FAR 16_Exception to Fair Opportunity_TC-RC.pdf

Request for Exception to Fair Opportunity Memo

Effective Date: 03/15/2023 Page 1 of 4 Revision: 02 Acquisition ID#: 36C255-26-AP-0275

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID: 36C255-26-AP-0275

1. Contracting Activity: Department of Veterans Affairs, VISN 15, Network Contracting Office (NCO)

15, 3450 S 4th Street Trafficway, Leavenworth, KS 66048, in support of the following VISN 15 VA

Medical Centers:

• Kansas City VAMC, 4801 Linwood Blvd., Kansas City, MO 64128

• Harry S. Truman Memorial Veteran’s Hospital, 800 Hospital Dr., Columbia MO 65201

• Colmery-O’Neil VAMC, 2200 SW Gage Blvd., Topeka, KS 66622

• Dwight D. Eisenhower VAMC, 4101 S. 4th St., Leavenworth, KS 66048

• Robert J. Dole VAMC, 5500 E. Kellogg, Wichita, KS 67218

• John J. Cochran VAMC, 915 North Grand Blvd., St. Louis, MO 63106

• Jefferson Barracks VAMC, 1 Jefferson Barracks Dr., St. Louis, MO 63125

• Marion VAMC, 2401 West Main Street, Marion, IL 62959

• Evansville Health Care Center, 6211 E. Waterford Blvd., Evansville, IN 47715

• John J. Pershing VAMC, 1500 N. Westwood Blvd., Poplar Bluff, MO 64128

2. Description of Action: The proposed sole source task order against ID/IQ Number SPE2D119D0012 is for a firm-fixed price (FFP), 12-month Base Period and four, 12-month, Option Periods, effort for software support services and upgrades to the Vitrea medical device imaging system.

3. Description of Supplies or Services: The proposed action is to provide several hardware devices and the corresponding software that will be maintained and/or upgraded for the Vitrea System.

Software upgrades and updates, rapid response telephone assistance, access to interactive online portal, webinars, and on-line library, on-line technical knowledge base, and remote support diagnostics. This Task Order will also include hardware support assistance, access to clinical expert for 1:1 application consultation, monthly report and review of issue tracking and resolution with a service account manager, education credits, annual technical system review, and on-site assistance for critical issues.

4. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section

41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) 16.505(b)(2)(i):

( ) FAR 16.505(b)(2)(i)(A): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

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(X) FAR 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

( ) FAR 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

( ) FAR 16.505(b)(2)(i)(D): It is necessary to place an order to satisfy a minimum guarantee.

( ) FAR 16.505(b)(2)(i)(E): For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source”. The statutory authority permitting an exception to fair opportunity for this action is 38 U.S.C. 8127(c), known as the Veterans First Contracting Program which provides the authority to directly contract with a

Service-Disabled Veteran-Owned Small Business (SDVOSB) or a Veteran-Owned Small Business

(VOSB).

5. Rationale Supporting Use of Authority Cited Above: The Vitrea advanced visualization application is a complex software and computer medical system which was purchased to provide VISN 15 radiologists and technologists with state of the art image processing functionality to provide the best possible radiology services to our patients. Vitrea is an advanced visualization system consisting of software and computer servers used to process and display high-tech medical images such as CT scans in ways that give new or additional information not otherwise possible. This Task Order will provide on-going software bug-fixes, updates, and upgrades, along with technical support and repairs as necessary for this system, as well as continuing user training to ensure it is used in a safe and effective manner. Since this software is complex, on-going user training is required to ensure the system is used correctly and to the fullest extent of its capabilities. These services require seamless integration with our existing purchase, and as such, can only be obtained from the original vendor.

If the Government were to award a whole new Vitrea system, the Government would not retain any value as the existing network architecture and configurations that support the robust proprietary software and equipment for the current system would have to be completely replaced. The replacement would cost upwards of $500,000.00 and this does not include support/maintenance/training, for a system that is already in place and proven to operate effectively and reliably. The repercussions of purchasing a whole new system will also cause delays in providing Veterans with the medical care needed for radiology services and will cost the Government an estimated $2.5 million to which the funds have not been budgeted vs.

the current support/maintenance/on-going training for upgrades over 5 years for a total value of $838,340.67.

