6515--IR80d- HTM Interfaces- TCGRx- ATP2 IFCAP 101-eh0622

VHAPM Part 808.405-6 Limiting Sources

Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPM Part 808.405-6 Limiting Sources Original Date: 08/30/2017

Revision 02 Eff Date: 02/21/2020

Page 5 of 6

LIMITED SOURCES JUSTIFICATION ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C260-20-AP-3497

Contracting Activity: Department of Veterans Affairs, Regional Procurement Office West, Network Contracting Office 20 on behalf of VISN 20, Various VA Medical Centers. 2237: 101- 20-3-6010-0133

Description of Action: This acquisition is conducted under the authority of the Multiple­ Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501 ). This is a new, firm-fixed price contract to CHUDY GROUP, LLC dba TCGRx for Automated Unit Dose Packaging Systems to interface with CERNER Electronic Medical Records (EMR) for Pharmacies in VISN 20 awarded under their GSA Contract. There are no options associated with this contract. This is to support VA's Electronic Health Record Modernization (EHRM) Program across VISN 20.

Order against: FSS Contract Number: 36F79720D0106 _

Name of Proposed Contractor: Street Address:

City, State, Zip: Pho ne:

CHUDY GROUP, LLC dba TCGRx

N1671 Powers Lake Rd. Powers Lake, WI 53159 262-279-2372

Description of Supplies or Services:

The estimated value of the proposed action is$ 1,461,926.29

Each site will receive the same model Automated Unit Dose Packaging Machine (ATP2), which is a configurable system as explained in a. below. Staying within current functionality and maintaining standardization, options b. thru g. were chosen for specific sites based on that site's volume of pills packaged, their workflow processes and physical layout of their

Pharmacies.

VAMCs in Portland, Roseburg, White City, Boise and Vancouver will each receive (1) TCGRx (ATP2) and Pharmacy Information Systems capable of Interfacing with Cerner. A TCGRx proprietary feature of their ATP2 machines is they are scalable from (64, 128, 192, 256, 320, 400, and 480). Portland will receive the ATP2-400; Roseburg, White City and Boise will receive the ATP2-320; and, Vancouver will receive the ATP2-256. The corresponding numbers i.e., 64, 128, etc. relate to the quantity of cannisters on the ATP2.

Boise will receive the ULT SmartTrayRx System to "pre-fill" or stage two trays at a time to provide continuous dispensing of non-canister medications.

Portland, Roseburg, White City, Boise and Vancouver will each receive lower packaging units fitted for unique unit dose narrow pouches which will save the pharmacy on consumable costs and space.

Roseburg will receive a wide lower packaging unit to begin offering multi-med packaging to improve medication adherence rates.

Boise and White City will each receive Canister Calibration Kits so medication canisters can be calibrated onsite, limiting the need to buy new canisters when changes occur . Canisters from currently installed ATPs can be used as part resources for the Kit. These kits are currently standard at Portland, Roseburg, and Vancouver.

Boise will receive the Bullseye Tablet Splitter to produce efficiencies in half tab splitting. Portland and Roseburg currently have the Bullseye.

Portland and Vancouver will each receive the Inspect Rx system consisting of Inspect Rx24 Vision, Inspect Rx24 Collector and Inspect Support/Software Licenses. The Inspect verifies pouches dispensed are accurate and stores images for future access. During inspection, the pouches will be automatically cut and rolled, to maintain and improve current workfl ow.

PORTLAND

DESCRIPTION QTY

ATP2 400 Canisters with unit dose packaging (Includes Replenishment Kit , value

$3,500 and 1 case of paper & ribbon)

1

ATP2 Narrow Lower Packaging Unit for ATP 2 (Includes 1 rolling tray and cover)

1

lnspectRx24 Vision System

1

lnspectRx24Collector System & Batch Validator

1

lnspectRX Platinum Support Plan , Includes software licenses

1

Annual Service Agreement for Collect - 2400

1

SUBTOTAL FOR PORTLAND

ROSEBURG

ATP2 320 Canisters with unit dose or multi-dose packaging (Includes Replenishment Kit, value $3,500 and 1 case of paper & ribbon)

1

ATP2 Narrow Lower Packaging Unit for ATP 2 (Includes 1 rolling tray and cover)

1

HEPA Vacuum for ATP Cleaning

1

HEPA Replacement Filter

1

SUBTOTAL FOR ROSEBURG

WHITE CITY

ATP2 320 Canisters with unit dose packaging (Includes Replenishment Kit, value

$3,500 and 1 case of paper & ribbon)

1

ATP2 Narrow Lower Packaging Unit for ATP 2 (Includes 1 rolling tray and cover)

1

Canister Calibration Kit including the AVF-1

1

SUBTOTAL FOR WHITE CITY

BOISE

ATP2 320 Canisters with unit dose packaging (Includes Replenishment Kit, value

$3,500 and 1 case of paper & ribbon)

1

ATP2 Narrow Lower Packaging Unit for ATP 2 (Includes 1 rolling tray and cover)

1

Canister Calibration Kit including the AVF-1

1

One ULT SmartTrayRx Syste m: Includes: ULT SmartTrayRx Docking Station, ULT SmartTrayRx Cli ent, Scan ner, Touch Screen, BioMetric, UPS, Adjustable leg Kit, & 3 ULT SmartTrayRx-64 trays

1

Bullseye Kit (10 Ca nisters , Database Card , Barcode Scanner, Cleaning Brush & Pen) I

SUBTOTAL FOR BOISE I

VANCOUVER

ATP2 256 Canisters with unit dose packaging (Includes Replenishment Kit, value

$3,500 and 1 case of paper & ribbon)

1

ATP2 Narrow Lower Packaging Unit for ATP 2 (Includes 1 rolling tray and cover)

1

lnspectRx24 Vision System

1

lnspectRx24Collector System & Batch Validator

1

lnspectRX Platinum Support Plan , Includes software licenses

1

Annual Service Agreement for Collect - 2400

1

SUBTOTAL FOR BOISE

TOTAL

Period of Performance. It is expected all work will be completed within one year of contract issuance. The support/SW License POP would begin at completion of installation/test and training and expire 12 months later.

Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor's unique qualifications to provide the required supply or service .

FAR 8.405-G(a)(l)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

The OEHRM transfer to Cerner has been mandated through Congress. This system change will bring the VA in better alignment with the Active duty military and allow the VA to provide better support to our nation's veterans.

Currently TCGRx has a functioning interface with Cerner that was developed under contract 36C26019F0550. At this point, TCGRx will only require update of equipment in order to implement a Cerner connection across the VISN. This system is already in use across VISN 20, but just needs upgraded to meet Cerner compatibility.

If this requirement were to be competed and awarded to a company other than TCGRx, the Cerner implementation would be greatly delayed, and Cerner implementation would fail. Below is the current Cerner implementation schedule for VISN 20 with Walla Walla going as early as mid-February and Portland as late as the end of August 2021. Currently Cerner interface development is taking approximately 8 months, which with award lead times, would put system development starting in December 2020 and an anticipated functioning interface in place by July

2021. With testing and training requirements this means that Portland VAMC may be the only station that could hit the current scheduled "go-live" date .

CERNER GO LIVE SCHEDULE

VISN 20 LOCATION

READY FOR GO

LIVE

WALLA WALLA

03/12/2021

WHITE CITY

04/16/2021

ROSEBURG

05/14/2021

ALASKA

06/04/2021

BOISE

06/25/2021

PUGET SOUND

07/16/2021

PORTLAND

08/27/2021

Based on the above, an award to TCGRx for system upgrades is the only way to meet the Cerner implementation schedule for VISN 20 and meet the congressional mandate to transfer to Cerner EHRM.

Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination: The ATP2 system is the only easily scalable packager on the market, which allows different on-board canister sizes based on volume, allowing a Pharmacy to group in order volume and size up their equipment without requiring a full replacement. It is also the only vendor that currently has an interface developed, built and tested to CERNER, which will not only save funding in not requiring a redundant interface to be built, but also saves time and effort in the EHRM deployment in VISN 20.

The Contracting Officer has determined that the anticipated cost to the Government will be fair and reasonable: The NAC competed the overarching FSS contract, therefore competition and subsequent award presumes best value at a fair and reasonable cost .

Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted. Considerations during market research were OEHRM's requirement that the facility not change any current clinical workflows and product standardization across VISN 20. Market research was conducted starting in July 2019 once decisions were made by OEHRM and the national councils on the minimum go live requirements for CERNER. The Government's technical experts conducted market research by reviewing other pharmacy solutions. Other solutions reviewed included ARXium FastPak Elite, Omnicell, and PhACTs PharmoPack. Based on reviews of these products, the Government's technical experts determined these solutions would change the current Pharmacy workflow, therefore it was determined none of these other solutions met the government's needs for Cerner implementation.

Additional Marketing Research was performed in preparation for this procurement requirement . The ScriptPro systems were briefly reviewed, but a new interface would be required to connect with CERNER, and all existing TCGRx equipment would need replaced. Specific key features such as automated tablet splitting, scalability and automated pouch inspection were not available thru ScriptPro.

Based on prior market research, research efforts for this procurement, and deadlines outlined by OEHRM, the Government's technical experts have determined that only TCGRx can meet all of the VA's needs .

Any Other Facts Supporting the Justification: No additional facts are needed to support this decision.

A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made: The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Michael F. McDonald 290364

Michael McDonald

Digitally signed by Michael F.

McDonald 290364

Date: 2020.09.03 09:39:04 -07'00'

Chief, Biomedical Engineer

VISN 20 Healthcare Technology Management (HTM)

{10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Robert W. Hamilton 902204

Robert Hamilton Contracting Officer

Digitally signed by Robert W.

Hamilton 902204

Date: 2020.09.03 12:18:14 -07'00'

Network Contracting Office 20 (NCO 20)

One Level Above the Contracting Officer (Required over the SAT but not exceeding $700K) :

I certify the justification meets requirements for other than full and open com pet it ion.

Stephen D. Allen

1565216

S. Dale Allen

Digitally signed by Stephen D. Allen 1565216

Date: 2020.09.04 13:50:10 -07'00'

Director of Contracting

Network Contracting Office 20 (NCO 20)

HIGHER LEVEL APPROVAL (Required for orders over $700,000}:

VHA RPO West HCA Review and Approval (over $700,000 to $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Jordan, Curtis M. (RPO)

Curtis M. Jordon

Digitally signed by Jordan, Curtis

M. (RPO)

Date: 2020.09.08 10:48:09 -06'00'

Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA) Awarded contract 36F79720D0106 to CHUDY GROUP, LLC for 1461926.29000000 on 2020-09-23.