P03 - Sole Source Justification SAT-SAP - VISN 9 Teleradiology-Rev1_Redacted.pdf

Simplified Acquisition Procedures for Certain Commercial Items Request for Sole Source Justification

Effective Date: 12/30/2025 Page 1 of 3 Revision: 02 Acquisition ID#: 36C24926AP1588

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 12

Acquisition Plan Action ID: 36C24926AP1588

1. Contracting Activity: Department of Veterans Affairs, VISN 9, Lexington, Robley Rex, Memphis, James H.

Quillen, and Tennessee Valley Healthcare System (TVHS} VA Medical Centers.

2. Nature and/or Description of the Action Being Processed: This proposed action is for a new interim firm-fixed-price sole source contract for Teleradiology Physician Services, in accordance with FAR 12 Acquisition of Commercial Products and Commercial Services, this action will be awarded as a new contract as a sole source-firm fixed price Indefinite quantity, indefinite delivery contract for a one year period. The proposed period of performance is 03-01-2026 to 02-28-20275, and the estimated cost for this proposed action is

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Contractor shall provide Board Certified Teleradiology Physician Services to eligible beneficiaries of the Lexington, Robley Rex, Memphis, James H. Quillen, and TVHS VA Medical Centers (hereinafter referred to as VAMCs). The VAMC requires Teleradiology Physician Services to support patient care. The current Contractor, VetMed Group, LLC has contracted personnel who are actively working after being credentialed by the VAMCs, and VetMed Group has the network connection established allowing work to be completed, a connection that took 9-months to establish, which will allow for a seamless transition between contracts without disruption of services. The current contract expires 2-28-2026.

4. Statutory Authority Permitting Restricted Competition: FAR 12 Simplified Procedures for Certain

Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 12 is 41 U.S.C. § 1901 and is implemented by FAR 12 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 ( ) 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): The incumbent Contractor, a Service Disabled Veteran Owned Small Business, employs teleradiology physicians who provide services for multiple medical centers. The physicians are onboarded and credentialed by the VAMCs and have completed background investigations through Office of Personnel Management (OPM). Awarding this interim contract to any other Contractor other than the incumbent would result in significant delays in providing services, as the VAMCs onboarding process for physicians takes approximately 90 days to complete. Due to these circumstances, the incumbent Contractor is the only source capable of providing

Simplified Acquisition Procedures for Certain Commercial Items

Effective Date: 12/30/2025 Page 2 of 3 Revision: 02 Acquisition ID#: 36C24926AP1588 these critical services without a substantial break in services. Additionally, VetMed has an established network connection with the VAMCs. This network connection took 9-months to establish. The connection allows transmission of patient radiology tests to be read and returned to the VAMCs.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: This is for the establishment of an interim contract while a permanent long-term contract is established, which would allow for a proper phase-in/phase-out period between the incumbent contractor and a new awardee. The current contract was competed, and the five-year replacement contract will be competed and set aside for small business. Market research indicates that there are several SDVOSB/SB entities interested in submitting proposals for the long term requirement.

The current contractor (VetMed Group) has been providing this service for 5 years and has established systems and personnel necessary to continue services for VAMCs.

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

Upon receipt of proposal and in preparation for negotiations, the Contracting Officer will conduct price analysis, in order to determine price fair and reasonable, by comparing proposed rates to the Independent Government Cost Estimate (IGCE), the Bureau of Labor Statistics (BLS) Consumer Price Index (CPI), market rates, and historical rates including the current contracted rates for these exact services.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted for the long-term requirement via Request for Information (RFI) No. 36C24925Q0458, with responses from five (5) interested parties;

three (3) were Service-Disabled Veteran-Owned Small Businesses (SDVOSBs), two (2) were Small Businesses(SB). It is anticipated that the long-term requirement will be competed as either an SDVOSB set-aside or Small Business set-aside on Contract Opportunities, promoting small business competition.

In addition, searches were conducted on FPDS, SAM.GOV, and the SBA Small Business tool (NAICS 621111 and Keyword Radiology). FPDS showed 8229 results, SAM.GOV showed 251 vendors, and SBA SB Tool showed 6 SB/SDVOSB contractors.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None

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

1) Amani Enterprises/DBA MedLink Health-SB

2) VetMed Group-SDVOSB-Incumbent

3) Prime Tri-Providers-SDVOSB

4) Milbrook TFG, LLC-SDVOSB

5) Oready LLC-Small Disadvantaged Business

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: A long term, competitive acquisition is in the solicitation process and is anticipated to be competed as an SDVOSB set aside or a small business set aside on SAM Contract Opportunities. Based on the market research above, there are multiple SDVOSB and SB vendors interested in competing for this acquisition, eliminating any potential barriers to competition.

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items

Effective Date: 12/30/2025 Page 3 of 3 Revision: 02 Acquisition ID#: 36C24926AP1588

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

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

Carol Franklin Date Branch Chief, Healthcare Resources Network Contracting Office 9

b. One Level Above the Contracting Officer (Required over $350K but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Date

Kenneth N. Hooks, J .

Division Chief Network Contracting Office 9

c. Director of Contracting Concurrence: I concur / non-concur that the justification meets requirements for other than full and open competition.

Susan F. Nagel Date Director of Contracting

Network Contracting Office 9

d. VHA Advocate for Competition and RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve $900K to $90 million for other than full and open competition.

Daryl A. Berg Date Executive Director, RPO Central Head of Contracting Activity (HCA)

2/5/26

CAROL FRANKLIN

Digitally signed by

CAROL FRANKLIN

Date: 2026.02.05 14:45:48 -06'00'

KENNETH

HOOKS

Digitally signed by KENNETH

HOOKS

Date: 2026.02.09 11:59:10 -06'00'

HARRY GRAMBO

Digitally signed by HARRY

GRAMBO

Date: 2026.02.11 08:19:20 -05'00'

02/11/2026

DARYL BERG

Digitally signed by

DARYL BERG

Date: 2026.02.11 13:47:25 -06'00'