JA NextGen Final Redacted.pdf

CONTROL NUMBER VA-25-00075474

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) effort for the procurement of NextGen Healthcare (Mirth Connect) licenses.

3. Description of Supplies or Services: The Department of Veterans Affairs (VA), Office of Information and Technology (OI&T), Data Access Services (DAS) has a requirement for NextGen Healthcare (Mirth Connect) licenses, a healthcare integration engine that enables interoperability between two systems by accepting incoming information packets, called messages, and processing them according to rules established by VA. Mirth Connect has three primary functions: filtering, transformation, and routing. Mirth Connect reads message parameters and either passes the message to the transformation stage or stops it on its way. Mirth Connect also converts the incoming message standard to another standard (for example, HL7 to XML). In the Cerner to TeleICU case, localization of clinical date/time fields in the clinical data of the transactions is necessary. Finally, Mirth Connect ensures that messages reach their assigned destinations. DAS’s objective is to build a comprehensive solution by enhancing the overall toolset functionality and vendor support with a licensed version that includes the commercial extensions added on top of the base product (open source/free version). The period of performance for maintenance shall be 12 months from date of acceptance with four 12-month option periods. The delivery of the software shall be within thirty (30) days after receipt of award. The total estimated value of the proposed action 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 NextGen Healthcare (Formerly known as Mirth Connect). Mirth Connect licenses provides a unique solution that is compatible with the existing system and with current business needs. OI&T DAS has been using Mirth Connect since 2023, and meets all VA requirements. The proposed source for this action is NextGen Healthcare, specifically its interface engine platform Mirth Connect (also marketed as NextGen Health Connect), which provides a unique, proven solution aligned with the Data Access Services (DAS) architecture and current operational requirements.

Nextgen MirthConnect Software Licenses CONTROL NUMBER VA-25-00075474

Mirth Connect has been in active use by OIT DAS since 2023 and is fully integrated into DAS’s mission-critical cloud environments. It continues to meet all VA-established security, technical, and operational standards and plays a central role in enabling secure, real-time HL7 and FHIR-based data exchange across VA and external partner systems.

DAS currently supports approximately 26 unique, high-impact dataflows (e.g., Service Treatment Records (STR), Disability Benefits Questionnaires (DBQ), Community Care Referrals, and the Separation Health Assessment (SHA)). Each of these dataflows may rely on multiple integration pathways depending on source, destination, message type, and transformation needs. These technical pathways are configured as integration channels within Mirth Connect.

NextGen Health Connect is currently licensed to support up to 100 discrete integration channels, which power complex message routing, transformation, validation, and auditing across major VA platforms including VBMS, OEHRM, VA Health Connect CRM, Community Care, and DoD medical systems. These channels ensure continuity of care, claims adjudication, referrals, and eligibility verification all of which are essential to timely Veteran benefits and healthcare delivery.

Because the software is already installed, validated, and operational within DAS infrastructure, continued use of Mirth Connect ensures technical consistency across all currently operational HL7/FHIR-based integration channels and cost-effectiveness, avoiding redevelopment, retraining, and dual-system support.

Additionally, continued use of Mirth Connect avoids disruption to critical service delivery timelines.

If DAS were required to transition to an alternative interface engine—particularly one lacking equivalent HL7 routing, transformation, and security capabilities—the VA would incur extensive system migration and reintegration efforts, estimated at a minimum of 9–12 months, including phased redevelopment of over 100 integration channels and reconfiguration across multiple DAS environments. Based on DAS’s current scale and system complexity, at least 2,000 labor hours across development, cybersecurity, architecture, validation, and inter-agency coordination teams would be required for the integration of an alternative platform. Additionally, comprehensive retraining and change management, affecting 6+ internal teams and 15+ partner teams, requiring updated SOPs, system validation, and documentation would be required. The VA would incur increased long-term costs, including custom development, parallel system support during transition, and licensing costs likely exceeding those of the current solution

Even under best-case conditions, this transition would likely introduce at least 4–6 months of delay in delivering Veteran-facing services, including disability claims adjudication and rating decisions, Community Care referrals and authorizations, test result delivery and care coordination, and eligibility verification and enrollment processing

Nextgen MirthConnect Software Licenses CONTROL NUMBER VA-25-00075474

Given Mirth Connect’s operational maturity, embedded configuration across DAS environments, and critical role in powering the VA’s most complex HL7/FHIR-based dataflows, NextGen Healthcare is the only known solution capable of meeting these requirements without introducing technical debt, mission disruption, or financial inefficiencies.

6. Efforts to Obtain Competition: There is only one responsible source for this item.

Efforts made to locate additional sources are described under the Market Research paragraph of this document. There is no competition anticipated for this acquisition.

Procurement data does not include any unnecessary requirements that may inhibit competition.

7. Actions to Increase Competition: The Government will continue to conduct market research for changes in the marketplace. Specifically, the Government will continue to research similar software to determine if new products enter the marketplaces that are comparable with NextGen Healthcare (Mirth Connect) licenses.

8. Market Research: Market research was conducted by DAS technical experts from January 2025 to July 2025. Similar software reviewed included Infor Cloverleaf, Core Point Rhapsody, and InterSystems Ensemble. Based on reviews of these products, the DAS technical experts determined that none of the above products can meet interoperability and compatibility for the price provided by NextGen Connect nor the operating cost associated (personnel, hardware costs, maintenance, and support). Additionally, other competing integration engine search products did not offer the licensing needed to evaluate in such an extensive and thorough manner, nor do they offer maintenance and support for the MirthConnect proprietary software. Additionally, a Request for Information was released on the National Aeronautics and Space Administration (NASA), Solutions for Enterprise- Wide Procurement (SEWP) website in April 2025 and received no responses when it closed. The Contract Specialist reached out the Original Equipment Manufacturer (OEM) to inquire if there are authorized resellers of the required NextGen software, support and maintenance on May 12th 2025. NextGen, who is the OEM, replied with an email stating there are no authorized resellers of the requirements on May 12th, 2025. The email from the OEM has been made part of the contract file. As a result of the market research. the technical experts concluded that the required NextGen software, support and maintenance are only available directly from NextGen. As a result, the acquisition strategy will be a sole source award in accordance with Federal Acquisition Regulations (FAR) 6.302-1.

9. Other Facts: N/A