DA10--National Teleradiology Program Picture Archive and Communication System Upgrade (VA-26-00042676)

Justification for Other Than Full and Open Competition

This document justifies a sole-source, firm-fixed-price contract with Intelerad Medical Systems, Inc. for the upgrade of the National Teleradiology Program (NTP) Picture Archive and Communication System (PACS) from IntelePACS version 4.9 to version 5.7 or the most current version available at the time of implementation. The contract will also include migration of all NTP-specific applications and provide ensuing system maintenance and technical support for the upgraded platform.

• Comprehensive upgrade of NTP's existing PACS to the latest commercially available software release.

• Migration and upgrade of all NTP PACS-specific applications from IntelePACS version 4.9 to version 5.7 or newer, deployed within the VA Enterprise Cloud (VAEC).

• Management of all VAEC resources associated with PACS.

• Migration of NTP-specific applications and data.

• Validation of integrations with voice recognition, artificial intelligence (AI), Health Level Seven (HL7) interfaces, and analytics platforms.

• Ensuring continuity of clinical workflows.

• Ongoing system maintenance, security updates, and technical support for the upgraded platform.

• If full activation is not completed by September 30, 2026, continued service and support for the legacy PACS to ensure uninterrupted clinical operations.

• Base period of performance: 18 months (6 months for system deployment and acceptance, 12 months for service and support post go-live).

• Includes one 12-month option period for full system maintenance and technical support.

• Includes one 12-month optional task for continued service and support for the legacy PACS if activation is delayed.

• This document is a justification for other than full and open competition, citing 41 U.S.C. 3304(a)(1).

• Market research was conducted, yielding no additional sources.

• The proposed action will be synopsized on the Contracting Opportunities Page, and any proposals received will be evaluated.

• This action is justified as a sole-source procurement from Intelerad Medical Systems, Inc.

• Intelerad is the Original Equipment Manufacturer (OEM) of the NTP PACS software and holds proprietary rights.

• Access to proprietary source code is essential for service, support, updates, and upgrades.

• Intelerad does not sell its software or support through resellers.

• The IntelePACS platform has FDA 510(k) clearance, which only Intelerad can maintain during upgrades.

• Engaging another source would invalidate existing clearance, require new FDA submissions, and cause significant delays.

• A previous competitive action for a replacement PACS solution failed.

• The current NTP PACS is mission-critical, supporting approximately 3,500 patients daily.

• Replacing the PACS would require an estimated 18-24 months for procurement and deployment, leading to clinically unacceptable delays.

• The contract is for the upgrade and sustained maintenance of the existing IntelePACS system.

• The total estimated value, inclusive of the option period and optional task, is not specified in the provided text but is determined to be fair and reasonable.

• Technical/Requirements Certification, Fair and Reasonable Cost Determination, Contracting Officer Certification/Approval, Office of General Counsel (OGC) Review, and Advocate for Competition Approval are included.

Other / Unclassified

This document is a contract award notice for the National Teleradiology Program (NTP) Picture Archive and Communication System (PACS) Upgrade. It details a sole-source, firm-fixed-price contract awarded to Intelerad Medical Systems, Inc. The contract covers the upgrade of the existing IntelePACS system from version 4.9 to version 5.7 (or the latest available version), including migration of NTP-specific applications. It also includes ensuing system maintenance and technical support for the upgraded platform.

This award notice is relevant to potential bidders as it provides information on a completed contract action. It specifies the contractor (Intelerad Medical Systems, Inc.), the award amount ($3,681,500.00), and the award date (04-20-2026). The notice also cites the statutory authority for the sole-source award (FAR Overhaul VA Deviation 6.103-1) and references an attached redacted Justification and Approval (J&A). The North American Industry Classification Systems (NAICS) code is 541511, and the Product Service Code is DA10. The contracting office is the Department of Veterans Affairs Technology Acquisition Center, Eatontown, NJ.

Justification for Other Than Full and Open Competition

This document justifies a sole-source, firm-fixed-price contract with Intelerad Medical Systems, Inc. for the upgrade of the National Teleradiology Program (NTP) Picture Archive and Communication System (PACS) from IntelePACS version 4.9 to version 5.7 or the most current version available. The action also includes ongoing system maintenance and technical support for the upgraded platform.

• Comprehensive upgrade of NTP's existing PACS to the latest commercially available software release.

• Migration of all NTP PACS-specific applications and data.

• Validation of integrations with voice recognition, AI, HL7 interfaces, and analytics platforms.

• Ensuring continuity of clinical workflows.

• Ongoing system maintenance, security updates, and technical support for the upgraded platform.

• Continued service and support for the legacy PACS if full activation of the upgraded system is not completed by September 30, 2026.

• Base period of performance: 18 months (6 months for deployment/acceptance, 12 months for service/support).

• Includes one 12-month option period for full system maintenance and technical support.

• Includes one 12-month optional task for continued service and support of the legacy PACS if activation is delayed.

• This is a justification for other than full and open competition, citing 41 U.S.C. 3304(a)(1).

• Market research was conducted, yielding no additional sources.

• The action will be synopsized on the Contracting Opportunities Page, and any proposals received will be evaluated.

• A competitive action for a replacement PACS solution in June 2023 failed deployment.

• The anticipated price will be determined fair and reasonable based on historical pricing and an Independent Government Cost Estimate (IGCE).

• This action is justified for sole-source award to Intelerad Medical Systems, Inc.

