P03 - JOFOC - CareFusion Pyxis PM - Redact.pdf

36C247-21-AP-0759

VHAPM Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items

Request for Sole Source Justification Template >SAT $7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 5 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C247-21-AP-0759

1. Contracting Activity: Department of Veterans Affairs (VA), Veterans Integrated Service Networks

(VISN) 07, Carl Vinson (Dublin) VA Medical Center, 2237 Purchase Request (PR) 557-21-3-2152-

Networking Contracting Office 7 - Augusta 501 Greene Street, Hatcher Building – Suite 2 Augusta, GA 30901

2. Nature and/or Description of the Action Being Processed: This is a new firm-fixed-price (FFP) request for Other Than Full and Open Competition for preventative maintenance services and inspections to be performed on CareFusion Solutions, LLC (CareFusion) Pharmacy Pyxis Enterprise Server (ES) units located throughout the Carl Vinson VA Medical Center, 1826 Veterans Blvd, Dublin, GA 31021. The contractor shall also provide Pharmacy access to the Knowledge Portal. This requirement is for a base plus four (4) one (1) year options.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The contractor shall provide all parts for repair services, labor, and travel necessary to perform scheduled maintenance and emergency repairs on all Pyxis ES units at the Carl Vinson VA Medical Center. The contractor shall provide repair services and scheduled inspections of equipment once a month at the start of the contract period of performance. All labor, travel, expenses, and parts will be furnished for any/all identified (needed) repairs. An unlimited number of telephone support calls and on-demand service visits will be part of this requirement. The estimated cost and period of performance is as follows:

4.

Base Year 06/01/2021 – 05/31/2022 Option One (1) 06/01/2022 – 05/31/2023 Option Two (2) 06/01/2023 – 05/31/2024 Option Three (3) 06/01/2024 – 05/31/2025 Option Four (4) 06/01/2025 – 05/31/2026

Total Estimated Cost

5. Statutory Authority Permitting Restricted Competition:

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

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

( ) Unusual and Compelling Urgency

Request for Sole Source Justification Template >SAT $7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 2 of 5 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services

( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

6. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition

Requires the Use of the Authority Cited Above (applicability of authority): CareFusion is the sole provider of services and maintenance for CareFusion equipment currently at the facility.

Although CareFusion has authorized distributors for new equipment, all replacement parts, maintenance services, and software monitoring for the Pyxis ES equipment are proprietary to CareFusion and are provided by CareFusion technicians. To use any other service provider would require the Government to void all original equipment manufacturer (OEM) warranties or replace all the current equipment with an "or equal" brand that allows multiple services providers. This would cause a substantial duplication of the cost that could not be expected to be recovered through competition. Furthermore, it would cause duplication in cost in training hospital staff on the new equipment. Equipment to be covered under this new preventative maintenance contract was procured under delivery orders 36C24720F0478 and 36C24718F2012.

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

A sources sought synopsis was posted to the Government Point of Entry (GPE) beta.SAM on 01/27/2021 and closed 02/01/2021 at 9:30 AM Eastern Time (ET) under notice number 36C24721Q0314. The purpose of the notice was to determine the possible participation of small businesses in any future solicitation. All small businesses must be authorized to provide preventative maintenance service on CareFusion equipment, specifically the Pyxis ES units. The synopsis returned zero (0) responses. A market research notice was also posted to National Aeronautics and Space Administration Solutions for Enterprise-Wide Procurement groups B, C, and D service-disabled veteran-owned small business contract holders on 1/27/2021 with a close date of 02/03/2021 under request # 181349. The notice was sent to sixteen (16) SDVOSB’s and received zero (0) responses.

8. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable: The Contracting Officer (CO) anticipates the Government will be provided a fair & reasonable price. The CO will compare new pricing to the prices received under purchase order 36C24718P1552 and task order 36C24718F2025. CareFusion has also stated they will honor all Federal Supply Schedule (FSS) pricing from their expired contract 36F79718D0454 which will be verified by comparing new prices to the monthly price of the most recent option on task order 36C24718F2025 while taking into account an average of 2.5% - 5% increase per year for the future options. Additional discounts will also be sought before any award being made. The CO will also consider the proprietary nature of the services and the duplication of the cost that the Government would incur to purchase new equipment and utilize different service providers.

