J065--Notice of Intent to Sole Source Philips Imaging Service Plan Eugene & Roseburg.

The contract involves a sole-source award for Philips Healthcare to provide an Imaging Service Plan covering High-Tech Medical Equipment (HTME) at Veterans Health Administration (VHA) facilities in Eugene and Roseburg, Oregon. The acquisition is executed under an Indefinite Delivery, Indefinite Quantity (IDIQ) vehicle (contract VA797H-17-D-0022) and is justified by FAR 16.505(b)(2)(i)(B) allowing award to a single capable source, the Original Equipment Manufacturer (OEM). This sole-source approach is driven by the proprietary nature of Philips’ imaging systems, the critical need to maintain equipment integrity and cybersecurity compliance, and the risk of liability and equipment damage posed by third-party servicing. The contract period extends through December 22, 2026, with annual Service Maintenance Agreements (SMAs) issued to ensure continuous preventive maintenance, technical support, and timely repairs of modalities such as CT, MRI, X-ray, PET-CT, ultrasound, and mammography systems across approximately 170 VHA locations. The performance of services takes place at the VHA sites themselves, with inspection and acceptance occurring at the destination facilities to maintain operational continuity and compliance with Veterans Health Administration technology standards. No detailed line-item pricing or ceiling values are provided; however, individual SMA orders have ranged between $50,000 and $1,000,000, and one documented order was valued at approximately $406,000. The contract enforces strict OEM-only maintenance requirements, explicitly prohibiting third-party servicing to preserve safety, performance, and cybersecurity mandates. Contract administration is managed by the Network Contracting Office 20 in Vancouver, Washington, with Gregory Watson acting as the primary contract specialist. The award reflects a risk-averse procurement strategy emphasizing specialized capabilities and regulatory adherence rather than competitive evaluation, with all certifications validating the sole-source justification originating from government officials rather than the contractor.