36C257-25-AP-2764-FY25-1132 JOFOC NCO17 Olympus CystoNephro Scopes - HCA Approved_Redacted.pdf

Effective Date: 11/15/24 Page 2 of 6

REVISION: 01

Acquisition ID#: 36C257-25-AP-2764

Base: August 01, 2025 – July 31, 2026 Option Year 1: August 01, 2026 – July 31, 2027 Option Year 2: August 01, 2027 – July 31, 2028

4. Statutory Authority Permitting Restricted Competition:

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

( X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or

Expert Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the

Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

The scopes/service must be compatible in all aspects, form, fit and function with the existing systems presently installed throughout the facility. STVHCS currently has all Olympus Towers which includes light sources and video processing hardware devices. These towers do not accept alternate brands of scopes. Using an alternate product would not be compatible with equipment already purchased/owned and utilized by STVHCS. Obtaining an alternate product would require facility wide replacement of all Olympus equipment listed above as well as government owned scopes which are currently compatible with existing equipment.

This would represent an unreasonable duplication of cost to the government.

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 experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

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

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

Acquisition ID#: 36C257-25-AP-2764 place, the service must utilize Olympus scopes to maintain compatibility. Due to the proprietary nature of Olympus leasing services, no further efforts were made as this requirement must 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 determined by comparing to 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:

Market Research was conducted by reviewing the results of recent market research undertaken to meet similar requirements, querying the Governmentwide database of contracts and other procurement instruments intended for use by multiple agencies, reviewing the Federal Procurement Data System, Veteran Small Business Certification, SBA Dynamic Small Business Search, National Acquisition Center, VA Supply Catalog, and

GSA.

Federal Procurement Data System (FPDS) Search: Searched “CYF-VH HD Flex CystoNephro Lease” which resulted in 1 entry for an Olympus contract in the VA which is a purchase order for use only by VISN 21.

GSA Search: Searched “CYF-VH HD Flex CystoNephro Videoscope” which produced 1 result. The result found was Olympus contract 36F79721D0168. It has been found that the terms and conditions contained in the FSS contract are not in the best interest of the Government, therefore will not be utilized.

GSA Search: Search under FSC Group 65, Part II A-9 resulted in 36 possible contractors, 12 of which are SDVOSBs. None of the vendors found were contacted based on current infrastructure of STVHCS and the proprietary nature of leased equipment.

Searched 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 STVHCS and proprietary nature of leased equipment.

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 STVHCS and proprietary nature of leased equipment.

Searched the VA Supply Catalog: Searched “CYF-VH HD Flex CystoNephro Videoscope” which produced 3 results. Two results were the Olympus Federal Supply Schedule (FSS) contract, 36F79721D0168. It has been found that the terms and conditions contained in the FSS contract are not in the best interest of the Government, therefore will not be utilized. The third result was 36C24120A0025, however, this contract is only available to VISN 01 (RPO EAST).

Searched the National Acquisition Center (CCST): Searched “CYF-VH HD Flex CystoNephro Videoscope” which produced Olympus FSS contract 36F79721D0168.

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

Acquisition ID#: 36C257-25-AP-2764

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 Network Contracting Office 17

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)

LATASHA MESSER

Digitally signed by LATASHA

MESSER

Date: 2025.06.23 12:50:03 -05'00'

Digitally signed by JEFFREY MORRIS Date: 2025.06.25 11:12:35 -05'00'

MARK LAYMAN

Digitally signed by MARK

LAYMAN

Date: 2025.06.30 12:18:06 -05'00'

CURTIS

JORDAN

Digitally signed by CURTIS

JORDAN

Date: 2025.07.02 21:39:41 -06'00'