REDACTED__LeadTools_LSJ_8.22.2018.pdf

Justification and Approval for Other than Full and Open Competition

J&A Tracking No. JA 18-0104

1. Identification of the agency and contracting activity:

Agency: Defense Health Agency (DHA), Contract Operations – Health Information

Technologies (CO-HIT), 4130 Stanley Road, Suite 208, Joint Base San Antonio (JBSA), Fort

Sam Houston, Texas 78234.

2. Nature and/or Description of Action being approved:

The Government intends to negotiate and award a firm-fixed price contract Subject to

Availability of Funds using FY19 Operations and Maintenance (O&M) funds when it becomes available to LEAD Technologies, Inc., 1927 South Tryon Street, Suite 200, Charlotte, NC 28203, on a sole source basis for brand name, Enterprise LEADTOOLS software maintenance services in support of DHA’s Solution Delivery Division (SDD). LEADTOOLSLEADLEAD

Technologies, as the Original Equipment Manufacturer (OEM) as well as holder of proprietary rights to LEADTools software, is the only vendor capable of providing renewal for the required

LEADTOOLS software annual maintenance. This contract is a follow-on to current contract

N65236-13-C-2158 non-competitively awarded to LEAD Technologies that will expire on 30

September 2018,

3. Description of Supplies/Services:

This procurement is for the maintenance renewal of:

1) Enterprise LEADTOOLS PACS (Picture Archiving and Communication System)

Imaging SDK (Software Development Kit) MIV (Medical Image Viewer); and

2) IMAGING SDK Development Seat Annual Licenses for testing environment.

The required maintenance support services include upgrades (both major and minor version), updates, patch files, and premium technical support via phone. Currently, LEADTOOLS software supports the Health Artifact and Image Management Solution (HAIMS) system’s Phase

II Sustainment.

Specifically, for the deployment of HAIMS Phase II sustainment, LEADTOOLS provides a medical imaging technology toolset that delivers economical storage of and convenient access to images from multiple modalities (source machine types). Electronic images and reports are transmitted digitally via PACS; this eliminates the need to manually file, retrieve, or transport film jackets. The universal format for PACS image storage and transfer is DICOM (Digital

Imaging and Communications in Medicine). Non-image data, such as scanned documents, may be incorporated using consumer industry standard formats like PDF (Portable Document

Format), once encapsulated in DICOM.

The expected period of performance will occur on date of award for one year with three additional (12 month) one year options, however, new market research will be conducted before each exercise of an option that sufficiently demonstrates that circumstances have not changed and that this requirement is still under a sole source environment and that the exercise of the option is the most advantageous method of meeting this requirement. The FAR Extension of

Services clause 52.217-8 will be included in the contract with a not-to-exceed ceiling of .

The Government intends to negotiate a new firm-fixed price contract using FY19 Operations and

Maintenance (O&M) funds:

The total estimated price of this effort, including all options years and the Extension of Service

Clause, is .

Base Period 10/1/2018 – 9/30/2019

Option Year 1 10/1/2019 – 9/30/2020

Option Year 2 10/1/2020 – 9/30/2021

Option Year 3 10/1/2021 – 9/30/2022

52.217-8 Extension 10/1/2022 – 3/31/2023

4. Statutory and Regulatory Authority Permitting Other Than Full and Open Competition

(see FAR 6.302), or the Specification of the Statutory and Regulatory Provision Providing

Exception to 8(a) Program Competitive Requirements (see FAR 19.805-1): 10 U.S.C.

2304(c)(1) 6.302-1 -- Only One Responsible Source and No Other Supplies or Services Will

Satisfy Agency Requirements

5. Rationale Justifying Use of the Statutory Authority Cited:

The LEADTOOLS application solution currently deployed at DHA is a PACS (Picture

Archiving and Communication System) consisting of four major components:

1) The imaging modalities such as X-ray computed tomography (CT) and magnetic resonance imaging (MRI);

2) A secured network for the transmission of patient information;

3) Workstations for interpreting and reviewing images; and

4) Archives for the storage and retrieval of images and reports.

Combined with available and emerging web technology, LEADTOOLS has the ability to deliver timely and efficient access to images, interpretations, and related data. LEADTOOLS breaks down the physical and time barriers associated with traditional film-based image retrieval, distribution, and display. Also, LEADTOOLS provides the software development kit that is used to develop the HAIMS medical image viewer. HAIMS has customized the Medical Image

Viewer with the LEADTOOLS SDK and the associated core applications. If the Government were to replace LEADTOOLS by utilizing any other software application, the effort would effectively take HAIMS’ Medical Image Viewer offline, considering the critical role

LEADTOOLS plays. To replace LEADTOOLS and utilize any other product would involve extensive redevelopment and redesign to rework the Medical Image Viewer and HAIMS code that would result in a substantial duplication of costs to the agency and unacceptable delays in fulfilling DHA’s requirements. Given DHA’s long term strategy of consolidation to an enterprise-wide Agency application instead of just for HAIMS, any rework-and-replace effort on embedded components of legacy systems already scheduled for replacement is not economically feasible so near the end of theses systems’ lifecycle.

