P03 Single Source Justification-signed_Redacted.pdf

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DA01--Zeiss Forum Support Agrmt VISN23
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36C26326P0544
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This is a Justification and Approval (J&A) document for a sole source acquisition by the Department of Veterans Affairs.

VA Midwest Healthcare Network (VISN 23) seeks to award a fixed-price, sole source contract to PROAIM American, LLC for a Zeiss FORUM OPTIME Support Agreement covering a base year plus four option years. The requirement is for software maintenance, updates, remote technical support, and engineering assistance for the Zeiss FORUM ophthalmic data management platform deployed across eleven VISN 23 facilities located in South Dakota, Iowa, North Dakota, Minnesota, and Nebraska. The estimated total cost is $755,199.12 for the entire performance period. The Contracting Activity is the Department of Veterans Affairs, Network Contracting Office 23, located in Saint Paul, Minnesota. The acquisition is being pursued under 41 USC §3304(a)(1) (Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements) due to the proprietary nature of the FORUM system, which is exclusively owned, controlled, and maintained by Carl Zeiss Meditec. Carl Zeiss Meditec has authorized only PROAIM American, LLC as the sole vendor capable of providing FORUM maintenance and OPTIME support; no other third-party distributors or service providers are permitted to offer these services.

The CO determined the pricing is fair and reasonable based on comparison to a similar Boston VA contract (36C24125N1427) awarded September 30, 2025, for $152,278 covering one year of maintenance for nine facilities. Market research confirmed PROAIM American, LLC is the only authorized source, and an Intent to Sole Source was published to SAM.gov with zero responses. The J&A will be published within 14 days after contract award. Migration to an alternative platform would require complete infrastructure replacement, a 3–5 year transition period, and would create operational, security, and compliance risks incompatible with VA/DoD Federal EHR modernization requirements and clinical ophthalmology workflows. Future market research will be conducted to determine if Carl Zeiss Meditec authorizes additional vendors or if the VA upgrades its ophthalmic data management system.

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Request for Sole Source Justification Format >SAT

VHAPG Part 806.3 OFOC Page 1 of 5 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C263-26-AP-2505

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C263-26-AP-2505

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 23, Warren E. Burger Federal Building, 316 Robert Street North Suite 506, Saint Paul, MN 55101

Organization Activity: Department of Veteran Affairs, VISN 23: Midwest Health Care Network

The VISN 23 facilities and addresses are outlined in the table below:

Facility Address Ft. Meade 113 Comanche Rd, Marcus, SD 57785 Hot Springs 500 N 5th St, Hot Springs, SD 57747 Central Iowa 3600 30th Street, Des Moines, IA 50310 Fargo 2101 Elm Street N, Fargo, ND 58102 Iowa City 601 Highway 6 West, Iowa City, IA 52246 Minneapolis 1 Veterans Dr, Minneapolis, MN 55417 Omaha 4101 Woolworth Ave, Omaha, NE 68105 Grand Island 2201 North Broadwell Ave, Grand Island, NE 68803-2153 Lincoln 420 Victory Park Dr, Lincoln, NE 68510 Sioux Falls 2501 W 22nd St, Sioux Falls, SD 57105 St. Cloud 4801 Veterans Drive, St. Cloud, MN 56303

2237: 499-26-4-6765-0066

Nature and/or Description of the Action Being Approved:

VA Midwest Healthcare Network (VISN 23) requires a base plus four (4) option year sole source fixed price contract support agreement for the Zeiss FORUM ophthalmic ata management platform. The existing warranty period has expired, and continued upgrade vendor-supported maintenance is necessary to ensure all FORUM systems within VISN 23 remain fully operational, secure, and compatible with requirements for the Federal Electronic Health Record (EHR) deployment.

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

This requirement is for the procurement of a Zeiss FORUM OPTIME Support Agreement to provide software maintenance, updates, remote technical support, and engineering assistance for the Zeiss FORUM ophthalmic data management system deployed across VISN 23.

VHAPG Part 806.3 OFOC Page 3 of 5 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C263-26-AP-2505

No alternative software product can integrate with the existing FORUM licenses or architecture. FORUM relies on proprietary source code, interfaces, and upgrade mechanisms that are not accessible to any other manufacturer or service provider.

Using a different brand would require a complete infrastructure replacement, resulting in duplication of costs and a multi-year (3–5 year) transition period. During such a transition, the FORUM system would be unsupported, creating significant operational, security, and compatibility risks, particularly related to VA/DoD Federal EHR modernization.

Any attempt to migrate to another platform at this time would disrupt ophthalmology workflows across VISN 23, jeopardize clinical imaging processes, and pose patient safety risks. While other ophthalmic data management solutions exist, none meet VA requirements because no other vendor has access to the proprietary cutover, upgrade, or interface components required for the FORUM system currently in place at VISN 23 facilities.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as possible (including whether a notice was or will be publicized as required by RFO Part 5 and, if not, which exception under RFO Part 5 applies):

The Zeiss FORUM platform is proprietary, and all support is controlled by the OEM.

Market research confirmed that PROAIM American, LLC is the only authorized source in the market. No other third-party distributors or service providers are permitted to supply FORUM maintenance or OPTIME support per Carl Zeiss Meditec authorization letter.

An Intent to Sole Source was published to SAM.gov Opportunities with zero responses. In addition, a J&A will be published within 14 days after contract award.

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

Fair and Reasonable:

The CO determined that the pricing is anticipated to be fair and reasonable in comparison to previous prices from contract 36C24125N1427 which was awarded by Boston VA Health Care System. The contract was awarded 9/30/2025 in the amount of $152,278 for one year to provide maintenance and support for Optime Forum and Zeiss Equipment for nine facilities. Adjusting the contracts pricing to match our current requirements of eight facilities for a base plus four option year, the historical price is $676,792.40. The historical price is 10% less than the current requirements of $755,199.12, for a base plus four option years. The increase in prices can be attributed to changes in market conditions such as inflation and locality.

Therefore, the price of $755,199.12, which is comparable to the historical price of $676,792.40 when the above factors are considered, is fair and reasonable.

VHAPG Part 806.3 OFOC Page 4 of 5 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C263-26-AP-2505

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

The SBA Small Business Search was queried using NAICS 541519. There are no two or more SDVOSB/VOSB capable of performing the requirement. In addition, the contract specialist reached out to the OEM for authorized third party distributors and service providers. The OEM provided an authorization letter that stated PROAIM American, LLC is the only authorized distributor and support provider for the Zeiss FORUM ophthalmic data management platform. Therefore, an RFI was not published in SAM.gov as market research confirmed that PROAIM American, LLC is the only authorized distributor and support provider who can meet this requirement.

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

Failure to maintain OEM support would jeopardize ophthalmology workflow continuity across VISN 23.

Lack of updates would create cybersecurity and compliance risks.

FORUM supports image and data flows required for VA/DoD EHR interoperability and clinical operations.

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

PROAIM Americas 16024 Manchester RD Ste 200 Ellisville, Missouri 63011

UEI: KECHQ6LN3HN7

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:

Market Research will be conducted in the future for an ophthalmic data management platform and software support to determine if market conditions have changed to allow for competition. If Carl Zeiss Meditec, a large business, authorizes additional vendors to provide services, VISN 23 will be able to compete with future requirements among those authorized vendors. Alternatively, if the VA decides to upgrade its current ophthalmic data management system, market research will be conducted to identify other original equipment manufacturers (OEMs). As a result, additional competition may emerge, which would help eliminate existing barriers to competition.

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

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