JOFOC 36C259-23-AP-1959 AGFA PACS Maintenance - Redacted.pdf

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN

COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C259-23-AP-1959

RPOW JOFOC Tracker Number: 2023-04-13T11:38:56

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 19, 6162 S. Willow Drive, Suite 300, Greenwood Village, CO 80111, in support of the Veterans Integrated Service Network (VISN) 19 Health Care facilities.

VISN 19 Health Care Facilities requirement supports:

1. Department of Veterans Affairs 2. Department of Veterans Affairs VA Western Colorado Health Care System VA Eastern Colorado Health Care System 2121 North Avenue 1700 N. Wheeling St Grand Junction, CO 81501 Aurora, CO 80045 2237: 575-23-2-822-0151 2237: 554-23-2-450-0141

3. Department of Veterans Affairs 4. Department of Veterans Affairs Fort Harrison VA Medical Center VA Salt Lake City Health Care System 3687 Veterans Drive 500 Foothill Drive Fort Harrison, MT 59636 Salt Lake City, UT 84148 2237: 436-23-2-083-0323 2237: 660-23-3-985-0060

5. Department of Veterans Affairs 6. Department of Veterans Affairs Cheyenne VA Medical Center Sheridan VA Medical Center 2360 E. Pershing Blvd. 1898 Fort Road Cheyenne, WY 82001 Sheridan, WY 82801 2237: 442-23-3-072-0040 2237: 666-23-3-483-0070

7. Department of Veterans Affairs 8. Department of Veterans Affairs Eastern Oklahoma VA Health Care System Oklahoma City VA Health Care System 1011 Honor Heights Drive 921 N.E. 13th Street Muskogee, OK 74401 Oklahoma City, OK 73104 2237: 623-23-2-091-0213 2237: 635-23-3-455-0274

2. Nature and/or Description of the Action Being Processed: This procurement is for a firm-fixed-price requirements contract in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of Far Part 6, but still require a justification using the format of FAR 6.303-2. This procurement is to provide maintenance to the AGFA Pictures Archive and Communication System (PACS), iPlan, Bi Looker and Vendor Neutral Archive (VNA) systems currently used by all VISN 19 Medical Care Centers. The current contract 36C25922C0006 expired on March 31, 2023, and there are no available options to exercise to extend the time further. At this time these services are not being performed. Therefore, another short-term contract is necessary to provide these services until a long-term contract can be established. A long-term contract cannot be established at this time due to the deployment of new AFGA Healthcare equipment at different medical centers that will need to be included in this maintenance requirement once accepted by the VA. At this time the full scope of work cannot be determined beyond the one-year period. A prolonged lapse in these

Effective Date: 02/01/2022 Page 2 of 4 services would diminish the s Radiology Department capabilities in providing patient care.

The incumbent AGFA Healthcare, a Large Business, has been providing services to VISN 19 Medical Centers and is the only company able.

3. Description of Supplies/Services Required to Meet the : This procurement action will provide maintenance support for AGFA PACS, iPlan, Bi Looker and VNA systems used throughout VISN 19 Medical Centers. Maintenance support includes but not limited to: software update/upgrade, software corrective maintenance, hardware repair, software reconfiguration and administration. The estimated value of this contract is for an estimated base period of one-year. The estimated value is also the maximum ceiling value of the requirement. The estimated base period of performance for this requirement is May 15, 2023 May 14, 2024. The resulting contract is expected to include FAR 52.217-8 - Option to Extend Services. If exercised for up to 6 months, the 52.217-8 option will be exercised at the same rates as those in effect under the contract at the time the contract is extended.

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

( X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

5. Demonstration that Requires the Use of the Authority Cited Above (applicability of authority): The incumbent contractor, AGFA Healthcare, is the only company able to provide maintenance support to all AGFA PACS, iPlan, Bi Looker and VNA systems due to the software and equipment proprietary. AGFA Healthcare is the Original Equipment Manufacturer (OEM) of the software and equipment, does not partner with any Small Business to conduct maintenance of their equipment or software. These are

Radiology Department capabilities in providing patient care.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The OEM is the only company with qualified technical staff to support the system. No other business has the authority or qualified technical staff to support the system. There will be no further actions taken to facilitate competition for this acquisition.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The anticipated cost to the government will be determined fair and reasonable based on the pricing of other contracts for the same services provided at locations outside of VISN 19. The Contracting Officer will review pricing obtain during the solicitation phase of the requirement and compare to the current contract pricing on other contracts to verify that the cost is fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: A search on Vendor Information Page (VIP) was conducted on March 8, 2023, with an output of zero (0) Service Disable Veteran Own Small Business (SDVOSB)/Veteran Own Small Business (VOSB) vendors. The search criteria used was NAICS code

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334510. A search of the Dynamic Small Business Search provided zero (0) profiles with a search using NAICS 334510. Neither the VA Rule of Two nor SBA Rule of Two can be met. The OEM is the only company with qualified technical staff to support the system. No other business has the authority or qualified technical staff to support the system. The current services were being provided under contract 36C25922C0006 and ended March 31, 2023.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Since the OEM does not partner with any other business, there are no subcontracting possibilities. This VISN wide requirement does not meet the FAR 2.101 definition of bundling as it has never been procured separately before. All stations from the onset of the first contract have been procured as one.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

The incumbent Contractor: AGFA Healthcare 10 S Academy ST Greenville, SC 29601

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required: A follow-on acquisition is planned and anticipated for this requirement. The biggest barrier to competition for these services are that AGFA Healthcare is the OEM and will not partner with other companies to provide these services.

12. Requirements Certification: I certify that the requirement outlined in this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

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b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.