P03 JA 36C244-21-AP-3800 - MEDICOM IMAGING - RE_Redacted.pdf

36C244-21-AP-3800 Page 1 of 5

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C244-21-AP-3800

1. Contracting Activity: Department of Veterans Affairs, Veterans Integrated Service Network 04

(VISN04), PR Number 481-22-1-941-0002.

2. Nature and/or Description of the Action Being Processed:

This is a sole source request for implementation and ongoing support of Medicom Imagex service at all VISN04 medical centers, to include: Altoona, Butler, Coatesville, Erie, Lebanon, Philadelphia, Pittsburgh, Wilkes-Barre and Wilmington, and their associated Community-Based Outpatient Clinics (CBOCs). The Contracting Officer anticipates awarding a firm fixed price purchase order to the manufacturer, Medicom Technologies, Inc, a small business. The proposed purchase order will be awarded as a new requirement.

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for commercial Information Technology system maintenance and support 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.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The Mission Act allows veterans to seek diagnostic imaging services outside of the VA, from Care in the Community Providers. Consequently, diagnostic results in the form of DICOM images (CD-ROMs and DVD-ROMs) and textual reports must be physically couriered back to the VA for use in patient care. VISN04 requires an image transfer service capable of exchanging electronic data with external Care in the Community Providers in accordance with VA information security policy. Medicom is capable of meeting the requirement through its Imagex service: a radiology and image exchange service solution. Imagex connects disparate networks using encrypted, peer-to-peer conduits that are created and destroyed with each image transfer.

The total estimated value of the proposed action is

The period of performance includes one base year and four one-year option periods.

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

( X ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

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( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2).

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

(1) Only One Responsible Source (FAR 6.302-1)-

Market research indicates that the Medicom Imagex service is the only solution with an existing and approved connection to the VA network and a proven strategy to transfer images to the VA Electronic Medical Record (currently VistA). This solution must integrate with VistA Imaging Importer, Philips IntelliSpace Picture Archiving and Communication System, VistA Imaging, Computerized Patient Record System (CPRS), Compass DICOM router, and Cerner, which will be implemented in the future.

While other vendors offer similar services, they use cloud-based technology to store and process sensitive data. Such solutions do not currently possess FEDRAMP authority to operate and are not approved by VA for implementation. By contrast, Medicom Imagex service transfers data from external Care in the Community Providers to the VA through a secure conduit (a FIPS 140-2 validated encrypted connection) with the VA Trusted Internet Connection (TIC). Market research has not identified other vendors with approved and tested access to the VA network and interfaces pertinent to this service.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

The Contracting Officer posted a notice of intent to procure the Medicom Imagex solution on a sole source basis from Medicom Technologies, Inc. The notice was posted to the Contract Opportunities database from 11/01/2021 through 11/30/2021 (Notice 36C24422Q0070, NAICS 511210). The notice included a brief description of the requirement and the rationale for a sole source procurement. The notice invited interested vendors to provide any information pertinent to the government’s proposed sole source strategy to the Contracting Officer no later than 11/08/2021.

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

Market research indicates that Medicom Technologies, Inc. is the only vendor with current interest and capability to meet the requirement. The Contracting Officer intends to negotiate the requirement on a sole source basis, and evaluate price in relation to the IGCE and historical price information upon receipt of the contractor’s price quote.

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8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

The Contracting Officer reviewed the technical subject matter expert’s analysis of current market capabilities, and relied on additional market research and publication efforts to confirm that analysis.

A notice of Intent to Sole Source to Medicom Technologies, Inc., posted to Contract Opportunities with a response timeframe of 11/01/2021 through 11/08/2021, returned no timely responses. An SDVOSB vendor submitted a late response on 11/19/2021 indicating capability to supply an imaging solution called . The Contracting Officer forwarded the response to the SME for review, and the SME indicated that cannot currently meet the requirement because the solution is not TRM or Cloud approved. VISN04 does not currently have a solution in place for these services, and requires a contractor with current capability to meet the requirement.

The Contracting Officer requested and received confirmation from Medicom Technologies, Inc. of the proprietary status of the Imagex solution. The Chief Executive Officer confirmed in correspondence to the Contracting Officer that the Imagex software and technology were developed by Medicom Technologies, Inc., and Medicom holds US Patent registration numbers US 10,305,869 and US 10,257,174, relating to the proprietary Imagex technology. Additionally, the Chief Executive Officer confirmed that Medicom Technologies, Inc. is the only source for the Medicom Imagex service, and that Medicom will not provide the Imagex service through authorized distributors or resellers.

A keyword search of “Imagex” in the Vendor Information Pages database returned no results.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

The VA Technical Reference Model (v 21.11) indicates that the Medicom Imagex Service is currently approved for use (with constraints).

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

Medicom Technologies, Inc, a small business, responded to market research inquiries from the Contracting Officer.

an SDVOSB vendor, provided a late response to sources sought notice 36C24422Q0070. The technical SME reviewed the response and determined the proposed technology is not currently approved for VA implementation.

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 may continue to request information from industry to identify comparable technologies to meet the requirement.

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d. VHA RPO HCA REVIEW AND APPROVAL (over $700,000 to $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for other than full and open competition.

Joseph P. Maletta Date VHA Head of Contracting Activity Executive Director, RPO-East

JOSEPH MALETTA

1347841

Digitally signed by JOSEPH

MALETTA 1347841

Date: 2021.12 08 17:19 35 -05'00' 12/8/21