6530--pharmacy omnicell update

Request for Sole Source Justification >SAT

VHAPG Part 806.3 OFOC Page 1 of 4

Revision: 03 Effective Date: 04/15/24

Acquisition ID#: 36C24625AP2448

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C24625AP2448

Contracting Activity:

Department of Veterans Affairs,

Medical Center Salem, VA

NCO 6

Hampton, VA 23667

658-25-2-538-0181

Nature and/or Description of the Action Being Processed:

Microsoft will stop supporting its current operating system in October 2025 in VAMC Salem s existing Omnicell cabinets. The XT Extension will update to a new operating system that will be supported through the remainder of life for Salem s automated dispensing cabinets and anesthesia carts.

Description of Supplies/Services Required to Meet the Agency s Needs:

The Trusted Platform Module (TPM) is a hardware security chip that provides a secure environment for encryption, decryption, and digital signature generation. The upgraded TPM chip in the XT Extension supports advanced security features, providing better protection against firmware and hardware attacks. XT Extension bundle also includes hardware upgrades designed to improve uptime and user experience for clinicians (new console, new brighter touchscreen, and a more responsive keyboard).

Statutory Authority Permitting Other than Full and Open Competition:

( X ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability

or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): .

Only One Responsible Source (FAR 6.302-1) VAMC Salem is required to update their Omnicell cabinets which is considered highly specialized equipment. Replacement of the current system would result in a substantial duplication of cost to the government that is not expected to be recovered through competition.

VAMC Salem uses Omnicell cabinets. Omnicell is the only OEM that can meet the specific criteria required by Physicians and Staff at VAMC Salem. Only the Original Equipment Manufacturer (OEM), Omnicell, can supply the products and services required to operate, replace, and maintain Omnicell s existing point-of-use medical dispensing systems. Given the unique specifications of equipment, the medical center Program Team found only Omnicell and one authorized distributor.

Accordingly, Only the Original Equipment Manufacturer (OEM), Omnicell, can supply the products and services required to operate, replace, and maintain Omnicell s existing point-of-use medical dispensing systems

Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

This is a brand name only requirement. The OEM is on schedule and there is only one open market authorized distributor.

The proposed action will not be synopsized, per FAR 5.202-a(10). The proposed contract action is made under conditions described in 6.302-1.

Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The required items are on NAC schedule.

Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

Market research disclosed several awards posted within a 12-month period to contract opportunities on SAM. Potential vendors were researched but none meet the specific criteria required by Physicians and Staff at VAMC Salem. Given the unique specifications of equipment, the medical center Program Team found only Omnicell and one authorized distributor. In accordance with FAR Part 10 the following details the results of this market research:

Medical Surgical Prime Vendor (MSPV) Contracts: A search was conducted of prime vendor contracts. The MSPV does not show the required equipment under contract. MSPV is not a source.

GSA eLibrary: https: A search for Pharmaceutical Cabinets led to Omnicell Inc (OEM) GSA contract vehicle 36F79723D0073 . The category is 65 II A (Medical Equipment and Supplies) further searching cabinet provides subcategory A-84 and applying the SDVOSB and VOSB filters was conducted. There are no authorized distributors on GSA.

GSAXcess: A search for pharmacy dispensers and pharmacy cabinets produced zero results for this equipment. The conclusion of this search effort is that GSAXcess is not a source for acquiring this equipment.

ECAT: This requirement is not available on ECAT.

SDVOSB/VOSB Sources via SBA (vetcert): A search was conducted to locate Service-Disabled-Veteran-Owned-Small-Business (SDVOSB) and Veteran-Owned-Small Business (VOSB) concerns utilizing NAICS code 339112 (this search provided 667 results). According to the OEM there is only one authorized SDVOSB distributor.

Small Business Administration (SBA) Dynamic Small Business Search (DSBS): SBA DSBS market research was conducted utilizing NAICS code 339112 and the keyword pharmacy and produced thirty (30) results. The requirement cannot be met.

Omnicell Inc.: Omnicell Inc. was contacted via email to confirm any authorized distributors. The Omnicell POC confirmed Omnicell is the sole manufacturer, developer, and exclusive provider of Omnicell products. Omnicell does have one authorized distributor.

Any Other Facts Supporting the Use of Other than Full and Open Competition:

None

Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

Omnicell Inc. (OEM)

TrillaMed LLC (SDVOSB)

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 VA will ensure market research is performed in a timely manner to evaluate vendor capabilities with the intent of opening competition to all brands of pharmacy dispensers that can meet the Government s requirements. The estimated lifecycle of the pharmacy dispenser system is approximately seven (7) years. At the end of the lifecycle, the market is evaluated to determine the best path for procurement whether it is system upgrade (if the system allows for upgrades) or, if upgrades are not possible, complete replacement of the platform.

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.

James Paarlberg

Chief of Pharmacy

Salem VA HCS

Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

John Harmsen

Contracting Officer

Supply/Services Team 1

NCO 6

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.

Jerry Mann

Branch Chief

Supply/Services Team 1

NCO 6