S02 - Attachment 1 Single Source Justification MPT to SAT Final 9.8.2022_Redacted.pdf

VHAPG Part 813.106 Simplified Acquisition Procedures: Soliciting from a Single Source Attachment 1: Single Source Justification for SAP under the SAT

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DEPARTMENT OF VETERANS AFFAIRS

Justification for Single Source Awards IAW FAR 13.106-1 For

Over Micro-Purchase Threshold but Not Exceeding the SAT ($250K)

Acquisition Plan Action ID:_36C776-22-AP-2675

1. Contracting Activity: Department of Veterans Affairs, VISN 21, San Francisco VA Medical Center.The 2237 for this procurement is 662-22-4-909-0226.

2. Brief Description of Supplies/ Services required and the intended use/Estimated Amount:

VA San Francisco Healthcare System’s mission is to offer options to timely, quality services for Veterans through care and respect for one's physical, psychological, and spiritual health. The Santa Rosa outpatient clinic offers primary care and specialty health services, including audiology, physical therapy, dentistry, mental health services, prosthetics, pharmacy and more.

The Santa Rosa Outpatient Clinic has a requirement for Pharmacy Management System: ScriptPro (Brand Name Only) to be used in the Pharmacy Department. The Contracting Officer has determined a Firm Fixed Price (FFP) purchase order using FAR Part 13 procedures is appropriate for this acquisition. The estimated value of this requirement is

Item # JSN Item Description Quantity

1 M7280A SP Central Expanded Platform (includes 1 SP

Central Expanded Server, 1 SP Datapoint)

2 M7280A ScriptPro Inventory Management Module 1

3 M7280B/

M7280B1 SP Data Point Pharmacy Data Terminal 2

4 M7280B Pharmacy Printer 2

5 M7280D Prescription Notification Board XL -

Prescriptions Ready

6 M7280B1 Electronic Signature Device 1

M7280/ M7280A/ M7280B/ M720B1

Smart Card Scanner 4

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M7265 Standard Interface -Pharmacy Management System Interface, VistA Pharmacy Interface and Rx Paperwork Interface

9 M7280 Full Disk Encryption (per covered Server computer)

11 M7280A Virus Protection (Platform System) (Remote) 1

3. Unique characteristics that limit availability to only one source, with the reason no other supplies or services can be used:

ScriptPro utilizes a tracking and data storage capability which improves efficiency along every phase of the patient pharmacy experience while reducing issues attributable to human error. ScriptPro is compatible with the prime vendor’s daily ordering system, with the capability to monitor and track the stock and drug inventory, improving pharmacy inventory management and reducing narcotic/medication diversion. ScriptPro also offers superior features compared to other vendors such as the on-screen drug image to verify the medication being dispensed, versatility to collate prescriptions in various ways and preventing cross-contamination of medications by filling directly from the dispensing cells into the vials.

The Scriptpro equipment also has a barcode safety system to remove medication errors for Veteran patients. This equipment is currently used by over 70% of VA Outpatient Pharmacies and maintains an inventory management system that is required by the VA.

Other CBOC’s within the VA San Francisco Healthcare System are currently utilizing Scriptpro to automate pharmacy requirements. VA Pharmacies within the San Francisco Healthcare System will be able to standardize staff training requirements for facilities utilizing similar equipment, reducing clinical risks associated with the same staff having to switch between different manufacturer systems in use at each facility.

Pursuant to 38 U.S.C. 8127(b), COs may use other than full and open competition when awarding to SDVOSB and VOSB firms for procurements under the SAT. The subject requirement contains a sole SDVOSB authorized distributor confirmed by the Original Equipment Manufacturer (OEM), Scriptpro.

4. Description of market research conducted and results or statement why it was not conducted:

In accordance with FAR Part 10, market research has been conducted for this acquisition. The following techniques were used:

SDVOSB/VOSB Sources via VetBiz (VIP): In accordance with VAAR Subpart 819.7004, 819.7005,

819.7006 - https://www.vip.vetbiz.va.gov/, a search was conducted on Vetbiz.gov in an attempt to locate Service-Disabled-Veteran-Owned-Small-Business (SDVOSB) and Veteran-Owned-Small Business (VOSB) concerns utilizing NAICS code 339112. This search provided 419 SDVOSB and VOSB vendors. An RFI was emailed on July 21, 2022, to the vendors resulting from this list with the specifications on this brand name. Responses were due on July 26, 2022. No responses were received.

http://www.vip.vetbiz.va.gov/

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Medical Surgical Prime Vendor (MSPV) Contracts: A Search on The Medical Surgical Prime Vendor- Next Generation (MSPV-NG) program Product list for all the items in this requirement did not render results. The equipment required by this procurement is not included in the MSPV Bridge formulary contracts https://www.va.gov/opal/sac/mspvNG.asp.

