EQ31 Central Pharmacy Automation

Added: Aug 29, 2017 2:19 pm Modified: Sep 28, 2017 12:13 pmTrack Changes Chapter VI: Other Than Full and Open Competition (OFOC) SOP

Attachment 3: Request for Sole Source Justification Format >$150K



Chapter VI: Other Than Full and Open Competition (OFOC) SOP

Attachment 3: Request for Sole Source Justification Format >$150K



OFOC SOP Revision 05 Page 1 of 5

Original Date: 03/22/11

Revision 05 Date: 05/02/2016

OFOC SOP Revision 05 Page 6 of 6

Original Date: 03/22/11

Revision 05 Date: 05/02/2016

Chapter VI: Other Than Full and Open Competition (OFOC) SOP

Attachment 3: Request for Sole Source Justification Format >$150K



OFOC SOP Revision 05 Page 1 of 5

Original Date: 03/22/11

Revision 05 Date: 05/02/2016

DEPARTMENT OF VETERANS AFFAIRS



Justification and Approval (J&A)

For

Other Than Full and Open Competition (>$150K)





Acquisition Plan Action ID: VA259-17-AP-7171



PreSol/Notice of Intent to Sole Source ID: VA701-17-Q-0179_1





Contracting Activity:

Department of Veterans Affairs, VISN 19, 554-17-3-1889-0175 Eastern Colorado Healthcare System (ECHCS) 1700 N Wheeling St.

Aurora, CO. 80045



Nature and/or Description of the Action Being Processed:

This requirement will be awarded as a Firm Fixed Price contract for the purchase of new Omnicell Central Pharmacy Automation Systems and new software to accommodate the new systems that will facilitate the newly constructed Eastern Colorado Healthcare System (ECHCS) Aurora Campus as well as integrate with the existing systems that are currently in use by the ECHCS. The purchase of the new Omnicell Central Pharmacy Automation Systems includes the procurement of new hardware including medication dispensing cabinets/workstations that are necessary for the operations of the new systems, this hardware is outlined in section 3 below. The ECHCS currently has Omnicell Central Pharmacy Automation Systems in use at the Denver campus, Golden CBOC, Colorado Springs CBOC, Pueblo CLC, and Domiciliary. All the systems at these locations utilize and run off of the same software server, the purchase of the new software will replace the existing outdated software currently in use and connect the new systems to the existing systems.





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

This requirement is for the purchase of new Omnicell Central Pharmacy Automation Systems, including medication dispensing cabinets/workstations, carrousels, and software, as outlined below:



Omnicell Inc, Inpatient Pharmacy Automation and Control Substance Vault Medication System.

Omnicell Inc, Medication Cabinets (JSN: M3150)

Omnicell Inc, Medication Cabinets Counter Top (JSN: M3150.A) iv. Omnicell Inc, Medication Anesthesia Workstation (JSN: M3150.G)

Omnicell Inc, Inpatient Medication Carrousel Distribution (JSN: M3150.C)

Omnicell Inc, Control Substance Medication Cabinet (JSN: M3150.W)

Omnicell Inc, Pharmacy Automation and Control Substance Vault Medication

Platform Software viii. Server Maintenance (4 option periods)

ESTIMATED DOLLAR VALUE: $3,248,450 REQUIRED DELIVERY DATE: As soon as contract award, Project Kick Off and planning activities shall be coordinated within 30 days. All hardware delivery within 180 days after receipt of order (ARO)





Statutory Authority Permitting Other than Full and Open Competition:

FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2). Far Part 13.501(a) Sole Source (including brand name) acquisitions



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

Currently there are Omnicell Central Pharmacy Automation Systems in use at the ECHCS Denver campus, Golden CBOC, Colorado Springs CBOC, Pueblo CLC, and Domiciliary. The ECHCS is in need of new central pharmacy automation systems to facilitate the newly constructed ECHCS Aurora Campus. These new systems will need to be capable of integrating with the existing systems throughout the ECHCS campuses, as communications between the units is vital for pharmacy management. A lack of communication between these systems will lead to patient care risks through inaccurate medication dispensing.



The Omnicell Central Pharmacy Automation Systems run off and communicate through specific Omnicell Pharmacy Automation and Control Substance Vault Medication Platform Software. Market research efforts have shown that this software is the only software available in the market that is capable of integrating with all of the Omnicell systems throughout ECHCS. The new software being procured under this requirement is for the latest version of the Omnicell Pharmacy Automation and Control Substance Vault Medication Platform Software. Omnicell is the sole manufacturer of these specific systems and the software required to integrate them. Omnicell also does not have any authorized distributors for their products or software and as such are the only vendor available in the market to provide the new systems and software.



In addition, the space constructed at the new Aurora campus was designed with the Omnicell units in mind. The space was constructed specifically for the Pharmacy Carrousel with a dimension of 144 wide x 90 depth x 121 height with a capacity of 2688 slots. The construction design was based on the Omnicell carousel. According to market research, outlined in section 8, the BD/CareFusion carousels are either to small in size with fewer slots than the 2688 or larger in physical size for the space that is constructed and contains more medication slots that ECHCS cannot accommodate for. The smaller BD/CareFusion carousel offers 96 slots or 3.5% less than Omnicell Carousel. Less medication slots can impact Pharmacy operation in the future. To accommodate the larger BD/CareFusion carousel VAMC would require a construction change for the removal and redesign of the ceiling grids, ceiling structure, lighting, HVAC vent, and sprinkler heads.





