SF 1012 Redacted.pdf

DEPARTMENT OF THE TREASURY

LIMITED-SOURCES JUSTIFICATION

Acquisition Title: Electronic Health Records System (EHRS) This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Treasury Standard Form – 1012 (Rev 12/24)

Prescribed by Treasury: DTAP 1008.405-6

1. Identification of the agency and the contracting activity:

The requiring activity is the Armed Forces Retirement Home in Washington, D.C. (AFRH-W) and the contracting activity is the Bureau of Fiscal Service.

2.a Nature and/or description of the action being approved:

The purpose of this limited-sources justification is to obtain approval to award a Firm-Fixed Price Task Order with Ensoftek, Inc. for their proprietary DrCloudEHR cloud based application to provide an Electronic Health Records System (EHRS). The need by date for these items is 12/01/2025. The period of performance will be from 12/01/2025 – 09/30/2026.

2.b Name of the vendor: Ensoftek, Inc.

2.c Requisition No.: AFRCRO-IT-26-0002 2.d Bridge contract: Yes No 2.e Brand name: Yes No 3.a A description of the supplies or services required to meet the agency’s needs:

The proposed acquisition is to acquire an Electronic Health Records System (EHRS) for AFRH. The vendor must provide records management and health care support through an Electronic Health Records System (EHRS). AFRH maintains an EHRS as mandated by various accrediting entities. The EHRS services various functional areas within the same electronic record. Functional areas include: Pre-Admissions, Admissions, Finance, Security, Nutrition, Clinical and Nursing. This secure web-based solution incorporates linkages to all functional areas for each Resident to provide an integrated Resident record.as required by AFRH. The vendor must perform in accordance with the terms and conditions stated within the Performance Work Statement (PWS).

AFRH’s current EHRS is provided by the proprietary cloud based application, DrCloudEHR.

The DrCloudEHR application provides AFRH a secure full lifecycle electronic health records management system for all current, past and future veteran Residents living at the AFRH Washington DC and Gulfport facilities. The full lifecycle approach for Resident data management includes the tracking of retired veterans interested in obtaining AFRH residency thru Pre-Admissions modules, qualified Residents that are awaiting on-boarding also tracked thru the Pre-Admissions modules, admitted Residents that are continually tracked via the Admissions modules, continuous managed care for Residents residing in all care levels (independent living, independent living plus, assisted living, long term care and memory support) tracked via various Clinical Care modules, Resident finance management that is tracked via various Billing modules and Resident metadata statistical reporting generated via various Reporting modules. DrCloudEHR is developed and maintained exclusively by Ensoftek, Inc.

3.b Includes IT: Yes No NAICS – 541512, PSC – R617 3.c IGCE/Estimated dollar value:

4.a Identification of the authority being used (Check the appropriate box that applies).

FAR 8.405-6(a)(1)(i)(A) – An urgent and compelling need exists, and following the procedures would result in unacceptable delays.

FAR 8.405-6(a)(1)(i)(B) – Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

Acquisition Title: Electronic Health Records System (EHRS) This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Treasury Standard Form – 1012 (Rev 12/24)

Prescribed by Treasury: DTAP 1008.405-6

FAR 8.405-6(a)(1)(i)(C) – In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order or BPA provided that the original order or BPA was placed in accordance with FSS procedures in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.

FAR 8.405-6(b) – Items peculiar to one manufacturer. (i.e., Brand Name specifications) 4.b Supporting Rationale:

The proposed vendor, Ensoftek, Inc, is currently providing AFRH the services under this requirement. Their established electronic records system has proven the ability to deliver these services on time at a reasonable cost. The proprietary DrCloudEHR cloud based application is a Primary Care/Mental and Behavioral Health integrated system developed and maintained exclusively by EnSoftek, Inc. In support of AFRH, EnSoftek, Inc. provides Hosting and Maintenance Services to include specific AFRH defined changes for unique administrative and clinical workflows between the Washington, D.C. and Gulfport campuses; integrated Resident financial data to improve Resident billing processes; and, improved functionality and reporting ability to meet the AFRH’s requirements. The system also includes the proprietary “Golden Thread” quality management, e-Prescribing & Dragon dictation, UnPlugged (disconnect modality), integrated Telehealth, and Mental Health, PTSD and Cognitive Group session management service modules. Ensoftek has also developed modules to provide reimbursable funds back to the AFRH based on ICD-10 coding of care to the Resident community. Dr CloudEHR also was customized with the functionality for non-clinical billing with a direct ACH funds transfer from Resident and Tennant accounts to Pay.gov. This contract includes hosting, technical support, workflow customization, application updates, training and unlimited user access at the licensed AFRH campuses.

5. A determination by the ordering activity Contracting Officer that the order or BPA represents the best value consistent with FAR 8.404(d):

The Contracting Officer has determined that the Task Order represents the best value consistent with FAR 8.404(d) and lowest overall cost alternative (considering price, special features, administrative costs) to meet the Government’s needs. Pricing information will be obtained from the proposed vendor and determined to be fair and reasonable before award.

