36C257-25-AP-2727-FY25-1323 JOFOC NCO17 Olympus Lease Austin - HCA Approved_Redacted.pdf

Effective Date: 11/15/24 Page 1 of 6

REVISION: 01

Acquisition ID#: 36C257-25-AP-2727

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C257-25-AP-2727

JOFOC: FY25-NCO 17-1291

1. Contracting Activity:

Department of Veterans Affairs, Network Contracting Office (NCO) 17, located at 5441 Babcock Rd, Suite 302 San Antonio, TX 78240, in support of Veterans Integrated Service Network (VISN) 17, Central Texas Veterans Health Care System (CTVHCS) – Austin Outpatient Clinic at 7901 Metropolis Dr, Austin, TX 78744.

2237: 674-26-1-024-0001.

2. Nature and/or Description of the Action Being Processed:

The Department of Veterans Affairs CTVHCS, located in Austin, TX requires Endoscope Equipment Lease and Full Maintenance Service Agreement to maintain the Gastroenterology Endoscopy (GE) Laboratories. Procurement is in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items, specifically, FAR 13.501, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6. This procurement of leasing equipment and maintenance services will be awarded as a new firm-fixed price contract for a period of performance of a twelve-month base plus two twelve-month options.

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

The chart below shows the quantity and description for each piece of equipment requiring to be leased and included in the full-service maintenance plan.

Quantity Model Equipment Description Two (2) WM-DP3 20A WM-DP3 20A MOBILE WORKSTATION US Two (2) MAJ-2159 MAJ-2159 SCOPE POLE KIT Four (4) OEV321UH OEV321UH UHD 4K 32-inch Monitor Two (2) MAJ-1916 MAJ-1916 CV-190 INTERFACE CONVERT DEVICE Two (2) MAJ-1918 MAJ-1918 REMOTE CABLE PERIPH DEVICE 1.8M Two (2) MAJ-1951 MAJ-1951 SDI CABLE 2.5M Two (2) MAJ-1653 MAJ-1653 DUAL CO2 CYLINDER HOLDER WM-P2 Two (2) MAJ-1985 MAJ-1985 CYLINDER HOSE WITH SWITCH OVER Two (2) OFP-2 OFP-2 FLUSHING PUMP Two (2) CV-1500 CV-1500 Video System Center Two (2) MAJ-2217 MAJ-2217 LCD MONITOR ARM 12-14kg Two (2) MAJ-2146 MAJ-2146 SLIDING KEYBOARD TRAY Two (2) MAJ-2166 MAJ-2166 STERILE WATER HOLDER Two (2) OL-0015-10 TALL HEAVY ROLL STAND FOR 32" MONITOR LM Two (2) OL-0015-21 OL-0015-21 4OUTLET PWR STRIP+CABLE CLEAT One (2) USB-3.5-10 CV-1500 - Provation Trigger Cable 10ft Two (2) UCR UCR WITH CYLINDER HOSE (US) Two (2) IS40126 Adapter plate kit for ZeroWire G2 Two (2) IS40123 ZeroWireG2 Pair and MAJ-2011 Two (2) IS40116 ZeroWire G2 Pair Transm & Receiver

Effective Date: 11/15/24 Page 3 of 6

Acquisition ID#: 36C257-25-AP-2727

Olympus Towers, Medivator Advantage Machines, Scope Buddy Plus machines, Automated Endoscope Reprocessor Elite, Olympus Cyberwand System, Flush pumps, and Endoscope Leak testers. In addition, all scopes need to be compatible with Provation Oracle Database Virtualization (version 5.0.540), Oracle Database Standard Edition 2 version: 11.2.0.4/12.1.0.2, Provation MD Image Capture Workstations (HD), Provation MD Video Capture Workstation (HD), Pre-built Provation MD VM template, Win 10 Enterprise/Professional, Provation provided physical servers - PowerEdge R440 Server (210-ALZE) - 2x Intel Xeon Silver 4110 - 16 GB RAM, Provation MD for GI and Pulmonary, and GIQulC application.

While Olympus does sell products through third parties, their lease agreements with the U.S.

Government are offered solely by Olympus as stated in their policy letter dated 04/25/2025.

Further, repair of Olympus scopes requires the use of Olympus repair parts to retain scope image and scope safety. Per Olympus’ policy letter, Olympus does not sell repair parts to third parties, nor do they provide any warranties for scopes repaired by third parties as they do not authorize third party repairs. Accordingly, Olympus, a large business is the only company capable of providing the supplies and services described in section three above without the Veteran’s Health Administration (VHA) experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

Procuring alternate scopes would require Austin to replace Veteran Affairs (VA) owned equipment in addition to the lease of the required items and supporting equipment/software, resulting in a duplication of costs of approximately . The endoscopes will be used in Austin, TX, however, if endoscopes break at Temple and Waco Facilities, interoperability allows the service to use scopes at another facility to avoid cancel/delay of procedures.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

In accordance with FAR Part 10, Market Research was conducted from January 2025 to May 2025. While other companies provide Olympus scopes for purchase, per Olympus’ policy letters, their lease agreements, as well as their maintenance services with the U.S. Government are offered solely by Olympus. With current Olympus VA owned equipment in place, the service must utilize Olympus scopes to maintain compatibility between locations. Due to the proprietary nature of Olympus leasing services, no further efforts were made as this requirement should be procured via sole source.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable:

Price is expected to be fair and reasonable and will be evaluated against prices in the current market for similar items and services, comparison of proposed prices found reasonable on previous purchases, current price catalogs, and comparison to the Independent Government Cost Estimate.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted:

The following market research techniques were used to review vendor capability:

Federal Procurement Data System (FPDS) Search: Searched “Endoscope Lease” which resulted in 904 entries, 826 entries for Olympus contracts throughout the VA. None of these contracts are viable options to place a new contract order.

