6525--PACS VISN 5 JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

The Department of Veterans Affairs, through its National Acquisition Center in Hines, Illinois, has awarded a Firm Fixed Price delivery order under DLA contract SPE2D1-19-D-0036 to Philips Healthcare Informatics, Inc. for the upgrade and consolidation of the Philips IntelliSpace CardioVascular (ISCV) PACS system across Veterans Integrated Service Network (VISN) 5. The procurement, identified by solicitation number 36L79726F0029 and valued at $900,000, is justified under FAR 16.507-6(b)(2) as an exception to fair opportunity because only Philips is technically capable of providing the required services due to the proprietary, FDA-cleared nature of its ISCV software, exclusive maintenance rights, and control over critical trade information. The work involves upgrading all legacy ISCV systems from versions 4.x and 5.x to version 8.1 and migrating site-specific Vendor Neutral Archives (VNAs) into a single, centralized virtual VNA to standardize cardiovascular imaging, ensure interoperability with the VISTA electronic health record system, and eliminate security and maintenance risks associated with outdated infrastructure. Only Philips-certified personnel are authorized to perform deployment, updates, or support, and no vendor substitution or alternative systems are permitted. Performance occurs across multiple VA medical centers in VISN 5, including locations in West Virginia and Maryland, with centralized administration managed from the VA’s National Acquisition Center in Hines, Illinois. No competitive evaluation factors such as cost, past performance, or technical approach are applied; award is based solely on uniqueness and exclusivity of capability. The contract includes no packaging, preservation, or physical marking requirements, as the deliverables are entirely software and data-related. Pricing was accepted based on prior DLA contract validation without new price negotiations, and compliance with FDA regulations is mandatory. The award was certified by the Contracting Officer and technical staff, with the point of contact being Contract Specialist Joseph Levy.