P03- Over Sat LSJ- 36C259-25-AP-0571 Omnicell Win 10-635_Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

Effective Date: 11/15/24 Page 1 of 5

REVISION: 01

Acquisition ID#:

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: Tracking ID:

Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19 (NCO 19), 6162 South Willow Drive, Suite 300, Greenwood Village, Colorado, 80111

Organizational Activity: Department of Veterans Affairs, VISN 19, Oklahoma City Veterans

Affairs Medical Center (OKCVAMC), 921 NE 13th Street, Oklahoma City, Oklahoma, 73104

2237:

1. Nature and/or Description of the Action Being Processed:

This Sole Source Justification is for Omnicell XT cabinets Windows 10 upgrade that will result in a “brain” swap meaning the vendor replaces keyboards, and computer hard drive with the new windows platform to include changing out the cabinets. The result of this procurement will be a sole source executed to Omnicell.

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

The estimated value of the proposed action is $656,250.00

The VA Oklahoma City Healthcare System (OKL) is seeking a Windows 10 upgrade/replacement to the Omnicell automated dispensing cabinets (ADC), which is a

“Brain” exchange of all XT cabinets. This requirement is for the purchase and installation of equipment including the exchange/replacement of current brain with new chipped brain, touchscreen, keyboard, and all connections. Delivery and completion of all installation must be completed by 10/2025, as this is the end of life for the current operating system.

Per National VA IT guidance within the Technical Reference Model (TRM) located on the VA

Enterpirse Architecture website, the current windows operating system on the OKC VAMC

Omnicell automation equipment is being discontinued and no longer being supported.

National VA IT requires a windows update to a supported platform.

Effective Date: 11/15/24 Page 2 of 5

This will impact all 75 automated units located at the main facility and CBOCs.

Item # Description/Part Number*

Qty

XT HALF HEIGHT/MED-CNS-5-1 9

XT FULL HEIGHT/MED-PCB-501 66

3. 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 ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or

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

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

Requires the Use of the Authority Cited Above (applicability of authority):

The OKC VAMC currently owns approximately $4,000,000.00 in Omnicell Supply and Medication cabinets. The VAMC also owns Omnicell infrastructure such as servers, software, Pharmacy Automated Dispensing Equipment and Controlled Substance Manager.

In a letter dated 10/31/2024 from stated “Omnicell is the sole manufacturer, developer, and provider of Omnicell products and support services of equipment in the United States”. Due to the proprietary nature of Omnicell’s cabinets, pharmacy equipment and infrastructure, purchasing from another manufacturer would require us to purchase cabinets and infastructre. Another’s manufacturer’s equipment would not be able to communicate with the Omnicell Cabinets and infrastucture that is worth millions of dollars that is currently owned and doesn’t need to be replaced.

This replacement of the hardware and software system is needed for all the older cabinets.

Purchasing new cabinets and infrastructure would result in additional training and new

Effective Date: 11/15/24 Page 3 of 5

Acquisition ID#:

protocol establishments. Different systems and different cabinets would only convolute the already established standardization of the Omnicell infrastructure and equipment.

The cabinets themselves have a normal average of a 10-year worth of life. Doing the XTE swap will provide us an additional 3-5years of life. This would be the more fiscally responsible vs competing for new equipment with new software.

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

Omnicell has an FSS contract 36F79723D0073 however, according to an email from

“due to the short cycle of availability in upgrade to existing systems the XTE was not added”. Due to the propierty nature and the extension of life to the system with this upgrade, this has to be procured sole source. Because of the short window of availabity and the sole source letter from Omnicell, a sources sought was not issued.

6. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

Per , at this time has not received a contract for this item/service. The final anticipated contract price will be found fair and reasonable by a comparison of Omnicell’s automatic dispensing cabinets which is offered at 40% discount of the list price. The same discount will be given to the upgrgrade/replacement.

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

Market Research was conducted by during 12/24.

An FPDS search for Omnicell XT was conducted and yielded the following results: 22 contracts/delivery orders awarded by the VA in FY24 with an accumulated total of $1,438,440.49. All but 3 awards went to Omnicell. The other three awards went to an authorized reseller Trillamed. However, with this swap of equipment and service only Omnicell is auhroized to due this.

A VIP search for key word XT cabinets resulted in 821 SD/VOSB vendors. None of the vendors had the complete phrase XT cabinets. Rather, XT populated multiple times in all capability statements as part of a word like textile and exterior.

Two DSBS searches were conducted for keywords Medication Cabinets and IV Workflow.

Neither search populated results.

Effective Date: 11/15/24 Page 4 of 5

A search on GSA Advantage for Omnicell Cabinets provided Omnicell as the only vendor with an FSS contract for their cabinets(36F79723D0073), but not results were found for the brain swap.

Based on the results of the VIP, FPDS and GSA searches Omnicell was reached out to via phone conversation. responded stating that the required Omnicell cabinets “brain swap” can only be done by Omnicell. On the question of Omnicell Servers and software communicating with medication storage and supply cabinets from other manufacturers, it was stated that only Omnicell cabinets will communicate with the Omnicell server running the proprietary Omnicell software at the

OKC VAMC.

7. Any Other Facts Supporting the Use of Other than Full and Open Competition:

There are no other facts or circumstances supporting this justification

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

Omnicell, INC.

1201 Charleston Road Moutain View, CA 94043-1337

9. 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:

The Government will continue to conduct market research in an effort to monitor industries’ ever-changing technologies. With the exponential growth of technology, the current system may reach obsolescence sooner than expected, at which time a replacement would require competition.

10. 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

OKC VAMC

Effective Date: 11/15/24 Page 5 of 5

11. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: This part if filled out by

Contracting Staff as part of the Justification

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.

S/S Oklahoma, NCO 19

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.

NCO 19