DMLSS-W FY27 Medi-Span JA.pdf

CUI

SOURCE SELECTION INFORMATION – SEE 2.101 AND 3.104

DEFENSE LOGISTICS AGENCY

DLA CONTRACTING SERVICES OFFICE - PHILADELPHIA

700 ROBBINS AVENUE

PHILADELPHIA, PENNSYLVANIA 19111-5092

JUSTIFICATION AND APPROVAL

FOR OTHER THAN FULL AND OPEN COMPETITION

Upon the basis of the following justification, I hereby approve the issuance of the contractual action described below using other than full and open competition, pursuant to the authority cited herein.

1. IDENTIFICATION OF THE REQUIRING AGENCY AND CONTRACTING

ACTIVITY

Agency Requiring Activity Defense Logistics Agency (DLA) Medical Directorate 700 Robbins Avenue Philadelphia, PA 19111

POC: Alyssa Greco

(445) 737-9083 E-Mail: alyssa.greco@dla.mil

Contracting Activity DLA Contracting Services Office – Philadelphia Site 700 Robbins Avenue Philadelphia, PA 19111

Controlled by: DLA DCSO Philadelphia CUI Category: General Procurement and Acquisition / Source Selection Information see FAR 2.101 & 3.104 Distribution/Dissemination Controls: FED ONLY POC: Rhonda. Saunders@dla.mil/ 445-737-3714 mailto:alyssa.greco@dla.mil

Justification and Approval for Other than Full and Open Competition Medi-Span Data Subscription

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED.

Pursuant to 10 U.S.C. 2304(c)(1) and Federal Acquisition Regulation (FAR) 6.302- 1(a)(2)(iii)(A), this justification for other than full and open competition authorizes and approves the procurement of a sole source/brand name pharmaceutical product pricing data subscription for use at DLA Troop Support Medical Directorate supporting the Medical Master Catalog (MMC). The required subscription is for the Medi-Span Electronic Drug File™ (MED-File) v2, formerly known as (f/k/a) the Master Drug Data Base (MDDB)™, a product of Medi-Span®, which is a part of Wolters Kluwer Health.

The Government contemplates award of a Firm-Fixed-Price (FFP) contract for performance during a twelve (12) month base period and four (4) 12-month option periods. Where the total period of performance will consist of sixty (60) months, if all options are exercised. The Government’s requested Period of Performance (POP) is detailed as follows:

Base Year 10/1/26 – 09/30/27 Option Year 1 10/1/27 – 09/30/28 Option Year 2 10/1/28 – 09/30/29 Option Year 3 10/1/29 – 09/30/30 Option Year 4 10/1/30 – 09/30/31

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS/ESTIMATED DOLLAR AMOUNT.

The DLA Troop Support Medical Directorate has a requirement to renew its existing MED-File data subscription, which data feed populates pharmaceutical data, most specifically the Average Wholesale Price (AWP), used in many Defense Medical Logistics Standard Support-Wholesale (DMLSS-W) applications, including the Distribution and Pricing Agreement (DAPA) Management System (DMS), Prime Vendor Data Interface (PDI), Corporate Data for Medical Intelligence Applications (CDMIA), the Product Data Bank (PDB) and pharmacy catalog components in the MMC.

The estimated dollar value for performance during a twelve (12) month base year and four (4) twelve (12) month option periods, with an anticipated start date of October 1, 2026 is $311,425.00, as detailed in the table below.

Base Year 10/1/26 – 9/30/27 $55,246.00 Option Year 1 10/1/27 – 9/30/28 $58,560.00 Option Year 2 10/1/28 – 9/30/29 $62,074.00 Option Year 3 10/1/29 – 9/30/30 $65,799.00 Option Year 4 10/1/30 – 9/30/31 $69,746.00 Total $311,425.00

4. IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING OTHER

THAN FULL AND OPEN COMPETITION.

The statutory authorities permitting other than full and open competition are 10 U.S.C.

3204(a)(1) and FAR 6.302-1(a)(2)(iii)(A): The supplies required by the requiring agency are available from only one or a limited number of responsible sources, and no other type of supplies will satisfy agency requirements. The MED-File data is deemed to be available only from the original source in the case of this follow-on pharmaceutical product data subscription contract for the continued provision of highly specialized data feeds, because it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition, due to higher reprogramming labor costs as well as the potential for higher data subscription costs.

5. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUISITION REQUIRES USE

OF THE AUTHORITY CITED.

The follow-on nature of the requirement for renewal of the expiring pharmaceutical data subscription that comprises critical data feeds for so many DMLSS-W processes necessitates the use of the authority cited above. The logistics and acquisition communities rely on DMLSS-W system functionalities on a daily basis. The AWP provided in the Medi-Span Electronic Drug File™ (MED-File) v2 is a critical component in all the referenced DMLSS-W applications used to negotiate the most favorable pharmaceutical pricing available with DoD suppliers and acquire pharmaceutical products under the best federal pricing. The MED-File data feed is required to be updated on a weekly basis, and the DMLSS-W applications all have program code to incorporate the data elements of the incumbent MED-File data feed as part of their build sequences for both back-end data bases and front-end graphical user interfaces.

Medi-Span, a part of Wolters Kluwer Health: (http://www.wolterskluwercdi.com/) Medi- Span Electronic Drug File™ (MED-File) v2, f/k/a the Master Drug Data Base (MDDB)™:

(Incumbent product)

Medi-Span was acquired by Wolters Kluwer Health and has more than 30 years’ experience in authoritative drug databases. The Medi-Span Electronic Drug File v2 includes a codified drug dictionary, drug vocabulary, and drug pricing for prescription drugs and medication-based over-the-counter products in the United States. Daily updates are available, as well as daily and monthly deliveries. DMLSS-W receives a weekly file with the following elements:

• Product names

• Dose form

• Route of administration http://www.wolterskluwercdi.com/ http://www.medispan.com/

• Strength

• Proprietary drug identifiers, including Generic Product Identifier (GPI), Drug Descriptor

Identifier (DDID) and the Generic product Packaging Code (GPPC)

• Pricing files o Average Wholesale Price (AWP) o Wholesale Acquisition Price (WAC) o Direct Price (DP) o Centers for Medicare & Medicaid Services, Federal Upper Limit (CMS FUL) o Generic Equivalent Average Price (GEAP)

• Ingredients

• Name-based concepts and alternative names at multiple levels of specificity

• Data Definition Language (DDL) to facilitate table creation during development

DMLSS-W benefits not only from the AWP data field critical to some many of its applications, but also by increasing systems efficiencies by having access to automated pricing information and simplifying generic product substitution processes. (Medi-Span Electronic Drug File (MED-File) v2)

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARESOLICITED

FROM AS MANY POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING

WHETHER A NOTICE WAS OR WILL BE PUBLICIZED ASREQUIRED BY

SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION UNDER 5.202 APPLIES.

In accordance with FAR 5.201(b)(1), a synopsis will be posted to SAM.gov to provide all commercial entities an opportunity to submit proposals for this requirement.

7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND

REASONABLE

As the Contracting Officer, I hereby determine that pricing will be fair and reasonable based on price analysis completed in accordance with FAR 15.404-1. It is anticipated that the Government will use various price analysis techniques, including but not limited to: (1) comparison of the proposal to prices previously paid to a third party contractor who was responsible for procuring the medical/surgical and pharmaceutical sales data that comprises critical data feeds for DMLSS- W readiness, as well as a comparison to other data subscription providers, less data normalization and/or benchmarking services; (2) comparison to competitive published price lists (reference FAR 15.404-1(b)(2)(iv); (3) comparison of proposal to pricing obtained from market research for the same or similar items (reference FAR 15.404- 1(b)(2)(vi); (4) comparison of the proposal to historical prices paid, whether by the Government or other than the Government, for the same or similar items (FAR 15.404-1(b)(2)(ii)); and, (5) comparison of the proposal to the Independent Government Cost Estimate (FAR 15.404-1(b)(2)(v)). All price analysis conducted will be in compliance with policy at FAR 15.404-1(a) to ensure that the final agreed-to price is fair and reasonable.

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED (SEE PART 10)

AND THE RESULTS OR A STATEMENT OF THE REASON MARKET

RESEARCH WAS NOT CONDUCTED.

