P03 JEFO VISN 12 PACS Redacted.pdf

This is a Justification for an Exception to Fair Opportunity document filed under 41 U.S.C. 4106(c)(2) for a single-source, non-competitive award to Change Healthcare Technologies, LLC.

The Veterans Health Administration (VHA) is executing eight delivery orders under the Defense Logistics Agency (DLA) contract SPE2D1-18-D-0006 through the Department of Veterans Affairs National Acquisition Center (NAC). The delivery orders support upgrades to the Change Healthcare Enterprise Imaging Picture Archiving and Communication System (PACS) across Veterans Integrated Service Network (VISN) 12 facilities: Chicago VAMC ($266,925.49), Danville VAMC ($65,191.74), Hines VAMC ($169,420.05), Iron Mountain VAMC ($65,191.74), Madison VAMC ($33,735.53), Milwaukee VAMC ($740,696.00), North Chicago VAMC ($132,999.84), and Tomah VAMC ($65,191.74), for an overall total value of $1,539,352.13. The upgrades involve migrating systems from Windows Server 2016 OS running PACS version 14.1 to Windows Server 2022 OS running PACS version 14.2.2.

The justification establishes that Change Healthcare Technologies, LLC is the sole capable vendor because it is the exclusive provider of software maintenance, support, and implementation services for the PACS software. The vendor's personnel are the only contractors authorized to remotely access Change Healthcare servers, all software updates and upgrades must comply with FDA regulations under Change Healthcare's control, and the company owns exclusive trade information regarding the PACS software. The DLA has already negotiated fair and reasonable pricing under the existing contract, eliminating the need for separate price evaluation. The delivery orders include hardware (servers and storage equipment), software licenses (Microsoft SQL Server), and professional services (implementation, data migration, training, and remote support).