P03 - FAR 12 Sole Source Justification - Over SAT - Teleradiology Services - NMVAHCS Redacted.pdf

Request for Sole Source Justification >SAT-$9M under FAR 12.102

Effective Date: 11/15/24 Page 1 of 5

REVISION: 01

Acquisition ID#: 36C262-26-AP-1307

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER ACQUSITION OF COMMERCIAL

PRODUCTS AND COMMERCIAL SERVICES ACCORDANCE WITH FAR 12

Acquisition Plan Action ID: 36C262-26-AP-1307

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

Services Network (VISN) 22, New Mexico VA Health Care System (NMVAHCS), is the requiring activity. This acquisition is being executed by the Network Contracting Office (NCO) 22. The Purchase Requisition (PR) number is 501-26-1-081-0003.

2. Nature and/or Description of the Action Being Processed: This procurement is for the teleradiology services in accordance with Federal Acquisition Regulation (FAR) 12 Acquisition of Commercial Produces and Commercial Services and specifically FAR 12.102 Restricting Competition, 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 6.104-1.

A sole source bridge contract is required to provide continued healthcare services for Veterans in NMVAHCS. NMVAHCS requests a contractor to provide board certified Radiologists to perform teleradiology interpretation services. This requirement ensures continuity of critical healthcare services while the long-term contract is expected to be awarded by June 1, 2026. This action will be awarded as a new contract and the requirement type will be Firm Fixed Price (FFP), Indefinite Delivery, Indefinite Quantity (IDIQ) contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: NMVAHCS requests the contractor to furnish board certified Radiology Physician services in accordance with the specifications in the Performance Work Statement (PWS) to the beneficiaries of the VA and the NMVAHCS. The contract physician(s) shall be responsible for providing, including, but not limited to; General Radiologic Procedures (Plain Film, X-ray), Computed Tomography Scans/Computerized Axial Tomography (CT/CTA Scan), Magnetic Resonance Imaging/Magnetic Resonance Imaging (MRI/MRA), Nuclear Medicine (NM) and Ultrasound (US) including Vascular Ultrasound (Doppler/Duplex) Exams. The NMVAHCS Radiology Department follows the standards and guidelines set forth by American College of Radiology (ACR). Therefore, the contractor providing teleradiology services shall provide services consistent with The Joint Commission (TJC) and that meet or exceed VA and the ACR guidelines. The contractor shall be available Monday through Friday from 16:00 PM to 08:00 AM, and 24 hours per day on Saturdays, Sundays, and all Federal holidays.

Transmission of images for interpretation may occur outside of this work schedule windows.

In addition , the contractor shall be available to the facility for consultation and interpretation 24 hours a day, 7 days a week, 52 weeks a year for STAT, urgent, and routine exams as needed. These services are authorized under Title 38 United States Code (USC) 8153 and VA Directive 1663.

The period of performance for this acquisition is six (6) months from 12/01/2025 to 05/31/2026, for an estimated total of $896,312.50. The clause, FAR 52.217‐8: Option to

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Acquisition ID#: 36C262-26-AP-1307

Extend Services is included in this requirement. The option will be evaluated, and the specified rates will be those in effect under the contract each time the option is exercised under this clause.

4. Statutory Authority Permitting Restricted Competition:

This procurement is conducted in accordance with FAR 12 Acquisition of Commercial Products and Commercial Services. The statutory authority to limit competition in FAR 12 is 41 U.S.C. § 1901, as implemented by FAR 12.102 - Restricting Competition. 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 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), has an extensive experience, proven experience delivering nationwide teleradiology support for multiple VA Medical Center (VAMC). Their established performance history with VA facilities, combined with demonstrated familiarity with VA-specific workflows, credentialing, and technical compliance requirements, makes them uniquely qualified to continue providing the services required under this acquisition.

VetMed Group currently processes approximately 1,900 studies per day across their VA portfolio, with roughly half being emergency-level cases. Their ability to manage high-volume and high-acuity caseloads while maintaining reliable turnaround times has been demonstrated repeatedly in demanding environments. They utilize secure and VA complaint technology including Intel PACS, Mirth, and Fluency for Imaging, which fully align with VA data protection standards. In addition, VetMed has a VA-approved National IT Memorandum of Understanding (MOU) in place, further ensuring that their technology and security measures align with federal standards. This compliance is critical to maintain patient data integrity and minimizing service disruptions. VetMed guarantees 100% uptime capability, and rapid response to technical issues through their National IT Control Desk.

VetMed Group employs roughly 50 radiologists who are already credentialed with multiple VA sites. This established workforce enables streamlined rapid onboarding, credentialing process, and continuity of operations without delays typically associated with transitioning providers. Their radiologists are highly specialized in areas such as neuro, breast, and thoracic imaging, and their familiarity with VA hospitals further supports their qualifications.

Most of contractor’s radiologists anticipated performing teleradiology services for NMVAHCS will already be credentialed with other VAMC. Therefore, credentialing will be

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Acquisition ID#: 36C262-26-AP-1307 efficient. The company has been accredited by The Joint Commission since 2020 and has maintained strict adherence to HIPAA and VA-specific regulations. Their strong compliance record and internal peer review processes meet or exceed ACR guidelines, which further ensure quality and accountability in their service delivery.

