P03 Exception to Fair Opportunity _Redacted.pdf

Attachment 1: Request for Exception to Fair Opportunity Memo Format

Effective Date: 12/30/2025 Page 1 of 4 Revision: 03 Acquisition ID#: 36C260-26-AP-3882

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID: 36C260-26-AP-3882

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 20, located at

1601 E. Fourth Plain Blvd, Bldg. 17 Suite B428, Vancouver, WA 98661, in support of VISN 20 Portland VA Health Care System at 3710 SW US Veterans Hospital Road, Portland, OR 97239-2964. This is a Justification IAW RFO 16.507-6(b)(1) The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays. Funding for this procurement action is provided through Purchase Request 648-26-3-095-0872, .

2. Description of Action: This urgent requirement is a sole source award and will result in a Delivery Order against Carestream Health’s DLA contract SPE2D1-17-D-0019 for a firm-fixed price (FFP) task order for the purchase of one (1) new 35x43 detector used with the Carestream Mobile X-ray unit to ensure continuous imaging capability of patients outside of radiology. The Detector captures x-ray images and converts the x-ray energy into high-quality diagnostic images for viewing on a monitor.

ITEM PRICE TOTAL

1 DRX Plus CSI New Detector (35X43)

3. Description of Supplies or Services: The proposed action is to purchase a new DRX Plus CSI TO replace a broken detector in repair of a Carestream Mobile X-ray unit to ensure continuous imaging capability of patients outside of radiology. The total estimated value of this effort is and includes no options.

4. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section 41 U.S.C. 4106(c) as implemented by the Revolutionary FAR Overhaul (RFO) 16.507-6(b)(1)

( X ) FAR 16.507-6(b)(1): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

5. Rationale Supporting Use of Authority Cited Above: This is an urgent requirement. Market research was conducted, details of which are in the market research section of this document. This effort yielded no additional sources that can meet the Government’s requirement. The facility currently supports 8 Carestream Mobile X-Ray units with only one remaining detector. The second detector previously used is damaged beyond repair, and one operable unit is not sufficient to meet the demands of the facility. When more than one mobile x-ray unit is needed, Veteran care will be delayed. This detector is available via Carestream Health’s HTME contract and as common in the industry, Carestream retains proprietary rights to distribute this equipment. Under the auspices of

Effective Date: 12/30/2025 Page 2 of 4 Revision: 03 Acquisition ID#: 36C260-26-AP-3882 the VA-DLA Joint Radiology Imaging Systems Program IDIQ initial delivery orders for new radiology and imaging system requirements are competed amongst the IDIQ holders, and all HTME requirements include a warranty with the requirement purchase. The Mobile X-Ray units at the Portland VA Medical Center requires this replacement part to cover the lifecycle of the equipment purchase. Because the requirements are already purchased and have not exhausted their lifecycle, purchasing the replacement detector in support of the equipment ensures the equipment is compliant with VHA technology standards and policies. The contractor’s Radiology & Imaging Systems are proprietary; therefore, any replacement equipment should be sourced directly by the original equipment manufacturer (OEM) and not outsourced to a third-party to maintain the integrity of the equipment As such, the replacement can only be completed by one source, which is the OEM of the equipment. This justification will be posted IAW RFO 6.301(b)(1).

6. Efforts to Obtain Competition: Limited market research was conducted because of the emergent nature of this requirement to prevent delay in care for, and impact on, Veterans. Government wide databases were searched for possible contract vehicles and sources of supply. HTME SPE2D117D0019 was found covering this proprietary equipment. SAM.gov and AddsUp were searched and confirmed awards to the HTME contract holder, Carestream Health, Inc. There is no competition anticipated for this acquisition. In accordance with RFO 5.301(b) and 16.507- 6(f)(1) synopsis at award is not required.

7. Actions to Increase Competition: Carestream detectors are considered proprietary data and no other providers can program and replace their goods except Carestream. Portland VAMC currently has Carestream systems in place for imaging. This will be a delivery order against the HTME contract SPE2D1-17-D-0019, awarded to Carestream as an Unrestricted contract. The commercial marketplace often retains the rights to distribute replacement parts to ensure the equipment is maintained to OEM specifications and to preserve value of associated intellectual property investments in bringing HTME to market. Therefore, it is in the Government’s best interest to award this as a delivery order against contract SPE2D1-17-D-0019. 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: Due to the urgent nature of this requirement limited market research was conducted. Market research indicates that there are not 2 or more SDVOSB, VOSB, nor small businesses of any classification capable of meeting this requirement’s needs. Government wide databases were searched and the National Contract Services’ High Tech Medical Equipment (HTME) Contracts database was reviewed. Upon review, this requirement was determined within scope of a Defense Logistics Agency and Department of Veteran Affairs combined HTME contract SPE2D1-17-D-0019. A search of SAM.gov and AddsUp revealed awards to Carestream under this HTME for similar equipment. Because this is an urgent requirement, and because the equipment is proprietary to the OEM Carestream, it is in the Government’s best interest to award this IAW RFO 16.507-6(b)(1), The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

9. Other Facts: The contractor’s Radiology & Imaging Systems are proprietary. Therefore, any replacement equipment should be sourced directly from the original equipment manufacturer (OEM)

Effective Date: 12/30/2025 Page 4 of 4 Revision: 03 Acquisition ID#: 36C260-26-AP-3882