LEADTOOLS is an embedded suite of software applications in HAIMS IT architecture; without continued renewal and uninterrupted maintenance service for this software, HAIMS will experience delayed services, severe compatibility issues, loss of data, potential violation of the

Authority-to-Operate (ATO), and forced shut-down of the affected network, which includes patient services. This translates into non-availability of sufficient health care tools necessary to provide for the DHA-wide medical treatment facilities (MTFs). Any pre-mature shut-down of

LEADTOOLS within HAIMS programs would LEAD to loss of critical patient data and patient services needed to treat and diagnose patients as well as delay the deployment progress of Phase

II HAIMS Sustainment. According to the market research, LEAD Technologies is the sole provider of license and software maintenance support for LEADTOOLS, and therefore the only source for the required continuation of maintenance support services. No known resellers or other sources are available to provide maintenance for this software. Failure to procure this

LEADTOOLS software maintenance and support will render HAIMS unable to deploy the application and unable to utilize the software.

6. Efforts to Obtain Competition:

The requested contract will be awarded on a sole source basis to LEAD Technologies. At this time, no effort will be made to solicit from multiple offerors due to the fact that LEADTOOLS

Software Maintenance Support cannot be delivered by any other vendor. According to information received from LEAD Technologies, LEAD Technologies does not authorize any other entity to resell, distribute, or maintain the required products.

7. Determination that Anticipated Cost to the Government will be Fair and Reasonable:

The Contracting Officer will determine that the anticipated cost to the Government will be fair and reasonable through a comparison and analysis of proposed prices with historical prices paid under current contract N65236-13-C-2158, the Contractor’s list prices, and the Independent

Government Cost Estimate, and by analysis of other than certified cost and pricing data provided from LEAD Technologies.

8. Market Research:

In accordance with FAR Part 10, market research was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition, and soliciting inquiries from interested parties. A Sources Sought was posted on Federal Business Opportunities on 23 August 2018; by closing date of 29 August 2018, no capable vendor, other than LEAD Technologies, was identified for this requirement. Additional market research conducted on GSA Advantage showed that the required LEADTOOLS software and/or maintenance is not available on that platform. A search was also conducted on NASA SEWP among all LEAD Technologies resellers; after reviewing all resellers’ product lists, the required software and/or maintenance cannot be found. DHA SDD received a letter from LEAD Technologies Vice President, Mr.

Jordan B. Shields, on 26 June 2018 stating that LEAD Technologies is the developer, publisher, and sole source provider for the required software maintenance. There are no other resellers that can fulfill this requirement.

9. Other Facts:

a. LEAD Technologies is the sole provider of maintenance for Enterprise LEADTOOLS

PACS (Picture Archiving and Communication System) Imaging SDK (Software

Development Kit) MIV (Medical Image Viewer) and IMAGING SDK Development Seat

Annual Licenses for testing environment.

b. Historical data. N/A.

c. Unusual and compelling urgency. N/A.

10. Interested Sources:

To date, there are no other sources that can provide this type of license and support.

11. Actions to overcome barriers:

The Solutions Delivery Division (SDD) perpetually reviews data on the industry and commercial products that provide similar software applications. In accordance with DHA strategy, HAIMS has future plans to de-scope and eventually replace LEADTOOLS footprint within the application. Maximum consideration will be given to the most competitive approach in order to provide the best value to the Government. HAIMS needs to continue this software while determining an optimum product that can replace LEADTOOLS.

COORDINATION:

12. Technical/Functional Representative:

I certify that the information provided in this justification, is accurate and complete to the best of my knowledge and belief.

Click here to enter a date.

SDD COTS SW Specialist

13. Requirements Certification:

I certify that the information provided in this justification, is accurate and complete to the best of my knowledge and belief.

SDD COTS SW Specialist

14. Fair and Reasonable Cost Determination:

In accordance with FAR 15.404-1(b)(2)(ii), the Contracting Officer hereby determines that the anticipated cost to the Government for this contract action will be fair and reasonable based on comparison and analysis of proposed prices and historical prices paid for the same or similar items.

Contracting Officer, Contracting Office - Health Information

Technolgy

15. Legal Review:

I have reviewed this justification and have found it to be legally sufficient.

Office of General Counsel

16. Contracting Officer:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Contracting Officer, Contracting Office - Health Information

Technolgy

APPROVAL:

17. Competition Advocate:

Based on the foregoing justification, I hereby approve the procurement of LEADTOOLS

Software Maintenance Renewal on an other than full and open competition basis pursuant to the authority of 10 U.S.C. 2304(c)(1), subject to availability of funds, and provided that the supplies and/or services herein described have otherwise been authorized for acquisition.

Competition Advocate (J-4)