JA 21P0019_SAM_07.10.24.pdf

Justification and Approval (J&A) for Federal Acquisition Regulation (FAR) Subpart 13.5

Other than Full and Open Competition Sole Source Acquisition

Title: Engineering and Auditing services in support of Digital Imaging Network Picture Archive and Communication System (DINPACS) at Naval Medical Center Portsmouth (N6264521P0019)

1. Identification of the agency and contracting activity:

Specify the contracting activity responsible for this action.

Tidewater Contracting Division Defense Health Agency Contracting Activity, Southeastern Contracting Division.

2. Nature and/or Description of Action being Approved:

State whether approval is being requested for a new contract or bridge action, and whether it is an individual or class justification.

Modification to an existing contract / Individual

3. Description of Supplies/ Services:

Describe the supplies and services. Provide the period of performance for the base and all options, and the estimated value by base, option, and the total, including any extension of services, as applicable. Include type of contract (e.g., Fixed Price or Cost Reimbursement), type of funds to be used, (Department of Defense, Veterans Affairs, Joint Incentive Fund-No Year (DoD/VA JIF-NY), Operations & Maintenance (O&M), Research, Development, Test & Evaluation (RDT&E), Other Procurement (OP), or Revolving Funds-NY) and, when applicable, the estimated share and ceiling arrangements, and fee and/or profit. If the requirement is for a repair part, address whether or not it has been screened. If the repair part has been screened, provide the Acquisition Method Code (AMC) and Acquisition Method Suffix Code (AMSC). Provide the approximate date the technical data package will be available.

Technical, engineering and systems support to maintain and manage an enterprise level Digital Imaging Network Picture Archive and Communication System (DINPACS). This includes the technical aspects of the system, such as servers, networks, workstations, systems software, operating systems and hardware that are used to support the daily operations of an enterprise level system. Support also includes the behavioral aspects of the system, such as imaging workflow, imaging acquisition, training and education, medical terminology, system and DoD policies and procedures, system securities (i.e.; annual HIPPA and IA training). DINPACS Administrator shall provide technical direction on the planning and execution of the work and will support on-call requirements of the DINPACS.

TOTAL CONTRACT VALUE BASE

POP: From: 07/01/2024 to 6/30/2025 POP: From 07/01/2024 to 12/31/2024 Estimated Value $1,030,216.80 Estimated Value $515,108.40

Type of Contract (Primary): OPTIONS FAR 16.202 Firm-Fixed Price Number of options: 1 POP (All options): From 01/01/2025 to 6/30/2025 Estimated Value (all options): $515,108.40 Funding Type:

Operations & Maintenance (O&M)

4. Statutory and Regulatory Authority Permitting Other Than Full and Open Competition (see FAR 6.302), or the Specification of the Statutory and Regulatory Provision Providing Exception to 8(a) Program Competitive Requirements (see FAR 19.805-1):

41 U.S.C. 1901 Simplified Acquisition Procedures

5. Rationale Justifying Use of the Statutory Authority Cited:

Provide sufficient facts and rationale justifying use of the specific authority cited under Item 4 above (See FAR 6.302, FAR 6.303-2, and FAR 19.805-1).

This requirement is a bridge in order to mitigate a lapse in services to support the mission of Naval Medical Center Portsmouth (NMCP) and supporting BHCs and TPCs. A lapse in service would impact patient care severely enough to necessitate shutting down services within the MTFs. The contractor supports the radiology department, Level 2 Trauma center and over 10 teleradiology partnerships that provide critical diagnostic radiology services to DHA Network Atlantic as well as several OCOUS MTFs in the MHS. Sole source procurement to the incumbent is recommended because there is not sufficient time to allow for a competitive acquisition and allow a new contractor to recruit and onboard personnel for all services required and transition from incumbent contractor to a new contractor. The PALT for a requirement of this size and complexity is 200 calendar days per the DHA PALT Calculator. The current contract expires 30 June 2024.

6. Effort to Obtain Competition: Describe efforts made to ensure that offers are solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required at FAR Subpart 5.2 and, if not, which exception under 5.202 is applicable to the requirement. Justifications citing the authority at FAR 6.302-1 permitting the use of other than full and open competition, shall include the results of the request for information or sources sought notice posted in accordance with DFARS PGI 206.302-1 (unless the requirement to post has been waived); and for non-competitive follow-on acquisitions of supplies or services previously awarded on a non-competitive basis, include a copy of the previous justification with the current justification review package to assist the approval authority in determining whether the planned actions to remove any barriers to competition cited on the previous justification were completed.

When this requirement was originally assigned, the plan was to solicit using full and open competition. Due to unforeseen workload impediments, a requirement packages has not yet been submitted by the requiring activity. As such, it is not possible to execute the competitive procurement by 01 July 2024. A solicitation will be completed as soon as possible such that the follow-on contract to this bridge contract is a competed requirement. In accordance with FAR 5.203(a), the notice of proposed contract action will be published for fifteen (15) days prior to negotiating with the proposed source.