National Contracts, BPAs, and BOAs: The National Strategic Source Listing can be found at https://vaww.pclo.infoshare.va.gov/PCLO/MMStrategicPlan/PEO/Lists/National%20ContractBPABO A/AllItems.aspx. A search on the VA National Strategic Source Listings for ScriptPro did not render any results.

GSA eLibrary: https://www.gsaelibrary.gsa.gov/ElibMain/home.do A search for “Scriptpro” led to Schedule 65 IIA (Medical Equipment and Supplies), Category A-92. The search rendered the manufacturer Scriptpro USA, Inc. There is only one eligible vendor to quote in GSA, GSA is not an appropriate source at this time.

VA Non-Expendable Equipment Program: A search was conducted of the SAC’s Non-Expendable Equipment Contracts at https://www.va.gov/opal/sac/nxEquipment.asp did not render results for ScriptPro.

VA Supply Chain Master Catalog: VA Supply Chain Master Catalog - Home. A search on the VA Supply Chain master catalog rendered zero (0) results for Scriptpro.

Intent to Sole Source Notice: A Notice of Intent to Sole Source was published to Sam.gov on July 5, 2022 and included the brand name Statement of Work (SOW) with salient characteristics. Responses were due on July 11, 2022. Zero (0) responses were received.

MARKET RESEARCH FINDINGS: The basis of design manufacturer, ScriptPro, was contacted to see if any SDVOSB or VOSB companies are authorized distributors for their product. A representative of ScriptPro responded via email, advising that Veterans Healthcare Supply Solutions (VHSS) is the only SDVOSB concern that can provide ScriptPro equipment.

Vendor Socio Status

UEI MFG MFG Size Origin Authorized Distributor

ScriptPro Small Business

ScriptPro Small Business

US OEM

Veterans Healthcare Supply Solutions

(VHSS)

SDVOSB ScriptPro Small Business

US Confirmed by

OEM

MANUFACTURE INFORMATION:

Manufacturer UEI MFG Size Origin ScriptPro Small

Business US (ScriptPro is manufactured in Kansas) http://www.va.gov/opal/sac/mspvNG.asp http://www.va.gov/opal/sac/mspvNG.asp http://www.gsaelibrary.gsa.gov/ElibMain/home.do http://www.va.gov/opal/sac/nxEquipment.asp

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OTHER PERTINENT INFORMATION

Per VHA specific requirements set forth in VHAPM Part 813.106 (paragraph 2.3) and VAAR Clause 852.212-71 Gray Market (medical supplies/equipment), 852.212-72 Gray Market and Counterfeit Items, or 852.212-73 Gray Market and Counterfeit Items – Information Technology (IT) Maintenance Allowing Other-than-New-Parts, the VHA aims to prevent the sale of “gray market goods,” defined as goods sold through unauthorized channels in direct competition with authorized distributors. This procurement is for new equipment for VA Medical Centers.

Having received email conformation from the Original Equipment Manufacturer (OEM) regarding their authorized distributor(s) is considered acceptable for compliance with requirements contained in VAAR clause 852.212-71 – Gray Market Items (APR 2020) (b) Vendor shall be an OEM, authorized dealer, authorized distributor or authorized reseller for the proposed equipment/system, verified by an authorization letter or other documents from the OEM. All software licensing, warranty and service associated with the equipment/system shall be in accordance with the OE terms and conditions.

The CO has reviewed the considerations of the above referenced guidance in terms of the context of the subject procurement and has determined it is in the best interest of the Government to purchase the subject equipment from the sole SDVOSB concern that is an authorized distributor of the OEM.

NON-MANUFACTURING RULE (NMR)

The requirement that a Non-Manufacturer supply the product of a small business concern is referred to as the Non-Manufacturer Rule (NMR) [13 C.F.R. § 121.406]. In order to qualify as a small business concern for a small business set-aside, an offeror must either manufacture the item in accordance with the Limitations on Subcontracting (see FAR section 52.219-14, 52.219-27 and 13 C.F.R. § 125.6) or supply the product of a small business made in the United States.

