JOFOC - Emergency Teleradiology Services - HCA Approved - Redacted.pdf

VHAPG Part 806.3 JOFOC Page 1 of 6 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C262-26-AP-1890/36C26-26-AP-3022

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C262-26-AP-1890/36C262-26-AP-3020 HCA Verbal Approval Given: February 20, 2026 Contract Award Date: February 20, 2026

1. Contracting Activity: The Department of Veterans Affairs (VA), Veterans Integrated

Services Network (VISN) 22, Northern Arizona VA Health Care System (NAVAHCS) and Phoenix VA Health Care System (PVAHCS), are the requiring activities. This acquisition was executed by the Network Contracting Office (NCO) 22. The Purchase Requisition (PR) numbers are 644-26-2-047-0273 and 649-26-2-3376-0047.

2. Nature and/or Description of the Action Being Approved: This procurement was for teleradiology interpretation services and was conducted in accordance with Revolutionary Federal Acquisition Regulation Overhaul (RFO) 12 Acquisition of Commercial Products and Commercial Services. In accordance with RFO 12.102, Restricting Competition for the acquisition of Commercial Products and Commercial Services requires a justification using the format as described in RFO 6.104-1.

A sole source emergency contract was essential to provide vital healthcare services for Veterans in NAVAHCS and PVAHCS. Both NAVAHCS and PVAHCS request a contractor to provide board certified and/or board eligible Radiologists to perform teleradiology interpretation services. This requirement ensures critical healthcare services while the VISN long-term contract is under development and procurement. This requirement was awarded as a Firm-Fixed-Price (FFP), Indefinite-Delivery Indefinite-Quantity (IDIQ) contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Government requires contracted teleradiology interpretation services to provide STAT, emergent, and routine diagnostic imaging coverage for both NAVAHCS and PVAHCS. Services include after-hours, weekend and all federal holiday coverage, as well as overflow support during normal business hours when on-site radiologist capacity is exceeded.

Both facilities were experiencing significant radiologist staffing shortages and reliance on supplemental National Teleradiology Program (NTP) that is no longer able to meet demand.

These constraints have resulted in delayed report turnaround times and reduced interpretive capacity for urgent and emergency examinations. Due to the immediate operational need and ongoing staffing shortages, an emergency contract was required to ensure continuity of radiology services while the VISN-wide long-term contract is under development and procurement.

VHAPG Part 806.3 JOFOC Page 2 of 6

Acquisition ID#: 36C262-26-AP-1890/36C26-26-AP-3022

These services were authorized under Title 38 United States Code (USC) 8153 and VA Directive 1663. The period of performance is February 20, 2026, through August 19, 2026, with an option to extend up to six (6) months.

4. Statutory Authority Permitting Other than Full and Open Competition:

RFO 12 Procedures for Acquisition of Commercial Products and Services. The statutory authority for applying the Simplified Procedures for Acquisition of Commercial Products and Services of RFO 12.201-1 is 41 U.S.C. § 1901 and is implemented by RFO 12.102(b) for restricting competition on this procurement. Competition is restricted on this procurement for the reasons below:

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

(x) 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 the Contractor’s Unique Qualifications or Nature of the

Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

VetMed Group, a Service-Disabled Veteran-Owned Small Business (SDVOSB), was uniquely positioned to meet the Government’s urgent requirement due to its existing operational integration within VISN 22 and established Teleradiology Service Agreement (TSA). VetMed maintains a pool of VA credentialed and privileged radiologists authorized to provide services across participating facilities, eliminating the need for additional credentialing and privileging delays.

VetMed utilizes VA-complaint imaging and data systems including Intel Picture Archiving and Communication System (PACS), Mirth, and Fluency for Imaging, and operates under a VA-approved National IT Memorandum of Understanding (MOU). This existing infrastructure allows for immediate connectivity, secure data exchange, and uninterrupted continuity of operations without additional system validation or cybersecurity review.

VetMed’s continued support to VA facilities demonstrated the ability to manage high-acuity and high-volume caseloads while meeting required turnaround times. VetMed’s existing contract was already operational within the VA environment and credentialed under established agreements, allowing services to continue without transition delay.

Facility Base Period Option Period Total NAVAHCS Grand Total $254,950.00 $254,950.00 $509,900.00 PVAHCS Grand Total $398,501.65 $398,501.65 $797,003.30

Grand Total $1,306,903.30

VHAPG Part 806.3 JOFOC Page 4 of 6

Acquisition ID#: 36C262-26-AP-1890/36C26-26-AP-3022 requirements into a single procurement action under this justification. This consolidation did not expand the scope of services evaluated through market research and did not alter the determination that no other sources could meet the Government’s urgent requirement within the required timeframe.

Based on the responses received, neither vendor demonstrated the ability to provide the immediate, credentialed radiology coverage required to meet the Government’s urgent and compelling need. No additional capable sources were identified through the notice process.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable: In accordance with RFO 12.204 (a), the Contracting Officer (CO) determined that the price for this requirement is fair and reasonable. This determination was based on a review of the proposed rates, historical pricing for similar services, the Independent Government Cost Estimates (IGCE), and prevailing market rates for equivalent healthcare services. Due to the urgent and compelling nature of the requirement, the CO conducted a price analysis using available market information and consistent with current market conditions.

8. Description of the Market Research Conducted and the Results, or a Statement of the

Reasons Market Research Was Not Conducted: Market research was conducted in accordance with RFO Part 10 and Veterans Affairs Acquisition Regulation (VAAR)810.001- 70 to identify potential sources capable of providing nationwide teleradiology services within the required timeframe.

Searches were performed in SAM.gov under Northern American Industry Classification System (NAICS) 621512 and Product/Service Code (PSC) Q522 using the keyword “teleradiology”. A review of contract award within the past year yielded fourteen (14) results, including seven (7) Indefinite Delivery Vehicle (IDV) contracts awarded between FY20 and FY25. Recent awards for similar requirements were identified for VetMed Group LLC (SDVOSB), Valor Network, Inc. (SDVOSB), and Riverside Radiology and Interventional Associates, Inc., (Large Business). Searches in General Services Administration (GSA) Library produced no applicable schedule contracts for this requirement.

A review of Federal Procurement Data System (FPDS) data identified over 1,100 awards under NAICS 621512 within the past year. After filtering for similar VA requirements indicated that comparable services were awarded to three (3) primary vendors; VetMed Group LLC, Valor Network, Inc., and Louisiana State University (Large Business).

Outreach emails were sent to identified vendors to determine their interest and whether they maintained radiologists currently credentialed and privileged within VISN 22 to provide immediate services. No vendors demonstrated the ability to provide immediately available, credentialed radiologists capable of performing without transition delay.

Market research identified seven (7) potential vendors in total, including three (3) SDVOSBs, and three (3) large businesses. However, with the exception of VetMed, none demonstrated the capability to meet the Government’s requirement for immediate, fully credentialed coverage under the existing TSA framework. Vendors indicated staffing ramp-up timeline