6. A description of the market research conducted among schedule holders and the results or a statement why market research was not conducted:

AFRH Headquarters conducted market research with multiple leading industry EHRS commercial vendors such as MatrixCare, Netsmart and PointClick Care. Research was conducted through live demos, requirements analysis and cost estimates. Headquarters leadership also researched hosted EHRS opportunities provided under the office of Federal Electronic Health Record Modernization (FEHRM, fehrm.gov). Through the FEHRM, the AFRH has engaged the DoD Healthcare Management System Modernization (DHMSM) Program Management Office (PMO) for an in-depth analysis of DoD hosted systems.

DrCloudEHR has proven to be the best option as it is already customized to AFRH operations.

There will be a future migration effort to FEHRM.

Contract Specialist Kaity Eaton conducted market research for this requirement. It was determined that neither Unicor or AbilityOne could provide the services needed. It was then determined whether any Treasury or other mandatory sources existed that could meet the

Acquisition Title: Electronic Health Records System (EHRS) This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401) requirements. Then, it was determined that Best-in-Class solutions were also not available.

Research of the existing award showed the requirement as a Limited Source Justification awarded directly to Ensoftek’s GSA award GS-35F-0390V. Their GSA Contract expires on 04/23/2029.

An Intent to Sole Source Posting, SS-AFR-26-008, was completed on SAM.gov from 10/07/2025 – 10/14/2025. Two responses were received, from Aenigma, LLC and Carecierge, Inc. These responses were reviewed and each solution appeared to be capable of providing an Electronic Health Records System similar to what is being provided by the incumbent vendor at this time. Both responses were sent to the COR for review. Aenigma’s response stated they would be able to provide a fully implemented deployment within 90 days of the period of performance start date. Carecierge stated they would need 30 days to deploy their implementation. The COR, Haran Siva, provided the following statement:

“We have an enterprise EHR (enterprise health records) system (Ensoftek) that has been customized to meet current operational and specific business process needs. Any customization will take at least 6 months if not more with a new vendor. Our internal processes are unique and any software on the shelf will require customization. We cannot afford to lose this capability on day 1 (1st DEC 2025) as it is integral to the current business processes for the efficient delivery of care to our residents. Hypothetically, any implementation of a newer product will need education/training and customization at the same time while the current product is being used for the eventual transition to prevent any lapses and to ensure an efficient transition.”

Since AFRH’s current EHRS is maintained by Ensoftek’s proprietary cloud based application DrCloudEHR, no other vendor would be able to provide services within AFRH’s current EHRS. Any new solution for this requirement would need to be fully implemented and in place by 12/01/2025. Given the 30-90 day estimated lead times by either vendor to provide their fully implemented solution, and the COR’s estimated timeframe of at least 6 months of concurrent service with the existing EHRS, it would not be possible to award in time to avoid a lapse in critical services.

7.a Any other facts supporting this justification:

N/A 7.b Attachments: Yes No

8. A statement of the actions, if any, the Requiring Activity and Contracting Activity may take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for the supplies and services is made:

The Contracting Activity will continue to search the marketplace for potential sources in efforts to reveal procurement alternatives for the next competitive acquisition. The Program Office and Procurement agency will plan on future market research in efforts to process a longer term award using competitive acquisition procedures in accordance with the FAR.

9. Certifications and Approvals:

9.a Program Office Certification (Requiring Activity). I hereby certify that any supporting information and data provided (e.g., the Government’s minimum needs or requirements, or other rationale for the limited sources) and which form the basis for this justification for an

Acquisition Title: Electronic Health Records System (EHRS) This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401) exception to fair opportunity, are accurate and complete to the best of my knowledge and belief.

9.b Contracting Officer Certification and Approval. I hereby determine the circumstances of this acquisition support the justification to acquire these supplies or services on a limited source basis. I also certify this limited-sources justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve the processing of this requirement on a limited-source basis.

10. Additional Reviews and Approvals (As applicable):

10.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $75 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $15 million to the Associate Bureau CIO(s).)

Name: Not Applicable Date:

Signature:

10.b Advocate for Competition (if over $750,000, but not exceeding $15 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the ordering activity’s Advocate for competition, I hereby approve this limited-sources justification.

Name: Not Applicable Date:

Signature:

10.c Head of the Procuring Activity or Authorized Designee (if over $15 million, but not exceeding $75 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this limited-sources justification.

Name: Not Applicable Date:

Acquisition Title: Electronic Health Records System (EHRS) This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Signature:

10.d Treasury Chief Information Officer (for IT requirements that are over $75 million).

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Name: Not Applicable Date:

Signature:

10.e Senior Procurement Executive (if over $75 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, I hereby approve this limited-sources justification.

Name: Not Applicable Date:

Signature: