SSJ - Urology Scops Lease 550-20-1-181-0001+.pdf

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C25220AP0774

1. Contracting Activity: Department of Veterans Affairs, VISN 12, Great Lakes Acquisition Center (GLAC), 115 South 84th Street, Milwaukee, WI for VA Illiana Health Care System (VAIHCS), 1900 E.

Main Street, Danville, IL 61832-5198, Requesting Activity: Danville Biomedical Engineering Department, Purchase Request # 550-20-1-181-0001.

2. Nature and/or Description of the Action Being Processed: This is a procurement for the lease of urology endoscope equipment with Olympus America, Inc. for a base year with two one-year option periods. This procurement is a new requirement for Olympus brand scopes at a firm fixed price. The VA had a previous lease with Olympus which will expire on December 31, 2019. The estimated total value of the leasing contract with Olympus America, Inc. is $305,437.44 initial award with a total contract potential value of $1,069,081.04 with options.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The VAIHCS requires urology endoscopes and related equipment to conduct hospital procedures. The VHA has made efforts to standardize the type of endoscope equipment used by the VA hospitals to promote familiarity with the equipment, prevent user error, and increase patient safety. In order to increase familiarity with endoscope equipment and prevent user error, each VA hospital has developed and maintained long-term lease contracts with one of the major endoscope manufacturers such as; Olympus, Pentax, or Fujinon. The VAIHCS has previously selected Olympus America, Inc. VAIHCS has a need for the urology endoscopy equipment listed below to provide endoscopy service to Veterans. The current Urology equipment is part of a previous five-year lease, which is at the end of its lifecycle and will be turned in:

Item Description of Supplies/Services QTY Unit Unit Price Amount

1 Urology Endoscope Equipment Lease 12 MO

Value Service (Maintenance & Repair) 12 MO

Contract Period: Base Subtotal:

POP Begin: 10/31/2019 $305,437.44

POP End: 10/30/2020

2 Urology Endoscope Equipment Lease 12 MO

Value Service (Maintenance & Repair) 12 MO

Contract Period: Option 1 Subtotal:

36C25219AP0774

OFOC SOP Revision 08 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

POP Begin: 10/31/2020

POP End: 10/30/2021

$305,437.44

3 Urology Endoscope Equipment Lease

Value Service (Maintenance & Repair)

Contract Period: Option 2

POP Begin: 10/31/2021

POP End: 10/30/2022

MO

MO

Subtotal:

$305,437.44

Total 916,312.32*

*Total may exceed $1M if options are extended 6 months.

# Quantity Model Number Equipment Description

1 8 CYF-VH CYF-VH HD FLEX CYSTONEPHRO VIDEOSCOPE

2 2 WA95622A USA POWER CORD FOR ESG-400

3 2 WB91051W ESG-400 ELECTROSURGICAL GEN

4 2 ISM-1006539 “nCARE, REC, SINGLE, DIR SDI”

