Sole Source Justification Teleradiology Services Redacted.pdf

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: 36C249-24-AP-2116

Contracting Activity:

Department of Veterans Affairs (VA) Network Contracting Office 9 Lexington, Robley Rex, Memphis, James H. Quillen, and T V H S VA Medical Centers

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 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 proposed period of performance is 09-01-2024 to 08-31-2025, and the estimated cost for this proposed action is $5,596,449.00.

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 VAMC). 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

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

Effective Date: 02/01/2022 Page 2 of 4

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 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.

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.

Determination by the CO that the Anticipated Cost to the Government will be 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 similar services. The current contract was competed.

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.

36C24924Q0135, with responses from seven (7) interested parties; three (3) were Service-Disabled Veteran-Owned Small Businesses (SDVOSBs), two (2) were Small Businesses), and two were Large Businesses. 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.

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

None.

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

Spectrum Healthcare Resources – Large Business S &S Life Scan Corp – Small Business

Effective Date: 02/01/2022 Page 3 of 4

3. Alumni Healthcare Staffing – Small Business

4. Rocjoi Medical Imaging, LLC – SDVOSB

5. Medical Staffing Solutions – SDVOSB

6. Medicus – Large Business

7. VetMed Group - SDVOSB

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 a SDVOSB set aside or a small business set aside.

Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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.

Dana Dixon Contracting Officer Network Contracting Office 9

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.

Carol Franklin Branch Chief, Health Care Resources Network Contracting Office 9

c. Division Chief: I certify the justification meets requirements for other than full and open competition.

Kenneth N. Hooks, Jr.

Division Chief

Network Contracting Office 9

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

Susan F. Nagel Acting, Director of Contracting

Network Contracting Office 9

DANA DIXON

Digitally signed by DANA

DIXON

Date: 2024.08.12 10:07:07 -05'00'

CAROL FRANKLIN

Digitally signed by CAROL

FRANKLIN

Date: 2024.08.12 10:48:55 -05'00'

KENNETH HOOKS

Digitally signed by KENNETH

HOOKS

Date: 2024.08.14 07:27:45 -05'00'

SUSAN

NAGEL

Digitally signed by

SUSAN NAGEL

Date: 2024.08.20 10:18:34 -05'00'

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

e. VHA 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 ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Daryl A. Berg Executive Director, RPO Central Head of Contracting Activity

DARYL BERG

Digitally signed by DARYL

BERG

Date: 2024.08.27 13:53:28 -05'00'

INDEPENDENT GOVERNMENT COST ESTIMATE

Mountain Home

0001 PF Diagnostic Radiology 24.00$ 4,000 96,000.00$

0002 CT

Computed Tomography (All other CTs not listed in subcategory below) 70.00$ 410 28,700.00$

0003 CT

CT Abdomen & Pelvis (W/O or W&W/O) 125.00$ 150 18,750.00$

0004 CT CT Angiographs 90.00$ 10 900.00$ 0005 CT CT Abdomen & Pelvis Multiphase 180.00$ 20 3,600.00$ 0006 CT CT Angio Abdominal Arteries w/Runoffs 250.00$ 10 2,500.00$ 0007 MR Magnetic Resonance Imaging 74.00$ 50 3,700.00$ 0008 US Ultrasound 45.00$ 30 1,350.00$ 0009 NM Nuclear Medicine 50.00$ 0 -$ 0010 PT Positron Emission Tomography (PET CT) 250.00$ 10 2,500.00$

158,000.00$

Louisville Cost per Total Exams Cost

PF Diagnostic Radiology 24.00$ 5,400 129,600.00$

CT

Computed Tomography (All other CTs not listed in subcategory below) 70.00$ 550 38,500.00$

CT

CT Abdomen & Pelvis (W/O or W&W/O) 125.00$ 1300 162,500.00$

CT CT Angiographs 90.00$ 300 27,000.00$ CT CT Abdomen & Pelvis Multiphase 180.00$ 120 21,600.00$ CT CT Angio Abdominal Arteries w/Runoffs 250.00$ 60 15,000.00$ MR Magnetic Resonance Imaging 74.00$ 200 14,800.00$ US Ultrasound 45.00$ 100 4,500.00$ NM Nuclear Medicine 50.00$ 50 2,500.00$ PT Positron Emission Tomography (PET CT) 250.00$ 0 -$

416,000.00$

Memphis Per Exam Cost Total Exams Cost

PF Diagnostic Radiology 24.00$ 8,314 199,536.00$

CT

Computed Tomography (All other CTs not listed in subcategory below) 70.00$ 3,836 268,520.00$

CT

CT Abdomen & Pelvis (W/O or W&W/O) 125.00$ 4428 553,500.00$

CT CT Angiographs 90.00$ 2161 194,490.00$ CT CT Abdomen & Pelvis Multiphase 180.00$ 915 164,700.00$ CT CT Angio Abdominal Arteries w/Runoffs 250.00$ 760 190,000.00$ MR Magnetic Resonance Imaging 74.00$ 1,044 77,256.00$ US Ultrasound 45.00$ 419 18,855.00$ NM Nuclear Medicine 50.00$ 36 1,800.00$ PT Positron Emission Tomography (PET CT) 250.00$ 0 -$

