P03 JA WaveMark Edited_Redacted.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

For Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C261-20-AP-3267

1. Contracting Activity: Department of Veterans Affairs, Veterans Health Administration, Regional

Procurement Office West, Network Contracting Office (NCO) 21 on behalf of Veterans Affairs Central California Health Care System (VACCHCS), Veterans Affairs Northern California Health Care System (VANCHCS), Veterans Affairs Sierra Nevada Health Care System (VASNHCS), Veterans Affairs Southern Nevada Health Care’s System (VASNHCS), San Francisco Veterans Affairs Health Care System (SFVAHCS). Purchase request number 640-20-3-544-0011.

2. Nature and/or Description of the Action Being Processed: Consolidate Cardinal Health WaveMark Supply Management System services that are currently installed and operational at VACCHCS - Fresno, VANCHCS - Mather, VASNHCS – Reno, VASNHCS – Las Vegas, and SFVAHCS San Francisco. All stations are currently aligned for a 08/01/20 start date. Intent is for a Base plus 4 option years for each location.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for WaveMark hardware, firmware, and software services in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

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

WaveMark Supply Management System services for Cath Labs are in use at VISN 21 VA Medical Centers. This system automates the entry of new supplies into the Cath Lab inventory as well as documentation of their use in patient procedures. It interfaces with GIP to automate supply re-order as well as with the CART-cL to document supply usage. WaveMark sends notifications when supply types are running low, as well as when individual supplies are reaching, or have passed their expiration dates. As a result, WaveMark greatly reduces the risk of patient studies being delayed or cancelled due to necessary supply unavailability, as well as VA funds lost to supply spoilage. Cardinal Health WaveMark Supply Management System services is formerly WaveMark Enterprise Real Time Location System (EiRTLS), which is still referenced in certain documents and vendor licensing line items.

Price: Base Year

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 FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2).

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Off-The-Shelf supply management equipment and follow-on services are not viable to ensure the Veteran Affair’s mandate for access of patient care information as well overall network security. Supply Management system products and services for medical facilities contain a uniqueness that ensure licensing rights which enable the controlled release of firmware and software. In this case, Mapping and transformations from hard-coding for WaveMark Supply Management System are only available through Cardinal Health. These source code elements and hardware patents enable proprietary rights for only Cardinal Health to provide services for the WaveMark Supply Management System, (See, Cardinal Health WaveMark patent letter, uploaded in eCMS file). The declaration letter also states Cardinal Health does not allow third party vendors training or access to firmware nor software for said equipment. At this juncture the sole source is predicated on WaveMark retaining control over their equipment and software. If a VA facility opts to transition to another supply management system, the project will take approximately three years from implementation to operational status. This duration includes seeking VACO approval, funding, solicitation, install, testing, and operational declaration; during this timeframe an existing system would still need to be in-place. It is anticipated VA medical stations will eventually seek alternative supply management systems, until then based on proprietary elements, patent declarations, and no third-party entities authorized to service WaveMark Supply Management System, Cardinal Health is the only responsible sourced to provide these services.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Until pproprietary elements are relinquished by Cardinal Health servicing of WaveMark Supply Management System firmware and software cannot be accomplished by any other vendor.

7 Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Aside from expected annual incremental price increases, it is anticipated all costs submitted by WaveMark are similar to existing contractual services in-place. There is also an extensive list of previous contracts with NCO21 and throughout the Veterans Affairs available for cost comparison. When conducting a fair and reasonable determination procedures under FAR Part 13-106(a) will be utilized.

8 Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted: VIP NAICS search resulted in 433 vendors with word search “WaveMark” resulted in no vendors. GSA/eBUY did not possess vendors for WaveMark Supply Management or Enterprise Real Time Location (EiRTLS) equipment or services. NASA SEWP did not result in WaveMark Supply Management or EiRTLS vendors. WaveMark, Cardinal Health possess GSA contracts V797D-60688 V797P-430B, GS-07F-5873R with none reflecting EiRTLS equipment or services. Initial Notice of Intent with PSC J070 (Maint/Repair/Rebuild of Equipment – ADP) posted response 05/12/20 - 05/15/20, no respondents. Sources sought and second Notice of Intent with