DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C259-26-AP-1894 RPOW Justification Tracker Number: FY26 – NCO 19 - 2020

1. Contracting Activity: Regional Procurement Office West, Network Contracting Office (NCO) 19 located at 6162 S. Willow Drive, Suite 300, Greenwood Village, CO 80111, in support of the Salt Lake City VA Medical Center (SLCVA), located at 500 Foothill Blvd Salt Lake City, UT 84148 and its Community Based Outpatient Clinics (CBOC) listed below:

· Cache Valley CBOC 2380 North 400 East, Suite G, North Logan, UT84341

· Elko CBOC 2767 Mountain City Highway, Elko, NV 89801

· Idaho Falls CBOC 640 South Woodruff Avenue, Idaho Falls, ID 83401

· Ogden CBOC 3945 South Washington Blvd, Suite 1, South Ogden, UT84403

· Orem CBOC 774 South State Street, Orem, UT 84058

· Pocatello CBOC 500 South 11th Avenue, Pocatello, ID 83201

· Price CBOC 189 South 600 West, Suite B, Price, UT 84501

· Roosevelt CBOC 245 West 200 North, Roosevelt, UT 84066

· South Jordan 5119 West Daybreak Parkway, South Jordan, UT 84099

· St. George CBOC 230 North 1680 East, Building N, St. George, UT 84790

2. Nature and/or Description of the Action Being Approved:

This procurement is for a new, firm-fixed price award for the installation and completion of the remaining, previously purchased PAR Excellence weight-based inventory management system with the Generic Inventory Package (GIP) interface. Additionally, this procurement will also include the expansion of the free-standing, weight-based inventory Point-of-Use (POU) system with the GIP interface to other departments and CBOCs, not previously included in the initial award.

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

The SLCVA has a requirement for the installation and completion of the remaining, previously purchased inventory as well as the procurement and expansion of the free-standing, weight-based inventory POU system with the GIP interface to other departments and CBOCs. The SLCVA previously procured a PAR Excellence weight-based inventory management system. However, full installation within all departments was not completed due to circumstances beyond the Government’s control to include extensive flood damage at select locations, active construction delays, dissolution of a subcontractor relationship and failure of a separate third-party electrical / data contract. Since the dissolution of the relationship, support services and licensing are being maintained under contract 36C25925P0032; however, installation of remaining, previously acquired inventory and expansion of the system to other departments and CBOCs are outside contract 36C25925P0032’s scope of work. The list of items to be procured are below:

The estimated period of performance is: 09/15/2026 – 09/14/2027 and will include RFO 52.217-8 Option to Extend Service. If exercised, the 52.217-8 option will be exercised at the same rates as those in effect at the time the contract is extended.

The estimated value of this procurement is: $1,668,110.88.

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 41 USC §3304(a)(1) as implemented by RFO 6.103-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by RFO 6.103-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by RFO 6.103-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by RFO 6.103-4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by RFO 6.103-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by RFO 6.103-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by RFO 6.103-7;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

In 2023 the SLCVA transitioned from manual, non-weighted POU inventory systems to a weight-based automated inventory management solution to reduce labor burden, stock-outs, and supply costs. As stated in paragraph 3 above, the PAR bin system was procured from PAR Excellence Systems, Inc.; however, full installation within the departments was not completed due to circumstances beyond the Government’s control. This weight based electronic inventory system takes the human factor out of the equation and allows for accurate accounts of inventory stock 24 hours per day, 7 days per week, 365 days a year. This system provides data mining capabilities that include at a minimum, current stock level, recommended order points, average usage levels per item, and ability to track medical supply usage per patient treated throughout the Salt Lake Healthcare System.

The PAR bin system is interfaced with GIP. The primary purpose of the interface is to identify out of balance on-hand quantities and values between GIP and the PAR bin system. The GIP interface ensures proper storage of medical and surgical products and provide accessible real-time/accurate readings of the supply quantities by the web-based program. The benefit to the Government is substantially increased efficiency in on-hand inventory management of expendable supplies, mitigation of wasting funds through over-ordering of miscounted inventory, and enhanced logistic support to clinicians providing on-time availability of medical supplies improving healthcare to the Veteran.