General Services Administration (GSA) Search: Searched “Endoscope Lease” which produced 3 results. The results found were for Mobile Endoscopy Unit Leasing, which does not meet this requirement.

Effective Date: 11/15/24 Page 4 of 6

Acquisition ID#: 36C257-25-AP-2727

Veteran Small Business Certification (VetCert): Searched NAICS Code 532490 which resulted in 382 SD/VOSB potential vendors. None were contacted based on current infrastructure of CTX and the proprietary nature of leased equipment.

Small Business Administration (SBA) Dynamic Small Business Search (DSBS): Searched NAICS Code 532490 which revealed 516 possible SDVOSB vendors and 100 possible VOSB vendors. None of the vendors found were contacted based on current infrastructure of CTX and the proprietary nature of leased equipment.

VA Supply Catalog: Searched “Endoscope Lease” which produced 1,370 contracts, none which meet the requirement.

National Acquisition Center (NAC) Contract Catalog Search Tool (CCST): Searched “Endoscope Lease” which produced zero results.

Non-Expendable (NX) Equipment and Defense Logistics Agency (DLA) Electronic Catalog (ECAT) which returned no results for the Endoscope Leasing.

U.S. AbilityOne Commission and UNICOR Federal Prison Industries did not provide any results.

A Sources Sought was posted to Contract Opportunities under 36C25725Q0494. The posting date was 04/10/2025 with a close date of 04/17/2025. Two responses were received, one from and one from

It was determined that did not meet capability requirements based on their submission as they did not demonstrate medical equipment leasing capability. Their capability shows acquisitions for Lodging, vehicle rentals, construction and ammunitions. also did not answer the questions listed in the sources sought notice.

capability statement was forwarded to the service for review. The service stated they reviewed 3 Instructions for Use (IFUs) for 3 different Fuji gastro scopes in One Source and noted significant processing differences and material requirements that would have to be met. The service also stated that all equipment throughout CTX facilities currently have VA owned Olympus equipment in which the leased equipment needs to be compatible with. Should a different manufacturer be used, VA would require replacement of VA owned equipment in addition to the lease of the required items and supporting equipment/software, resulting in a duplication of costs of approximately . The endoscopes will be used in Austin, TX, however, if endoscopes break at Temple and Waco Facilities, interoperability allows the service to use scopes at another facility to avoid cancel/delay of procedures. Due to Temple and Waco facilities owning Olympus equipment, Austin’s endoscopes are required to be interchangeable between the facilities. Moreover, IAW ISO standardization, Temple and Austin’s endoscopes are required to be interchangeable between the facilities. Current Scope Buddy Plus machines would require different attachments to match up to Fuji scopes. Medivator Advantage (AER) machines would require attachment blocks specific to Fuji endoscopes. Significant additional costs would be required to refit Austin SPS to process the Fuji Endoscopes.

Sole Source Letter was requested from Olympus America, Inc. Received letter dated 04/25/2025 which stated that Olympus currently partners with Alliant Healthcare (SDVOSB) only for equipment sales. The letter also states, “Olympus America Inc. does not have any authorized third-party firms for endoscope repair and maintenance services, nor does Olympus sell original equipment manufacturer parts or tools to any third party.” Lastly, the letter states that using third-party for repair

Effective Date: 11/15/24 Page 6 of 6

Acquisition ID#: 36C257-25-AP-2727

Ashley R. Valenzuela BS, MHA Medical Services Program Specialist/COR III Olin E. Teague Medical Center

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.

Shannon Hodgson Contracting Officer

Network Contracting Office 17

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Latasha Messer

Branch Chief, Business Operations Support

Jeff S. Morris Chief, Division 1

Mark A. Layman Director of Contracting

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve ($750K to $7.5 million (or $15.0 million for acquisitions described in FAR 13.500(c)) for other than full and open competition.

Curtis M. Jordan Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA)

ASHLEY

VALENZUELA

Digitally signed by ASHLEY

VALENZUELA

Date: 2025.08.12 15:35:31 -05'00'

SHANNON

HODGSON

Digitally signed by

SHANNON HODGSON

Date: 2025.08.12 12:39:50 -08'00'

LATASHA MESSER

Digitally signed by LATASHA

MESSER

Date: 2025.08.12 17:38:06 -05'00'

Digitally signed by JEFFREY

MORRIS

Date: 2025.08.13 06:37:42 -05'00'

MARK LAYMAN Digitally signed by MARK LAYMAN Date: 2025.08.20 12:55:06 -05'00'

CURTIS

JORDAN

Digitally signed by CURTIS

JORDAN

Date: 2025.08.22 18:22:43 -06'00'