7. Determination that the anticipated cost to the Government will be fair and reasonable: Describe how the contracting officer determined or will determine that the anticipated cost to the Government will be fair and reasonable.

The contracting officer will use the IGCE and comparison to historical rates to make a determination that the anticipated cost to the Government is fair and reasonable for this short-term bridge action.

8. Market Research: Describe the extent of the market research conducted and when conducted, method utilized, and results, or, if market research was not conducted, provide the rationale (see FAR Part 10 Techniques for Conducting Market Research). The market research conducted or rationale provided in this section should help support the rationale justifying the use of the Statutory and Regulatory Authority in Section 5 above.

Market Research Conducted? Preliminary market research has been conducted by the MTF. This market research identifies that there are not mandatory sources available to fulfill this requirement and that the required services are of a type customarily found in the commercial marketplace. The market research indicated only one potential source, the incumbent contractor, however this market research appears to be incomplete. A new requirements package to include updated market research has been requested from the MTF and as of the date of this submission, has not been received. Additional market research is necessary in order to set an acquisition strategy for the competitive procurement of these services; however, the timeline does not allow for this to occur prior to expiration of the current contract.

9. Other Facts: List any other facts supporting the use of other than full and open competition, such as an explanation as to why technical data packages, specifications, engineering descriptions, statements of work, or purchase descriptions suitable for full and open competition have not been developed or are not available.

Services provided by incumbent are already established at the MTF and performance under the current contract is considered satisfactory. If competitive procedures were followed, the re-competed contract would be awarded 28 October 2024. If this bridge action is not allowed, the MTF will lose critical services for 120 days and may not be able to provide healthcare services to the affected patient population. Due to time constraints, a 6-month sole source extension to the current contract with an additional 6-month option is being added in order to mitigate a lapse in service while the competitive requirement is being worked.

10. Interested Sources: Include a listing of the sources, if any, which have expressed, in writing, an interest in the acquisition.

N/A

11. Actions to overcome barriers: Describe the actions, if any, the agency may take, or is taking, to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

The long-term plan for this acquisition is to compete full and open in the open market. Due to non-responsiveness from the MTF, there has been a delay in starting the acquisition process. As of 11 April 2024, the contracting team is still working to solidify the departments’ needs for the re-competed effort. As such, it has been determined that there is not enough time to provide for full and open competition and award with allowance for a 30-day transition-in period for the successful offeror. This bridge action will allow the contracting staff additional time to get the competed award in place in time for services by 1 January 2025, with an additional option to extend servies through 30 June 2025 should additional time be required.

Request for Bridge Action Approval

Contract Information - Bridge Action Contractor Name: CP Marine, LLC Procurement Instrument Identifier (PIID): N6264521P0019

Bridge Action Background Reason for Bridge Action: Late Acquisition Planning Documents

RFI Completed: No Waiver Needed: No Bridge Action Duration: 6 months + 6-month option Anticipated Award for Follow-on Contract: 01 January 2025 Previous Bridge Action? No Number of Prior Bridge Actions: 0

Funds Total Amount of Funds - Previous Bridge Action (if applicable): [leave blank, not applicable] Total Amount of Funds - This Bridge Action Request: $1,030,216.80

Funding Fiscal Year: 24

PROGRAM RISK IMPACT

Risk Scale of Importance: Critical

Impact if Not Executed: The contract is being executed with contracted employees who have considerable facility knowledge and skills that are pertinent to the daily operation of the Naval Medical Center Portsmouth Radiology Department and PACS Team. The contractor supports the radiology department, Level 2 Trauma center and over 10 teleradiology partnerships that provide critical diagnostic radiology services to DHA Network Atlantic as well as several OCOUS MTFs in the MHS. Any gap in services will compromise the mission and safety of the overall hospital and MTFs in forwardly stationed locations and OCONUS hospitals. Personnel are considered essential and provide 24/7 medical imaging support around the globe.

Impact if Executed to a Lesser Amount (Scalability): NMCP radiology is the third largest in the DoD by production and largest as far as teleradiology support. The department provides essential 24/7 support to other MTFs that are not equipped with diagnostic radiologist physicians, whereas NMCP is the only means to critical imaging services because there is no radiologist onsite. Also, the teleradiology services that are provided to OCONUS locations is a force multiplier. Specifically, multiple OCONUS sites that do not have enough personnel to staff 24/7 operations and rely on NMCP for overnight coverage that allows for MTFs to strategically staff during high volume hours.

Mitigation Strategy for Preventing Further Bridge Actions:

The DHACA is processing a new full and open competitive award for these services and the estimated award date is 28 October 2025. The re-compete effort was started in November 2023 and DHACA is currently working with the MTFs to better define their needs and developing the procurement documents along with detailed market research.

A 6-month option is included as part of this bridge request so that if the MTF continues to experience delays in completing a requirement package, a separate bridge action will not be required.

Approval Authority: HCA