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

Market Research Was Not Conducted:

Vendor Information Portal (VIP): A search was conducted on VIP using the North American Industry Classification System (NAICS) 811219 keyword “CareFusion” for service-disabled veteran-owned

Request for Sole Source Justification Template >SAT $7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 3 of 5 Original Date: 08/30/17 Revision 03 Date: 02/11/2021 small businesses (SDVOSB)’s and veteran-owned small businesses (VOSB)’s capable of performing this requirement.

Beta.SAM Sources Sought Notice: See section 6.

Federal Procurement Data System (FPDS): A search was conducted on FPDS utilizing search words “Pyxis Maintenance” and limiting the contracting agency to the Department of VA.

Government-Wide Acquisition Contract’s (GWAC’s) General Services Administration (GSA): Multiple searches were conducted on GSA eLibrary, multiple award schedule (MAS), utilizing keyword 811219, and utilizing keywords “CareFusion”.

National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP): A sources sought notice was posted to all group B, C, and D SDVOSB contract holders.

Acquisition History: A search was conducted of the same or similar services provided for Georgia VA Medical Centers.

Mandatory Sources: AbilityOne - A search was conducted for mandatory sources as required by FAR Part 8.7 for AbilityOne nonprofit agencies on (http://www.abilityone.gov/procurement_list/index.html)

Manufacturer (CareFusion Solutions, LLC): An email was sent on 01/27/2021 to the manufacturer of the equipment, CareFusion Solutions, LLC (CareFusion), requesting authorized service providers for their equipment and software.

Results of Market Research:

VIP Results: The search on VIP resulted in zero (0) SDVOSB and VOSB’s. Results have been uploaded to the contract file under meta-tag P02.1.

Sources Sought Notice Results: See section 6.

FPDS Results: Findings resulted in a total of 392 contracts awarded under the Department of VA with 340 of them being awarded to the manufacturer, CareFusion. A check of the most recent awards shows that all awards for preventive maintenance have been made to CareFusion.

GWAC’s GSA Results: Findings resulted in no business with the capability of providing CareFusion Services under any MAS. CareFusion has a Federal Supply Schedule (FSS) contract under 36F79718D0454 which expired 06/30/2020.

SEWP Results: See section 6.

Acquisition History Results:

CONTRACT BUSINESS

NAME

SIZE PERIOD OF

PERFORMANCE

LOCATION

36C24718F2025 CareFusion Solutions, LLC

Large 09/30/2018 – Present (Ultimate Completion

09/29/2022)

Augusta Medical Center

Request for Sole Source Justification Template >SAT $7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 4 of 5 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

36C24718P1552 CareFusion Solutions, LLC

Large 06/01/2018 – Present (Ultimate Completion

05/31/2021)

Dublin Medical Center

This requirement is for the preventative maintenance of CareFusion equipment purchased under delivery orders 36C24720F0478 and 36C24718F2012.

Mandatory Source Results: There are no AbilityOne CareFusion Pyxis Services found on abilityone.gov which helps administers National Industries for the Blind (NOB), SourceAmerica, and American Foundation for the Blind (AFB).

Manufacturer (CareFusion Solutions, LLC) Results: The local CareFusion government representative replied with a list of three (3) authorized small businesses (all SDVOSB's) that they work with;

however, upon further clarification, the representative stated that all services, maintenance, and parts are provided by CareFusion and CareFusion technicians.

10. Any Other Facts Supporting the Use of Other than Full and Open Competition: All services for

CareFusion equipment are proprietary to CareFusion. CareFusion has authorized distributors for their equipment and software but has no authorized service providers. A proprietary letter was provided which states “Only CareFusion and our Field Service Technician Affiliates have the capabilities and authorization necessary to perform installation and maintenance services for Pyxis products.

Performance of those services by any other party voids our warranty for the serviced products”.

11. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: CareFusion Solutions, LLC

12. 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:

There are no known actions the agency can take to remove or overcome barriers to competition without adding cost to the Government. The agency will seek additional competition, if possible, on future procurements and verify if CareFusion has added any authorized service providers. The Government will also investigate purchasing new “or equal” equipment at the end of life of the Pyxis units currently in place

13. 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.

Date

Request for Sole Source Justification Template >SAT $7.5M under FAR13.5

PM Part 813.5 SAP for Certain Commercial Items Page 5 of 5 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

14. 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.

. Date

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.

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 $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.