S03 LSJ Redacted for RFQ.pdf

CONTROL NUMBER VA-26-00009741

Justification Template_FAR 8_(18-JAN-2024)

LIMITED-SOURCES JUSTIFICATION

1. Contracting Activity: Department of Veterans Affairs (VA) Office of Procurement, Acquisition, and Logistics

Technology Acquisition Center 23 Christopher Way Eatontown, NJ 07724

2. Description of Action:

The proposed action is for a twelve (12) month firm-fixed-price (FFP) task order, with four (4) additional 12-month option periods, for a one time system upgrade and annual license maintenance support services for AudioCARE. This requirement will be fulfilled under the authority of the Multiple Award Schedule (MAS) Program and awarded through the General Services Administration (GSA) Federal Supply Schedule (FSS) contract 47QTCA22D00CM. The task order will be issued to Payton Merger Sub II LLC, located at 1025 Chapala Street, Santa Barbara, CA 93101-3245.

3. Description of the Supplies or Services:

The proposed action is for the procurement of software and services necessary to complete the upgrade of the AudioCARE system. This includes the delivery and configuration of two (2) 4-line AudioCARE servers, application setup for each licensed module, and validation of system compatibility with the current VA-approved Windows Server image. Additionally, this action includes the renewal of AudioCARE software licensing and end-user support services. The licensing package provides full access to vendor support, including software patches, security updates, and configuration assistance.

The period of performance for the one-time system upgrade is ninety (90) calendar days from the effective date of contract award. The base period for licensing and support services will run from 21 November 2025 through 20 November 2026.

The total estimated value of this proposed action, inclusive of all option periods, is

4. Authority:

This acquisition is being conducted under the authority of the Multiple Award Schedule (MAS) Program. The justification for limiting sources is in accordance with Federal Acquisition Regulation (FAR) 8.405-6(a)(1)(i)(B), which permits a limited-source award when “only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.”

5. Rationale Supporting Use of Authority Cited Above:

The Department of Veterans Affairs (VA) originally selected the AudioCARE Communication System to meet critical enterprise requirements for automated patient

AUDIOCARE LICENSES WITH

AUDIOCARE SYSTEM SERVER

UPGRADE

Justification Template_FAR Part 8_(18-JAN-2024) engagement and prescription management in support of both the Veterans Health Administration (VHA) and the Electronic Health Record Modernization Integration Office (EHRM-IO). Initially deployed across VA Medical Centers in the early 2000s as part of the Veterans Health Information Systems and Technology Architecture (VistA) modernization initiative, AudioCARE was implemented to reduce manual call volumes and streamline prescription refill and appointment reminder processes. Its early success in automating these functions led to measurable improvements in pharmacy efficiency and Veteran satisfaction. Over time, the system was standardized under VHA technical directives and integrated into VA’s broader enterprise telephony infrastructure.

As VA transitioned to the Oracle Health Millennium Electronic Health Record (EHR) platform, AudioCARE was identified as the only solution capable of meeting the program’s operational and technical requirements. The system is currently integrated, authorized, and fully functional within the EHRM testing and production environments.

Identifying and implementing an alternative solution would require new security and technical certifications, extended procurement lead times, and significant system refactoring. These efforts would divert critical resources from EHR implementation priorities and delay the realization of benefits to Veterans.

Replacing AudioCARE with a commercial alternative would necessitate redevelopment of existing interfaces, creation of new message schemas, and comprehensive retesting of all communication workflows across Oracle Health Millennium and legacy systems.

Additionally, a full reauthorization process would be required. These activities are estimated to incur $1.5 million to $2.3 million in non-recurring engineering and compliance costs, along with a six- to nine-month delay in the program schedule due to interface, telephony, and security testing. Indirect costs would include end-user retraining, system reconfiguration, and productivity losses during the transition period.

Most critically, such a disruption could interrupt automated Veteran notifications for prescription refills and appointments, posing a risk to medication adherence and continuity of care an unacceptable outcome during ongoing modernization efforts.

Given these considerations, AudioCARE remains the only solution capable of meeting the Government’s requirements without introducing significant cost, schedule, and operational risks.

6. Efforts to Obtain Competition:

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 can meet the Government’s requirements. There is no competition anticipated for this acquisition. In accordance with FAR 5.301 and 8.405-6(a)(2) the award notice for this action will be synopsized on the Contracting Opportunities website and this justification will be made publicly available within 14 days of award.

7. Actions to Increase Competition

The Government will continue to conduct market research to ascertain if there are changes in the market place that would enable future actions to be competed.

Specifically, the Government will continue to conduct market research, including outreach through government-wide acquisition contracts and review of Oracle Health Marketplace partners, to identify potential competitive sources for future procurements

8. Market Research:

Market research was conducted between June and August 2025 to identify authorized resellers capable of providing AudioCARE software licenses and associated support services. As part of this effort, a Request for Quotation (RFQ No. 353686) was posted to the NASA SEWP Government-Wide Acquisition Contract (GWAC) portal on July 30 2025 and closed on August 6, 2025. No responses were received, confirming that AudioCARE is not available through any SEWP prime contract holders and therefore cannot be procured via that vehicle.

Further research was conducted using SAM.gov, GSA eLibrary, and GSA Advantage, which verified that the AudioCARE product line is currently owned and distributed by Payton Merger Sub II LLC, doing business as AudioCARE, an Artera Company, headquartered in Santa Barbara, CA. This vendor is a small business with an active GSA Multiple Award Schedule (MAS) Contract No. 47QTCA22D00CM, valid from August 29, 2022, through August 28, 2027.

The source code required to provide the software maintenance and technical support is proprietary to Payton Merger Sub II, LLC. Therefore, support capability is limited to OEM or AudioCARE authorized resellers, and market research did not identify adequate support options to provide the required one time upgrade and software lincence maintenance. Based on all of these market research efforts, the Government’s technical experts have determined that only AudioCARE can meet all of VA’s needs.

Lastly, Payton Merger Sub II LLC (dba AudioCARE) provided an official e-mail dated 14 October 2025, stating AudioCARE is the sole manufacturer and distributor of its products and associated maintenance and support services. All of AudioCARE’ s systems and applications are proprietary and several have been issued US patents.

There are no resellers, dealers or other third-party companies that can sell, service or support the AudioCARE products. Furthermore, due to the fact that ACS systems and software are licensed on an annual basis, ACS is the sole entity who can access the source code and configure the software for any changes involving interface configuration and testing.

9. Other Facts:

None

Technical/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.

Christopher Eric Williamson Date Program Manager, Integrated Testing Control and Process

Best Value Determination

I hereby determine that the proposed contract action will represent the best value to the Government consistent with FAR 8.404(d). GSA has already determined that the prices on the FSS contract are fair and reasonable. Further price analysis, which may include an analysis of proposed level of effort and mix of labor, will be conducted and subsequent negotiations held as necessary. Additionally, price discounts will be sought.

Ms. Wendella Baptiste Date Contracting Officer Technology Acquisition Center Office of Procurement, Acquisition, and Logistics Department of Veterans Affairs

Contracting Officer Certification/Approval

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Ms. Wendella Baptiste Date Contracting Officer Technology Acquisition Center Office of Procurement, Acquisition, and Logistics Department of Veterans Affairs