P03 LSJ AP 36C244-20-AP-3274_Redacted.pdf

AP: 36C244-20-AP-3274 | PR: 460-21-1-3384-0002 | Omnicell XT

VHAPM Part 808.405-6 Limiting Sources Page 1 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C244-20-AP-3274

(1) Contracting Activity: Department of Veterans Affairs, VISN 04, Wilmington VA Medical Center, 1601 Kirkwood Highway, Wilmington, DE 19805. Purchase Request (2237) Number:

460-21-1-3384-0002

(2) Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). The Wilmington VA Medical Center (WVAMC) has a new, sole source requirement to replace existing Omnicell XT equipment. The existing Omnicell XT equipment has surpassed its usable life expectancy and is compatible with Windows 7 only. The current equipment on-site will no longer be serviced and supported by the manufacturer, Omnicell, Inc. The replacement Omnicell XT equipment will be Windows 10 compatible, and supported and serviced by Omnicell, Inc.

Order against: FSS Contract Number: V797D-30111

Name of Proposed Contractor: Omnicell, Inc.

Street Address: 590 E. Middlefield Road

City, State, Zip: Mountain View, CA 94043

Phone: 847-596-3465

3) Description of Supplies or Services:

The estimated value of the proposed action is $751,809.33.

The Omnicell XT Automated Dispensing Cabinet features a revolutionary design approach to maximize workflow efficiency while promoting Veteran safety.

The Omnicell XT Automated Dispensing Cabinet can easily be expanded with additional cabinets, and drawers can be added or changed on-site.

Medications and supplies can be combined in a single cabinet, promoting convenience and saving space.

VHAPM Part 808.405-6 Limiting Sources Page 2 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized;

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are eplacem for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination:

In accordance with (IAW) FAR 8.404(d), this new sole source request for the Wilmington VA Medical Center represents the best overall value to the Government because it will tie directly into the already existing Omnicell systems owned at the Wilmington VA Medical Center. There is no other equipment that will interface with existing Omnicell equipment. The Omnicell, Inc.

is sole manufacturer and exclusive provider of Omnicell products and support services. They do not have authorized personnel outside of their company to provide the required products and services for Omnicell procurements. In addition, Omnicell does not contract products or services to third parties, therefore there are no other sources capable of meeting this requirement. A sole manufacturer letter from Omnicell was acquired and uploaded to the contract file for reference. IAW FAR 8.405-4, the Contract Specialist (CS) sought a price reduction discount via email. The Omnicell, Inc. responded by offering no additional discount beyond the Government pricing on GSA/FSS Contract V797D-30111. This correspondence is

VHAPM Part 808.405-6 Limiting Sources Page 3 of 5 Original Date: 08/30/2017 Revision 02 Eff Date: 02/21/2020 uploaded to the contract file for reference. The pricing from Omnicell, Inc is based off GSA/FSS pricing and matches the Independent Government Cost Estimate (IGCE) provided by the WVAMC. The CS confirms this pricing because an official quote was received directly from the manufacturer, Omnicell, Inc.

Finally, as per FAR8.404(d), the General Services Administration (GSA) has already determined the prices of supplies under schedule contracts to be fair and reasonable. This new request is under GSA/Federal Supply Schedule (FSS) Contract V797D-30111, and by placing an order against this contract it will result in the lowest overall cost and best value to the Government.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

The market research conducted by the CS pursuant to FAR Part 10.002 determined the Government s needs can be met by placing an order against aforementioned GSA/FSS Contract V797D-30111, with Omnicell, Inc. The mandatory contract vehicles, the Strategic Acquisition Center (SAC) and Medical Surgical Prime Vendor (MSPV), were searched with negative findings.

The Federal Procurement Database System (FPDS) was searched using the keyword term Omnicell XT and resulted in 2 pages of procurement history, with Omnicell, Inc. as the sole contract awardee. Most recently, the Oklahoma City VA Medical Center procured the Omnicell XT system at a total cost of $767,767.12 awarded on April 6, 2020. In addition, the CS performed market research IAW VAAR subpart 819.70 by reviewing the Vendor Information Pages (VIP) using the appropriate North American Industry Classification System (NAICS) 339112, Surgical and Medical Instrument Manufacturing, the search concluded in no results.

Based off of the above information and with the CS s prior experience with Omnicell procurements, it s in the best interest of the Government to sole source this acquisition directly to Omnicell, Inc. IAW FAR 13.501 (a) sole source acquisitions are exempt from the competition requirements in FAR part 6. No further market research will be conducted.

(7) Any Other Facts Supporting the Justification:

The VA Medical Centers throughout VISN 4 utilize Omnicell equipment to keep high priced pharmaceuticals safe and secure; there are no other devices on the market that can interface with Omnicell s.

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

There is no further action the agency can take to remove unnecessary barriers, as Omnicell, Inc.

has no authorized distributors; therefore, there is no competition available.