HCA Signed Exception to Fair Opportunity_Redacted.pdf

This is a Request for Exception to Fair Opportunity memo from the Department of Veterans Affairs (VA) seeking approval for a sole-source task order award. The proposed action involves awarding a one-year base contract with four additional option years (plus a six-month extension) to Philips Healthcare Informatics, Inc. for VuePACS maintenance and support services under an existing IDIQ contract (SPE2D1-19-D-0036) held by the National Acquisition Center. The task order covers full-service maintenance including software licenses, upgrades, customer support, troubleshooting, repairs, remote and on-site maintenance, technical support, installation assistance, clinical consultation support, and quality updates for VuePACS software and interfaces used by VA Medical Centers in VISN 7. The performance period runs from March 9, 2026 through August 8, 2031, with contract value details redacted.

The justification for sole-source award is based on the Veterans First Contracting Program (38 U.S.C. 8127(c)), which authorizes direct contracting with Service-Disabled Veteran-Owned Small Businesses. The VA asserts that Philips Healthcare is uniquely positioned to provide these critical advanced medical imaging technology services given its existing IDIQ contract and the specialized nature of VuePACS. While efforts to increase competition included soliciting the requirement as a 100% SDVOSB set-aside among NASA SEWP V contract holders, two quotes received exceeded OEM pricing by approximately 30% and were deemed outside the scope of fair and reasonable pricing. The contracting officer certifies the anticipated cost is fair and reasonable based on pre-negotiated IDIQ rates. Approval is required at the higher level for orders exceeding $900,000 to $20 million.