1,668,657.00$

TVH

Cost per Total Exams Cost

0001 PF Diagnostic Radiology 24.00$ 12,350 296,400.00$

0002 CT

Computed Tomography (All other CTs not listed in subcategory below) 70.00$ 6,335 443,450.00$

0003 CT

CT Abdomen & Pelvis (W/O or W&W/O) 125.00$ 6440 805,000.00$

0004 CT CT Angiographs 90.00$ 3560 320,400.00$ 0005 CT CT Abdomen & Pelvis Multiphase 180.00$ 1235 222,300.00$ 0006 CT CT Angio Abdominal Arteries w/Runoffs 250.00$ 965 241,250.00$ 0007 MR Magnetic Resonance Imaging 74.00$ 1,500 111,000.00$ 0008 US Ultrasound 45.00$ 960 43,200.00$ 0009 NM Nuclear Medicine 50.00$ 4 200.00$ 0010 PT Positron Emission Tomography (PET CT) 250.00$ 0 -$

2,483,200.00$

Lexington Per Exam Cost Total Exams Cost

0001 PF Diagnostic Radiology 24.00$ 4,349 104,376.00$

0002 CT

Computed Tomography (All other CTs not listed in subcategory below) 70.00$ 2,688 188,160.00$

0003 CT

CT Abdomen & Pelvis (W/O or W&W/O) 125.00$ 1650 206,250.00$

0004 CT CT Angiographs 90.00$ 425 38,250.00$ 0005 CT CT Abdomen & Pelvis Multiphase 180.00$ 1575 283,500.00$ 0006 CT CT Angio Abdominal Arteries w/Runoffs 250.00$ 60 15,000.00$ 0007 MR Magnetic Resonance Imaging 74.00$ 464 34,336.00$ 0008 US Ultrasound 45.00$ 16 720.00$ 0009 NM Nuclear Medicine 50.00$ 0 -$ 0010 PT Positron Emission Tomography (PET CT) 250.00$ 0 -$

870,592.00$

CONTRACTING OFFICER REPRESENTATIVE

CONTRACTING OFFICER

Description

Description

Description

Description

Description

KRISTI

STREET

Digitally signed by KRISTI

STREET

Date: 2024.08.16 10:13:18 -04'00'

Overall Total for VISN 9 $5,596,449.00

DANA DIXON

Digitally signed by DANA

DIXON

Date: 2024.08.16 09:43:47

Market Research and Acquisition Planning Report

VHAPG Part 810.001 Market Research Page 5 of 6 Revision: 03 Effective Date: 07/15/24

Medicus

VII. Description of the Commercial Marketplace and Prevalent Business Practices

This requirement can be fulfilled with commercial sources.

This is a non-personal services requirement.

There are no organizational conflicts of interest.

VIII. Pricing and Market Issues

Pricing will be determined by considering historical data and the Independent Government Cost Estimate.

IX. Other Considerations

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.

X. Market Analysis Summary

Market research was conducted for the long-term requirement via Request for Information (RFI) No. 36C24924Q0135, with responses from seven (7) interested parties; three (3) were Service-Disabled Veteran-Owned Small Businesses (SDVOSBs), two (2) were Small Businesses), and two (2) were Large Businesses. 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. The current contract was competed, and the five-year replacement contract will be competed and set aside for small business.

XI. DETERMINATION:

Based on the market research, VetMed Group, LLC, the incumbent contractor is certified in VetCert and active in SAM with no exclusions. VetMed employs teleradiology physicians who provide services for multiple medical centers. The physicians are onboarded and credentialed by the VAMC 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 VAMC onboarding process for physicians takes approximately 90 days to complete. Due to these circumstances, the incumbent Contractor is the only source capable of providing these critical services without a substantial break in services.

PART II

I. Contracting Officer Responsibilities: Conducting market research activities to evaluate contract terms and conditions and small business considerations.

I. Background. The codes identified below will be used when advertising this requirement, if applicable.

Market Research and Acquisition Planning Report

VHAPG Part 810.001 Market Research Page 6 of 6 Revision: 03 Effective Date: 07/15/24

Title: VISN Wide Teleradiology Physician Services

Product or Service Code: Q522

North American Industry Classification System (NAICS) Code: 621111

Estimated Contract Value (including options): $5,596,449.00 no options needed.

Procurement History - Same as above

II. Market Research

1. Techniques Used in Conducting Market Research: Same as above.

2. Results of Market Research: Same as above.

III. Consideration of Small Business Opportunities

Consideration has been given to small business sources as stated above.

IV. Conclusions and Recommendations

This requirement will be a sole source to VetMed Group, LLC a VetCert certified SDVOSB.

IV. PROPOSED PROCUREMENT METHOD

Based upon the market research conducted and the resulting analysis, it is in the best interest of the Government to sole source this requirement to VetMed Group, LLC, 393 NE 5th Ave Unit B, Delray Beach FL, 33483. This recommendation will be provided in the formal acquisition plan or will stand alone as the sole acquisition strategy document for small business determination for informal acquisition planning. This market research information is not more than 18 months old.

Name: _______________________________ Date: __________________ Contracting Officer

DANA DIXON

Digitally signed by DANA

DIXON

Date: 2024.08.16 09:37:52