The DLA Medical Directorate conducted Market Research to compare service offerings of the incumbent vendor (Wolters Kluwer) with alternative solutions existing in the industry. Market Research techniques included a review of Acquisition History for contracts used by the directorate to procure similar services and searching the beta.SAM.gov and GSA websites for other vendors with similar data service offerings. Primary comparative factors used to analyze alternatives included technical service offerings, functional familiarity, and cost to the Medical Directorate.

Alternative subscription services considered were IQVIA and First Databank (FDB).

Results of market research conducted were as follows:

IQVIA: (https://www.iqvia.com)

IQVIA Health Hospital Supply Index provides product data from more than 500 indirect and direct sales data sources, and specializes in pharmaceutical prescription data collection. The Index also reports on the sales of 550,000 medical/surgical supply products via a database analysis tool with 6 years of trending information.

DLA Troop Support Medical Directorate currently receives IQVIA Pharmaceutical Sales Data, Relational Data Models for Pharmaceutical Sales Data and for Medical/Surgical Sales Data, Medical/Surgical Synonym Files, and Package Allocations for Medical/Surgical Data, on a quarterly basis and a Comprehensive Data Dictionary on an annual basis under its current annual subscription. Current costs are: $ 2,325,304.12

Although the IQVIA tool provides a number of valuable components of Pharmaceutical/Medical Surgical data, it does not offer the specific data attributes that are necessary by the MMC and PDB to meet the government’s requirement for data associations, classifications and synchronizations that are clinically vetted.

First Databank (FDB): (www.fdbhealth.com)

FDB publishes several drug pricing data fields in its data subscription, including Average

Acquisition Cost (AAC), Wholesale Acquisition Cost (WAC), Direct Price (DP), Suggested Wholesale Price (SWP), Federal Financing Participation Upper Limits (FFPUL), and National Average Drug Acquisition Costs (NADAC), in addition to clinical drug information. FDB discontinued the publication of Blue Book AWP in September 2011, which resulted in DMLSS- W having to find an alternate source for this critical element to satisfy DMLSS-W application programming code. (Drug Pricing Policy) https://www.iqvia.com/ http://www.fdbhealth.com/ http://www.fdbhealth.com/ http://www.fdbhealth.com/

DMLSS-W currently subscribes to FDB MedKnowledge, Enhanced Package, under SP4701-23- P-0091, that fulfills foundational DMLSS-W application programming code requirements.

Current Costs are $133,832.00 Although FDB provides useful components of related to Pharmaceutical Pricing, it does not provide automated pricing information that increase system efficiencies.

9. ANY OTHER FACTS SUPPORTING THE USE OF OTHER THAN FULL AND

OPEN COMPETITION

DMLSS-W has no budget or business approvals to incur analyst and developer labor costs for redesign, recode and reengineer the current data feed of a sub-optimal competitor’s product.

10. LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION.

Wolters Kluwer Health

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY

SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES REQUIRED.

At this time, Medi-Span is the only products services that will support DLA’s requirements and meet the Government’s needs. However, DLA has exercised, and continues to exercise, competition as often as possible and is required to conduct ongoing reviews to keep abreast of new technology, both in industry and the Government. As a continuing effort, DLA utilizes a variety of vendors, manufacturers, and contracts to fulfill its requirements and will continue the practice of surveying the market to ensure full and open competition to the maximum extent practicable

12. CONTRACTING OFFICER CERTIFICATION THAT THE JUSTIFICATION IS

ACCURATE AND COMPLETE TO THE BEST OF THE CONTRACTING

OFFICER’S KNOWLEDGE AND BELIEF.

Requirements/Technical Certification

I hereby certify that the data provided for which I am responsible, and which form a basis for this justification is complete and accurate to the best of my knowledge and belief.

Alyssa Greco Date Project Integrator Defense Medical Logistics Standard Support-Wholesale (DMLSS-W)

Troop Support Medical Directorate

Contracting Officer’s Certification and Approval

I hereby certify that this justification is accurate and complete to the best of my knowledge and belief.

Date Contracting Officer DLA Contracting Services Office – Philadelphia