SSJ - 36C259-23-AP-1429_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: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID:

JOFOC Tracker #:

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19, 6162 South

Willow Drive, Suite 300, Greenwood Village, CO 80111

Organization Activities: Rocky Mountain Regional VA Medical Center, 1700 N Wheeling St, Aurora, CO 80045

Oklahoma City VA Medical Center, 921 NE 13th Street, Oklahoma City, OK 73104

Salt Lake City VA Medical Center, 500 Foothill Drive, Salt Lake City, UT 84148

2237 #s:

2. Nature and/or Description of the Action Being Processed: The proposed action is a sole source justification for a new Firm Fixed Price five-year IDIQ contract with WaveMark. This contract includes hardware maintenance, software maintenance, interface maintenance, database administrator support services, and support services for the WaveMark Cath Lab inventory management systems at the Rocky Mountain Regional VA Medical Center, Oklahoma City VA Medical Center, and Salt Lake City VA Medical Center.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for WaveMark software and hardware support in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

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

WaveMark software and hardware support to include hardware maintenance, software maintenance, interface maintenance, database administrator support services, and support services for all WaveMark Cath Lab inventory management systems. The contract will also include unlimited parts for cabinet and workstation hardware, software support with unlimited upgrades and updates, refresher online training for new and existing staff, and software integration with Clinical and technical consultation.

The estimated period of performance is May 18, 2023 through May 17, 2028.

The contract will include FAR 52.217-8, Option to Extend Services. The 52.217-8 option will be exercised at the same rates as those in effect under the contract at the time the contract is extended.

Effective Date: 02/01/2022 Page 2 of 4

4. 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

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The Cath lab inventory management system has been developed for use with the WaveMark RFID Smart Cabinets currently used by the three stations listed above to track Cath Lab supplies. Due to the proprietary nature of this system, no other vendor but WaveMark can provide the required software and database updates necessary for the continued use of the system and the government owned WaveMark cabinets. A letter was provided by Cory Bendall of Cardinal Health WaveMark on March 27, 2023 that lists the patents and components of the system that are covered by the patents. The letter also states that the cabinets are serviced by the internal field service team, and they do not subcontract the service with any other company.

It would be cost prohibitive to entertain another inventory system since it would require the replacement of seventy-five (75) WaveMark RFID Smart Cabinets and the associated hardware/software.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: WaveMark was contacted concerning authorized distributors of the requested product. It was confirmed that in order to support current users on the system, WaveMark support continuously updates a master product database that lists product barcodes and other product data. This data is created and maintained by WaveMark through password access which is controlled by WaveMark. WaveMark owns the code for this product library and does not provide access to that code to other vendors. This was further confirmed by a letter provided by Corey Bendall of Cardinal Health WaveMark on March 27, 2023 listing the patents held and the components of the system that are covered by the patents. This back-end support of the users is what enables product tagging and is essential to the smooth functioning of the system. When it is time to replace the current system, all efforts will be made to solicit a new comparable system to include hardware and software maintenance as a competitive procurement package.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The CO will conduct price analysis in accordance with FAR 13.106-3 to ensure the price

Effective Date: 02/01/2022 Page 3 of 4 is determined to be fair and reasonable. Price analysis will be conducted by comparing the proposed price to the price previously paid by the Government. This will be accomplished by searching the Federal Procurement Data System (FPDS) and also comparing the proposed price to the existing contract.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted: The manufacturer, WaveMark, confirmed they have no distributors or support vendors who are authorized to support WaveMark software and hardware.

This was further confirmed by a letter provided by Corey Bendall of Cardinal Health WaveMark on March 27, 2023 listing the patents held and the components of the system that are covered by the patents. The WaveMark system was bought under a SAC National contract. The hardware and software support were not offered under that contract.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: This requirement will comply with the Nonmanufacturer Rule (NMR) and Limitations on Subcontracting (LOS). The requirement will be provided by the manufacturer and the manufacturer does not subcontract this service. The support is provided by their internal field service team.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Only WaveMark is able to provide the required hardware/software maintenance for this requirement. This requirement is proprietary to WaveMark as confirmed in the patent letter provided by Cory Bendall of Cardinal Health WaveMark on March 27, 2023.

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: The Government will continue to conduct market research to ascertain if there are changes in the market place at the time the WaveMark RFID Smart Cabinets and associated hardware/software are in need of replacement due to age. Competition will be sought for future requirements for Inventory Management Systems.

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.