Tab 1- JA - AGFA Bridge print_Redacted.pdf

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Justification - AGFA Healthcare
Solicitation number
SPE2D116D0013_P00057
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This is a Justification for Other Than Full and Open Competition (J&A) supporting a contract modification for the Digital Imaging Network Picture Archiving and Communication Systems (DIN-PACS) provided by AGFA Healthcare Corporation.

The Defense Logistics Agency (DLA) Troop Support, in coordination with the Department of Veterans Affairs (VA), is seeking approval to extend the existing AGFA DIN-PACS Generation IV Contract SPE2D1-16-D-0013 for an additional eight (8) months, from August 12, 2026 through April 11, 2027. The maximum contract value of $768,000,000 remains unchanged, with current contract sales of $215,000,000 as of July 28, 2026. This bridge action maintains uninterrupted supply and support of medical imaging systems currently operating at forty-five (45) Military Treatment Facilities (MTFs) and VA Medical Centers (VAMCs), which collectively generate approximately $4.5 million in annual sales. The bridge period provides necessary time to solicit, evaluate, and award a Generation V follow-on contract while ensuring continuity of patient care operations.

The J&A justifies sole-source procurement under 10 U.S.C. § 3204(a)(1) based on AGFA's unique capability to provide required maintenance, software updates, cybersecurity compliance (DISA Risk Management Framework validation and Authority to Operate), warranty support, and engineering for proprietary DIN-PACS systems. No other vendor can support existing installations due to the proprietary nature of AGFA's software infrastructure and component interfaces. Pricing for the bridge period remains unchanged from the current contract and has been determined fair and reasonable. The Generation V solicitation is anticipated for August 2026 on a full and open competition basis. Delays in completing acquisition planning resulted from extensive multi-agency coordination with DHA and VA, expanded technical requirements including thirteen new specialties and cloud/artificial intelligence capabilities, market research at industry conferences, and unforeseen staffing transitions within the DLA contracting office.

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AGFA HEALTHCARE CORPORATION

DIGITAL IMAGING NETWORK PICTURE ARCHIVING AND COMMUNICATION SYSTEMS (DIN-

PACS)

Page | 2 same terms and conditions as the original contract. The proposed eight (8) month period of performance is required to allow enough time to solicit, evaluate and award a contract renewal, while continuing the required patient care. Furthermore, the bridge period is required to allow sufficient time to conduct a full and open continuity of medical imaging operations.

The planned milestones for the renewal are as follows:

The maximum contract value of $768,000,000.00 is not being increased under this action based on current contract sales of $215,000,000.00 as of July 28, 2026. The existing contract ceiling is sufficient to support the additional period of performance of eight (8) months.

(4.) The applicable statutory authority permitting other than full and open competition is 10 U.S.C. § 3204(a)(1), as implemented by Class Deviation 2026-O0017 Revision 1 – Revolutionary Federal Acquisition Regulation (FAR) Overhaul Part 6, Defense FAR Supplement (DFARS) Part 206, and Revolutionary FAR Overhaul 6.103-1 Only one responsible source and no other supplies or services will satisfy agency requirements.

(5.) The use of this authority is necessary to satisfy the customers’ ongoing requirements for AGFA DIN-PACS because only AGFA can provide the required support, maintenance and continuity of care at sites currently operating with AGFA DIN-PACS. Additionally, the existing AGFA software infrastructure requires full compatibility with AGFA components and other accessories. No other vendor can provide support, maintenance or repair to AGFA DIN-PACS due to the proprietary nature of the system software, component interfaces and system network infrastructure. Furthermore, c installation of new interoperable units and components, and regular software updates and upgrades to ensure they continue to support safe and effective patient care. Without this necessary support, radiologists and other clinicians would be unable to properly evaluate medical images and/or diagnostic studies, which would impede the ability to accurately treat and/or diagnose patients. Only AGFA possesses the overall knowledge required to properly maintain, update and upgrade the existing DIN-PACS systems. Additionally, only AGFA is authorized to provide the required maintenance for existing DIN-PACS systems to preserve the warranties on all installed AGFA DIN-PACS equipment. With respect to cybersecurity compliance, AGFA possesses all requisite Defense Information Systems Agency (DISA) validated approvals under the Risk Management Framework (RMF) and maintains a

Page | 3 current, active Authority to Operate (ATO) on the DOW healthcare network in full accordance with DoDI 8510.01. These accreditations are mandatory for continued operation within DOW

The Generation V DIN-PACS solicitation will support the joint DLA and VA program and requires extensive coordination among multiple parties, including the Defense Health Agency (DHA), MTFs, VAMC users, clinical providers, cybersecurity personnel and acquisition personnel from all users.

