JUSTIFICATION AND APPROVAL OTHER THAN FULL AND OPEN COMPETITION 1. Identification of the agency and the contracting activity. This justification is executed by the Naval Medical Logistics Command (NMLC), Fort Detrick, MD, on behalf of the Navy to meet the requirements of various Navy medical facilities. 2. Nature and/or description of the action. The proposed action is for a pharmacy support and services for various Navy medical facilities. The Government intends on awarding a Firm Fixed Price contract. The proposed source is Parata Systems Inc, 2600 Meridian Parkway Suite 100, Durham, NC, 27713. 3. Description of Supplies or Services: The Naval Medical Logistics Command has a requirement for a system upgrade for the government owned Parata pharmacy automation equipment located at NHC Quantico, BHC Parris Island, NH Camp Pendleton, BHC Yuma, NH Camp Lejeune, NHC Annapolis and NH Beaufort. The system upgrade shall provide the software and hardware necessary for the installed equipment to operate on Microsoft Windows 7 with full system functionality. The requirement includes the de-installation, transfer, and reinstallation of pharmacy equipment from NH Camp Pendleton to NHC Annapolis and NH Pensacola. The systems relocating to NH Pensacola require hardware, software, and user licenses for full pharmacy functionality. Vendor shall be an Original Equipment Manufacturer (OEM) authorized maintenance contractor for the proposed equipment/system such that OEM warranty and service are provided and maintained by the OEM. All software licensing, warranty and service associated with the equipment/system shall be in accordance with the OEM terms and conditions. FY13 Operations and Maintenance (O&M) funds will be used to procure the pharmacy upgrades. 4. Identification of the statutory exceptions permitting other than full and open competition. 10 U.S.C. 2304(c)(1) and FAR 13.501(a), Only One Responsible Source 5. Demonstration that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited. Parata is the only vendor that can provide upgrades to proprietary Parata equipment. Parata is the original manufacturer of this equipment. No other vendor can provide hardware and software updates to proprietary Parata equipment. Only Parata technical service engineers have the service knowledge to provide support to Parata equipment. Parata is the only vendor capable providing updates to the proprietary software, which is required to maintain DIACAP accreditation and remain on the Navy network. If another vendor were to provide services or software updates to the required equipment, it would result in loss of DIACAP certification, delays in patient care, and possible increased risks to patient safety. No other vendor is capable of providing services and support to this medication dispensing equipment. 6. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable. Market research was performed, the results of which are in paragraph 8. This requirement will be posted to NECO and/or FedBizOpps in accordance with FAR 5.202. 7. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable. The Contracting Officer shall determine the anticipated cost to the Government of the supplies/services covered by this Justification and Approval will be fair and reasonable by conducting a price analysis before an award is made. In addition, the Government anticipates that the negotiated contract price will reflect a discount from the Parata's commercial price list and will be determined fair and reasonable. 8. Description of the market survey conducted and the results, or a statement of the reasons a market survey was not conducted. Market research was conducted in the May 2013 timeframe. It included open market contractors and Federal supply Schedule contractors, and was conducted through search of the Internet using Google, Yahoo, MSN, and GSA Advantage. Various vendors are able to provide pharmacy systems and upgrades to those systems, but only Parata can provide proprietary hardware and software upgrades to their own equipment. Only a system upgrade from Parata would be able to provide the necessary proprietary software and hardware upgrades specific to the installed equipment. No other vendor would be able to provide the proprietary software and hardware upgrades to maintain the units in full working order as required by the government. 9. Other facts supporting the use of other than full and open competition. None. 10. Listing of Sources, if any, which expressed, in writing, an interest in the acquisition. To date, no other sources have written to express an interest. This requirement will be posted on FedBizOpps in accordance with FAR 5.202. 11. Statement of actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required. The actions are taken prior to the source selection to insure compliance. Actions cannot and shall not be taken after source selection to increase competition. However, there is constant attention to the market to insure that shall technology change, the source selection is reconsidered. U.S. Navy Subject Matter Experts are required to take into consideration the impact on the installed base of equipment when source selection occurs. All necessary components of integrated logistics support are taken into consideration.