The PAR bin system includes proprietary software that is information technology (IT) centric with information technology at its core. According to VA Technical Reference Model V 26.4 (TRM) and the VA Enterprise Architecture (EA) all such technologies must be operated and maintained in accordance with Federal and Department security and privacy policies and guidelines. When the Contracting Officer (CO) spoke with the Area Manager with the Office of Information Technology, he explained it as “TRM is the IT department guide to what we can and cannot have on the VA network to ensure we comply with security policy”. This entails a full Enterprise Security Change Control Board (ESCCB) review in accordance with Federal requirements such as VA directive 6004, VA directive 6517, and VA directive 6513 to determine the software is compliant with VA policies, Federal Information Processing Standards (FIPS) 140-2 and 140-3 and the National Institute of Standards and Technology (NIST) standards. PAR Excellence Systems, Inc. has been TRM vetted, found to be compliant, and is TRM authorized.

PAR Excellence Systems, Inc., provided a Sole Source Letter as they no longer authorize third party vendors to distribute or service their PAR Bin System. Accordingly, PAR Excellence Systems, Inc. is the only vendor capable of providing the supplies and services described in Section III above without the Veteran’s Health Administration experiencing substantial duplication of cost estimated at $8.71M. This cost could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as possible (including whether a notice was or will be publicized as required by RFO Part 5 and, if not, which exception under RFO Part 5 applies):

The CO posted a Special Notice of Intent to Sole Source to Par Excellence Systems to www.sam.gov, for 10 days, from April 1, 2026 - April 10, 2026. Upon closing, no responses were received challenging the intent to sole source.

The mission partner consulted Supply Chain Management personnel at the Rocky Mountain Regional VA Medical Center, the Grand Junction VA Medical Center, and the Cincinnati VA Medical Center to determine whether they used the same or similar equipment. These facilities reported that they could not find any comparable equipment with a GIP interface from other vendors and had awarded sole‑source contracts to PAR Excellence for their PAR Bin System equipment. The CO spoke with the PAR Excellence System, Inc., the original equipment manufacturer (OEM), and consulted with representatives to inquire about the PAR Bin System and find out if there were other authorized vendors that could distribute/service this system or if any similar system could interface with the PAR Bin System.

PAR Excellence stated due to the proprietary nature of the system as a whole (hardware and software) that no other similar systems could interface with it. Additionally, PAR Excellence Systems, Inc. has dissolved their relationship with SDV Medical, an SDVOSB vendor, and they are no longer authorizing third party vendors to distribute or service this equipment.

This Justification will be posted on Contracting Opportunities within 14 days after contract award.

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

A fair and reasonable price determination will be made by comparison to the Independent Government Cost Estimate that was formulated by using market research of available historical pricing and comparison of proposed prices found reasonable on previous purchases.

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

In accordance with VETs First, the SBA-DSBS Vet-Cert database was searched using the NAICS 334513, keywords “bin system” which produced 0 results. Additionally, the ADDSUP and www.sam.gov (former Federal Procurement Data System (FPDS) search tool) was searched using keyword “par” which produced multiple contracts awarded over the past year. All were awarded to PAR Excellence Systems, Inc. with the most recent being awarded March 23, 2026

As described in Section 6 above, market research, in accordance with RFO Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. PAR Excellence Systems, Inc., the OEM of this equipment, does not authorize third party vendors to distribute or service their equipment. A search on SAC, NAC and GSA websites did not find any existing contracts or products that can meet this requirement. Additionally, other products were researched for compatibility with the existing equipment and licenses the Government currently owns. Nothing was found to be compatible, nor do they have the necessary weight based electronic inventory system with the GIP interface as required.

All products are domestic and manufactured by PAR Excellence Systems in Cincinnati, Ohio.

Based on the analysis of market research and historical data, the CO does not have an expectation that two or more SBA VetCert verified Veteran-Owned small business concerns will submit offers.

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

There are no other facts supporting this justification.

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

PAR Excellence Systems, Inc. (OEM) 11500 Northlake Drive, STE 135 Cincinnati, OH 45249-1655

SAM UEI: N9LFJALEM6K7

11. 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:

PAR Excellence Systems, Inc. is a large business and is the original manufacturer of the proprietary software and the sole provider of the required supplies, subscriptions and licensing. PAR Excellence Systems, Inc., does not have any affiliated small business service providers and there are no subcontracting opportunities associated with this requirement. Utilization of other software or commodities would result in unnecessary duplication of costs and potential breakdown of the system currently in place. No further actions are available at this time to facilitate competition for future acquisitions.

12. 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 Administrative Officer, Logistics Salt Lake City VAMC

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Date Contracting Officer

NCO 19

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Date Director of Contracting

NCO 19

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 recommend approval (if over $90 million) or approve ($900K to $90 million) for other than full and open competition.

Date Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA)

VHAPG Part 806.3 OFOC Page 1 of 4 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C259-26-AP-1894