36C261-26-AP-0037-FY25-1207 JOFOC NCO21 COTS Software - HCA Approved PRINT_Redacted.pdf

VHAPG Part 808.405-6 Limiting Sources Page 1 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C261-25-AP-3236

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C261-26-AP-0037 JOFOC Tracker 26: FY26 - NCO 21 - 2

(1) Contracting Activity:

Department of Veterans Affairs (VA), Regional Procurement Office West (RPOW), Network Contracting Office (NCO) 21, on behalf of the Veterans Integrated Service Network (VISN) 21, VA Palo Alto Health Care System (VAPAHCS), National Teleradiology Program (NTP).

2237# 640-26-1-230-0001

(2) Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). The action being reviewed and approved is a new requirement for a sole source delivery order, to a small business concern, for service/support and renewal of licensing for NTP STAT Portal and Analytics System.

Order against: FSS Contract Number: GS-35F-200CA

Name of Proposed Contractor: Health Level

Street Address: 1580 W. El Camino Real, Suite 8

City, State, Zip: Mountain View, CA, 94040-2452

Phone: 650-938-8559

(3) Description of Supplies or Services:

The estimated value of the proposed action is $7,135,087.92

This procurement is for firm-fixed price delivery order for the service/support and custom configuration/optimization and renewal of licensing for the existing NTP Radiology Picture Archive Communication System (PACS) STAT Portal and clinical analytics system and all associated modules. The system will have the design capability to support three million (3M) cases annually with an initial study volume license of 1,500,000 annual cases with a 100,000 case increase each year, with an additional overall buffer of 10%. Volume will be based on the Study Instance Unique Identifier (SIUID)/NTP issued final report.

NTP Service is requesting a delivery order of renewal of licensing from October 1, 2025, through September 30, 2026, with the Government’s option to extend the contract for two (2) additional one-year periods. The Period of Performance and estimated contract value are as follows:

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Acquisition ID#: 36C261-25-AP-3236

Base Year 10/01/2025 – 09/30/2026 $2,153,611.21

OY1 10/01/2026 – 09/30/2027 $2,373,643.70

OY2 10/01/2027 – 09/30/2028 $2,607,833.01

$7,135,087.92

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(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;

NTP is VA’s in-house teleradiology service and has been providing 24x7 service to VA facilities for the past fourteen (14) years. Health Level’s Foundations software has been providing the VA NTP with clinical, financial, and operational, analytics that have enabled the VA NTP to optimize operational efficiency, eliminate waste and improve patient care. The Foundations software is installed at Sacramento Data Center and has a web interface. VA radiologists across approximately 125 medical centers use the web interface to create STAT requests. STAT" is an abbreviation derived from the Latin word "statim," which means "immediately" or "without delay." STAT request has a fifteen (15) minute turnaround time. Next Generation (NextGen) PACS is the radiology application that NTP uses to interpret images for sites and send reports back to VistA. The Foundations software integrates with NextGen PACS, and the additional information made available via the web submission form is critical to the interpretation of the case. The Foundations software is used by other VAs across the country for their own, internal use outside of NTP and for various functions that NTP doesn't use. The software is modular in nature with specific functionality based on end user requirements. The software is configured with different features/functions that other VA medical centers may need.

NTP interprets several thousand high priority exams per day, and every case requires a corresponding STAT portal submittal into the system to ensure clinicians have critical contact information if a callback is required and any pertinent clinical notes for the exam. Item # HLCCM1, Critical case management system (known as STAT portal), is procured as an annual license subscription. Absent the STAT Portal, approximately 25% or 2000+ daily exams would be incorrectly triaged due to an incorrect priority assignment by the ordering provider, and Veterans Health Administration (VHA) would no longer be able to support stroke exams within the required fifteen (15) minute turn-around time. This would have devastating clinical consequences across VHA.

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Acquisition ID#: 36C261-25-AP-3236

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

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination:

By placing an order against a schedule contract, the ordering activity has concluded that the order represents the best value. Although GSA has already negotiated fair and reasonable pricing, the CO will seek an additional discount before awarding the order.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

Small Business Administration’s (SBA’s) Dynamic Small Business Search (DSBS) database was used to identify certified capable Service-Disabled Veteran-Owned Small Business (SDVOSB) and Veteran-Owned Small Business (VOSB). The database search utilizing NAICS code 513210 – Software Publishers, yielded eight (8) SDVOSB and VOSB matches.

A sources sought notice (36C26126Q0004) was issued on Contracting Opportunities on 06/04/2025 and closed on 06/17/2025. The notice was issued for the purpose of collecting information about the availability of potential equal "COTS" (Commercial Off-The-Shelf) products for the desired software, and ancillary services, to the salient characteristics listed within the Statement of Work (SOW). Contractors that feel they have an equal product were encouraged to email the full information requested within the notice.

No SDVOSB/VOSBs expressed interest in response to the sources sought notice on Contracting Opportunities. Therefore, the “Rule of Two” contracting procedures cannot be applied to this requirement.

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Acquisition ID#: 36C261-25-AP-3236

No other sources expressed interest in the requirement or responded to the sources sought notices posted on Contracting Opportunities.

Health Level is the current vendor providing this requirement to the NTP program. The Foundations software is a proprietary product from Health Level that is performing ongoing service/support, and renewal of licensing for NTP STAT Portal and Analytics System is needed by NTP. The requirement can be met by placing an order for designated products off Health Level’s GSA Contract (GS-35F-200CA).

(7) Any Other Facts Supporting the Justification:

No other factors are applicable at this time.

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

In the future, if another vendor supplies a suitable alternative, their qualifications will be evaluated. The market will be continually assessed to determine if other vendors can provide the required supplies.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

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Acquisition ID#: 36C261-25-AP-3236

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K):

I certify the justification meets requirements for other than full and open competition.

HIGHER LEVEL APPROVAL (Required for orders over $750,000):

c. VHA RPO HCA Review and Approval (over $750,000 to $75 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.