JA Image Exchange Software_Redacted.pdf

Control Number VA-21-00100169

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 to enable electronic, bi-directional exchange of radiology imaging exams and reports with commercial healthcare facilities providing services to VA patients with Medicom Technologies, Inc. (Medicom), 434 Fayetteville St. Ste 1650, Raleigh, NC 27601.

3. Description of Supplies or Services: The Department of Veterans Affairs (VA) Imaging Service at ALMD (671) requires additional Medicom Software Licenses and Support for the South Texas Veterans Health Care System (STVHCS) to expand its current Medicom server installation. Medicom Software provides a system which enables electronic, bi-directional exchange of radiology imaging exams and reports with commercial healthcare facilities providing services to VA patients. The Mission Act has made it possible for Veterans to seek diagnostic imaging services outside of the VA. As it exists currently, CD-ROMs and DVD-ROMs are handcarried or mailed to and from the VA at the completion of a diagnostic test leading to roughly $1M/Year in waste/VAMC. Medicom’s Image Exchange (Imagex) transforms this into an easyto-use electronic process that eliminates CD’s and associated delays in care. Medicom’s Imagex with Assistant Edition deploys a proprietary peer-to-peer network which would provide the VA Hospitals in South Texas Veterans Health Care System (STVHCS) the ability to facilitate the exchange of radiology information such as reports and images through encrypted conduits between providers on the fully federated health information network. The period of performance shall be 12 months from the date of award, with three 12-month option periods

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: Based on Market research as described in Section 8 of this justification, Medicom’s Imagex is the only solution that can fulfill the Government’s requirements. The VA still mostly relies on CDs to share imaging examinations with community care providers, but examinations are often repeated when CDs are not requested, get misplaced, or are not “readable” due to software incompatibility. CDs and repeat imaging cost the VA an estimated $163-181 million per year. More importantly, the Veteran can be harmed when previous examinations are not available: delayed diagnosis of cancer, aggressive and needless work-ups, and increased radiation exposure. Medicom is a fully-

Control Number VA-21-00031752 federated health information exchange provider that connects disparate silos of health information so that they can be easily and securely searched and shared. The VA STVHCS already has a Medicom server installed and now requires an expansion to allow bi-directional image sharing. Medicom, is a proprietary system and only Medicom software licenses and support will interoperate with the current STVHCS installation as Medicom shares images through a proprietary system. Currently, VA utilizes Medicom to receive radiology images, but require new licenses so VA may share images with external providers. Use of any other system, would require VA to reprocure and reconfigure a new radiology sharing system. This would require VA to reconfigure a new virtual machine which would take approximately a month to reconfigure. This increases VA’s risk that critical images will not be shared during this time to reconfigure.

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 sources that can meet the Government’s requirements. There is no competition anticipated for this acquisition. In accordance with FAR 5.203(b) this justification will be publicized along with a synopsis of the solicitation.

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.

8. Market Research: A Request for Information (RFI) (36C10B22Q0025) was issued on October 12, 2021 on the Contracting Opportunities website to ascertain if there were any other sources that could meet the Government’s requirements. In the RFI, the Government requested vendors to identify alternative commercially available solutions and the estimated cost of the alternative solutions. No responses were received from the RFI. Based on the market research conducted by the Government’s technical experts, it has been determined that no other vendor can meet the Government’s requirements due to the proprietary nature of the currently installed Medicom system.

9. Other Facts: N/A

Control Number VA-21-00031752

10. Technical and 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: Further price analysis, to include an analysis of proposed level of effort and mix of labor, will be conducted and subsequent negotiations held as necessary. Additionally, price discounts will be sought. Finally, the quotation will be compared to the Independent Government Cost Estimate.

12. Procuring Contracting Officer Certification I certify that this justification is accurate and complete to the best of my knowledge and belief. As this contract action exceed $3,500, but does not exceed the simplified acquisition threshold.