Omnicell CHIP-IN Computerized Cabinets Equipment Pharmacy

Active

Contract Opportunity

1. Contracting Activity: Department of Veterans Affairs, VISN 19, 623 VA Tulsa Medical Center

PR-IFCAP: 623-25-2-2455-0001, Equipment Purchase - Pharmacy

PR-IFCAP: 623-25-2-4455-0002, Equipment Purchase – Supply Chain

1. Nature and/or Description of the Action Being Processed

This procurement is for the Brand Name purchase of the Omnicell Computerized Storage

Cabinets at the Tulsa VA Medical Center (VAMC) in accordance with FAR 13.5 Simplified

Procedures for Certain Commercial Items and specifically FAR 13.501 Special

Documentation Requirements, where acquisitions conducted under Simplified Acquisition

Procedures are exempt from the requirements of FAR Part 6, but still require a justification

using the format of FAR 6.303-2.

The procurement is a firm fixed price contract for supplies and support services for the

supplies. The IGCE for the procurement is $2,418,251.00 based on existing contracts on the

Federal Supply Schedule contract# 36F79723D0073, effective March 1, 2023. Typical

pricing on the contract also includes service support for 1 year after receipt of the equipment.

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

The Omnicell storage cabinets are smart medical storage units equipped with sensors and technology to monitor inventory, track expiration dates, and streamline medication management. In addition, the computerized cabinets reduce medication errors and missed doses with automated dispensing, and provide real-time inventory tracking to ensure optimal stock levels, allowing staff more time to focus on crucial patient care.

The Period of Performance for this requirement will be from 03/01/2025 through

11/28/2025. Delivery is expected between September through October 2025.

Pharmacy Computerized Cabinet Equipment $1,214,823.85.

Supply Chain Computerized Cabinet Equipment $1,203,427.15.

The total estimated combined value for this contract is $2,418,251.00.

1. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement.

Competition is restricted on this procurement for the reason below:

( X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency

( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services

( ) International Agreement

( ) Authorized or Required by Statute

( ) National Security

( ) Public Interest

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

Omnicell cabinet component system was developed by Omnicell, which owns proprietary

rights to their products and service offerings. Currently Omnicell storage cabinets are being

used in the Logistics and Pharmacy departments. If the new Tulsa VAMC were to switch to

another brand of computerized supply cabinets, it would greatly increase the complexity of

operation, and maintenance of the database and system. Switching would require the VAMC

to maintain and integrate two different computerized supply cabinets into the local Pharmacy

and Supply Chain Management (SCM) logistics database and system.

The SCM database and system provides services for ten local VAMC services across

nineteen different locations. Having two separate databases would cause confusion and

inefficiency for VAMC staff. It is estimated that operating costs for SCM and Pharmacy is

about 5% of the overall purchase cost.

A different brand of computerized storage cabinets would not only increase operating costs

relating to support, servicing, and maintenance but would also greatly increase training costs.

Training for VAMC staff from another vendor on a different storage cabinet brand would

require about four technicians, estimated to cost about $2,000 a week per technician, plus

classroom costs, training materials, and travel expenses.

Omnicell, provided additional information stating that despite having an NAC/FSS contract, Omnicell's permitted purchase amount is $450,000.00; hence, all purchases over this sum must be competed with TrillaMed, LLC, Omincell's authorized distributor.

• Provide, in narrative form, a detailed explanation supporting and clearly relating to the conditions described by the FAR for using the particular authority cited. This section is normally the most detailed part of the justification as the essence of the justification is presented here. Keep in mind that this document is posted and that your judgment may be formally questioned and protested if your justification is insufficient or not valid.

Contracting without providing for full and open competition shall not be justified on the basis of lack of advance planning by the requiring activity or concerns related to the amount of funds available (e.g., funds will expire)(See FAR 6.301(c)). To assist you, the following information is provided:

a. Only One Responsible Source – In the case of a follow-on contract for continued development or production of a major system or highly specialized equipment/services, the rationale must first justify the supplies/services as being a “major system” or “highly specialized.” The rationale must then justify “either” substantial duplication of cost to the government that is not expected to be recovered through competition, or unacceptable delays in fulfilling the agency’s requirements, whichever situation applies. If both of these situations apply, the rationale can be based on either of these two situations, or both.