• Intelerad is the Original Equipment Manufacturer (OEM) and proprietary owner of the IntelePACS software.

• Access to proprietary source code is essential for service, support, updates, and upgrades.

• Intelerad does not sell its PACS software or support through resellers.

• FDA 510(k) clearance must be maintained, which only Intelerad can provide for upgrades.

• The current NTP PACS (IntelePACS 4.9) reached end-of-life on November 30, 2020.

• Replacement of the PACS would require an estimated 18-24 months for procurement and deployment, leading to unacceptable delays.

• The NTP PACS is mission-critical, supporting approximately 3,500 patients daily.

Amendment / Modification

This amendment extends the solicitation due date to March 20, 2026, at 12:00 PM EST. It also revises Addendum B (changes highlighted in red font) and includes the Justification for Other Than Full and Open Competition as an attachment.

• Addendum B has been revised.

• The Justification for Other Than Full and Open Competition is now attached.

• The proposal response deadline has been extended to March 20, 2026, 12:00 PM EST.

Amendment / Modification

This amendment to Solicitation Number 36C10B26Q0213 serves to:

• Extend the due date for offers: The new deadline for receipt of offers is March 20, 2026, at 12:00 PM EST.

• Revise Addendum B: Specific revisions to Addendum B are highlighted in red font within the amendment document.

• Solicitation due date.

• Addendum B.

• Offerors must acknowledge receipt of this amendment.

• The deadline for submitting offers has been extended to March 20, 2026, at 12:00 PM EST.

• Offerors should review the revised Addendum B for any changes impacting their proposals.

Solicitation / RFP / RFQ

This solicitation is for the upgrade of the National Teleradiology Program (NTP) Picture Archive and Communication System (PACS) to the latest commercially available release. The existing IntelePACS software and hardware are past their end of life. The upgraded system will be deployed in the VA Enterprise Cloud (VAEC).

• Upgrade NTP's IntelePACS from version 4.9 to 5.7 or newer.

• Migrate all NTP-specific applications to the upgraded platform.

• Install and host the upgraded system in the VAEC (Azure Virginia) with dual availability zone configuration.

• Provide activation, installation, testing, validation, and training for the software on VAEC.

• Design and deploy NTP custom workflow tools.

• Obtain and maintain a VA Authority to Operate (ATO).

• Provide ongoing support and maintenance for the upgraded system.

• Support for DICOM and HL7 interfaces, including integration with VHA provided components (Voice Recognition, AI platform, HL7 Integration Engine, Foundations by Health Level).

• Import all existing reports from the legacy PACS.

• Ensure the legacy NTP PACS remains operational 24x7 throughout the upgrade.

• Compliance with numerous VA and Federal cybersecurity, privacy, and accessibility standards (e.g., NIST, FISMA, Section 508).

• Contract Type: Firm Fixed Price (FFP).

• Period of Performance: 18 months from date of award for the base period, with one (1) 12-month option period.

• Optional Task: Legacy Hardware and Software Support for up to 12 months.

• Proposals must be submitted via email to Sean.McAvoy1@va.gov and Kathryn.Pantages@va.gov by the date and time specified in Block 8 of the SF1449.

• Proposals must include two volumes: Volume 1 - Technical (addressing PWS requirements) and Volume 2 – Price/Schedule (completed Section B.4).

• Award will be made on a sole source basis upon verification of technical compliance and determination of fair and reasonable price.

• Offeror-imposed terms and conditions deviating from solicitation requirements may render the proposal unacceptable.

• This acquisition is unrestricted.

• NAICS Code: 541511, Size Standard: $34M.

• Points of Contact: Sean McAvoy (Contract Specialist) and Kathryn Pantages (Contracting Officer).

• Offer Due Date: March 17, 2026, 12:00 PM EST.

• Solicitation Issue Date: March 10, 2026.

• The resultant contract will be Firm Fixed Price.

Solicitation / RFP / RFQ

This announcement constitutes the only solicitation for the National Teleradiology Program (NTP) Picture Archive and Communication System (PACS) Upgrade. The government is procuring a software upgrade for the existing NTP PACS, specifically from IntelePACS version 4.9 to version 5.7 or the most current version available at the time of implementation. The effort includes migration of all NTP-specific applications, ongoing system maintenance, and technical support for the upgraded platform.

• Software upgrade of the existing NTP PACS.

• Migration of all NTP-specific applications.

• Provision of ongoing system maintenance and technical support for the upgraded platform.

• The intended award is a firm-fixed price contract.

• The sole source award is intended for Intelerad Medical Systems, Inc.

• This acquisition is not set-aside for small business concerns.

• All responsible sources may submit a capability statement, proposal, or quotation for consideration.

• Response Date/Time/Zone: 03-17-2026 12:00 EASTERN TIME, NEW YORK, USA.

• This acquisition is not set-aside for small business concerns.

• Solicitation Number: 36C10B26Q0213

• NAICS Code: 541511

• Product Service Code: DA10

• Contracting Office Address: Department of Veterans Affairs, Technology Acquisition Center, 23 Christopher Way, Eatontown NJ 07724.

• Point of Contact: Sean McAvoy, Contract Specialist, sean.mcavoy1@va.gov.

• The statutory authority for this effort is FAR Overhaul VA Deviation 6.103-1 ("Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements").

• The solicitation incorporates provisions and clauses by reference, accessible at www.acquisition.gov.

• An attachment named "Request for Quote 36C01B26Q0213.docx" is referenced.