JNA_626-B90129_Signed.pdf

1 | P a g e

Justification for an Exception to Fair Opportunity FAR 16.505(b)(2)(i)(C) – Logical Follow-On

(1) Identification of the agency and the contracting activity.

This Justification for an Exception to Fair Opportunity is on behalf of VISN 9, VAMC Nashville, TN Healthcare system, and will be executed by, the Veterans Affairs National Acquisition Center (NAC) located in Hines, Illinois.

(2) Nature and/or description of the action being approved.

This activity proposes to issue a sole-source delivery order against Indefinite Quantity contract SPE2D1-18-D-0006 awarded to Change Healthcare. This is an upgrade to the existing Change Healthcare MR12 PACS System for VISN 9, VAMC Nashville, TN Healthcare System. This upgrade will also include associated hardware that is affected by this upgrade.

(3) A description of the supplies or services required to meet the agency’s needs, including the estimated value.

VISN 9 is requesting Change Healthcare MR12 PACS upgrade system with advanced visualization (Tera recon), enhanced Enterprise viewer, Workflow Intelligence and dose management (Radimetrics) optimization. This upgrade includes Radimetrics preprocessor server licensing, hardware and implementation services. Change Healthcare Workflow Intelligence Software – uplift to Interpretation and Quality License – up to 800,000 Annual Exam Volume, to include 1 test software license, 1 PACS integration and 1HL7 inbound interface. Workflow Intelligence Quality Workflow; Small All-in-One Server – up to 200,000 APV-HPE; Large All-in-One Server – up to 2,400,000 APV-HPE. Microsoft SQL Server Standard 2008 2 Cores Embedded ISV downgraded from Microsoft SQL Server Standard 2017 2 Cores Embedded ISV. Workflow Intelligence Test Server Database Package – Microsoft SQL Server Standard 2008 1 Client Devices Embedded ISV downgraded from Microsoft SQL Server standard 2017 1 Client Devices Embedded ISV;

Microsoft SQL 2017 1 CAL Embedded ISV; 1 day of remote professional services; 3 days of on-site professional services- includes travel and expenses; 2 consecutive days of on-site professional services- includes travel and expenses and Management Services; up to 800,000 Annual Exam Volume.

The total estimated value is $1,230,176.00

(4) An identification of the exception to fair opportunity (see 16.505(b) (2)) and the supporting rationale, including a demonstration that the proposed contractor’s unique qualification or the nature of the acquisition requires use of the exception cited. If the contracting officer uses the logical follow-on exception, the rationale shall describe why the relationship between the initial order and the follow-on is logical (e.g. in terms of scope, period of performance, or value).

2 | P a g e

The order will be issued on a sole-source basis as a logical follow-on to delivery order

VA797N-16-F-0007, issued under PO # 603-B20012 in the amount of $5,820,978.00 awarded 8/22/2016 in accordance with FAR 16.505(b)(2)(i)(C). Purchase Order # 626- B90129 will be awarded under Philips IDIQ contract SPE2D1-18-D-0006.

Change Healthcare is the original equipment manufacturer (OEM), and sole firm which can upgrade the MR12 PACS system that was installed in FY2018. Since installation, the Radiologists at VISN 9 have identified a need for more advanced visualization toolsets and additional dose management licensing to optimize system performance. Additionally, Change Healthcare has introduced an enhanced Enterprise Viewer and workflow optimization toolset (Workflow Intelligence). As the OEM of the MR12 PACS system, Change Healthcare is the only one capable of providing all the necessary equipment/software/licensing for advanced visualization, optimization of dose management, Enterprise Viewer and Workflow Intelligence. This upgrade will allow the system to run on the latest operating systems.

The follow-on order will be issued on a sole-source basis as only one such awardee can provide the supplies or services required at the level of quality required for the workstation integration package. No other manufacturer can provide the necessary technology to upgrade the current purchased system with the VA without losing compatibility and functionality of the entire system. The expectation is that the systems continue operation as expected in a safe manner.

(5) A determination by the Contracting Officer that the anticipated cost to the

Government will be fair and reasonable.

All items are currently on Siemens IDIQ contract SPE2D1-18-D-0006 awarded December 15, 2017. The quoted price for each item is at or below the IDIQ not-to-exceed contract price, and the IDIQ contract pricing has been determined fair and reasonable by a contracting officer in accordance with 13.106-3, 14.408-2 and Subpart 15.4. Change Healthcare is also offering an additional 12% - 25% discount off their contract price which is an additional savings for the government.

(6) Any other facts supporting the justification.

This is a medical device which received FDA 510K medical device certification in the specific configuration which the OEM manufactured it. This information is known only to the OEM.

(7) A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.

Future requirements will be handled on a case by case basis and all attempts will be made to provide fair opportunity to all schedule holders.

3 | P a g e

(8) The contracting officer’s certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

By signing this justification, the requiring activity hereby certifies that the justification is accurate and complete to the best of their knowledge.

(9) Evidence that any supporting data that is the responsibility of the technical or requirements personnel (e.g., verifying the Government’s minimum needs or requirements or other rationale for an exception to fair opportunity) and which form a basis for the justification have been certified as complete and accurate by the technical or requirements personnel.

By signing this justification, the requiring activity hereby certifies that the justification is accurate and complete to the best of their knowledge.

(10) A written determination by the approving official that one of the circumstances in

(b)(2)(i)(A) through (F) of this section applies to the order.

Based on the information contained herein, a determination has been made that this requirement meets the exception at FAR 16.505(b)(2)(i)(C) since it is a logical follow-on to an order already issued under the contract. All awardees were given a fair opportunity to be considered for the original order.

CERTIFICATION AND APPROVAL

TECHNICAL/REQUIREMENTS CERTIFICATION:

Pursuant to FAR 16.505(b)(2)(ii)(B)(9), I certify that any supporting data that is my responsibility and which forms a basis for the justification is complete and accurate to the best of my knowledge and belief.

Prepared by:

Brandon Weiss Biomedical Engineer

VISN 9

4 | P a g e

CONTRACTING OFFICER CERTIFICATION:

Pursuant to FAR 16.505(b)(2)(ii)(B)(8), I certify that the justification is complete and accurate to the best of my knowledge and belief.

Ann English, Contracting Officer VA National Acquisition Center – Hines High-Tech Medical Equipment Ordering Division (003B6C2)

Monica E. Mende Chief VA National Acquisition Center – Hines High-Tech Medical Equipment Ordering-B Division (003B6C2)

COMPETITION ADVOCATE APPROVAL:

Craig Robinson Associate Executive Director National Acquisition Center – Hines