FAR 19.102(f)(4) provides that, “in the case of acquisitions set aside for small business or awarded under section 8(a) of the Small Business Act, when the acquisition is for a specific product (or a product in a class of products) for which the SBA has determined that there are no small business manufacturers or processors in the Federal market, then the SBA may grant a class waiver so that a nonmanufacturer does not have to furnish the product of a small business.” The SBA Administrator has delegated the authority to make decisions on waivers of the NMR to the Associate Administrator for Government Contracting in the case of class waivers.

On May 31, 2016, the Small Business Administration (SBA) published a final rule in the Federal Register that proposed to clarify that the limitations on subcontracting and the nonmanufacturer rule (NMR) do not apply to small business set-aside contracts valued between the micro-purchase threshold and the Simplified Acquisition Threshold (SAT), effective June 30, 2016.

However, per guidance received from the SBA on November 28, 2017, the NMR applies to socioeconomic SB set-asides (SDVOSB, VOSB, WOSB, etc.) under the SAT. To set-aside a requirement for an SDVOSB/VOSB (or other socioeconomic category), the vendor must provide the product of a small business manufacturer OR the CO may request an individual waiver to the NMR as identified in Section

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D above. The decision to request an individual waiver to the NMR is at the discretion of the CO as decided in Court of Federal Claims case numbers 16-182C and 16-183C, Geo-Med, LLC v. The United States and Manus Medical, Inc. v. The United States filed April 13, 2016. The CO may choose to obtain an individual waiver or may choose to set-aside the requirement for SB concerns.

There is no existing class waiver for NAICS 339112 that covers the ScriptPro for this requirement. The current list of NMR Class Waivers is maintained by the SBA and can be found at https://www.sba.gov/contracting/contracting-officials/non-manufacturer-rule/class-waivers.

This requirement is below the SAT and the Original Equipment Manufacturer is a SAM verified small business for NAICS 339112 with the required equipment manufactured in the U.S. Therefore, the CO determined it is in the best interest of the government to sole source this procurement pursuant to 38 U.S.C. 8127(b) other than full and open competition when awarding to SDVOSB and VOSB firms for procurements under the SAT.

VA RULE OF TWO:

On June 16, 2016, the U.S. Supreme Court ruled that consistent with Public Law 109-461 (38 U.S.C. 8127 and 8128), the VA shall award contracts based upon competition restricted to SDVOSBs or VOSBs when a contracting officer has a reasonable expectation, based on market research, that two or more firms listed as verified in Vendor Information Pages (VIP) database are likely to submit offers and an award can be made at a fair and reasonable price that offers best value to the United States. This is known as the “VA Rule of Two.”

Based on market research efforts conducted, the CO does not have a reasonable expectation that two

(2) or more SDVOSB concerns will be able to submit offers for this requirement. The manufacturer, Scriptpro, confirmed they only have one (1) authorized SDVOSB distributor for this requirement, Veterans Healthcare Supply Solutions (VHSS), a VIP verified SDVOSB concern.

CONSIDERATION TO BUY AMERICAN ACT, TRADE AGREEMENT ACT, EXCEPTION TO BUY AMERICAN

ACT:

Th brand name items are manufactured in the United States (Kansas) as confirmed by the manufacturer, ScriptPro.

RECOMMENDATION

Based upon the market research conducted for this acquisition, the Contracting Officer has determined it is in the best interest of the Government to sole source this brand name requirement to Veterans Healthcare Supply Solutions (VHSS), a VIP verified SDVOSB, in accordance with 819.7007(a)(2). The manufacturer, Scriptpro, confirmed that VHSS is their sole authorized SDVOSB distributor for the subject equipment in this procurement. The justification will be prepared pursuant to FAR 6.302-5(c)(2)(ii) and posted in accordance with FAR subpart 5.301(d). The solicitation and receipt date of response will be at least five (5) business days to allow sufficient time for quote preparation.

http://www.sba.gov/contracting/contracting-officials/non-manufacturer-rule/class-waivers

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5. Contracting Officer's Certification: Purchase is approved in accordance with FAR13.106-1(b). I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

9-8-2022 Name Date Title

ROBERTO

DEJESUS

Digitally signed by

ROBERTO DEJESUS

Date: 2022.09.08 17:38:36 -04'00'