JA - DI Software.pdf

Control Number VA-25-00003807

LIMITED-SOURCES JUSTIFICATION

1. Contracting Activity: Department of Veterans Affairs (VA) Office of Procurement, Acquisition, and Logistics

Technology Acquisition Center 23 Christopher Way Eatontown, NJ 07724

2. Description of Action: The proposed action is for the issuance of a new firm-fixed-price (FFP) delivery order for Data Innovations (DI) Instrument Manager (IM) software licenses, sustainment, and support services in support of the eight (8) Veterans Integrated Service Network (VISN) 15 medical centers and select outpatient clinics. This effort is being conducted under the authority of the Multiple Award Schedule (MAS) Program; the proposed effort will be awarded under the General Services Administration (GSA) MAS GS-35F-389DA to Data Innovations LLC, 463 Mountain View DR STE 305, Colchester, Vermont 05446-5952.

3. Description of the Supplies or Services: The proposed action is to renew 782 DI IM software licenses, sustainment, and support services within the eight (8) VISN 15 medical centers and select outpatient clinics. The DI IM middleware allows laboratory tests to run on complex, automated analyzers to be downloaded to the VA Veterans Health Information Systems and Technology Architecture (VistA) computer system without any operator intervention. VA requires an Health Level Seven (HL7) capable product that is compatible with VistA to ensure that laboratory tests could be downloaded to the VistA computer system without any operator intervention. The sustainment and support services allow for HL7 messaging, development of rules, which is necessary for auto-verification of patient test results and data pulls, support of the auto-verification capabilities within the DI middleware system, installation, and configuration support for DI IM software license on middleware systems (Production, Shadow, Test, and Reports Manager). The DI IM software license sustainment and support services are required in order to provide continued support to the licenses, which allows for: non-emergency telephone support from 9 am to 8 pm EST, 24x7x365 emergency support, software patches/updates, enhancements and new release versions, individual login credentials for accessing customer web portal to submit and track requests for support, availability of online knowledge base, and driver download web page for new and updated drivers. This sustainment and support services is part of the procurement and inclusive of the purchase. The base period of performance for this effort is March 1, 2025 through February 28, 2026, plus three (3) 12-month Option Periods, for continued DI IM sustainment and support services, if exercised.

Data Innovations Control Number VA-25-00003807

4. Authority: This acquisition is conducted under the authority of the Multiple Award Schedule Program. The specific authority providing for a limited source award is Federal Acquisition Regulation (FAR) 8.405-6(a)(1)(i)(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.

5. Rationale Supporting Use of Authority Cited Above: The proposed source is DI, 463 Mountain View DR STE 305, Colchester, Vermont 05446-5952. Based on extensive market research it was determined that DI is the only source capable of satisfying VA requirements.

DI is the only middleware provider that is compatible with VistA HL7 messaging protocol; HL7 is a socket-based application accessible over VA's wide area network that interacts with VistA to enroll and disenroll telehealth patients and deliver patients results. HL7 messages are used for administrative, clinical, and financial activities. No other vendor has the interoperability for laboratory HL7 messaging with VistA.

Furthermore, only DI possesses the interoperability to ensure that laboratory tests are downloaded to the VistA computer system without any operator intervention. This functionality to integrate with VistA is required in order for providers to access laboratory test results to VISN 15. If another software is utilized, it would require all VISN 15 laboratories to procure the new software, re-write all existing software drive rules, and conduct extensive testing of the new software. With eight locations in VISN 15 the estimated duplicated cost to change to a different software for the same required outcome would be approximately $10 million, which does not take interoperability with VistA. This estimate is based on previous efforts to create the existing infrastructure. In addition, the aforementioned redesign of the infrastructure would result in extensive delivery delays of 8 to 10 years. VistA is a legacy system which has been in place at VISN 15 for over 34 years. VA requires this contract for a duration of four years until Cerner platform replaces VistA legacy system. A redesign of the infrastructure would not be cost-effective and could adversely impact the quality of patient care. It is critical that VA prioritizes the implementation of reliable software to guarantee accurate and timely results for Veterans. If the necessary software maintenance is not secured the DI IM software used by VA VISN 15 would cease to function resulting in serious risk to patient safety. Consequently, only DI can satisfy these requirements because it holds the proprietary code and own the intellectual property rights to manage and configure its own software. Due to the software being proprietary, access to the software code is required for creating updates and patches.

Without this access, modifying the software code as required for necessary updates and patches would not be possible. DI requirements discussed above without VA experiencing significant impact to Veterans and a substantial duplication of the cost that could not be recovered through competition.

Furthermore, on October 17, 2024, DI confirmed they are the only manufacturer and sole provider of the sustainment and support services for all DI products. DI is the only vendor that can provide continued support to middleware due to proprietary software, owns all intellectual property rights, and does not support third-party technical services.

For the past 34 years, DI has consistently met VA needs as the sole source vendor capable of providing this software.

needs.

6. Efforts to Obtain Competition: Market research was conducted, details of which are in the market research section of this document. This effort did not yield any additional

. There is no competition anticipated for this acquisition. In accordance with FAR 5.301 and 8.405-6(a)(2), the award notice for this action will be synopsized on Sam.gov and this justification will be made publicly available within 14 days of award.

7. Actions to Increase Competition: 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. VA continues to research software products in the marketplace to determine capabilities, and lookout for any new emerging products that VA could benefit from for these requirements.

8. Market Research: Market research efforts were conducted via internet research to determine if competition was viable for this action with the most recent research in May 2024. Software products Cerner and Sun Quest technical experts. While these products possessed some similar capabilities to perform the proposed effort, they do not posse the HL7 middleware that is compatible with VistA. Only DI possesses outlined in section five of this justification, which ensures that laboratory tests could be downloaded to the VistA computer system without any operator intervention. Based on the fact that DI owns all intellectual property rights in the DI Products and does not support third-party technical services, as discussed in section 5 above, no other vendor, aside from DI has access to this code. Therefore, no other provider, other than DI, can provide the requisite services.

Additionally, in September 2024, the Government discussed the ability of resellers to provide the required product and services. Furthermore, DI confirmed that they own all intellectual property rights for the DI Products and does not support third-party technical services. Additionally, DI confirmed that they have a partnership with Four Points

Service-Disabled Veteran-Owned Small Business (SDVOSB).; however, they serve only as a project manager and do not provide the

. DI also informed the Contracting Officer that no company is authorized to perform third- There is no competition expected for this effort nor is there the possibility that this proposed action can be set aside due to proprietary reasons.

9. Other Facts: None.

10.Technical/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.

11.Fair and Reasonable Cost Determination: I hereby determine that the proposed contract action will represent the best value to the Government consistent with FAR 8.404(d). GSA has already determined that the prices on the MAS contract are fair and reasonable. Further price analysis, to include an analysis of proposed price in relation to the Independent Government Cost Estimate, will be conducted and subsequent negotiations held as necessary. Additionally, price discounts will be sought.

12.Procuring Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

13.Office of General Counsel (OGC) Review:

I have reviewed this document and find it legally sufficient, based on the representations set forth in the documents and, if any, attachments. The approval is an independently supported decision not wholly reliant on the legal sufficiency determination.

Approval

In my role as procuring activity Advocate for Competition, based on the foregoing justification, I hereby approve the acquisition of Data Innovations Instrument Manager software licenses, sustainment and support services on an other than fair opportunity basis pursuant to the authority cited in Section 4 above, subject to availability of funds, and provided that the property and services herein described have otherwise been authorized for acquisition.