P03 JEFO VISN 12 PACS Redacted.pdf

This document is a Justification for an Exception to Fair Opportunity (JFFO) for sole-source awards under FAA 16.507-6(b)(2).

The Veterans Integrated Service Network (VISN) 12 is awarding eight delivery orders to Change Healthcare Technologies, LLC under the existing Defense Logistics Agency (DLA) contract SPE2D1-18-D-0006 for upgrades to the Change Healthcare Enterprise Imaging Picture Archiving and Communication System (PACS). The upgrades involve transitioning PACS from Windows Server 2016 OS running version 14.1 to Windows Server 2022 OS running version 14.2.2 across eight Veterans Affairs Medical Centers: Chicago ($266,925.49), Danville ($65,191.74), Hines ($169,420.05), Iron Mountain ($65,191.74), Madison ($33,735.53), Milwaukee ($740,696.00), North Chicago ($132,999.84), and Tomah ($65,191.74), for a combined total value of $1,539,352.13. The delivery orders include hardware (HPE application servers, network shelter servers, Dell EMC storage servers), software (Microsoft SQL Server licenses, Nuance Carahsoft licenses), and services (implementation, migration, training, remote support, and project management services).

The justification establishes that Change Healthcare Technologies, LLC is the only capable awardee because the supplies and services are unique and highly specialized. Change Healthcare is the sole authorized vendor for software maintenance and support, owns proprietary trade information about the PACS software, and is the only entity that can guarantee compatibility and perform FDA-regulated updates. Third-party installation would invalidate manufacturer warranties. The DLA previously negotiated fair and reasonable pricing under contract SPE2D1-18-D-0006, eliminating the need for separate price evaluation. The acquisition aligns with Veterans Health Administration directive 1104 establishing VISN-wide PACS standardization to facilitate patient care coordination and operational efficiency across facilities.