3990--Weight Based Inventory Management System

36C246-22-AP-3458 Page 1 of 9 Effective Date 02/01/2022 DEPARTMENT OF VETERANS AFFAIRS Justification and Approval (J&A) For Other Than Full and Open Competition (>SAT) Justification for other than full and open competition." 6.303-2(b)(1) Acquisition Plan Action ID: 36C246-22-AP-3458 Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 6 on behalf of Asheville VA Medical Center (VAMC), PR/2237 # 637-22-3-996-0125. Nature and/or Description of the Action Being Approved: Network Contracting Office (NCO) 6 intends to award a new, firm fixed price sole source contract to SDV Office Systems, LLC dba SDV Medical a Service-Disabled Veteran-Owned Small Business (SDVOSB), registered in the Vendor Information Pages (VIP) for the PAR Excellence Automated Inventory Management System at the Asheville VA Medical Center (VAMC). This requirement is for purchase and installation of automated weight-based inventory management system. Description of Supplies/Services Required to Meet the Agency s Needs: The Asheville VA Medical Center (VAMC) requires a turn-key automated weight-based inventory management system. System is needed to assist Supply Chain Management (SCM) staff with the management of expendable supplies in all primary and secondary distribution points. The Asheville VA Medical Center (VAMC) lacks the appropriate SCM personnel 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 the facility s need 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 ensure demand satisfaction. The implementation of such a system will reduce waste and increase the efficiency of the supply chain at all Asheville VA Medical Center (VAMC) facilities. PAR Excellence System includes Software License Fees Interface Development Fees Service Fees PAR Scale Products PAR Hardware Accessories Accessory items for scales, controllers, etc. Total PAR Excellence Purchases $1,375,532 Third Party Storage Products $676,112 Estimated Data, Power and Louvers $444,995 Turn-Key Installation $832,350 Grand Total $3,328,990 The delivery and installation is expected to take 1 year. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below: ( X ) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Pursuant to 38 U.S.C. § 8127(c) a sole source award to an SDVOSB concern is authorized where the SDVOSB concern is determined to be a responsible source with respect to the performance of the contract. SDV Office Systems, LLC dba SDV Medical is a verified SDVOSB on Veterans Affairs Vendor Information Pages (VIP) database. VIP search NAICS 333997 Keyword Weight-Based Inventory Management System resulted in seven SDVOSBs. Par Excellence has an exclusive agreement with SDV Office Systems, LLC dba SDV Medical (SDVOSB). PAR Excellence Systems, Inc. is the sole provider for maintenance and support for all PAR Excellence products. PAR Excellence proprietary PAR Bins hardware and PAR Excellence software are unique to and exclusively manufactured, developed, supported, and maintained by PAR Excellence Systems, Inc. Par Excellence is interfaced with Vista GIP and have developed and tested the Defense Medical Logistics Standard Support (DMLSS), an information technology system. This technology provides a continuum of medical logistics support. DMLSS delivers an automated and integrated information system with a range of medical materiel, equipment, war reserve material, and facilities management functions. DMLSS interface with the VA National DMLSS team. Par Excellence is assisting the National DMLSS team as they get an Authorization to Operate for this interface to be on the DOD network. Par Excellence received a temporary Authorization to Operate while the VA National DMLSS team finalizes the process. SDV Office Systems, LLC dba SDV Medical, a Service-Disabled Veteran Owned Small Business is the only authorized distributor of PAR Excellence inventory management systems. Par Excellence system has been installed in other VISN 6 facilities and is a responsible source. The Contracting Officer estimates that an award can be made at a fair and reasonable price that offers the best value to the Government. VISN 6 is in process of standardizing VISN 6 VAMC inventory systems. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: In my market research I found award 36C24621P1702, a sole source award. Since this was sole source, I reviewed the market research and sole source justification. I contacted Par Excellence to determine if they had multiple distributors. Par Excellence sent me two letters one saying they are the only manufacturer and two, they have a non-compete exclusive agreement with SDV Medical (SDVOSB). Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: This exact project has been performed at several VISN 6 facilities. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Based on market research previously performed for procurements of this exact system within the VISN, PAR Excellence or its sole authorized distributor SDV Office Systems, LLC dba SDV Medical, a Service-Disabled Veteran Owned Small Business, are the only two vendors who presented sufficient evidence to show they can provide an automated inventory management/POU system. PAR Excellence currently provides the supplies and services for the Richmond VAMC, Durham VAMC, and Salisbury VAMC. PAR Excellence and SDV Office Systems, LLC dba SDV Medical were cross-referenced with the General Services Administration s (GSA) e-library to see if these services are offered on a GSA Federal Supply Schedule (FSS), and they are not. The NASA SEWP market research too was used, and it was determined the required inventory management system is not available on a SEWP contract. PAR Excellence was awarded the contract for the Richmond VAMC, they have since stated that all purchases for installation and equipment must be purchased directly from their authorized distributor, SDV Office Systems, LLC dba SDV Medical. Par Excellence stated they do not compete with their distributor. BAA/TAA/Exceptions to BAA (See FAR Part 25). PAR Excellence is compliant as all manufacturing is in US -Cincinnati, OH Any Other Facts Supporting the Use of Other than Full and Open Competition: None, according to the authority under 38 USC Section 8127(c) Contracting Officers may use non-competitive procedures to award to an SDVOSB. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None 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 can compete the requirement when standardization is no longer required. 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. _____________________________ ________________________ Craig Holbert Date Chief Supply Chain Officer VAMC Asheville NC Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: 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. _____________________________ ________________________ John Harmsen Date Contracting Officer, 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 Date Branch Chief, Supply Team 3, NCO 6 NCO 6 Director of Contracting: I certify the justification meets requirements for other than full and open competition. _____________________________ ________________________ Irma Ferro Date Director of Contracting, NCO 6 VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $75 million) or approve ($750K to $75 million) for other than full and open competition. _____________________________ ________________________ Joseph P. Maletta Date Executive Director, RPO East VHA Head of Contracting Activity (HCA)