorized. No source other than Censis has access to the proprietary software necessary to provide the sterilization processed for sustainment.

9. Other Facts: None.

Approval

In my role as procuring activity Advocate for Competition, based on the foregoing justification, I hereby approve the acquisition for the brand name CensiTrac subscriptions and maintenance support services on an other than full and open competition basis pursuant to the authority cited in Section 4 above, subject to availability of funds, and provided that the property and services herein described have otherwise been authorized for acquisition.