JA_DSS_Final_Redacted.pdf

CONTROL NUMBER VA-26-00000374

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

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 sole source action is for a firm-fixed-price (FFP) contract for the renewal of software maintenance and help desk support for Sunrise Decision Support System (Sunrise DSS) software with Strata Decision Technology, 200 E Randolph St. Chicago, IL 60601.

3. Description of Supplies or Services: Veterans Health Administration, Office of Finance, Managerial Cost Accounting (MCA) Office, has a requirement for ongoing annual maintenance and support of existing Strata Sunrise DSS software, from Strata Decision Technology, which is currently used enterprise-wide by VA as its designated MCA system. Sunrise DSS software is proprietary Commercial-Off-The- Shelf software that only Strata Decision Technology has the authority to maintain, update, and modify. Sunrise DSS software is fully deployed as VA's enterprise-wide MCA system. VA is required to have a Cost Accounting System in accordance with the Public Laws that mandate the use of a MCA system, e.g., Public Law 101-576 (Chief Financial Officer Act of 1990) as well as the Federal Financial Management Improvement Act of 1996 and 2010 Government Performance and Results Modernization Act and their government-wide cost accounting standards. Sunrise DSS is presently VA’s sole, designated MCA system and, consequently, needs to be maintained.

MCA transforms day-to-day operational data into tactical information that is used by leadership to make informed operational resource decisions. The Sunrise DSS software provides integration of clinical, financial, and workload data that enables decision-makers to determine costs down to an individual Veteran, episode-of-care, product, and/or benefit provision, thus improving the quality and efficiency of provision of medical care and benefits. Furthermore, MCA calculates the total operating costs of a healthcare network, medical center, station, or department and differentiates between fixed and variable costs and between direct and indirect costs. This enables management to establish a data-driven operating budget and to monitor any variances from expected costs and workload and also compare performance and productivity among VA stations and medical centers. MCA is utilized at all levels of VA, from a single department at a clinic or regional office to the Office of the Secretary, Office of Management and Budget, Inspectors General, and U.S. Congress.

The Contractor shall provide software maintenance services for Strata Sunrise DSS software to include periodic functional maintenance and updates to the software, customization enhancements to meet changing VA requirements, and consultative support to MCA Office Help Desk and VA Austin Information Technology Center's staff in order to support all systems and database operations related to Sunrise DSS

Decision Support System (DSS) Software MTC and SPPT VA-26-00000374 software. These services will ensure the software remains operational. Sunrise DSS Help Desk support requires Strata’s expert-level assistance and remediation with complex DSS Application and M204 Database Management Systems issues. No hardware or software will be procured as a result of this action. This action is for software maintenance and helpdesk support services only.

The period of performance shall be 12-months from November 17, 2025 through November 16, 2026, with two 12-month Option Periods. The total estimated value of this proposed action, inclusive of all Option Periods is .

4. Statutory Authority: The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(1) as implemented by the Federal Acquisition Regulation (FAR) 6.302-1 entitled, “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

5. Rationale Supporting Use of Authority Cited Above: The proposed source for this action is Strata Decision Technology, LLC; 200 E Randolph St., FL 49, Chicago, IL 60601. Based on market research, as described in Section 8 of this justification, it was determined that competition is not viable, as Strata Decision Technology is the proprietary owner and only vendor authorized to provide required software maintenance services. The Government contacted Strata directly to determine if it would provide its source code to any other vendors/contractors. In response, Strata informed the Government that it does not permit any third party to resell or support the Sunrise DSS. Strata prohibits access to the software source code by other vendors/contractors for the purposes of maintenance, support, or customizations. Sunrise DSS software code is proprietary to Strata Decision Technology; therefore, only Strata Decision Technology has the ability to update, maintain, and modify this code. This proprietary software code is also needed to maintain the inner workings of the Sunrise DSS application in order to develop and deploy updates and modifications of the software's code. Furthermore, access to the proprietary code is required to ensure security updates are promptly installed and there are no software proprietary constraints. Access to software code is also required to ensure services are properly configured. Due to proprietary constraints no other vendor can provide the maintenance required.

An analysis of alternatives revealed a replacement system is estimated to cost around $40 million and will take 4-5 years while also maintaining legacy DSS software to provide MCA data. Failure to continue to maintain Sunrise DSS software, which is used as VA's MCA, will put VA at risk of non-compliance with U.S. law and halt the reliable cost information provided to VA leaders, which is a necessary input for key management decisions. Sunrise DSS’ Cost Accounting information is utilized for budgeting, resourcing, and optimizing the provision of healthcare/benefits throughout the VA Enterprise. The impact of not maintaining the software would be catastrophic and degrade VA’s ability to provide healthcare and benefits to its Veterans. These impacts would be not only felt across Veterans Health Administration (VHA), Veterans Benefit Administration (VBA), National Cemetery Administration (NCA), VA Central Office, VHA Central Office , Veteran Integrated Services Networks (VISN’s), VA Medical Centers (VAMC’s), VBA Regional Offices, and NCA National Cemeteries, but would also cause serious and negative impacts in VA’s ability to provide accurate and timely information products to Congress, White House Office of Management and Budget, and U.S. Congress Government Accountability Office.

6. Efforts to Obtain Competition: Market research was conducted, the 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 Sunrise DSS acquisition due to software license limitation specified in Section 5 above. No resellers are authorized to sell or provide support to Sunrise DSS. Additionally, the proposed action will be synopsized on the Contract Opportunities in accordance with FAR Part 5.201. Any proposals received shall be evaluated. In accordance with FAR

5.301 and 6.305(a), notice of award for this action will be synopsized on Contract Opportunities within 14 days of award along with a copy of this justification.

7. Actions to Increase Competition: In parallel with this proposed contract, the Government is currently in the process of developing requirements and proof of concept for MCA Modernization project for replacement of Sunrise DSS, as part of VA’s Financial Management Business Transformation (FMBT). MCA Modernization is inclusive of a full and open competition for a new MCA System.

8. Market Research: The Government’s technical experts conducted market research from June 2025 to July 2025 by reviewing other similar software products from NetSuite and QuickBooks. None of the products reviewed can provide the software maintenance, enhancement and help desk support for the currently deployed Strata Sunrise DSS without access to the proprietary source code.

Additionally, the similar software products were determined to be standard accounting software for general customer usage. As detailed in Section 5, these alternative software products would not be able to be modified to immediately meet VA requirements. The Government also confirmed that there are no authorized resellers for the software, maintenance, enhancement and help desk support.

Additionally, the Government conducted further market research by posting a Request for Information (RFI), on July 30, 2025, to the Contract Opportunities. The RFI requested capability statements from vendors that demonstrate the ability to provide Sunrise DSS software maintenance. The RFI closed on August 7, 2025, with zero (0) responses from industry.

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.

Name of Requiring Activity Certifier Date

11. Fair and Reasonable Cost Determination I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable based on price analysis to include comparison of negotiated prices to the Independent Government Cost Estimate and historical pricing data.

Kathryn Pantages Date Contracting Officer

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

Kathryn Pantages Date Contracting Officer

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 Advocate for Competition’s approval is an independently supported decision not wholly reliant on the legal sufficiency determination.

Krysta Ku Date Office of General Counsel

Approval

In my role as procuring activity Advocate for Competition, based on the foregoing justification, I hereby approve the acquisition of a sole source action is for a firm-fixed-price (FFP) contract for renewal of software maintenance and help desk support for Sunrise Decision Support System (DSS) software on an other than full and open competition 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.

Jason Bullen Date Advocate for Competition Technology Acquisition Center Office of Procurement, Acquisition, and Logistics Department of Veterans Affairs