Based on their capabilities and experiences providing the required services, their established technology and infrastructure make VetMed Group the only one available and responsible source that can meet this requirement.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Market research was conducted in accordance with FAR Part 10. A search in www.SAM.gov using keyword “teleradiology”, notice type “Award Notice”, NAICS Code “621512”, PSC Code “Q522” within the past year, yielded, eight (8) results. All eight (8) contracts were awarded to the Service-Disabled Veteran Own Small Business (SDVOSB) entity, VetMed Group LLC. A search in www.gsaelibrary.gsa.gov using keyword “teleradiology” yielded zero (0) results. A search in www.fpds.gov using keyword “teleradiology”, awarded to “Department of Veterans Affairs”, under NAICS code “621512” yielded over 1,018 results. The list was converted to an excel and scrubbed and filtered to the “Date Signed” within the past year. Within the past year, similar requirements were awarded to four different vendors. The following vendors were each awarded one (1) contract was awarded to Louisiana State University, Riverside Radiology and Interventional Associates, Inc., and Valor Network Inc. and 13 were awarded to VetMed Group Inc. The Contract Specialist (CS) contacted the three vendors via phone (Louisiana State University, Riverside Radiology and Valor Network) to see if the vendors would be interested and can provide teleradiology services for NMVAHCS. Vendors, Louisiana State University and Riverside Radiology stated they couldn’t meet the requirement, and Valor Network was not interested.

An intent to sole source notice: 36C262-26-AP-1307 was published in SAM.gov. One (1) vendor, Newname Healthcare Consulting LLC, responded to the notice. The General Manager and Chief Executive Officer (CEO), Dr. John Odeghe, responded via email requesting the current volume breakdown. The CS provided the estimated number of image interpretations needed for the requirement. Dr. Odeghe stated he’s currently working independently, however, he plans to put together a team for future teleradiology contracts and requested to keep him posted for future contract opportunities. The CS sent a following email to Dr. Odeghe, requesting for the company’s SAM’s Unique Entity ID (UEI) number to validate businesses size, which vendor has yet responded. No other vendor responded to the intent to sole source notice.

Market research reveals that of the five possible vendors, two (2) are SDVOSB vendors (VetMed Group and Valor Network), two (2) are large businesses (Louisiana State University and Riverside Radiology) and one (1) unknown business size (Newname Healthcare Consulting). Of the two SDVOSB vendors, VetMed is the only vendor that is interested in and capable of meeting this requirement.

Subsequently, in order to make additional efforts to ensure that offers are solicited from as many potential sources as deemed practicable, this action will be synopsized on SAM.gov in

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Acquisition ID#: 36C262-26-AP-1307 accordance with FAR 6.301(b) and will be made publicly available after the contract is awarded.

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

Reasonable: It is anticipated that the cost will be considered fair and reasonable by comparing VetMed Group’s pricing to historical pricing, to other VA awarded contract pricing, and to available market rate sources for teleradiology services. The current contract prices are based on modality rates. Therefore, prices comparison will be based on modality pricing rather than Current Procedural Terminology (CPT) pricing.

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

Reasons Market Research Was Not Conducted: As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted. This is a bridge requirement, therefore, for the long-term contract, a synopsis of the teleradiology services, advising industry of the pending acquisition and soliciting inquiries from interested parties.

This acquisition does not apply to Buy American Act (BAA) and Trade Agreements Act (TAA) because NMVAHCS is not requesting for products or materials subject to BAA or TAA requirements. This acquisition is for acquiring qualified Radiologists providing teleradiology services.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: There is a nationwide shortage of radiologists due to increasing demand for imaging services, an aging patient population, and workforce constraints that include limited residency slots, uneven geographic distribution of qualified clinicians, and rising burnout among existing providers. These factors have created capacity gaps across both federal and private healthcare systems, increasing reliance on supplemental and teleradiology services to maintain timely diagnostic coverage.

Due to nationwide radiologist shortages, limited vendor capacity, and low market interest, particularly in rural regions like New Mexico, there are few contractors that are able or willing to provide VA teleradiology services. VetMed has demonstrated the capacity and willingness to assume additional imaging volume to cover services gaps caused by other vendors who are unable to meet VA requirements. This coverage capacity supports continuity of care, ensures timely diagnostic reads, and mitigates risks associated with vendor shortfall in a constrained radiology market.

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

Name: VetMed Group LLC Address: 393 NE 5th Avenue, Unit B DelRay Beach, FL 33483

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: The agency will expand efforts to identify and engage more potential vendors capable of meeting the VA’s unique teleradiology needs. This could include

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Acquisition ID#: 36C262-26-AP-1307 outreach through industry forums, VA vendor databases, and broader publication of upcoming contract opportunities to attract a large pool of qualified vendors.

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.

Signature

Planner/Program Manager, Chief of Imaging Radiology Department, NMVAHCS

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

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

Signatur

Contracting Officer Network Contracting Office - 22

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Signature

Contracting Officer, Division Chief Network Contracting Office - 22