Sole Source Justification (CO Signed).pdf

Sole Source Justification (SSJ) RFO - FAR 12.102(b) & 12.201-1

1. Acquisition Title: Cloud Web-Based Inventory Management System Service

Division: IHS

Contracting Activity: Fort Yuma Health Care Center

Author: Minkyu Kim, Contract Specialist

Basis for approval: Individual

2. Nature and/or Description of the Action being Approved: The Indian Health Service (IHS), Fort Yuma Health Care Center (FYHCC), requests a firm-fixed-price new contract for a commercial, cloud-based inventory management system with the contractor listed below. The Government projects award for February 2026 using Fiscal Year 2026 Operations and Maintenance Appropriations funds.

[This space intentionally left blank.]

Contractor: Envi, 250 E. John Carpenter Fwy, Irving, TX 75062 Performance Period

Dates/Duration Unit Price/CLIN (3% Escalation rate used for illustration purposes only; actual escalation rates may vary)

Multiplier Total

Base Period 12 months $18,200.00 1 $18,200.00 Option Period 1 12 months $16,200.00 1 $16,200.00 Option Period 2 12 months $16,200.00 1 $16,200.00 Option Period 3 12 months $16,200.00 1 $16,200.00 Option Period 4 12 months $16,200.00 1 $16,200.00 Option to Extend Services per FAR Clause 52.217-8

6 months $8,100.00 1 $8,100.00

Estimated Total Dollar Value: $83,000.00 Original Contract Value: $533,868.00 New Contract Value: $83,000.00

3. Description of Supplies and/or Services: The Government requires a commercial, cloud-based Inventory Supply and Procurement Management System to support enterprise-wide inventory control, purchasing, approval workflows, reporting, and analytics for the Fort Yuma Health Care Center and associated service unit facilities.

The contractor shall provide a web-based, commercially available inventory management platform that includes inventory tracking, purchasing and requisitioning, receiving, analytics and reporting, barcode scanning, vendor EDI connectivity, configurable approval routing, and system administration. The system must integrate with Microsoft applications and existing IHS systems, support mobile device access, provide real-time dashboards, and be available 24/7.

Services include implementation, configuration, training, ongoing technical support, maintenance, and upgrades for the duration of the contract.

Period of Performance:

Base Year: 02/01/2026 – 01/31/2027

Option Year 1: 02/01/2027 – 01/31/2028

Option Year 2: 02/01/2028 – 01/31/2029

Option Year 3: 02/01/2029 – 01/31/2030

Option Year 4: 02/01/2030 – 01/31/2031

4. Statutory Authority Cited and Rationale:

This sole source acquisition is being conducted under RFO – FAR 12.201-1 simplified procedures for covered actions > SAT, ≤ $9 million pursuant to 41 U.S.C. 1901.

The Contracting Officer has determined that only one source is reasonably available to meet the Government’s requirements. ENVI provides a commercial, proprietary, healthcare-specific inventory management system uniquely capable of meeting IHS operational, compliance, security, and integration requirements.

Market research determined that alternative commercial inventory systems lack healthcare-specific functionality and pre-configured integration with existing IHS systems. Implementing alternative solutions would require extensive customization, redevelopment, data migration, and retraining, resulting in unacceptable cost, operational risk, and delays.

ENVI’s system uniquely provides native Microsoft integration, configurable approval routing aligned with healthcare workflows, barcode-enabled inventory tracking, regulatory reporting, and interoperability with Electronic Health Records (EHR), Group Purchasing Organizations (GPO), and Enterprise Resource Planning (ERP) systems. Accordingly, ENVI is the only reasonably available source capable of satisfying the Government’s minimum requirements within required timelines.

5. Special Considerations for Certain Contract Extensions or Bridge Contracts:

Not applicable

6. Actions to Increase Competition:

a. A Synopsis Was Published: IAW FAR Subpart 5.1.

b. Responses Were Received: No responsible sources capable of meeting the Government’s requirements were identified.

c. Sources Expressing Interest: No other sources submitted written responses demonstrating the ability to meet the requirements.

d. Actions to Foster Competition for Future, Similar Requirements: The Government will continue to assess the commercial marketplace, conduct updated market research, and review emerging inventory management solutions. If alternative commercial systems become available that meet healthcare-specific requirements without excessive cost or risk, future acquisitions will be competed to the maximum extent practicable.

