Weight-based Automated Inventory Management System

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

Attachment 2: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 08 Page 1 of 9

Original Date: 03/22/11

Revision 08 Date: 04/18/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C246-19-AP-2990

Contracting Activity: Department of Veterans Affairs, VISN 6, Salisbury Medical Center, 2237 # 659-19-3-098-0046.

Nature and/or Description of the Action Being Processed: The Salisbury VAMC requires a contract for the implementation of a Weight-Based Automated Inventory Management System. This will be a new firm-fixed-price contract

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

requires a turn -key automated weight-based inventory management system for the Salisbury, NC

facilities. System is needed to assist supply chain management (SCM) staff with the management of

expendable supplies in all primary and secondary distribution points. The Salisbury VAMC lacks the

appropriate SCM personnel required to operate other types of inventory management systems

other than weight-based. Because the weight-based system, once established, requires the least

amount of human inventory management it is the correct solution for our needs based on staffing

levels and the volume of commodity items passing through the system. A weight based system

shall seamlessly log the inflow and outflow of supplies and disposables to maximize supply

readiness, eliminate double ordering and ensu re demand satisfaction. The implementation of such a

system will reduce waste and increase the efficiency of the supply chain at all Salisbury facilities.

The estimated price of the project is REDACTED. The period of performance is to start

08/21/2019- 08/21/2020

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 FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

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

or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4

( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

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).

Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Marathon Medical, a Service Disabled Veteran-Owned Small Business, is the only authorized distributor of PAR Exellence inventory management systems.

This acquisition is expected to cost approximately REDACTED. Marathon Medical has performed multiple contracts for the Department of Veterans Affairs, including one for this exact requirement in Durhan, NC, and is considered to be a responsible source. The Contracting Officer (CO) estimates that an award can be made at a fair and reasonable price that offers the best value to the government.

Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: A sources sought notice was posted on FBO from 12/10/2018 to 12/21/2018. A second sources sought notice was issued from 05/24/2019 to 05/31/2019.

Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: This exact project is currently being performed at the Durham VAMC. The CO will compare the offer received for the Salisbury VAMC to the Durham offer. The CO will use the past prices, that have already been deemed fair and reasonable, to negotiate the best pricing for the government. If deemed appropriate, the CO will request other than certified cost or pricing data to perform a price analysis.

Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: A sources sought notice was posted on FBO from 12/10/2018 to 12/21/2018. Responses were received from: (1) REDACTED: The current contractor at the Durham, NC VAMC under contract # 36C24618P6474; (2) REDACTED: Based on their response, REDACTED has not shown sufficient evidence to show that they are capable of providing a weight-based Automated Inventory Management/POU System; (3) REDACTED: Based on their response, REDACTED has not shown sufficient evidence to show that they are capable of providing a weight-based Automated Inventory Management/POU System and; (4) PAR Excellence (Large): Based on their response, REDACTED has shown sufficient evidence to show that they are capable of providing an Automated Inventory Management/POU System. REDACTED currently provides the supplies and services for this for the Hunter Holmes McGuire VAMC in Richmond, VA under contract number 36C24618P5094. A second sources sought notice was issued from 05/24/2019 to 05/31/2019. Zero responses were received.

The list of respondents were cross referenced with GSA eLibrary to see if these services are offered on a GSA FSS contract, they are not. The NASA SEWP market research tool was used and it has been determined that the required inventory management system is not available on a SEWP contract. The top three sources found on FPDS are Shipcom Wireless, Inc., Omnicell, Inc., and PAR Excellence.

Although a contract was awarded directly to the large business (PAR EX) for the Richmond VA in 2018, PAR EX has since sent out a letter stating that all purchases for installation and equipment has to be purchased directly from the distributor Marathon Medical. They will no longer take direct orders from the Veterans Administration. They also state that they do not compete with their distributor.

Any Other Facts Supporting the Use of Other than Full and Open Competition: There are no other facts at this time.

Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Marathon Medical, VetGov, BD, and PAR Excellence.

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: In order to overcome barriers to competition, the VA will continue to issue sources sought notices for future acquisitions in an attempt to locate other weight-based inventory management systems. Awarded contract 36C24619P1579 to MARATHON MEDICAL CORPORATION;3251 LEWISTON AV;AURORA;CO;80011 for $1,697,252.10 on 2019-08-21.