P03 - JOFOC.pdf

Attachment 1: Exception to Fair Opportunity Memo

Effective Date: 12/30/2025 Page 1 of 3 Revision: 03 Acquisition ID#: 36C262-26-AP-5099

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval

For

Exception to Fair Opportunity Memo

Acquisition Plan Action ID: 36C262-26-AP-5099

1. Contracting Activity: Department of Veterans Affairs, VISN 22, VA San Diego Healthcare System

(VASDHS), Network Contracting Office (NCO) 22, 4811 Airport Plaza Drive, Suite 600, Long Beach, CA 90815

2. Description of Action:

The proposed sole source delivery order against Indefinite Delivery Indefinite Quantity (IDIQ) Number VA797H17D0024 awarded to GE Healthcare is firm-fixed price (FFP) for ultrasound testing and analysis of tumors in veteran patients. VA San Diego requires a replacement for the current ultrasound for timely, accurate, and safe diagnosis of thyroid nodules and thyroid cancer.

3. Description of Supplies or Services:

The proposed action is to provide a replacement ultrasound for the Endo-metabolism FNA procedure clinic that is critical for timely, accurate, and safe diagnosis of thyroid nodules and thyroid cancer. It is also essential for the enhancement of clinical education of Fellows, and other trainees.

The contractor will ensure that the system is end-user friendly and aligns with the current standards of care and supports a high-quality, patient-centered approach. The Contractor will also maintain the machine via services contract held by GE Healthcare under task order 36C26222N0009. The total estimated value of the proposed action is .

4. Statutory Authority: The statutory authority permitting an exception to fair opportunity is Section 41 U.S.C. 4106(c) as implemented by the Federal Acquisition Regulation (FAR) 16.505(b)(2)(i):

( ) FAR 16.505(b)(2)(i)(A): The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays.

(X) FAR 16.505(b)(2)(i)(B): Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

( ) FAR 16.505(b)(2)(i)(C): The order must be issued on a sole-source basis in the interest of economy and efficiency because it is a logical follow-on to an order already issued under the contract, provided that all awardees were given a fair opportunity to be considered for the original order.

Effective Date: 12/30/2025 Page 2 of 3 Revision: 03 Acquisition ID#: 36C262-26-AP-5099

( ) FAR 16.505(b)(2)(i)(D): It is necessary to place an order to satisfy a minimum guarantee.

( ) FAR 16.505(b)(2)(i)(E): For orders exceeding the simplified acquisition threshold, a statute expressly authorizes or requires that the purchase be made from a specified source”. The statutory authority permitting an exception to fair opportunity for this action is 38 U.S.C. 8127(c), known as the Veterans First Contracting Program which provides the authority to directly contract with a Service-Disabled Veteran-Owned Small Business (SDVOSB) or a Veteran-Owned Small Business

(VOSB).

5. Rationale Supporting Use of Authority Cited Above:

This is a brand name justification in support of FAR 11.105, Items Peculiar to One Manufacturer. GE Healthcare is the only vendor that can fulfill this requirement without subjecting VA San Diego Healthcare System (VASDHS) with duplicative costs for maintenance and training. The healthcare staff at VASDHS have been trained and have extensive experience with GE Logiq ultrasound equipment. The Logiq ultrasound system has also been vetted by the Office of Information Technology (OIT) and has been determined to not require any connectivity to the network, however the office of OIT tracks all updates to the ultrasound system to ensure compliance is maintained throughout the life of the equipment. There is a service contract with GE Healthcare that requires GE Healthcare to maintain and service all GE equipment at the hospital. If VASDHS was to acquire another brand of ultrasound equipment it could hinder patient care by requiring training for the healthcare staff on operating the equipment and reading results. The equipment would also need OIT to review any network requirements and a new service contract would need to be put in place to ensure that the equipment is always working properly. The acquisition of another brand would duplicate costs at the hospital and delay procedures. It has not been determined to be in the best interest of the government or the veteran patient to acquire another brand of machine at this time.

The requested equipment exists on the High-Tech Medical Equipment (HTME) contracting vehicle which is used to standardize equipment that meets high quality standards and provides best value to the government.

6. Efforts to Obtain Competition: A description of efforts made to ensure that offers are solicited from as many potential sources as is practicable.

Market research was conducted, details of which are in the market research section of this document.

This effort did not yield any additional sources that could meet the Government’s requirements. There is no competition anticipated for this acquisition. In accordance with FAR 5.301 and 16.505(b)(2), this action will be synopsized at award on the Federal Business Opportunities Page (FBO) and the justification will be made publicly available.

7. Actions to Increase Competition: Describe actions taken, or that will be taken, to remove or overcome any barriers to competition before initiating any subsequent acquisitions for the supplies, or services required, including challenges to restrictive data markings, data rights, preparation of a performance-based work statement, and etc.

Effective Date: 12/30/2025 Page 3 of 3 Revision: 03 Acquisition ID#: 36C262-26-AP-5099

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: Provide a description of the market research conducted among the contract holders and the results. If market research was not conducted, the reasons it was not conducted should be stated. When citing FAR 16.505(b)(2(i)(b) or FAR 16.505(b)(2)(i)(e), the only possible way to state in paragraph 5 of the J&A that there is only one contractor who can fulfill the agency’s needs is to conduct market research, and it should be summarized here.

A sources sought was posted on the GPE and returned responses from distributors. However, this GE product is manufactured in Korea, which would not allow award of the requirement in the open market due to the Trade Agreement Act (TAA) threshold for end items manufactured in that country.

9. Other Facts:

The GE Healthcare Imaging Systems are used extensively by Radiology service for diagnostic imaging, nuclear medicine, and intervention radiology. Downtime of these devices will create a significant negative impact on Radiology’s ability to provide clinical services to our veterans.

10. Technical and Requirements Certification: I certify that the supporting data under my cognizance, which are included in this justification, are accurate and complete to the best of my knowledge and belief.

Dr. Charles Choe Date Staff Physician/Endocrinology VA San Diego Healthcare System

11. Determination that Anticipated Cost is Fair and Reasonable: A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The NAC has determined that prices are fair and reasonable.

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

Adrienne Brown Date Contracting Officer

NCO 22

ADRIENNE

BROWN

Digitally signed by

ADRIENNE BROWN

Date: 2026.08.21 11:00:17 -07'00'

CHARLES

CHOE

Digitally signed by

CHARLES CHOE

Date: 2026.08.24 13:39:36 -07'00'