McKesson Automation Systems, Inc., B-290969.2; B-290969.3, January 14, 2003

McKesson Automation Systems, Inc., B-290969.2; B-290969.3, January 14, 2003 TITLE: McKesson Automation Systems, Inc., B-290969.2; B-290969.3, January 14, 2003 BNUMBER: B-290969.2; B-290969.3 DATE: January 14, 2003 ********************************************************************** McKesson Automation Systems, Inc., B-290969.2; B-290969.3, January 14, 2003 DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of: McKesson Automation Systems, Inc. File: B-290969.2; B-290969.3 Date: January 14, 2003 John A. Burkholder, Esq., and Richard B. Oliver, Esq., McKenna Long & Aldridge, for the protester. William A. Shook, Esq., Kelley P. Doran, Esq., and Michael F. Scanlon, Esq., Preston Gates Ellis & Rouvelas Meeds, for Innovation Associates, Inc., an intervenor. Linda G. Sandoli, Esq., and Lynne E. Georges, Esq., Defense Logistics Agency, Defense Supply Center Philadelphia, for the agency. Tania Calhoun, Esq., and Christine S. Melody, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protests that procuring agency improperly proposed award to a firm on a sole-source basis for the procurement and installation of a pharmacy robotic refill system is denied where the record shows that the agency's justification for concluding that only one responsible source could meet its needs is reasonable. DECISION McKesson Automation Systems, Inc. protests the proposed award on a sole-source basis to Innovation Associates, Inc. (IA) under request for proposals (RFP) No. SP0200-02-R-8022, issued by the Defense Logistics Agency, Defense Supply Center Philadelphia (DSCP), for the procurement and installation of IA's PharmASSIST robotic refill system at the United States Air Force Academy in Colorado Springs, Colorado. McKesson argues that the agency's use of a sole-source procurement to meet this requirement is improper. We deny the protests. In response to various reports and recommendations concerning the use of enhanced automation to improve patient safety, through the reduction of medication errors, and to improve the efficiency of pharmacy personnel, the Air Force Pharmacy and the Air Force Academy Pharmacy initiated market research into automated medication dispensing systems as early as 1999. This market research eventually extended to a detailed independent report that analyzed the automated pharmacy systems sold by various firms, including IA and McKesson, as well as information gathered through trade shows, site visits, and meetings with pharmacy systems vendors. By March 2001, Air Force Academy representatives had developed a preference for the IA system based upon this market research and forwarded a set of draft salient characteristics to an Air Force consultant to the Surgeon General for Pharmacy (Air Force consultant). Transcript (Tr.) at 52, 58.[1] The Air Force consultant rejected the notion of a *preference*; conducted discussions with technical users and pharmacy professionals to ascertain the agency's minimum needs; engaged in additional market research which included site visits and meetings with pharmacy systems vendors, including IA and McKesson; and insisted that the salient characteristics be objective and reviewed them to ensure that they were related to human safety. Id. at 53, 58. The Air Force consultant ultimately agreed that IA was the only vendor that could meet the agency's minimum needs. In February 2002, the Air Force forwarded drafts of its salient characteristics for a robotic refill system and its justification and approval for other than full and open competition (J&A)--prepared by the Air Force Consultant--to the DSCP, which was to conduct the procurement on behalf of the Air Force. On June 25, the DSCP posted a presolicitation notice for the procurement of a PharmASSIST robotic refill system, manufactured by IA, on the government's Federal Business Opportunities (FedBizOpps) web site. The notice inadvertently failed to include information on the sole-source nature of the procurement and was subsequently modified to advise that award would be made on a sole-source basis and that IA was the only known source that could supply the agency's requirements. On July 17, McKesson requested copies of the J&A and the solicitation, and was told that copies would be forwarded when they were finalized.[2] On October 3, the agency issued the solicitation for the procurement and installation of the IA PharmASSIST robotic refill system.