FY26 JOFOC Teleradiology Services_Redacted.pdf

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 1 of 6 Revision: 04 Effective Date: 11/15/2024

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition

Acquisition Plan Action ID:

JOFOC Tracking Number:

1. Contracting Activity: Department of Veterans Affairs (VA), Veterans Integrated Service Network

(VISN) 19, Department of Veterans Affairs Eastern Colorado Health Care System (ECHCS), 1700 North Wheeling Street, Aurora, CO 80045, and Network Contracting Office (NCO)19, 6162 S. Willow Drive Suite 300, Greenwood Village CO 80111. This action will be funded by

2. Nature and/or Description of the Action Being Approved: This procurement is for Teleradiology Physician Services in accordance with Federal Acquisition Regulations (FAR) 12 Acquisition of Commercial Products and Commercial Services and specifically FAR 12.102 Restricting Competition.

The Rocky Mountain Regional VA Medical Center Eastern Colorado Health Care System (ECHCS) Imaging service was unable to keep up with the demand in June 2024 and had a backlog of about 1500 unread studies. The VA National Radiology Program Office (NRP), that provides after-hours and minimal routine exam interpretation through the National Teleradiology Program (NTP), has also experienced Radiologist staffing shortages and has been unable to provide additional support.

As these staffing shortages continue, this puts Veterans at risk for having imaging studies performed without timely Radiologist interpretation, delaying care, which in many instances, could be catastrophic. It was determined that the Service does not have enough Radiologists to interpret the workload in a timely manner; therefore, assistance with image interpretation and transmission of image reports is needed via teleradiology services. The Contractor shall establish and maintain connection to the station’s image transfer system and furnish all personnel to provide services necessary to perform specific teleradiology physician services off-site for beneficiaries of the Department of Veterans Affairs Eastern Colorado Health Care System. The VA teleradiology services are accredited by American College of Radiology (ACR) and follow the standards and guidelines set forth by ACR.

The current sole source firm fixed price Indefinite Delivery Indefinite Quantity (IDIQ) contract, 36C25924D0069, with VetMed Group LLC is expiring on December 31, 2025, and there is a need to continue the teleradiology physician services to avoid a lapse in the services. The long term acquisition package for teleradiology services is being prepared by the station with an expected submission in January 2026 with an expected contract award in the fourth quarter of fiscal year (FY) 2026. Originally, the new long term teleradiology services requirement was a VISN requirement that involved multiple stations, but that requirement was canceled and the timeline delayed getting a new long-term contract in place. To avoid a lapse in services, this requirement will continue under a one-year sole source firm fixed price IDIQ contract with VetMed Group LLC. The estimated cost will be , for the one-year contract.

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3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Contractor is required to establish and maintain connection to the station’s image transfer system and furnish all qualified personnel to provide services necessary to perform Teleradiology Physician Services to eligible beneficiaries of the VA Eastern Colorado Health Care System, Rocky Mountain Regional VA Medical Center and affiliated VA Clinics. Services shall be provided off-site at the contractor’s location. The contractor shall furnish all necessary hardware, software, connections, labor, including specific Teleradiology workstations and supervision to provide the service in accordance with the PWS. The VA Radiology Services follow the standards and guidelines set forth by American College of Radiology (ACR). The Contractor is required to provide services consistent with The Joint Commission (TJC) and meet or exceed VA and the American College of Radiology (ACR) guidelines. The Independent Government Cost Estimated (IGCE) modalities, description of services, and quantities of procedures are shown in table below.

Modality Description of Services Projected FY26 # of Procedures

Plain Films X-Rays 10000 CT Computed Tomography Readings 2500 CT CT Low Dose Cancer Screening 1900

CT CTA 1

CT CT Abd & Pelvis 1000 CT CT Abd & Pelvis 1/> REGNS 1 CT CT Angio Abd Arteries w/runoff 1 US Ultrasound 1800 US US head & neck (thyroid) 1 US US arterial duplex 1

MR MR 2000

MR MR abdomen 500 Nuclear Medicine Nuclear Medicine 400 MRI MRI prostate 1

CT PET/CT 1

Mammography 2D mammography single breast 1 Mammography 3D mammography single breast 1 MRI MRI cardiac 1 CT CT heart with 1 CT CT heart 1

This is a requirement for a one-year sole source firm fixed price IDIQ contract with VetMed Group LLC. The period of performance will be from January 1, 2026 through December 31, 2026. The contract includes FAR 52.217-8 – Option to Extend Services. If exercised for up to 6 months, the 52.217-8 option will be exercised at the same rates as those in effect under the contract at the time the contract is extended. The period of performance under FAR 52.217-8 option will be from January 1, 2027 through June 30, 2027, if needed.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S.