5 2 MAJ-1664 NURSES CONTROL PANEL ARM – LONG

6 2 K10016545 REAR DOOR WM-NP2

7 2 UPC-R81MD UPC-R81MD PAPER/RIBBON KIT UPDR-80MD

8 2 CLV-190 EVIS EXERA III LIGHT SOURCE

9 2 CV-190 EVIS EXERA III VIDEO PROCESSOR

10 2 LMD-X310S X310S 31 INCH 4K SONY MONITOR

11 1 TC-E400 ENEGRY CART

12 1 WB50403W ESG-400 FOOTSWITCH WITH ONE PED

13 8 WA05971A TRAY INSERT FOR WA05970A WITH MAT

14 8 HLASGG LASER SAFETY GOGGLES, HO

15 2 A22026A OUTER SHEATH 2 STPCCK ROT 26FR

Original Date: 03/22/11 Revision 08 Date: 04/18/2018

16 2 A42091A OES-PRO WORKING INSERT 805MM 8FR

17 4 WA03310A LIGHT-GUIDE CABLE, 4.25MM, 3M, CF TYPE

18 4 A20911A CYSTO SHEATH 17 FR

19 4 A20913A CYSTOURESTHROSCOPE SHEATH 21 FR

20 4 A20914A CYSTO SHEATH 22.5 FR

21 1 A22051A IRRIGATION PORT 1 STOPCOCK ROT

22 1 A22071A OBTURATOR OPTICAL 24 FR

23 4 WA2T470A TELESCOPE “OES ELITE” 4MM, 70DEG, HD

24 2 WA2T412A TELESCOPE “OES ELITE” 4MM, 12 DEG, HD

25 4 WA2T430A TELESCOPE “OES ELITE” 4MM, 30 DEG, HD, G

26 13 99239 APTIMAX SERRAD STER. TRAY MAT

27 4 A20712A BIOSPY FRCPS SPPON OPT 12 DEG

28 2 WA22367A PASSIVE WORKING ELEMENT TURIS

29 2 WA05974A LID FOR WA05971A AND EA05972A

30 1 EMP-H65S OLYMPUS EMPOWER 65W HOL LASER SYSTEM

31 2 WA02944A DUAL CAHNNEL URETEROS COPE, STRA

32 2 WA02946A DUAL CHANNEL URETEROS COPE, STRA

33 1 HLAWS WARNING SIGN HO LASER

34 1 A0393 CABLE 3.5M VALLEYLAB

35 2 03664 ADAPTER FOR ELLIK EVACUATOR

36 6 75U UNIVERSAL STOPCOCK LUER LOCK

37 4 OTV-S7PROH-HD10E OTV-S7PROH-HD-10E CAM HEAD 1.0X EYEPIECE

38 8 WA05974A LID FOR WA05974A AND EA05971A

39 1 A20972A ALBARRAN DEF BR IDGE DOUBLE CH

40 2 A5976 TRAY INSERT UROLOGY PRE-MOLDED

Original Date: 03/22/11 Revision 08 Date: 04/18/2018

41 13 13839 APTIMAX STERRAD STERILIZATION TRAY

42 4 A20976A CYSTO BRIDGE SINGLE CHANNEL

43 4 00121 FLEXIBLE FOREIGN BODY FORCEPS 7F

44 4 00121 FLEXIBLE BIOPSY FORCEPTS 7FR

45 2 A22040T INNER 24 FR W/ TIMBER FOR 26FR

46 2 CS-B612 SEAL KIT, 6-12FR 12/BOX

47 1 WA22067A MONO WORKING ELEMENT, PASSIVE

48 4 A20977A CYSTO BRIDGE DOUBLE CHANNEL

49 6 MAJ-1643 LOCKABLE DRAWER UNIT WM-P2

50 2 URF-V3 URETERSCOPE, FLEX, VIDEO, STD

51 2 URF-P7 URETERSCOPE, FLEX, FIBER STD

Scope: Contractor shall provide full lease of the above equipment to include preventative maintenance, repair service, training and support of above equipment for VAIHCS. The term of the lease period shall begin on or about January 01, 2020 for a period of a base year, January 01, 2020 to December 31, 2021, plus two (2) pre-priced option year periods in strict accordance with all specifications, schedules, terms, conditions, clauses and provisions of the statement of work and the resulting contract document for the VAIHCS, 1900 East Main Street, Danville IL 61832.

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;

The VA is soliciting from a single source because the VA requires Olympus brand name endoscope equipment, and only Olympus has the license to provide full coverage maintenance and repair services in accordance with original equipment manufacturer’s specifications.

Original Date: 03/22/11 Revision 08 Date: 04/18/2018

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): In accordance with FAR 6.302-1 (Only One Responsible Source), the leasing contract is to procure equipment for endoscopy which is part of a major system and highly specialized within the VA hospitals. In 2014, VAIHCS chose Olympus because it already used and was familiar with Olympus brand endoscopes.

The VHA has recommended that hospitals use equipment in which they are familiar to prevent user error, promote efficiency and competence in medical procedures, and increase patient safety. In consideration of the VHA’s recommendation, a follow-on award is appropriate.

Furthermore, the renewal of the lease with Olympus will save the government time and money. If Olympus equipment is not be provided, substantial investment in drafting standard operating procedures (SOPs) and end-user training will be required. Over two years of effort has been spent to create and implement SOPs in accordance with the manufacturer's guidelines. The SOPs, captured in interactive format IVN (Interactive Visual Navigation), were developed by the VA Veterans Engineering Resource Center (VERC) in collaboration with Wayne State University. If VAIHCS uses a different manufacturer, at least 24 SOPs would need to be redrafted to reflect the new manufacturer’s guidelines, and 30 personnel trained on those new SOPs. An exact cost to reprogram IVN with non-Olympus equipment SOPs, train new personnel, and ensure functionality of the system could not be determined at the time of drafting this justification, but the estimate is in excess of $1M.

Finally, the maintenance and repair of Olympus equipment cannot be subcontracted. Olympus is the only contractor that can offer full repair and maintain coverage services per the Original Equipment Manufacturers (OEM) specifications.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: An intent to source sole was posted on October 31, 2019 on FEDBIZOPPS under #797P2065D-36C25220F0075, and no responses were received. A VIP search found only one SDVOSB that was authorized to sell and lease Olympus equipment under NAICS code 532490;

however, after further inquiry, it could not lease all the equipment required by the facility.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The pricing for the leasing contract is fair and reasonable under the Olympus FSS schedule pricing for leasing and repair services per FAR Part 8.404 Use of Federal Supply Schedules. Per FAR Part 8.405-4, the contracting officer requested and received additional discounts on the FSS schedule pricing.

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 based on the history of this requirement, the importance of continuing to use Olympus brand equipment as stated above, and a review of the current market. The commercial marketplace for endoscopes has not significantly changed since this was previously procured in 2014 when the last determination was made. A search on GSA e-buy yielded no results.

Original Date: 03/22/11 Revision 08 Date: 04/18/2018

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: A December 6, 2010 VHA Memo advised each VISN to develop long-term leasing contracts with one of the three endoscope manufacturers to ensure standardization of equipment and increase patient safety.

The VAIHCS chose Olympus in 2014. Continuing lease and use of Olympus would be following VHA guidance in maintaining the long-term arrangement with Olympus.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: None

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: An intent to sole source was published on FedBizOpps on 10/31/2019 under #797P2065D- 36C25220F0075. The publication gave businesses a chance to demonstrate the ability to comply with and be awarded the leasing contract. No responses were received.

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.

Kristi King Date Administrative Officer VA Illiana HCS (Danville)

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

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.

Parris S. Weidenbach Date Contracting Officer

GLAC

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.

David J. Picchi Date Branch Chief

GLAC

Digitally signed by KRISTI L KING 187399 Date: 2019.12.12 14:45:35 -06'00'

17 Dec 2019 http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

Original Date: 03/22/11 Revision 08 Date: 04/18/2018

c. Local Director of Contracting (Required over $700K but not exceeding $68M): I certify the justification meets requirements for other than full and open competition.

Paul M. Lauro Date Director

NCO 12

VHA

VHAMIWLauroP Typewritten Text 17 Dec 2019