During acquisition planning, the Government identified the need to further define and validate customer requirements to ensure the solicitation accurately reflects the current operational, clinical, technical interoperability and cybersecurity requirements. Due to the complexity of the enterprise-wide DIN-PACS environment and the need to obtain concurrence from both DHA and VA, additional time was required to develop and finalize the Statement of Work (SOW) and associated technical requirements. The requirements validation process included review of evolving clinical workflow requirements, cybersecurity and RMF considerations, system interoperability requirements, data migration concerns, and future operational needs for all customers.

A timeline of the coordination and requirements validation process is reflected below:

Milestone Initiated Target Completion Statement of Work approval: DHA March 2025 May 2025 May 2026 Statement of Work approval: VA March 2025 May 2025 March 2026

The requirement was expanded to include thirteen (13) additional DIN-PACS specialties, cloud infrastructure and Augmented Intelligence (AI) capabilities. These technologies had not been used in previous generations of DIN-PACS and required additional technical and acquisition analysis by the DLA Biomedical Engineering and Contracting teams. Additional market research included engagement with industry at the Radiological Society of North America (RSNA) conference in December 2025 and the Healthcare Information and Management Systems Society (HIMSS) conference in March 2026. During these conferences, the teams met with many industry vendors to evaluate emerging technologies and current commercial practices and incorporate them with contracting, cybersecurity and RMF requirements. Throughout the extended market research effort, bi-weekly meetings were conducted with DHA, VAMC users, clinical providers, cybersecurity personnel and acquisition personnel to validate the technical requirements and ensure the SOW and solicitation reflected the proper operational, clinical, and cybersecurity requirements.

These activities were necessary to ensure DLA Troop Support developed a complete requirement that reflected current industry capabilities while minimizing performance, cybersecurity and interoperability risks. As a result of this extensive and complex level of coordination, completion of the final SOW and other supporting documentation required additional time beyond the original acquisition schedule.

Page | 4

The acquisition schedule was further impacted by unforeseen staffing transitions within the DLA contracting office. The previous Contracting Officer responsible for administration of the Generation IV contract retired prior to completion of acquisition planning activities for the follow-on Generation V procurement. In addition, the Division Chief, who had been expected to serve as the Contracting Officer for the Generation V acquisition, was promoted and reassigned to duties that precluded continued management of the procurement effort. As a result, responsibility for the Generation V acquisition was transferred to a newly assigned Contracting Officer. The newly assigned Contracting Officer received the requisite warrant authority in March 2026 and subsequently assumed responsibility for acquisition planning, review of technical requirements, solicitation development, implementation of Revolutionary FAR Overhaul regulatory updates, and coordination with DHA and VA stakeholders regarding refinement of the Statement of Work and associated requirements.

Given the complexity of the enterprise-wide DIN-PACS requirement, the multi-agency coordination required to finalize acquisition documentation, and the time necessary to ensure compliance with updated acquisition regulations, the Government is unable to complete the competitive Generation V procurement prior to expiration of the Generation IV contract on August 11, 2026.

The proposed bridge action is necessary to maintain uninterrupted supply and support of the existing AGFA DIN-PACS while the Government completes the Generation V contract.

(6.) A notice of this contract action will be published to Contract Opportunities (www.SAM.gov). In addition, this justification will be made available for public inspection, after award, in accordance with FAR 6.301(b) as implemented by Class Deviation 2026-O0017 (Feb 2026).

(7.) As the Contracting Officer, I hereby determine that the prices on this proposed bridge contract are fair and reasonable based on a comparison of pricing for the current contract, which was determined fair and reasonable based on comparison with current commercial price lists, and further substantiated by comparison of commercial invoices. Pricing for the bridge period will remain unchanged from the current contract. The bridge period does not introduce any new pricing terms and/or conditions.

(8.) Market research conducted throughout the ten (10) year period of the AGFA Contract and acquisition planning for the Generation V solicitation confirms that no source other than AGFA can provide maintenance, software updates, warranty support, cybersecurity compliance and engineering support for currently installed AGFA DIN-PACS Systems. Because this bridge action extends support for existing installed systems, additional market research would not yield alternative sources capable of meeting the customers’ requirements.

(9.) The only approved source of supply for this requirement is AGFA. It is imperative that DLA maintains the ability to purchase AGFA DIN-PACS during the contract renewal period of the Generation V contract. The proposed bridge action by modification will ensure continuous contract coverage providing uninterrupted supply of essential DIN-PACS items worldwide. If this modification is not approved and coverage lapses, neither DLA nor VA will have the ability to provide the required DIN-PACS that customers vitally need, as the traditional DLA supply system is

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