7. Market Research: Market research was conducted in accordance with FAR Part 10 and included review of the incumbent system, prior contract files, commercial marketplace offerings, GSA Schedule vendors, and a notice posted on SAM.gov. No Indian Economic Enterprise (IEE) vendors capable of meeting the requirements were identified.

The incumbent system (Morris Systems Inc., POP 06/10/2020–12/09/2025) was found inadequate due to lack of Microsoft integration, absence of approval routing, limited reporting, and outdated technology. Market research confirmed that no other vendors could meet the Government’s minimum requirements without extensive customization, increased cost, or unacceptable implementation risk.

8. Procurement history:

a. Contractor: Morris Systems Inc.

Contract or Order Number: 75H71220C00012 Award Date and Period of Performance: 06/10/2020 – 12/09/2025 Value (including all options): $533,868.00

Competitive Status: Not Competed Authority formerly relied upon if Not Competed: FAR 12.102(b) & 12.201-1

9. Additional Information or Other Facts: This acquisition supports a mission-critical healthcare supply chain capability. Failure to modernize the inventory management system would increase the risk of supply shortages, reduce operational efficiency, and negatively impact patient care.

10. Technical or Requirements Program Management Certification: I certify 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.

1/13/2026

X Jill Shubert Right-Click "Signature Setup"

Signed by: PIV

Jill Shubert Support Services Supervisor Signature & Date:

12. Fair and Reasonable Price Determination: As the contracting officer, I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable, based upon the following:

☐ (1) Price reasonableness based on competitive quotations or offers.

☒ (2) If only one response is received, include a statement of price reasonableness in the contract file. The contracting officer may base the statement on— ☒ (i) Market research.

☒ (ii) Comparison of proposed price with prices found reasonable on previous purchases.

☐ (iii) Current price lists, catalogs, or advertisements. However, inclusion of a price in a price list, catalog, or advertisement does not, in and of itself, establish fairness and reasonableness.

☐ (iv) A comparison with similar items in a related industry.

☐ (v) The contracting officer’s personal knowledge of the item being purchased.

☒ (vi) Comparison to an independent Government estimate.

☐ (vii) Any other reasonable basis, as follows:

13. Contracting Officer (CO) Certification and Approval: I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

Joshua Pearlman

Contracting Officer Signature & Date:

X Right-Click "Signature Setup"

[This space intentionally left blank.]

(The following Reviews and Approvals will ordinarily be provided on a separate page at the end of the justification to allow for minor, administrative changes to be made during the review process; delete any individual reviews/approvals not applicable.)

ELEVATED REVIEWS & APPROVALS

14. Insert Division Advocate for Competition (AfC) Review and Approval: I reviewed this justification and find that it adequately supports a sole source acquisition. [Division AfC approval authority is limited to $20 million.]

Typed Name Title Signature & Date:

15. Insert Division Head of the Contracting Activity (HCA) Review and Approval: I reviewed this justification and find that it adequately supports a sole source acquisition. [HCA approval authority is limited to $90 million.]

Head of the Contracting Activity Signature & Date:

16. HHS Office of General Counsel Review and Concurrence: I reviewed this justification and concur that it adequately supports a sole source acquisition. [Mandatory when SPE approval is required, unless otherwise waived in writing by the SPE.]

Title Signature & Date:

17. HHS Advocate for Competition (AfC) Review and Concurrence: I reviewed this justification and concur that it adequately supports a sole source acquisition. [Mandatory when SPE approval is required.]

HHS Advocate for Competition Signature & Date:

FINAL APPROVAL

18. HHS Senior Procurement Executive Approval: Based on the foregoing, I hereby approve this sole source justification pursuant to the authority cited in section 4 above. [Required if the total award value, including all options and FAR 52.217-8 value, exceeds $90 million.]

HHS Senior Procurement Executive Signature & Date: