Justification_and_Approval_(J&A)_for_Other_Than_Full_and_Open_Competition_Redacted.pdf

Control Number:19-RHCO-A-308

For Official Use Only (See FAR 2.101 and 3.104-4)

(25 February 2016)

Sole Source Justification and Approval

Under FAR 13.501 Omnicell, Point of Use (POU) Pharmacy Dispensing Cabinets

Service and Maintenance

1. Contracting Activity: Reginal Health Contracting Office- Atlantic, Gordon Health Contracting Cell, Fort Gordon GA 30905

2. Description of Action: This is a follow-on requirement for Equipment Maintenance service for ninety-two (92) Pharmaceutical Dispensing Cabinets (Omni-cell), for a period of performance of a 12 month base and one (1) twelve (12) month option years. The effective date for this contract is 1 April 2019 through 31 March 2020. This requirement provides equipment maintenance to existing Government Owned equipment. Omnicell is the sole manufacturer of the systems, components, and proprietary software. The exclusive maintenance services require Omnicell certified skilled technical service engineers for repairs, and upgrades.

3. Description of Supplies/Services: Department of Pharmacy, Martin Army Community Hospital (BMACH), Fort Benning GA requires Medical Equipment Maintenance for Ninety-two

(92) Government-Owned Omnicell Point of Use (POU) Dispensing systems located throughout the hospital. FY19 funds in the estimated amount of for the base year period of performance. The total estimated amount for base and option year is .

4. Authority Cited: 41 United States Code 1901 as implemented in the Federal Acquisition Regulation 13.501(a) (1)(ii), sole source (including brand name) under the authority of the simplified procedures for certain commercial items.

5. Reason for Authority Cited: The Omnicell, POU System Maintenance service is a reoccurring requirement for BMACH. All Omnicell systems are Government-Owned with a life expectancy through 2030. Currently there is an inventory of ninety-two (92) dispensing cabinets, the cost to replace one cabinets without shelving and other component is approximately

. With this contract, the Government is spending for services on Government-Owned systems. By doing a firm-fixed price contract with Omnicell Inc., the Government would be saving millions of dollars on this maintenance contract that would cover the normal life expectancy of the cabinets. Omnicell, Inc., is the sole manufacturer of the system, components and proprietary software. The exclusive maintenance service requires Omnicell Inc., certified skilled field technical service engineers for repairs and upgrades. Additionally, Omnicell has been issued a Certificate of Networthiness to operate on the Army network, which allows the company remote access. They are able to troubleshoot issues affecting the required uptime and either respond remotely, or dispatch a field service engineer.

6. Efforts to Obtain Competition: A Sources Sought was posted on the Federal Business Opportunities (FBO) website on 8 February 2019, with no response.

Control Number: 19-RHCO-A-308

Equipment Maintenance Services, Martin army Community Hospital, Fort Benning GA

(See FAR 2.101 and 3.104-4)

a. Effective competition. None, this item is proprietary and manufactured by Omnicell, Inc., in accordance with information provided by the company on 5 March 2019. Omnicell is the only provider that can provide the necessary maintenance. If another vendor is allowed to work on the equipment, the warranty could be voided

b. Subcontracting competition. None, this item is proprietary and manufactured by Omnicell, Inc.

7. Actions to Increase Competition: There are no practical alternatives available to increase competition for this requirement; Omnicell Inc., is the sole proprietor and manufacturer of this item. The contract specialist posted a sources sought on FBO, 8 February 2019 with no response

8. Market Research: IAW FAR PART 10, market research was conducted on the Small Business Dynamic Search (SBDS) website, which yielded zero (0) vendors using NAICS Code 811219 and keyword omnicell maintenance. See attached research results. Additionally, a review of the Procurement Desktop (PD2) and Paperless Contract File (PCF) databases revealed the same service awarded to Omnicell, Inc., due to the proprietary nature of the system and products.

9. Interested Sources: To date no source has expressed interest.

10. Other Facts: The contracting officer has determined that no other vendor has the capability to perform maintenance on the Omnicell equipment. Awarding the contract to a company that is not familiar with the equipment could result in a void of the warranty and loss of equipment which could cause the hospital to incur unnecessary re-procurement cost. Additionally, Omnicell has been issued a Certificate of Networthiness to operate on the Army network, which allows the company remote access.

a. Procurement history:

(1) W91YTZ-18-F-0076, contract date 1 April 2018 – 31 March 2019; W91YTZ-16-F-0134, contract date 1 October 2016 – 30 September 2017. A six months extension was processed for W91YTZ-16-F-0134, dated 1 October 2017- 31 March 2018.

(2) Full and Open Competition.

(3) N/A.

(4) N/A.

(5) The previous requirements were solicited full and open competition, with one source submitting a proposal. A Sources Sought was posted 8 February 2019, on FBO and research historical data in PD2 and PCF to authenticate the source selection.

(6) N/A

(7) N/A

b. Other facts. The previous contracts listed under 10a, were both solicited using full and open competition, and both receiving one proposal from the sole proprietor of the Omni-cell equipment. Review of the database (PD2 and PCF) reveals historically this type of requirement for the Omnicell has been procured as a sole source action by other offices. A Sources Sought was advertised on 8 February 2019 with no response. The vendor Omnicell, Inc. has submitted a document citing proprietary equipment; date 5 March 2019.

11. Technical Certification: Include the following statement:

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.

Signature:

Title: Supply System Analyst

12. Requirements 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.

Signature: __Date: _

Typed Name: Title: Chief, Supply Chain Management

13. Fair and Reasonable Cost Determination:

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable.

Signature: _Date:

Typed Name: Title: Contracting Officer

14. Contracting Officer Certification: This certification shall be made by the contracting officer who will sign the contract resulting from this justification and approval. Include the following statement:

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

Signature: _Date:

Typed Name: Title: Contracting Officer