Note: Discuss the use of restrictive brand name descriptions in requirements documentation here under Part V. An acquisition that uses a brand name description or other purchase description to specify a particular brand name, product, or feature of a product, peculiar to one manufacturer does not provide for full and open competition regardless of the number of sources solicited. If there is going to be a brand name used, you will need to justify it and clearly explain why a specific brand produced by a single company is required as opposed to allowing free and open competition. The justification should indicate that the use of such descriptions in the acquisition is essential to the Government’s requirements, thereby precluding consideration of a product manufactured by another company.

(Brand-name or equal descriptions and other purchase descriptions that permit prospective contractors to offer products other than those specifically referenced by brand name, provide for full and open competition and do not require justifications and approvals to support their use.)

When using this exception, the contracting officer (CO) should include one of the following sentences, whichever is applicable: “Accordingly, XYZ Corporation is the only firm capable of providing the supplies and services described in Section III above without the Veteran’s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition,” or “Accordingly, XYZ Corporation is the only firm capable of providing the supplies and services described in Section III above without the Veteran’s Health Administration experiencing unacceptable delays in fulfilling its requirements,” or “Accordingly, XYZ Corporation is the only firm capable of providing the supplies and services described in Section III above without the Veteran’s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.”

b. Unusual and Compelling Urgency - COs shall contact RPO staff as soon as practicable when contemplating an award under the authority cited in FAR 6.302-2 for J&As requiring HCA or DSPE approval. Provide an explanation why (1) the supplies or services are needed at once because of fire, flood, explosion, or other disaster, or (2) essential equipment or repairs to that equipment are needed at once, e.g., to preclude impairment of healthcare delivery capabilities or mission performance. In other words, identify the anticipated serious injury to the Government, the nature of the urgency, the reasons for it occurring and why it is “urgent and compelling” to preclude adverse impact to Veteran care. Merely citing adverse impact to Veteran care is not in and of itself sufficient reason to use this exception from the requirement to obtain full and open competition. Note that only the minimum quantity required to satisfy the unusual and compelling urgency qualifies for this exception; thus, this exception might not suffice to justify option quantities.

c. Industrial Mobilization; or Engineering, Developmental, or Research Capability - The most important part of justifications citing this authority is demonstrating the need to maintain the capability possessed by the identified source(s). Some form of market survey may be critical in demonstrating the uniqueness of this capability.

d. Authorized or Required by Statute – It is imperative to identify what is being acquired and the applicable statute authorizing other than full and open competition. Note: Some statutes do not require a written J&A.

e. National Security - Provide the minimum essential information needed to establish validity of the justification. This information will make the J&A a classified document. Special handling procedures are required for processing such documentation to the approval authority. Only parties with a “need to know” and the proper level of security clearance should be permitted access to the documentation. Such acquisitions are also exempt from synopsis under FAR 5.202(a)(1).

f. Public Interest - This authority may only be used when none of the other authorities is appropriate and may not be made on a class basis. Provide detail addressing the reasons full and open competition is not in the public interest and why no other authority is appropriate for use. Approval to use this statutory exemption may only be made by a written determination by the Secretary of Veterans Affairs, and with Congressional notification not less than 30 days before award of the contract.

1. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Describe all efforts taken (or to be to be taken) to ensure that offers are solicited from as many potential sources as practicable under the circumstances. The following issues should be addressed in this paragraph:

There are two major manufactures of computerized supply storage cabinets; Omnicell and BD Pyxis. Both companies are large businesses who partner with an authorized SDVOSB distributor. Omnicell's authorized distributor is TrillaMed LLC and BD Pyxis's authorized distributor is Four Points Technology. Competition for this requirement is limited to the Brand Name vendors, Omnicell, Inc. and TrillaMed, LLC. As there are no two Small Businesses capable of providing these products, this acquisition will be competed as Restricted.

Omnicell was originally contacted by the Tulsa VA Medical Center (VAMC) back in March

of 2024, and provided their price estimate on May 30, 2024. On June 26, 2024, Omnicell

provided an Authorized Vendor letter to contracting stating that TrillaMed, LLC is the only

authorized business to provide their products. All other services will be Sole Sourced to

Omnicell, Inc.

1. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

Include a statement by the CO that the anticipated cost will be considered fair and reasonable and provide the basis for this determination. The steps that will be taken to ensure the final contract price will be fair and reasonable are also described here. Describe the extent of cost or price analysis anticipated including the requirements for certified cost or pricing data, technical evaluations, and audits (FAR 6.303-2(b)(7)).

In consideration of all the information obtained, both Omnicell, Inc. and TrillaMed, LLC, proposals would be based on Federal Supply Schedule pricing, which has been determined to be fair and reasonable.

1. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:Describe results of market research conducted pursuant to FAR Part 10, VAAR Part 810 and PPM 2016-05(REVISED AUG 2019. Per PPM 2016-05, Implementation of the Veterans First Contracting Program as a Result of the U.S. Supreme Court Decision: §8127 is mandatory, not discretionary and its text requires the Department to apply the Rule of Two to all contracting determinations. In order to meet the VA Rule of Two, COs shall review the Vendor Information Pages (VIP) database in accordance with VAAR Class Deviation 810.001-70 to determine if two or more service-disabled veteran-owned businesses (SDVOSBs) and veteran-owned small businesses (VOSBs), in the appropriate NAICS code, are listed as verified in the VIP database. Further, VAAR 810.002 requires COs to record VIP queries in the solicitation file by printing the result of the search(s) along with the specific query used to generate the search(s). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000, as appropriate, subject to review and approval of the designated procurement official outlined in FAR 6.304 (See VHAPM Part 819.7007-7008 for additional details).

1. Part 10 was followed when conducting market research. Market research was conducted between January, July, and November 2024. Utilizing NAICS Code 339112 and the keyword "Omnicell," market research was carried out with GSA Advantage, FPDS, SBA DSBS, SBA Vet Cert, and VetBiz.

1. Advantage search using the keyword resulted in one vendor Omnicell. Their Federal Supply Schedule is verified and active (36F79723D0073). Any procurement from Omnicell’s FSS cannot exceed the allowable maximum purchase amount of $450,000.00. On September 09, 2024, Omnicell, Inc provided additional information via email stating that any purchase over the allowable $450,000.00, should be competed with TrillaMed, LLC which is an (SDVOSB).

1. search in FPDS using the keyword shows multiple IDIQ’s and Contracts were awarded to Omnicell, Inc. Further research of FPDS shows that from January of 2024 to current date, all the awards to Omnicell were awarded under the maximum allowable $450,000.00.

1. search in SBA DSBS was conducted and returned one Small Business (TrillaMed).

1. search in SBA Vet Cert using the NAICS resulted in 659 SDVOSB/VOSB’s.

An additional search was conducted in VetBiz using the NAICS and keyword returned zero results.

Information provided by Omnicell via email stated that Omnicell products are U.S. made with the exception of the third-party software (Windows 10, etc.).

Discuss consideration to BAA/TAA/Exceptions to BAA (See FAR 25).

When citing the authority of only one (or a limited number of) responsible source(s), use the following sentence: “As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.”

When other exceptions from the requirement to obtain full-and-open competition are relied upon, the market research might be limited to an examination of the acquisition history and experience with the marketplace under previous acquisitions for the same or similar items. In all instances a current check of VIP shall be performed.

1. Any Other Facts Supporting the Use of Other than Full and Open Competition: Provide any other facts supporting the use of other than full and open competition, including an explanation of why specifications, engineering descriptions, statements of work, statements of objectives, or purchase descriptions suitable for full and open competition have not been developed, are not being developed, are not being used, or are not available. NOTE: If item being sole sourced is for non-domestic end items, ensure the CO completes the appropriate Individual Nonavailability D&F IAW FAR 25.103(b)(2).

Full and Open Competition is not feasible since Omnicell, Inc. is the sole propriator and restricts who can sell their products. As the result, competition will be restricted between Omnicell, Inc. and their authorized distributor, TrillaMed, LLC.

1. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Provide list of sources that expressed interest in the Acquisition.

Omnicell, Inc.

Bradley Galbreath

817-239-0308

TrillaMed, LLC

Tejas Smart

248-203-9734

1. 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: Describe any actions taken or to be taken to foster competition for future acquisitions of the supplies or services being acquired. Describe potential actions that could be undertaken to remove the barriers to competition that have been identified in the justification and include a milestone schedule for accomplishing these actions. For example, if a follow-on competitive acquisition is planned, so state and give planned award date.

Acquisitions that require brand name specific Omnicell products can be met by using their

FSS contract 36F79723D0073, up to the maximum allowable purchase amount of

$450,000.00. Purchases over this sum must be competed with TrillaMed, LLC, Omnicell's

only authorized distributor.

1. 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.

Attachments/Links