Single Source Justification_Redacted.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID:

JOFOC Tracker No.:

1. Contracting Activity: Department of Veterans Affairs, VISN 19, Network Contracting office 19, 6162

South Willow Drive, Suite 300 Greenwood Village, CO 80111.

Organizational Activity: Department of Veterans Affairs, VISN 19, Oklahoma City Medical Center (OKC VAMC) 921 NE 13th St, Oklahoma City, OK 73104

2237 #:

2. Nature and/or Description of the Action Being Processed: This procurement is for an upgrade to Oklahoma City VA Medical Center’s MERGE Cardiology Picture Archiving and Communication System (PACS)/Vendor Neutral Archive (VNA) 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 action being reviewed and approved is a Single Source Justification for a firm-fixed price contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This requirement if an upgrade to Oklahoma City VA Medical Center’s MERGE Cardiology Picture Archiving and Communication System (PACS)/Vendor Neutral Archive (VNA). The details of the requirement are as follows:

Software and Bundled Solutions – MERGE Cardio Software Upgrade to 12.X (Active Support Contract), Workstation Software (Direct Connect), Interface (XML Exporter Upgrade), and a Server Software (License Refresh).

Hardware and Third Party Products – MERGE Cardio Application Server, Workstations, Monitors, ICONNECT SSA Server, Test SSA Server, Enterprise Backup Gateway (EBGW) Server, Remote Monitoring Server, Interoperability MIRTH Server, NetApp (52TB), Dell 42U Rack, NetApp (208 TB), UPS Upgrade, Monitors, Wireless Scanners, PDM Trunk Cable Coil Cords, Server, Test Server;

Cardiology SQL Server License, Maintenance, ICONNECT Enterprise Archive SUSE Linux Enterprise Server License, ISV License, Windows 10 Enterprise 2019 License, SQL Server License, and Maintenance.

Professional Services – MERGE Cardiology Modality Work List Implementation, Migration to Integrated HL7 Services, Standard Training Package, Premium Project Management Services, System Administrator 3 Day Classroom Training Course, Installation and Configuration of Servers and

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Archive, Staging, Reporting Configuration and Training Package (Adult Echo, Cath/Vascular, Vascular, Acute), iCONNECT Enterprise Archive Platform Content Engineering Professional Services, Installation (Acute - SSA External Storage, Test SSA), DSS Storage Configuration, Upgrade Professional Service (From 9.X to Current Version).

The anticipated period of performance is:

Base Period: September 1, 2023 – August 31, 2024

Option Period 1: September 1, 2024 – August 31, 2025

Option Period 2: September 1, 2025 – August 31, 2026

Option Period 3: September 1, 2026 – August 31, 2027

Option Period 4: September 1, 2027 – August 31, 2028

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 ( ) 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): Merge Healthcare Solutions Inc. is the sole proprietary owner of the Merge Cardiology Software System.

The upgrade to their system is also proprietary to their company. There are not any small businesses or any third parties in general that are authorized to perform this work. All work on Merge systems must be conducted by Merge employees due to the thorough training and certification process.

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6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: No efforts were made as this requirement is an upgrade to OKCVAMC’s existing MERGE system. Installing a new system would not be cost effective as a new system would need to be implemented and date would need to be migrated. This would delay the workflows of the Cardiology Service, including the Cardiac Cath Labs.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The price will be analyzed for fair and reasonableness in accordance with FAR 13.106- 3(a)(2). The quoted price will be compared to previous prices paid by the Government for comparable requirements. The quoted price will also be compared to the Independent Government Cost Estimate (IGCE).

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

Market Research Was Not Conducted: Market Research was not conducted as this requirement is only available from the Large Business manufacturer, Merge Healthcare Solutions Inc.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: There are no other facts supporting the use of other than full and open competition.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Merge Healthcare Solutions Inc., 900 Walnut Ridge Dr, Hartland, Wisconsin 53029-8347.

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 further actions are contemplated as this requirement is proprietary to the manufacturer.

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.

13. 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.

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b. 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.