S03 - Redacted JA MIPACS FINAL.pdf

VISN 21 MIPACS CONTROL NUMBER VA-26-00031003

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

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 brand name, sole source, Firm- Fixed-Price delivery order to be issued under the National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V Government Wide Acquisition Contract (GWAC) for the acquisition of Medicor Imaging Picture and Archival Communication System (MIPACS) licensing, implementation, system upgrades, and training.

3. Description of the Supplies or Services: The Department of Veterans Affairs (VA), Veterans Integrated Service Network (VISN) 21 requires Medicor Imaging Picture and Archival Communication System (MiPACS) licensing for six new sites, VISN wide training, VISN wide system upgrades to enable compatibility with the VA’s new electronic health record (EHR), and two years of support and maintenance. The required Dental PACS solution shall integrate with all current dental infrastructure.

VISN 21 serves Veterans in northern and central California, Nevada, Hawaii, the Philippines and U.S. Territories in the Pacific Basin. With a total of 67 sites of care, VISN 21 provides a continuum of comprehensive health care services through seven VA Medical Centers, nine co-located Community Living Centers and 41 Community Based Outpatient Clinics (CBOCs). MiPACS is currently utilized by the Northern California Health Healthcare System (NCHCS) and this effort will expand the MiPACS system to all VISN 21 dental sites, thus enhancing continuity of care and helping to provide better dental care to our veterans. Furthermore, the contractor shall provide all resources necessary to integrate MiPACS with the new EHR, Cerner, for all VISN 21 locations.

New MiPACS implementation sites are as follows: Central California Healthcare System (CCHCS), San Fransico Healthcare System (SFHCS), Palo Alto Healthcare System (PAHCS), Sierra Nevada Healthcare System (SNHCS), Southern Nevada Healthcare System (SoNHCS), and the Pacific Island Healthcare System (PIHCS). MiPACS is currently in use at the Northern California HealthCare System NCHCS.

MiPACS is a Dental Picture Archiving Communication System (PACS) used across VA healthcare environment for the image management and viewing of Dental images.

MiPACS provides VA Dental Healthcare Clinicians with access and awareness of images generated during the dental care delivery process. MiPACS includes a desktop client connected to the imaging modalities in the department. Through the desktop client, images are captured and stored to a local server. As part of the EHR integration, the system will support the ability to launch the client application, with patient context, from the dental reporting solution (DRM+).

The period of performance shall be one, 12 month base period from March 1, 2026 to February 28, 2027, with two (2) 12-month option years, and two (2) optional tasks. The total estimated price of the proposed effort is $676,111.27, inclusive of all optional tasks and option years.

4. Statutory Authority: The following brand name requirement is being justified and approved as an exception to fair opportunity under the statutory authority of Section 41 U.S.C. 4106(c)(2) as implemented by the Revolutionary Federal Acquisition Regulation Overhaul (RFO) 16.507-6(b)(2), entitled “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”. Furthermore, and IAW, RFO 19.106- 3(a) this acquisition will be a sole source award as there is not a reasonable expectation that offers would be received from two or more SDVOSB concerns.

5. Rationale Supporting Use of Authority Cited Above: Based on the market research, as described in section 8 of this justification, it was determined that only the renewal and upgrading of the existing brand-name MiPACS would meet all the Government’s requirements.

Specifically, VISN 21 currently utilizes MiPACS for its dental image viewing and archiving. Under this proposed action, VA intends to expand the amount of dental clinics using MIPACS, renew and upgrade the existing MiPACS infrastructure to the latest software version, which would make it compatible with the VA’s new EHR. It would not be economical or efficient to switch to an alternative solution at this time, as any change would result in extensive duplicated costs, such as procurement of an alternative imaging solution and the requirement to create new infrastructure to support the new software. VA estimates that replacing this solution would result in duplicative costs in excess of $2,000,000.00 and would take an estimated 24 months to implement, which would not be recovered through competition. This estimate is based on the cost to procure a new solution, replace existing dental infrastructure to work with a new solution, labor hours to implement the alternate solution, data migration costs, and staff training costs. If the VA is unable to procure the required software and service it will adversely affect the dental continuity of care in VISN 21, which could result in adverse dental and physical health complications.

Additionaly, due to the proprietary nature of the source code only Medicor Imaging or its authorized resellers can provide the required licensing, upgrades, and training for MIPACS. No other companies have access to MIPACS proprietary data/source code and therefore would be unable to provide the required licensing, system upgrades, or training.

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 16.507-6(f)(1), the

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Rectangle award notice for this action will be synopsized on the Contract Opportunities Page and the 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.

8. Market Research: The Government’s technical experts conducted market research by reviewing other similar Dental PACs solutions. This market research is an ongoing process starting in December 2024 and continuously being conducted as recently as December 2025. Specifically, the technical experts reviewed similar OEM solutions from Dexis (DTX Studio Clinic), Carestream (CS Imaging version 8), and Planmeca (Romexis). Based on reviews of the solutions from Dexis, Carestream, and Planmeca, the Government's technical experts have determined that none of these solutions have the ability to integrate with all VA dental infrastructure that is currently in place throughout VISN 21. Additionally, VA subject matter experts regularly review industry trade publications and conduct internet research via Emergency Care Research Institute (ECRI), NASA SEWP, or scholarly publications to ascertain if any other dental PACS software is available. Based on all market research efforts, the Government’s technical experts have determined that only MIPACs brand-name software can meet all of VA’s needs.

On December 15, 2025 the contract specialist (CS) conducted additional market research utilizing the NASA SEWP V GWAC Provider Lookup Tool (PLT). The PLT yielded one Service-Disabled Veterans Owned Small Business (SDVOSB) that is an authorized reseller of the required MiPACS solution.

Additionally, the CS verified with MIPACS parent company that the authorized SDVOSB reseller listed on NASA SEWP is the only SDVOSB that can provide what the VA requires. Based on the aforementioned information, the VA intends to issue a sole source request for quotation and award to the SDVOSB authorized reseller of the MiPACS solution.

9. Other Facts: None.

10. 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.

Uriel Gomez Date Biomedical Engineer VISN 21, Health Technology Management

11. Fair and Reasonable Cost Determination I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable based on the fact that NASA SEWP V GWAC has already determined the prices on contract to be fair and reasonable. Finally, the successful quote will be compared with the the Independent Government Cost Estimate and past MiPACS contracts.

Stefanie Applegate Date Contracting Officer Department of Veterans Affairs Technology Acqusition Center

12. Contracting Officer Certification/Approval I certify that this justification is accurate and complete to the best of my knowledge and belief. This contract action exceeds the simplified acquisition threshold, but does not exceed $900,000, therefore, the certification required by FAR 16.507-6(e)(1) serves as the Contracting Officer’s approval.

Stefanie Applegate Date Contracting Officer Department of Veterans Affairs Technology Acqusition Center

URIEL GOMEZ Digitally signed by URIEL GOMEZ Date: 2026.01.16 08:03:33 -08'00'

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