D318--Wavemark License and Equipment Sustainment Services

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP

Attachment 2: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 10 Page 2 of 4

Original Date: 03/22/11

Revision 10 Date: 09/10/2020

Page 2 of 4

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C246-20-AP-5282

1. Contracting Activity: Department of Veterans Affairs, VISN 06, Asheville, Richmond, and

Salem VA Medical Center. PR # 483-20-4-5903-1349

2. Nature and/or Description of the Action Being Processed: For the award of a sole

source new requirement utilizing a Firm-Fixed-Price contract vehicle. This contract action

will have a period of performance of 1 Year.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Veterans

Integrated Service Network 06 requires a contract for hardware maintenance, software

maintenance, interface maintenance, database administrator support services, and support

services for all WaveMark Cath Lab inventory management systems located in the network.

This is a request for a VISN-wide service agreement on Cath Lab inventory management

systems. This system is used to track the use of Cath lab supplies such as catheters and

stents, associating those supplies with patients for product outcomes tracking purposes, for

inventory management, for tracking recalls and expiration dates, etc. Each product is

assigned an RFID tag which is then associated in the WaveMark system with a product in its

Oracle database. As the product is used, it is scanned such that the specific product can be

processed in accordance with the functions stated above. The estimated value of the

proposed action is $328,105.00.

4. 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;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the

Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

A critical portion of the coverage includes services that are proprietary. The Cath lab

inventory management system has been developed for use with the WaveMark RFID Smart

Cabinets currently used throughout VISN 06 to track Cath Lab supplies. Due to the

proprietary nature of this system, no other vendor can provide the required software and

database updates necessary for the continued use of the system and the government

owned WaveMark cabinets. It would be cost prohibitive to entertain another inventory

system which would require the replacement of approxiamately sixty (60) WaveMark RFID

Smart Cabinets and associated hardware/software, at an estimated aggregate cost of

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP

Attachment 2: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 10 Page 3 of 4

Original Date: 03/22/11

Revision 10 Date: 09/10/2020

Page 3 of 4

$4,313,161.00. Therefore, by FAR 6.302-1, there is only one responsible source that can

meet the Government’s requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential

sources as deemed practicable: This is a proprietary system that has been tailored for

Government (VA) Medical Centers, there are currently no other Commercial Off-The-Shelf

(COTS) products or service that are available which would meet Government requirements.

Vendor 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 back-end support of the users is what

enables product tagging and is essential to the smooth functioning of the system. Sources

sought was not issued because the CS knows the market through communications with

other VISN’s and acquisition history showing only sole source awards. Market research will

continue to find competition for future service of the WaveMark system.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable: Pricing will be determined Fair & Reasonable based on an analysis of

historical pricing and pricing for similar products and services are available in the

commercial market place. In addition, negotiations will be held to obtain best possible prices

prior to contract award.

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

Reasons Market Research Was Not Conducted: VIP was searched using NAICS code

511210 and keyword search “WaveMark.” This query resulted in no potential SD/VOSB

vendors. GSA/eBuy did not possess a vendor for WaveMark Supply Management System

nor Enterprise Real Time Location System (EiRTLS) Real Time Location equipment

services. NASA SEWP product search did not yield the WaveMark system on a SEWP

schedule. Cardinal Health possess GSA contracts V797D-60688 and GS-07F-5873R with

none reflecting EirTLS equipment or Services. Cardinal hold patents for various components

of the RFID Solution and the WaveMark system that are at Asheville, Richmond, and Salem

VAMC’s. Additionally, Cardinal health does not subcontract the procuring service to any

other company. This is backed up with FPDS search for WaveMark EiRTLS services all

being sole sourced to Cardinal Health.

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

Additional correspondence from WaveMark Inc. confirmed they hold proprietary software

data rights in which they are the sole provider of the service required.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Not

Applicable

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: Due to the proprietary nature of this acquisition competition is limited to

only one source that are provided proprietary rights. In this case, WaveMark, Inc. is the only

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP

Attachment 2: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 10 Page 4 of 4

Awarded contract 36C24620P1550 to unknown vendor for unknown amount on 2020-09-21.