36C261-26-AP-2872-FY26-1916 JOFOC NCO21 Arjo Ceiling Lifts - HCA Approved 1_Redacted.pdf

Request for Limited Sources Justification Format >SAT

VHAPG Part 808.405-6 Limiting Sources Page 1 of 5 Revision: 02 Effective Date: 03/02/2026 Acquisition ID#: 36C261-26-AP-2872

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

GSAM Subpart 538.71— Federal Supply Schedule Ordering Procedures

Acquisition Plan Action ID: 36C261-26-AP-2872 JOFOC Tracker 26: FY26-NCO 21-1113

(1) Contracting Activity: Department of Veterans Affairs (VA), Veterans Health Administration (VHA), Network Contracting Office (NCO) 21, on behalf of the Veterans Integrated Service Networks (VISN) 21, VA Central California Health Care System (VACCHCS).

2237: 570-26-2-246-0105.

(2) Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). The action being reviewed and approved is a new requirement for a sole source delivery order with Arjo Inc., a Large Business.

Order against: FSS Contract Number: 36F79725D0231

Name of Proposed Contractor: Arjo Inc.

Street Address: 2349 W. Lake Street

City, State, Zip: Addison, IL, 60101

Phone: 650-339-0944

(3) Description of Supplies or Services:

The estimated value of the proposed action is $ 1,064,885.13

The period of performance is four (4) months after receipt of award.

This procurement is for a firm-fixed-price delivery order for 110 new ceiling lifts manufactured by Arjo, Inc., including installation on the existing Arjo ceiling lift tracks and modifications to existing Arjo turntables at the Fresno VA Medical Center and Community Living Center.

The requirement also includes upgrades to existing Arjo ceiling lift systems. A total of 104 new Arjo ceiling lift motors will replace outdated equipment, including Arjo Maxi Sky 600 and Maxi Sky 1000 motors . Many of these units are significantly beyond their useful life, and support or replacement parts are no longer provided with Arjo discontinuing support for certain models

VHAPG Part 808.405-6 Limiting Sources Page 2 of 5 Revision: 02 Effective Date: 03/02/2026 Acquisition ID#: 36C261-26-AP-2872 beginning in 2026. The existing track system must remain in use to avoid unnecessary and wasteful spending, as full replacement is planned during the facility’s renovation scheduled for completion within the next three to five years. Additional required work includes recertification of ceiling lift tracks and completion of weight and deflection testing to ensure compliance and safety.

(4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

GSAM 538.7104-3(b)(i): The need is of such unusual urgency that following the procedures would result in unacceptable delays in fulfilling that need:

GSAM 538.7104-3(b)(ii): Only one source is capable of providing the products, services, or solution required at the level of quality required because the products, services, or solutions are unique or highly specialized:

The facility currently utilizes Arjo ceiling lift rail systems throughout patient care areas. Due to planned renovations over the next three to five years, the existing rail infrastructure cannot be replaced or modified at this time. Compatibility with the installed Arjo rail systems is therefore an essential requirement for continued continuity of operations, safety, compliance, and patient handling efficiency.

Arjo is the sole manufacturer whose lift motors and components are fully compatible with the existing Arjo rail system. No other manufacturer produces lift equipment that is designed or approved for installation on Arjo rails. Installing non-Arjo equipment on the existing ceiling lift rail system would violate manufacturer specifications and directly conflict with Arjo’s approved-use requirements. The attachment or use of equipment from any other manufacturer, including items marketed as “compatible,” would invalidate all Arjo warranties related to structural integrity, load capacity, and safe operation. This loss of warranty coverage exposes the facility to significant liability and undermines compliance with facility engineering and safety standards. Furthermore, the use of non-approved equipment would require complete replacement and recertification of the rail network, a scope of work that cannot be accommodated within the current renovation schedule.

While alternative manufacturers offer ceiling lifts that meet certain performance parameters, no other vendor can provide a solution that integrates with the Government’s existing infrastructure at the required level of quality, safety, and reliability. The ability to function with the current Arjo rail system is a unique and highly specialized requirement that only Arjo can meet.

Therefore, based on the market research carried out, Arjo is the only manufacturer capable of providing the required ceiling lift equipment compatible with the facility’s existing rail system.

VHAPG Part 808.405-6 Limiting Sources Page 3 of 5 Revision: 02 Effective Date: 03/02/2026

GSAM 538.7104-3(b)(iii): The order should be issued on a sole source basis in the interest of economy and efficiency because it is a logical follow-on to an FSS order already issued on a competitive basis:

GSAM 538.7104-3(b)(iv): It is necessary to place the order with a particular FSS contractor to satisfy a minimum guarantee established in the FSS BPA:

GSAM 538.7104-3(b)(v): A law expressly authorizes or requires that the purchase be made from a specified source:

(5) Describe Why You Believe the Order Represents the Best Value consistent with GSAM 538.7102-2(b)(4) to aid the contracting officer in making this best value determination:

By placing an order against a schedule contract, the ordering activity has concluded that the order represents the best value. Although General Services Administration has already negotiated fair and reasonable pricing, the CO will seek an additional discount before awarding the order.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted.

Small Business Administration’s (SBA’s) Small Business Search (SBS) database was used to identify certified capable Service-Disabled Veteran-Owned Small Business (SDVOSB) and Veteran-Owned Small Business (VOSB). The database search utilizing NAICS code 339113 Surgical Appliance and Supplies Manufacturing yielded fifteen (15) SDVOSB and VOSB matches.

The Arjo ceiling lift was verified under VA National Acquisition Center (NAC) Contract Number 36F79725D0231. This existing NAC source fully meets the requirement and is therefore the prioritized vehicle for this procurement.

A Notice of Intent to Sole Source (36C26126Q0587) was posted on Contracting Opportunities on April 8, 2026, and closed on April 14, 2026. One response was received from Handicare USA, LLC, asserting that they are a responsible and capable source and stating that they could meet the Government’s requirements, including compatibility with the existing infrastructure.

This information was forwarded to the subject matter expert (SME) at the VA Fresno Medical Center for technical review. The SME confirmed that Handicare equipment is not compatible with the facility’s existing Arjo ceiling lift rail systems. Arjo does not endorse use of other manufacturer products or accessories on their products (i.e. rail system) such as the ceiling lift motors in this request. As the current infrastructure cannot be replaced or modified at this time due to planned renovations, Handicare cannot be considered a viable or technically acceptable source.

VHAPG Part 808.405-6 Limiting Sources Page 4 of 5

Selecting a vendor other than Arjo would introduce substantial risks, including increased likelihood of equipment malfunctions or failures due to incompatibility, as well as significant additional costs associated with replacing equipment that is currently in good working order.

Such actions would compromise operational integrity, system reliability, and the overall safety of both patients and staff.

(7) Any Other Facts Supporting the Justification: Arjo Inc. has been providing satisfactory performance on the current contract with NCO 21.

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:

Future competition will be evaluated once the existing Arjo rail systems are replaced during the planned facility renovations in approximately three to five years. At that time, other ceiling lift manufacturers may be able to offer compatible, functionally equivalent systems that meet VA requirements without disrupting Veteran care.

(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by GSAM Subpart 538.71.

VHAPG Part 808.405-6 Limiting Sources Page 5 of 5

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $900K):

I certify the justification meets requirements for other than full and open competition.

HIGHER LEVEL APPROVAL (Required for orders over $900,000):

c. VHA RPO HCA Review and Approval (over $900,000 to $90 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by GSAM Subpart 538.71.