-15982.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 08 Page 1 of 4 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID:_______36C242-18-AP-3413____________________________________

1. Contracting Activity: Department of Veterans Affairs, VISN 2, BuffaloVA Medical Center 3495 Bailey

Avenue Buffalo NY 14215 2237 # 528-19-1-4803-0031

2. Nature and/or Description of the Action Being Processed This is a request for other than full and open competition for the procurement of a service maintenance agreement for Pentax endoscopes and ancillary equipment located at the Buffalo VAMC. The proposed purchase order shall be provided by Pentax of America, Inc, 3 Paragon Drive Montvale , NJ 07645 from November 1, 2018 through October 31, 2019, to include four option years. The for an annual consideration of $ for a grand total of $ .

FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for service maintenance agreements for leased Pentax endoscopes and ancillary equipment located at the Buffalo VA Medical Center. This procurement is in accordance with FAR 13.5-Simplified Procedures for Certain Commercial Items and specifically FAR 13.501-Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

This is a request for an open market sole source procurement for a service maintenance agreement for leased Pentax endoscopes and ancillary equipment located at the Buffalo VA Medical Center.

4. Statutory Authority Permitting Other than Full and Open Competition:

( X ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per FAR 6.302-3;

( ) (4) International Agreement per FAR 6.302-4 ( ) (5) Authorized or Required by Statute FAR 6.302-5;

( ) (6) National Security per FAR 6.302-6;

( ) (7) Public Interest per FAR 6.302-7;

OFOC SOP Revision 08 Page 2 of 4

Revision 08 Date: 04/18/2018

FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via FAR 13.106-1(b)(2).

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Due to patents and copyrights associated with the leased Pentax endoscopes and ancillary equipment located at the Buffalo VA Medical Center, only the manufacturer, Pentax of America Inc., can service the endoscopes and ancillary equipment without voiding the warranty.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable A search on the VetBiz website using NAICs Code 811219 and keyword “endoscopes” identified two SDVOSB, Alliant Enterprises, LLC and Endoscopy Repair Specialist Inc.

that could possibly meet the requirements of this procurement. A review of Alliant Enterprises, LLC’s profile confirmed that they do not repair endoscopes. A review of Endoscopy Repair Specialist Inc’s profile indicates that they can repair endoscopes; however, after contacting Endoscopy Repair Specialist Inc by telephone 0n 08/16/2018, it was confirmed that they do not have the capabilities to repair the endoscopes to be leased.

A search on GSA elibrary using keyword “Pentax” has identified that Pentax of America, Inc. does have a FSS contract (V797D-30172). A review of the FSS contract identified that there are no line items for service maintenance agreements of leased endoscopes.

A search on DSBS using NAICs code 811219 and keyword “Pentax” did identify one SDVOSB and one woman owned small business that could possibly meet the requirements of this procurement. The profile of Bitterroot Services and Technology LLC, a SDVOSB, was reviewed and it was determined that the vendor sells a variety of different items that includes Pentax products, but does not deal in endoscopes; therefore, cannot meet the requirements of this procurement. The profile of Skupien Solutions, a woman owned business, was reviewed and it was determined that they could possibly meet the requirements of this procurement. Skupien Solutions was contracted by phone on 08/20/2018 and they stated that they do not repair the models of Pentax endoscopes to be covered under this service agreement.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Price reasonableness is determined by comparing the annual rate of the quote received against the annual rate of the current procurement for a service agreement for leased endoscopes at the Buffalo VA Medical Center, which is in relation to the annual lease rate of equipment covered by each service agreement under a 36 month lease term. The annual rate of the current procurement (V797D-30172/ VA242-16-F-1836, 09/01/2016-10/31/2018, 528C80020) is $ . The annual lease rate of the equipment covered by the current service agreement is $ , under a 36 month lease term. The quoted annual price of the service agreement for the leased equipment to replace the current lease agreement is $ , which is 2.42 times higher than the existing service agreement. The annual lease rate of the equipment to be covered by this service agreement is $ , under a 36 month lease term, which is 2.65 times greater than the annual lease rate of the current service agreement The increase in the cost of the service

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Revision 08 Date: 04/18/2018 agreement has increased at a lower rate compared to the increase in the value of the equipment covered by each service agreement; therefore, can be considered fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted See section 6

9. Any Other Facts Supporting the Use of Other than Full and Open Competition : Pentax of America provided a memorandum stating that only authorized Pentax service providers can service the leased endoscopes without voiding the warranty.

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

America, Inc. expressed interest in this procurement.

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: None, the presence of patents and copyrights are the main barriers to competition.

12. Requirements Certification: 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.

Lisa Rummings Date Program Support Specialist Buffalo VA Medical Center

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: This part if filled out by

Contracting Staff as part of the Justification

a. Contracting Officer or Designee’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Michael Spivack Date Contracting Officer NCO2, Service Team 1

Lisa M.

Rummings 326856

Digitally signed by Lisa M. Rummings 326856 Date: 2018.08.30 10:59:49 -04'00'

MICHAEL A.

SPIVACK

336645

Digitally signed by

MICHAEL A. SPIVACK

336645 Date: 2018.08.31 14:21:30 -04'00'

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Revision 08 Date: 04/18/2018

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Cheryl Brimmer Date Brance Chief

NCO2 Services Team 1

Cheryl M Brimmer 113171

Digitally signed by Cheryl M Brimmer 113171 Date: 2018.08.31 22:13:51 -04'00'