P03 Sole Source Justification rev1-PM on PACS SYSTEM-COSIGNED 10.31.2024.pdf

Effective Date: 02/01/2022 Page 1 of 3

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C262‐25‐AP‐0038

1. Contracting Activity: Department of Veterans Affairs, VISN 22, San Diego Veteran Affairs

Healthcare System located at 3350 La Jolla Drive, San Diego, CA 92161. The 2237 number for this action is 664‐25‐1‐038‐0007.

2. Nature and/or Description of the Action Being Processed: This procurement is for planned service maintenance on AGFA PACS systems 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.

The planned service maintenance on AGFA PACS systems is for license software service maintenance and support, applicable software updates, and intervening service calls. This is a new contract to the previous contract 36C26219C0098 for a firm fixed price base only with a cost of $551,201.64.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The vendor shall provide self‐service portal, incident management phone and remote support to assist with resolving a defect, error, failure, or malfunction that prevents the equipment and software from performing their designed functions substantially in conformity with the specifications set forth in their documentation. On‐site repairs shall be provided for equipment during normal business hours of 8 AM to 5 PM PST, holidays excepted, if a problem with the equipment cannot be resolved through phone or remote support. Integration support shall be provided in the event that the interface on the AGFA side is upgraded to a new Software Release, as well as break/fix repairs, and troubleshooting support.

Vendor shall provide the COR an electronic copy of the field service report after every remote or on‐ site service call within 7 calendar days. At a minimum, this report must contain a detailed description of any services or repairs performed for each item of equipment, and must also include a listing of replacement parts, when applicable, total hours of service, safety check, performance data, and the date. The report will also include any Vendor recommendations necessary to maintain the equipment in optimum operating condition. Service Technician shall document and report to the COR any unsafe conditions or signs of misuse or abuse regarding this medical equipment.

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106‐1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

( X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency

Effective Date: 02/01/2022 Page 2 of 3

( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services

( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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

Per the sole source letter received from AGFA Healthcare Corporation that states they are the original manufacturer and is the original manufacturer of PACS and holds the proprietary rights to all equipment parts, software, and licensing. AGFA does not allow third party vendors to service; repair maintain or Move PACS equipment.

There is only one responsible source and, in this case, it is the follow‐on contract for continued production of a major system, equipment/services, that AGFA is able to work on and does not allow third party vendors. The reason is substantial duplication of cost to the government that is not expected to be recovered through competition.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: No additional efforts were made to seek out competition as this is a sole source requirement and the equipment, software is owned by AGFA Healthcare Systems.

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

Reasonable: Query of FPDS on 8/20/2024 and have found 1398 requirements under the AGFA vendor and found the pricing to be fair and reasonable for similar actions.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted:

Query of FPDS on 8/20/2024 with NAICS code 811210 and found 3737 actions between July 2, 2024, to August 19, 2024.

Query of SAM on 8/20/2024 and AGFA Healthcare Corporation is a large business.

Review of VetCert and found AGFA Healthcare Corporation no results were found for the vendor.

Received a propitiatory letter from AGFA Healthcare Corporation is the original manufacturer and is the original manufacturer of PACS and holds the Proprietary Rights to all equipment parts, Software and Licensing.

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

AGFA Healthcare Corporation is a sole proprietor vendor per the sole source letter.

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

No, other sources has expressed in writing an interest in the acquisition.

Effective Date: 02/01/2022 Page 3 of 3

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:

No barriers to overcome as this is a sole source requirement for Planned Service Maintenance on AGFA PACS Systems for the San Diego Veteran Affairs Healthcare System hospital.

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 supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

Digitally signed by MICHAEL VINCENT ROMAN Date: 2024.10.31 08:02:43 -07'00'

Name: Michael Roman Date Title: Program Assistant Facility: San Diego VA Healthcare System

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

Digitally signed by FELICIA SIMPSON Date: 2024.10.31 12:36:18 -07'00'

Name: Felicia Simpson Date Title: Contract Specialist Facility: NCO 22

a. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Name: Anita Amodia Date Title: Contracting Officer Facility: NCO 22

MICHAEL VINCENT ROMAN

FELICIA SIMPSON