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



The ECHCS team conducted market research with another Pharmacy Automation System provider in the market, BD/CareFusion (BD). BD confirmed that their system is not capable of integrating or controlling the existing Omnicell units and as such would require replacement of all the existing units located at the Denver campus, Golden CBOC, Colorado Springs CBOC, Pueblo CLC, and Domiciliary, as well as requiring a systems software switch to the software that integrates with the BD units.



In addition to the market research conducted by the ECHCS team, market research was also conducted by the Contract Specialist, which is outlined in the market research Report. The Contract Specialist conducted searches through mandatory sources, GSA, and SDVOSB and VOSB Sources via

VetBiz. Of all the contacted sources, only one vendor responded (Veterans Healthcare Supply

Solutions (VHSS)) to express an interest as an authorized distributor of Pyxis Products (a.k.a CareFusion). However, this vendor indicated that the Pyxis/CareFusion brand would not be able to integrate with the existing Omnicell systems and thus would require all Omnicell systems to be replaced with the Pyxis/CareFusion systems in order for integration and communicate. (Email communications with VHSS is included in the Market Research Report.)



See Section 9 for additional supporting facts that addresses the constructed space issue. Based on those facts, BD/Carefusion has limited ability to provide a product that will fit into the constructed space with the number of slots the Omnicell product can.



Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable:

The Contracting Officer will use current and past contracts/task orders with Omnicell to make a fair and reasonableness price determination.



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

As part of the market research, clinical subject matter experts Ms. Christina Collins, Pharmacy

Administrative Officer/Transitional Lead, and Mr. Terrance Wong, PharmD and Associate Chief of Pharmacy, and Ms. Melanie Bates, PharmD and Inpatient Pharmacy Supervisor were consulted in regards to the functions needed in the new space. Their expertise in the field was also utilized to determine what products are available in the market. With their aid in the research, it was determined that the Omnicell Pharmacy system is the only system that can integrate into the current system to serve all ECHCS facilities without additional cost to Golden CBOC, Colorado Spring CBOC, Pueblo CLC and Domiciliary.



The ECHCS team discovered another vendor, BD/Pyxis/CareFusion who is able to provide pharmacy automation systems, however through email discussions and a teleconference with the ECHCS team,

Contracting Officer, and BD/Pyxis/CareFusion representative, it was confirmed that the

BD/Pyxis/CareFusion system is not capable of integrating or controlling the existing Omnicell units

and as such would require replacement of all the existing Omnicell units with the BD/Pyxis/CareFusion units in order to have integration and communications.



In addition to the market research conducted by the ECHCS team, market research was also conducted by the Contract Specialist, which is outlined in the market research Report. The Contract Specialist conducted searches through mandatory sources, GSA, and SDVOSB and VOSB Sources via VetBiz. Of all the contacted sources, only one vendor responded (Veterans Healthcare Supply

Solutions (VHSS)) to express an interest as an authorized distributor of Pyxis Products (a.k.a CareFusion). However, this vendor indicated that the Pyxis/CareFusion brand would not be able to integrate with the existing Omnicell systems and thus would require all Omnicell systems to be replaced with the Pyxis/CareFusion systems in order for integration and communicate. (Email communications with VHSS is included in the Market Research Report.)



The Contract Specialist also posted an Intent to Sole Source Notice on FedBizOps (FBO) via Special Notice # VA701-17-Q-0179_1. This notice provided contractors the opportunity to submit a technical package, that provides clear and convincing evidence that they can meet the

Government's requirement. Only the vendor described above, VHSS, have come forward from this notice.





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

The space constructed at the new Aurora campus was designed with the Omnicell units in mind. The space was constructed ECHCS has constructed a space specifically for the Pharmacy Carrousel with a dimension of 144 wide x 90 depth x 121 height with a capacity of 2688 slots. The construction design was based on the Omnicell carousel. According to market research, outlined in section 8, with BD/Pyxis/CareFusion, the BD/Pyxis/CareFusion carousels are either to small in size with fewer slots than the 2688 or are too large in physical size for the space that is available. These

BD/Pyxis/CareFusion units also contain more medication slots than ECHCS can accommodate due to the limitation of the physical space. The smaller BD/Pyxis/CareFusion carousel offers 96 slots or 3.5% less than Omnicell Carousel. Less medication slots can impact Pharmacy operation in the future. To accommodate the larger space for BD/Pyxis/CareFusion carousel, VAMC would require a construction change for the removal and redesign of the ceiling grids, ceiling structure, lighting, HVAC vent, and sprinkler heads.



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

BD/Pyxis/CareFusion expressed interest in this procurement via email to NCO 19 Contract Specialist, David Geary. Upon market research conversations with BD/Pyxis/CareFusion through email and teleconference, the VAMC confirmed that BD/CareFusion is not able to integrate with the existing Omnicell systems and as such, if BD/Pyxis/CareFusion systems were to be procured, it would require the replacement of all of the existing Omnicell systems currently in use with the

BD/Pyxis/CareFusion systems in order for integration and communication between the units.





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:

A sole source effort is planned for this requirement due to the following:

Market Research has shown there are no other vendors capable of providing systems and software that are able of integration with, and provide communications between, the Omnicell Inc. Central Pharmacy Automation Systems that are already in place at the ECHCS.



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.





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Approvals in accordance with the VHAPM, Volume 6, Chapter VI: 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.







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