Code § 8127(c), as implemented by FAR 12.102 Restricting Competition. COs may use the non-

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 3 of 6 competitive (sole source) procedures authorized in VAAR 819.7008 (DEVIATION) or VAAR 819.7009 (DEVIATION)- up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7008 Sole source awards to a certified service-disabled veteran-owned small business; or ( ) 819.7009 Sole source awards to a certified veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): VAAR 819.7008 allows sole source awards to service-disabled veteran-owned small business (SDVOSBs) based on 38 U.S.C.

8127(c). A Contracting Officer (CO) may award a contract to an SDVOSB listed in the Small Business Administration (SBA) certification database using other than competitive procedures provided - (1) The contract will not exceed $5 million dollars; (2) The requirement is synopsized and the required justification pursuant to FAR 6.302-5(c)(2)(ii) is posted in accordance with FAR Part 5; (3) The SDVOSB is determined to be a responsible contractor with respect to performance; and (4) In the estimation of the CO contract award will be made at a fair and reasonable price that offers best value to the Government.

This contract will not exceed $5 million dollars; This JOFOC will be synopsized IAW FAR Part 5;

Vetmed Group LLC is a responsible SDVOSB contractor with respect to performance. In the estimation of the CO, contract award will be made at a fair and reasonable price as established is Section 7 of this JOFOC.

The CO has also verified that Vetmed meets eligibility requirements in VAAR 819.7003(DEVIATION as follows:

a. The Contractor is eligible under the above VAAR subpart.

b. The Contractor was listed under North American Industry Classification System (NAICS) code

621512 and Service-Disabled Veteran Owned Small Business (SDVOSB).

c. VetMed Group LLC is one of the vendors listed under NAICS code 621512 in the SBA’s certification database portal.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies: A Sources Sought Notice was not issued for this requirement, but limited market research was conducted due to the approaching need date of December 31, 2025. The services required by this procurement are essential for continued Veteran care. There are no other sources with ability to fulfill this requirement before contract expiration due to Radiologist shortages within the occupation. The current contractor, VetMed Group LLC, has staff in place for continued services without a lapse. Awarding to a different vendor would cause delay to care due ramp-up time for staffing and credentialing.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable: The Contracting Officer will determine the price to be fair and reasonable based on historical contract pricing, current contract pricing, Independent Government Cost Estimate and VetMed LLC's current price list. The prices will be compared to a SDVOSB vendor, Valor Network, INC., contract number 36C25920D0059; which shows option period 4 with a period of performance of July 1, 2024 through June 30, 2025, and contract 36C26233D0079; . The prices will also be compared to two VetMed Group LLC contracts, 36C24225D0031;

that was awarded for the Albany/Upstate NY Veterans Affairs Medical Center (VAMC) in 2025 and the current contract (36C25924D0069) as well as the company’s current price list.

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8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted: Market research was conducted by using SBA.gov Small Business Search (SBS) with NAICS code 621512 and SDVOSB and produced 223 results. However, most of the SDVOSB vendors are not capable to meet all the requirements and teleradiology specialized services stated in the performance work statement (PWS) for Rocky Mountain Regional VA Medical Center ECHCS. Valor Network Inc, RocJoi Medical Imaging, LLC (RJMI), and the current VetMed Group LLC have capability to meet the requirements of Rocky Mountain Regional VA Medical Center ECHCS. They have the required NAICS code 621512 and are verified as a SDVOSB vendor.

The results of the market research identified that there are multiple SBS SDVOSBs listed under NAICS 621512. VetMed Group LLC, a verified SDVOSB, has the capability to provide teleradiology services and is the only fully proven source that meets all requirements and time constraints. Valor Network Inc and RocJoi Medical Imaging, LLC (RJMI) were reviewed as capable SDVOSBs, but both require 3 to 12 months of transition time and ramp-up. Award to a new contractor could take 3 to 12 months to establish network connectivity before having capability to read images. Considering ECHCS’s need to avoid service disruption, it is in the Government’s interest to pursue a sole source with VetMed Group LLC.

As stated in para 6, A Sources Sought was not issued, there are no other sources with ability to fulfill this requirement before contract expiration due to Radiologist shortages. VetMed Group LLC is the only source capable of providing continuity of services within the limited period before contract expiration. Any change in contractor support at this time is not feasible as the process would require network connectivity which could take 3 to 12 months to set up, plus hiring staffing and credentialling in this timeframe is not realistic. The requirement will be synopsized in accordance with FAR 6.305 Availability of the Justification.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: The prospective awardee was previously vetted during the Contracting Officer’s Representative’s (COR) market research based on performance under the current contract. The CO has verified the vendor is an SDVOSB and shall execute award utilizing authority under 38 USC 8127(c).

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

Incumbent contractor:

VetMed Group LLC 393 NE 5th Ave Unit B Delray Beach, FL 33483

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to

Competition before Making subsequent acquisitions for the supplies or services required: 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. The Healthcare Resource Branch is working on the long-term competitive procurement for teleradiology services. It is anticipated that award will be made within 12 - 18 months as of October 2025.

12. 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,