6515--Omnicell XTE Replacement (Pharmacy) James H. Quillen VAMC Mountain Home TN

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-SAP under RFO 12.102 Effective Date: 12/30/2025 Revision: 02 Acquisition ID#: 36C249-26-AP-1217 Page 1 of 5 DEPARTMENT OF VETERANS AFFAIRS SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH RFO 12.102 Acquisition Plan Action ID: 36C249-26-AP-1217 Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 09, 1639 Medical Center Parkway Suite 204, Murfreesboro, TN 37129, VISN 09, Station 621, James H. Quillen Veterans Affairs Medical Center, Corner of Lamont Street and Veterans Way, Mountain Home TN 37684. Nature and/or Description of the Action Being Processed: This requirement is for the upgrade of the medical center existing Omnicell XT Automated Dispensing Cabinets (ADC) that are near End of Life in respect to hardware and software in accordance with Revolutionary FAR Overhaul (RFO) 12 Acquisition of Commerical Products and Commercial Services and specifically RFO 12.102 Restricting Competition, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of RFO Part 6, but still require a justification. The action being reviewed and approved is the award of an SDVOSB sole-source award to Trillamed, LLC. This action will be awarded as a new contract as a firm-fixed price contract. Description of Supplies/Services Required to Meet the Agency s Needs: The upgrade of the medical center existing Omnicell XT Automated Dispensing Cabinets (ADC) will be replacing all the ADC PC hardware components (touchscreens, keyboards, hard drives) and software operating systems in each dispensing cabinet. Model/Part Number Item Description Qty ANT-CNS-012 XTEXTEND CONSOLE, AWS, PHARMACY 4 DISPENSING MED-CNS-501 XTEXTEND CONSOLE, HALF HEIGHT 38 MED-PCB-501 XTEXTEND CONSOLE, FULL HEIGHT 30 PR: 621-26-1-091-0013 Amount: $961,380.00 Statutory Authority Permitting Restricted Competition: RFO 12 Acquisition of Commercial Products and Commercial Services. The statutory authority for applying the Acquisition of Commercial Products and Commercial Services of RFO 12.102 is 41 U.S.C. § 1901 and is implemented by RFO 12.102(b) 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 Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Contacting knowledgeable individuals in Government and industry regarding market capabilities to meet requirements. VA technical experts conducted market research by contacting the sales representative of the only known supplier of automated dispensing cabinets (ADCs) that could potentially meet the VA s requirements. The experts specifically inquired whether equipment from a different brand could be integrated into the VA s existing Omnicell proprietary server system. The manufacturer, Omnicell, confirmed that integration of non-Omnicell equipment is not possible without replacing the VA s existing Omnicell OmniCenter server. As such, only Omnicell-brand equipment possesses the proprietary software required for interoperability with the current VA infrastructure. Any limitation on competition is the result of the manufacturer s authorization structure and technical compatibility requirements, not due to a restriction imposed by the Government. In accordance with 38 U.S.C. § 8127(c), the anticipated value of this acquisition is below the SDVOSB sole source threshold, and award can be made to a single SDVOSB concern at a fair and reasonable price. The SDVOSB, Trillamed, LLC, provided an authorized distributor letter from Omnicell stating that they are the sole authorized distributor for Omnicell products to US Government entities: Veterans Affairs (VA), Dept of Defense (DOD), or Defense Health Agency (DHA) and Indian Health in the United States, District of Columbia, and Puerto Rico. Accordingly, Trillamed LLC 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. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: On January 14, 2026, a Request for Information (RFI) was posted on Contract Opportunities to gather information about potential qualified sources and their size classifications, specifically focusing on Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). The RFI aimed to identify available market capabilities and ensure compliance with acquisition requirements. The notice period ended on January 30, 2026, and resulted in three responses. Among these, only one response was received from an SDVOSB, Trillamed LLC, while the other two responses were from large businesses. Trillamed LLC substantiated their capability by providing an authorized distributor letter from Omnicell, Inc., which confirms their status as the sole authorized distributor for Omnicell products to U.S. Government entities, including the Department of Veterans Affairs (VA), Department of Defense (DOD), Defense Health Agency (DHA), and Indian Health Services within the United States, District of Columbia, and Puerto Rico. This information indicates that the VA's "Rule of Two" cannot be satisfied for this procurement, as only one responsible SDVOSB source, Trillamed LLC, met the required criteria. Additionally, the two large businesses were identified as located in Baghdad and appear incapable of adhering to the Buy American Statute or the Nonmanufacturer Rule, further reinforcing the case for a sole-source contract to Trillamed LLC. This comprehensive market research effort confirms the impracticality of soliciting competitive offers from multiple sources and validates the necessity for a sole-source award under the current market conditions. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The Contracting Officer has determined that the anticipated cost to the government for this procurement will be fair and reasonable. This determination is supported by the Independent Government Cost Estimate (IGCE), which estimates the cost at $961,380.00. Additionally, the acquisition history within Network Contracting Office (NCO) 16 provides a relevant point of comparison. Specifically, contract number 36C25625P1434, awarded on August 12, 2025, was executed for a similar requirement at a cost of $661,500.00. This historical data confirms the reasonableness of the current estimate. Furthermore, in compliance with the latest guidelines under the Revolutionary FAR Overhaul, the determination of fairness and reasonableness is corroborated by the following considerations: Market Research Compliance (RFAR 6.302-1): Comprehensive market research was conducted as outlined in RFAR 6.302-1, ensuring the procurement process aligns with regulatory standards for sole source justifications. Cost Analysis Protocols (RFAR Part 15.4): The acquisition process adhered to the cost analysis protocols specified in RFAR Part 15.4, including cross-referencing historical contract data and market intelligence to validate cost estimates. Fair and Reasonable Pricing (RFAR Part 13.501): Emphasis on ensuring fair and reasonable pricing for commercial items was maintained throughout the procurement process, as required under RFAR Part 13.501. By leveraging historical contract pricing, market research data, and adherence to the guidelines specified in the Revolutionary FAR Overhaul, the Contracting Officer is confident that the anticipated cost of $961,380.00 is fair and reasonable for the government's procurement needs. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: VA technical experts undertook extensive market research to identify potential sources of automated dispensing cabinets (ADCs) that could meet the VA s requirements. During this research, the experts contacted the sales representative of the only known supplier, Omnicell, to ascertain whether equipment from other brands could be integrated into the VA s existing Omnicell proprietary server system. Omnicell confirmed that integration of non-Omnicell equipment is not feasible without replacing the VA s existing Omnicell OmniCenter server. Consequently, only Omnicell-brand equipment, which possesses the necessary proprietary software, is capable of interoperability with the current VA infrastructure. Further market research included a search of the Federal Procurement Data System (FPDS) using keywords Pharmacy Dispensing, which identified nine vendors utilized in the past year, including two Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). Additionally, a search of the General Services Administration (GSA) eLibrary using Special Item Number (SIN) A-92 for Medication and Supply Packaging and Dispensing Equipment yielded 31 contract holders. Upon reviewing the terms and conditions of each vendor, it was determined that only Trillamed LLC (an SDVOSB) could meet the specific requirements of this procurement. It was also noted that the required Omnicell equipment is manufactured outside the United States and no domestic product is available that can meet the VA's needs. Given that Trillamed LLC is the sole authorized distributor for Omnicell products to U.S. Government entities, and in accordance with VAAR 825.103(b), an exception to the Buy American Statute for nonavailability applies, thereby permitting this award. As detailed in Section 6 above, market research was conducted in accordance with FAR Part 10. This research included a synopsis of the proposed acquisition to inform the industry of the forthcoming procurement and to solicit inquiries from interested parties. The comprehensive market research confirmed that Trillamed LLC is the sole source capable of meeting the VA s technical and interoperability requirements for ADCs. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Trillamed LLC SDVOSB, American based, Authorized distributor letter stating sole souce of Omnicell products to Government entities Al-Masa Al-Hamraa Large, Baghdad location Al-Samaa Al-Qahira Large, Baghdad location 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. Dawn Collins Contract Specialist Network Contracting Office 09 Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: CHRISTINA LAWRENCE Digitally signed by CHRISTINA LAWRENCE Date: 2026.02.09 13:50:44 -06'00' 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. Christina Lawrence Contracting Officer Network Contracting Office 09 One Level Above the Contracting Officer (Required over $350K but not exceeding $900K): I certify the justification meets requirements for other than full and open competition. Dewayne Knowles Administration Support Branch Chief Network Contracting Office 09