Potomac Health Associates Protest Results in Agency Taking Corrective Action


McLean, VA — Potomac Health Associates, Inc. announced that it filed a successful challenge to a contract award on behalf of its client, Valley Regional Imaging (“VRI”). After having initially been awarded to another contractor, the decision effectively negates VA’s original award, and gives VRI another opportunity to be re-considered for the contract.

PHA was retained by VRI in September of 2014 to advise it in conjunction with a solicitation for a five-year contract to provide Magnetic Resonance Imaging (“MRI”) services to support the Fayetteville (NC) VAMC. On December 31, 2014, the VA awarded the contract to the incumbent, a contractor that held the contract without interruption for approximately 10 years. During a debriefing following award, PHA identified numerous issues with the evaluation that raised questions as to whether the process was conducted in accordance with stated evaluation criteria.

PHA filed a protest of the award on March 9, 2015 with the Government Accountability Office (“GAO”). PHA argued that the VA made several significant errors during evaluation. Following submission of the protest prepared by PHA, the agency notified GAO on April 6, 2015 that it had re-considered its position and confirmed the problems identified with the evaluation by PHA:

After reviewing the protest, VA has determined to take corrective action. VA intends to terminate the current award and conduct a new evaluation of the proposals received in response to the solicitation.

As a result of the protest, PHA was able to reverse the initial unfavorable award decision, thereby enabling VRI a second chance at re-consideration for award.


About Valley Regional Imaging  

VRI Logo


Valley Regional Imaging (VRI) is an independent outpatient imaging center providing a wide range of radiology services for patients and referring physicians in the greater Fayetteville/Cumberland County area. VRI was formed May 2009, when its operating partners – Valley Radiology (VR) and Cape Fear Valley Health System (“CFVHS”) – acquired the imaging center from Diagnostic Health Corporation. The partners who operate VRI have been serving the health care needs of the local community for more than 50 years.

• Valley Radiology — Established in 1956, as Fayetteville X-Ray Associates, to provide imaging services for what is now Cape Fear Valley Medical Center. Over the past five decades, VR has grown to become one of the largest radiology practices in southeastern North Carolina. VR’s staff of 20 radiologists are all board certified, and many are fellowship-trained and hold Certificates of Added Qualification in radiology subspecialties. VR radiologists offer subspecialty expertise in many areas, including women’s health, cancer, orthopedic, neurological, cardiovascular and pediatric imaging. VR radiologists are responsible for all professional imaging services at VRI.

• Cape Fear Valley Health System (CFVHS) — Established in 1956, Cape Fear Valley Health System has grown from a 200-bed, one-building hospital to a regional health system with 765 beds, five hospitals, and primary care physician offices throughout Cumberland County and surrounding areas. CFVHS is currently the 9th largest health system in North Carolina, with more than 935,000 patient visits annually.

About Potomac Health Associates, Inc.

Potomac Health Associates, Inc. is a professional services firm that specializes in federal health care contracting and business development for commercial clients. Since its inception, the firm has helped its clients win in excess of $450 million in competitive awards from the VA alone, and an estimated $3.8 billion in competitive and non-competitive federal contract awards from federal agencies.


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