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6. Efforts to Obtain Competition: A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

Market research was conducted, details of which are in the market research section of this document.

This effort did not yield any additional sources that can meet the Government’s requirements. There is no competition anticipated for this acquisition. A Special Notice of Intent to Sole Source was posted to www.sam.gov and did not receive any responses. In accordance with FAR 5.301 and 16.505(b)(2), this action will be synopsized at award on the www.sam.gov website and the justification will be made publicly available.

7. Actions to Increase Competition: Describe actions taken, or that will be taken, to remove or overcome any barriers to competition before initiating any subsequent acquisitions for the supplies, or services required, including challenges to restrictive data markings, data rights, preparation of a performance-based work statement, and etc.

The Government will continue to conduct market research to ascertain if there are changes in the marketplace that would enable future actions to be competed.

8. Market Research: Provide a description of the market research conducted among the contract holders and the results. If market research was not conducted, the reasons it was not conducted should be stated. When citing FAR 16.505(b)(2(i)(b) or FAR 16.505(b)(2)(i)(e), the only possible way to state in paragraph 5 of the J&A that there is only one contractor who can fulfill the agency’s needs is to conduct market research, and it should be summarized here.

Market research was conducted from July 2025 to present, pursuant to FAR Part 10, VAAR Part 810. The

CO searched the SBA DSBS database for certified SDVOSB/VOSB vendors using NAICS 423450 and found

4,100 Veteran owned businesses; however, none of them are Authorized Distributors and Service

Providers with the Original Equipment Manufacturer, Cannon Medical Informatics, Inc. Additionally, VA networking Subject Matter Experts regularly review industry trade publications and conduct internet research to ascertain if any other brand name software is available. Based on all of these market research efforts, the Government’s technical experts have determined that only Cannon Medical

Informatics’ is the manufacturer and sole source distributor and service provider of their products; they do not authorized third-party vendors to service or distribute their products.

The CO also searched:

• Searched UNICOR/Federal Prison Industries using keyword “Vitrea” – with no results.

• Searched the National Acquisition Center using keyword “Vitrea” – with no results.

• Searched the Office of Procurement Acquisitions and Logistics (OPAL) SharePoint using keyword “Vitrea” – with no results.

• Searched GSA using the word, “Vitrea” and “Cannon” – with no results.

• Searched the Federal Procurement Data System using keyword “Vitrea” and found several DO-TOs with Cannon Medical Informatics on their ID/IQ SPE2D119D0012.

http://www.sam.gov/ http://www.sam.gov/ https://www.acquisition.gov/?q=/browse/far/10 https://www.va.gov/oal/library/vaar/vaar810.asp

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• Searched the SBA’s Dynamic Small Business Search using NAICS 423450 – produced 21,198 Small Business profiles; however, only one Small Business vendor is authorized and is the Original Equipment Manufacturer, Cannon Medical Informatics, Inc.

Additionally, The CO posted a Special Notice of Intent to Sole Source, February 25, 2025, and there were no responses. The OEM, Cannon Medical Informatics, Inc., also, did not respond. Cannon did send me a Sole Source Letter after I requested the vendor names of any they authorized to provide maintenance/support services for their products.

9. Other Facts: None.

10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Ryan Pourcillie VISN Biomedical Engineer VA Heartland Network (VISN 15)

11. Determination that Anticipated Cost is Fair and Reasonable: A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable: All pricing was determined fair and reasonable at award of contract SPE2D119D0012 which will be utilized to award a

Task Order for this requirement.

requirement.

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

Teresa Cabanting Contracting Officer Network 15 Contracting Office (NCO 15)

13. Approvals in accordance with VHAPG Part 816.505 Indefinite Delivery Contracts: Ordering.

a. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Randall Combs Division Chief Network 15 Contracting Office (NCO 15) https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPG/VHAPG_Part_816.505.aspx