P03_JOFOC_36C259-24-AP-0731_Olympus_Sole Source.pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 1 of 5

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE

WITH FAR 13.5

Acquisition Plan Action ID: 36C259-24-AP-0731 Tracking Number: FY24 - NCO 19 - 604

1. Contracting Activity: Ordering Activity:

Department of Veterans Affairs Department of Veterans Affairs Network Contracting Office 19 Salt Lake City VAMC 6162 S Willow Dr. Suite 300 500 Foothill Dr Greenwood Village, CO 80111 Salt Lake City, UT 84148

2237 #: 660-24-3-132-0006

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

This procurement is for Certain Commercial Items and specifically 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.

The Salt Lake City VA Medical Center currently has a lease with Olympus for ENT medical equipment and services.

The Salt Lake City VA Medical Center requires a new lease for medical equipment and service agreement which will result in a base plus four (4) option year Firm Fixed Price contract. This will be a continuation of a lease with Olympus which the facility already has in place to allow the medical center to continue uninterrupted patient care.

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

The following equipment which is specific to one vendor (Olympus America Inc.) will be provided over the course of the contract:

Effective Date: 02/01/2022 Page 2 of 5

The services to be provided by Olympus include the following:

- Full repair coverage with no cap for all contracted equipment, including accidental damage coverage at no extra charge.

- Prioritized repairs, typically with 24 - 48 hour turnaround.

- Next day shipping in both directions included at no extra charge.

- 24/7 technical support: Weekdays 7:00 a.m. - 8:00 p.m. ET at (800) 848-9024 or all other times at (877) 624-

7267.

- Online repair tracking and history at https://myolympusservice.com.

- Periodic and on-demand training and support provided by Olympus Endoscopy Support Specialists.

- Full access to preventative maintenance and educational courses offered through Olympus Continuum.

- Access to loaner equipment (available upon request and subject to availability) at no extra charge for covered items; Customer acknowledges, represents, or warrants that the relevant items will be used or have been used for “human use” only.

- Service Contracts administrative support: Weekdays 8:30 a.m. - 5:30 p.m. ET by phone at (800) 401-1075 or by email at service.contracts@olympus.com.

The estimated value of the proposed action, to include options: $1,875,116.40.

The requested contract is for a base plus four (4) option year firm fixed price contract. Projected POP dates for a base plus four (4) is as follows:

- Base Year: 4/1/2024 – 3/31/2025 ($945,993.72)

- Option Year 1: 4/1/2025 – 3/31/2026 ($269,855.16)

- Option Year 2: 4/1/2026 – 3/31/2027 ($220,358.40)

- Option Year 3: 4/1/2027 – 3/31/2028 ($219,856.32)

- Option Year 4: 4/1/2028 – 3/31/2029 ($219,052.80) https://myolympusservice.com/ mailto:service.contracts@olympus.com

Effective Date: 02/01/2022 Page 3 of 5

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):

Olympus systems and software are already in place at the Salt Lake City VA Medical Center. In the Olympus Distribution Policy letter provided by Mr. John Northup, Area Vice President for Government Accounts Enterprise Solutions for Olympus Corporation of the Americas, on 1/5/2024, Olympus systems are proprietary and will only operate with Olympus equipment. No other vendors are authorized to provide Olympus leasing and service agreements.

This document has been added to the action briefcase as a P02 document and does not specify between FSS and open market lease agreement. Therefore, it covers all associated leasing agreements with Olympus.

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

The requested Olympus lease and servicing agreement is only supported by the large business OEM Olympus America Inc.

An Olympus Distribution Letter was provided to justify this claim and further clarification was obtained. The sole provider for Olympus leasing and servicing agreements for both FSS and open market procurements is Olympus America Inc. Only Olympus can provide equipment conforming to the equipment and software currently installed and utilized at the Salt Lake City VA Medical Center. No other manufacturer’s equipment is compatible.

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

At award of FSS contract 36F79721D0168 the Contracting Officer determined the FSS pricing to be fair and reasonable. While the FSS schedule shows some lower pricing for the individual item cost, it does not incorporate the required property taxes which are added via contract modification at the end of each period of performance.

Open market Olympus lease and service agreement purchases use either the same or lower pricing as the FSS item cost, per supply two (2) and Olympus negotiations, but also incorporate property taxes. The FSS pricing has already been determined to be fair and reasonable and by going open market no additional modification will be needed to add funds.

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

This requirement is a follow-on to FSS base ENT contract V797P-2065D (Expired) - FSS Task Order 36C25920F0059 (12-1-2019 to 6-30-2023) |New FSS base ENT contract 36F79721D0168 (Expires 12/31/2026) – FSS Task Order for 36C25923F0357 (7/1/2023 to 12/31/2023) and new open market ENT scope lease, 90-day bridge, 36C25924P0271 (1/1/2024 to 3/31/2024). Previous market research shows that Olympus America Inc. is the only vendor who can provide requested leasing and services for Olympus products. Olympus America Inc. utilizes SDVOSBs as product distributors only. No SDVOSB businesses are authorized to lease or maintain Olympus equipment. No other vendor is authorized to fulfill leasing and service agreements. A sole source letter has been added to the action briefcase as a P02 document to support this claim.

Even though this action is a follow-on, an FPDS search was performed using key word search “ENT Scope Lease”. All results show that Olympus America Inc. was the awardee. A VIP search was performed using key words “Olympus ENT Scope Lease and Service” and NAICS 334510. This resulted in zero (0) findings. A VetCert search was performed using NAICS 334510. This resulted in three hundred and eight (308) findings. A search was also performed in SBA Dynamic Small Business Database. This search resulted in no findings.

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

None

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

Olympus America Inc. (Large Business) Product made in Japan Domestic Services provided

SAM UEI: FLWQVLFLMEL3

Cortney Cross Courtney.Cross@olympus.com

(314) 917-4895

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:

Olympus lease and service agreements are specific to Olympus America Inc. An Olympus distribution letter was provided by the OEM substantiating this claim. Due to existing Olympus infrastructure no other product will integrate with Olympus systems. The contracting office will continue to evaluate the market in order to increase competition. However due to the unique circumstances of this request it is in the best interest to the government to continue leasing and service agreements with Olympus and perform a sole source IAW FAR 13 to Olympus America Inc.

mailto:Courtney.Cross@olympus.com

Effective Date: 02/01/2022 Page 5 of 5

JASON

THOMAS

Digitally signed by

JASON THOMAS

Date: 2024.02.22

ROBERT

Digitally signed by

ROBERT TOTTEN

MICHELLE

GRAY

Digitally signed by

MICHELLE GRAY

CURTIS

JORDAN

Digitally signed by CURTIS

JORDAN

-07'00'

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.

Robert Totten Administrative Officer Surgical and Anesthesia Services, Salt Lake City VAMC

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.

Jason Thomas Contracting Officer / Division Chief Network Contracting Office (NCO) 19

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.

Michelle T. Gray Director of Contracting Network Contracting Office (NCO) 19

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 https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx