-13239.pdf

VHAPM Part 819.7007 /7008 Sole Source Awards to a Verified Service-Disabled Veteran-owned Small Business/Veteran-owned Small Business

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >$150K

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval {J&A)

For

Other Than Full and Open Competition (>$1SOK)

Acquisition Plan Action ID: VA246-18-AP-6899

1. Contracting Activity: Department of Veterans Affairs, VISN 06, Network Contracting Office 06, 100 Emancipation Drive, Hampton, Virginia 23667, 637-18-2-997-0047

2. Nature and/or Description of the Action Being Processed: This is a Brand Name Only Requirement for Olympus Brand Colonoscopes, supporting hardware and accessories for the newly activated Operating Rooms at the Richmond VAMC. This requirement shall be executed as a sole source to Alliant Healthcare under the authorities cited in Para. 4 of this document.

3. Description of Supplies/Services Required to Meet the Agency's Needs: This Requirement is for Olympus Brand Colonoscopes and supporting accessories which will be added to the existing inventory of Olympus Brand Scopes and will seamlessly integrate into the existing infrastructure of the new Richmond Operating Rooms (OR's) . This Medical Center needed this additional equipment to replace unserviceable inventory and provide additional back up equipment when equipment in inventory becomes unserviceable or is sent offsite for repair. Additionally, the equipment for the OR's must be identical to the inventory within the clinics of the Richmond VAMC Campus. Estimated Value of this procurement is approximately $412,277.90.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(S), 38 U.S. Code§ 8127, as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

( X) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or ( ) 819.7008 Sole source awards to a verified veteran-owned small business

5. Demonstration that the Contractor's Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): This section is Olympus America Inc. and their subsequent business relationships that have led to All iant Healthcare being the only authorized distributor of Olympus Brand Equipment as of 31 Jan 2017.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: The Contracting Officer relied on personal knowledge of this and similar requirements for the VISN 06 GI Clinics. The CO is familiar with Olympus America and their current business relationships for scope related product lines. Additionally, VIP was utilized to validate Alliant Healthcare's claim to SDVOSB Status. Furthermore, a memo dated 1 Feb 2017 was submitted to the contracting officer in response to inquiry in which Olympus asserts that "Alliant Healthcare has been selected by Olympus America Inc. as its exclusive authorized SDVOSB partner" .

VHAPM Part 819.7007 /7008 Original Date: 08/30/2017

VHAPM Part 819.7007 /7008 Sole Source Awards to a Verified Service-Disabled Veteran-owned Small

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >$150K

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The business relationship between Alliant Healthcare and Olympus has formed a price-lock to which fact that Alliant is prohibited from selling Olympus products to the VA for any more than the Olympus FSS price.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted via utilizing the World Wide Web, Google, GSA Advantage, Medsurg Catalog Search Tool hosted by the National Acquisition Center (CSST), Tele-cons with Subject Matter Experts, Tele-Cons with Industry Vendor Information Pages (VIP} and the Contracting Officer's personal knowledge. As a result of all market research conducted it was found that most items required to meet the minimum needs of the Government are available via Olympus FSS Contract V797P-2065D. VIP returned 159 Vet Owned Businesses under the applicable NAICS Code of 334510. VIP was also utilized to validate Alliant Healthcare's claim to SDVOSB Status. Furthermore, Olympus America Inc. asserted that "Alliant Healthcare has been selected by Olympus America Inc. as its exclusive authorized SDVOSB partner".

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

VISN 6 had a previous requirement to lease endoscopic equipment from Olympus America in accordance with DUSHOM Policy Memo Dated 6 Dec 2010 which mandated standardization and Leasing of endoscopic equipment. As required, VISN 6 executed a lease with Olympus America for endoscopic equipment as it had previously standardized upon. During FY 2016 all VISN 6 Olympus Scope Leases were bought-out for a long term multi-million dollar future cost savings initiative.

Additionally, Olympus had previously announced that they would no longer support the software infrastructure (EndoWorks} necessary for the scopes and hardware in early calendar year 2018.

As a direct result of such notification, VISN 6 sought and awarded a VISN level $1.5M contract and subsequent $1.lM Maintenance Contract that goes into effect post installation all spec'd to Olympus Brand Equipment in inventory.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition:

Olympus America, Inc. Alliant Healthcare

3500 Corporate Pkwy 333 Bridge Street NW, Suite 1125 Center Valley, PA, 18034-8229 Grand Rapids, Ml, 49504-5367 Large Business SDVOSB - CVE Verified

11. A Statement of the Actions. if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required:

Efforts to overcome and remove barriers of competition shall be addressed upon the next opportunity for VISN 06 Medical Centers refresh of both Hardware and Supporting Software.

With VISN 06's recent activity in standardizing at an enterprise level, it has become cost prohibitive to do now.

VHAPM Part 819.7007 /7008 Original Date: 08/30/2017

VHAPM Part 819.7007/7008 Sole Source Awards to a Verified Service-Disabled Veteran-owned Small

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >$1SOK

12. Requirements Certlficatl90: I certify that the requirement outlined In this justification is a Bona Fide Need of the Department of Veterans Affairs and that the supporting data under my cognizance, which are included in the justification, are accurate and complete to the best of my knowledge and belief.

L--tt7LVA LEE

.A9fflt, Chief SPS

VHA, ASHVAMC

~µ/f::

Date/

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contractinc Officer or Oeslan,e's Certification (required}: I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

SHAMIKE BETHEA

CONTRACTING SPECIALIST

NC06

Date

b. one leYel Above the Contracting Officer (Reaulrecf onrS1SQK but not exceedlnc $7QOKJ: 1 certify the justification meets requirements for other than full and open competition.

GREG EVANS

NCO/PCO 06 Branch Chief

VHAPM Part 819. 7007 /7008 Original Date: 08/30/2017

Date

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03/09/2018