SSJ.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: 11/15/24 Page 1 of 4

REVISION: 01

Acquisition ID#:

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Requirement Title: Par Excellence Weight-Based Inventory Management System (IMS) Support Service

Acquisition Plan (ID Number): 36C250-25-AP-2755

1. Contracting Activity:

Department of Veterans Affairs Network Contracting Office (NCO) 10 260 East University Avenue Cincinnati, Ohio 45219-2637 Station Code: 36C250

2. Nature and/or Description of the Action Being Processed: This procurement is for Par Excellence Weight-Based Inventory Management System (IMS) Support Service for Cincinnati VAMC and CBOCs 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. The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items necessary to provide Weight-Based Inventory Management System (IMS) Support Service for the Par Excellence proprietary system currently deployed at Cincinnati VA Medical Center (VAMC) and its Community Based Outpatient Clinics (CBOCs) located in Ohio, Kentucky and Indiana. The contractor shall also provide the Par Excellence proprietary software licenses(s) and software sub-licenses necessary to operate the Weight-Based Inventory Management System (IMS) at Cincinnati VAMC and CBOCs on a turn-key basis. The purpose of the proprietary Par Excellence software license(s) and sub-license(s) is to ensure the Weight-Based IMS system operates on a turn-key basis and is fully capable of continuously interfacing with the government inventory system known as VA Vista Generic Inventory Point (GIP). Furthermore, the contractor shall ensure that all services, to include all software license(s) and sub-license(s) necessary to operate this capability 24/7 on a turn-key basis.

This requirement is a follow-on requirement to incumbent contract 36C25021P1302 which is anticipated to be a Firm-Fixed Price (FFP) contract comprised of a base year plus four option years with performance from 7/26/2025 to 7/25/2030.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The contractor shall provide Weight-Based Inventory Management System (IMS) Support Service for the Par Excellence Systems Incorporated proprietary system currently deployed at Cincinnati VAMC and its CBOCs IAW the Performance Work Statement (PWS) and terms and conditions established in the contract. The contractor shall also provide the Par Excellence proprietary software licenses(s) and software sub-licenses necessary to operate the Weight-Based Inventory Management System (IMS) at Cincinnati VAMC and CBOCs on a turn-key basis. The purpose of the proprietary Par Excellence software license(s) and sub-license(s) is to ensure the Weight-Based IMS system operates on a turn-key basis and is fully capable of continuously interfacing with the government inventory system known as VA Vista Generic Inventory Point (GIP). Furthermore, the contractor shall ensure that all services, to include all software license(s) and sub-license(s) necessary to operate this capability 24/7 on a turn-

Effective Date: 11/15/24 Page 2 of 4

Acquisition ID#:

key basis, are provided within the price established in the PRICE/COST SCHEDULE of the signed contract. The estimated price for the Base Year from 7/26/2025 to 7/25/2026 is $82,975.56 which shall be invoiced on a monthly basis in the arrears upon completion of authorized services. The contract is anticipated to be Firm-Fixed Price (FFP) with performance period(s) of a base year plus four option years with performance from 7/26/2025 to 7/25/2030.

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 incumbent contractor, Par Excellence Systems Incorporated, installed the current weight-based inventory management system at Cincinnati VAMC in 2019 and is the Only Responsible Source for providing this highly specialized service. And all support service for this proprietary system from installation to date have been provided by Par Excellence System Incorporated. The government contracting officer requested, and Par Excellence Systems Incorporated has provided, the required sole authorized service provider letter to substantiate that no other vendor can provide service for this proprietary system except for Par Excellence Systems Incorporated. In addition, the government conducted a thorough review to determine that there would be substantial duplication of costs if the incumbent weight-based inventory management system were to be replaced with a different system, which would not be recovered though competition.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: SBA Vet Cert and Dynamic Small Business Search (DSBS) were queried using search terms " Par Excellence Weight-Based Inventory Management System" which resulted in 0 SDVOSBs and 0 VOSBs. Market research for this requirement was conducted in coordination with the requiring office and Par Excellence Systems Incorporated to secure copies of three (3) contracts for similar services at other VA Medical Centers (VAMCs) nationwide. The result of this market research confirmed that Par Excellence Systems Incorporated is the sole authorized service provider for support service and software licenses for Par Excellence proprietary equipment utilized by the government. Based on this market research, the government intends to award the subject contract for requirement for base year plus four (4) option years to Par Excellence Systems Incorporated.

Based on these findings, the VA rule of two cannot be met for this requirement. In addition, market

Effective Date: 11/15/24 Page 3 of 4

Acquisition ID#:

research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The government contracting officer received copies of three (3) other contracts in VHA for the same proprietary service offered only by Par Excellence Systems incorporated to determine that the price will be fair and reasonable for the single source requirement. Furthermore, the government contracting officer was able to secure the pricing paradigm utilized to establish price reasonableness for all three (3) VHA contracts for the same proprietary service required at Cincinnati VAMC IAW FAR 6.303-2(b)(7).

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

Market Research Was Not Conducted: SBA Vet Cert and Dynamic Small Business Search (DSBS) were queried using search terms " Par Excellence Weight-Based Inventory Management System" which resulted in 0 SDVOSBs and 0 VOSBs. Market research for this requirement was conducted in coordination with the requiring office and Par Excellence Systems Incorporated to secure copies of three (3) contracts for similar services at other VA Medical Centers (VAMCs) nationwide. The result of this market research confirmed that Par Excellence Systems Incorporated is the sole authorized service provider for support service and software licenses for Par Excellence proprietary equipment utilized by the government. Based on this market research, the government intends to award the subject contract for requirement for base year plus four (4) option years to Par Excellence Systems Incorporated. Based on these findings, the VA rule of two cannot be met for this requirement. As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties. Please note that BAA/TAA is not applicable to the services contract requirement.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: See above paragraphs which provide a full description of the fact support the use of other than full and open competition.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None.

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 thorough market research to determine if any new sources have been made available. Market research has also determined that the Federal Information Technology Acquisition Reform Act (FITARA) applies to this request and approval has been obtained:

FITARA approval 2025-VHA-VISN 10-183348-539-N/A.

Effective Date: 11/15/24 Page 4 of 4

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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.

Scott Burkhart Date Acquisition Utilization Specialist Cincinnati VAMC

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

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

Bradley Burhite Date Contracting Officer

NCO-10

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

John M. Ryan Date Chief Service Team 1

NCO-10

SCOTT BURKHART Digitally signed by SCOTT BURKHART Date: 2025.06.24 10:47:19 -04'00'

BRADLEY BURHITE Digitally signed by BRADLEY BURHITE Date: 2025.06.24 10:55:40 -04'00'