VHAPG Part 808.405-6 Limiting Sources Page 1 of 5 Revision: 02 Effective Date: 03/02/2026 Acquisition ID#: 36C261-26-AP-3774

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

GSAM Subpart 538.71— Federal Supply Schedule Ordering Procedures

Acquisition Plan Action ID: 36C261-26-AP-3774 JOFOC Tracker Log Number: FY26-NCO-21-1852

(1) Contracting Activity: Department of Veterans Affairs (VA), Regional Procurement Office West (RPOW), Veterans Integrated Service Network (VISN) 5, Health Service Area (HSA) 5.2, Network Contracting Office (NCO) 21, VA Palo Alto Health Care System (VAPAHCS).

PR 2237: 640-26-3-024-0134

(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 task order with Olympus America, Inc.

(Olympus) a Large Business.

Order against: FSS Contract Number: 36F79721D0168

Name of Proposed Contractor: Olympus America, Inc.

Street Address: 3500 Corporate Pkwy

City, State, Zip: Center Valley, PA 18034-8229

Phone: 858-539-9102

(3) Description of Supplies or Services:

The total estimated value of the proposed action is $4,074,976.88, consisting of a one-year base period and two (2) one-year option periods.

The period of performance would be:

Base Year 09/01/2026 – 08/31/2027 $1,358,908.96

Option Year 1 09/01/2027 – 08/31/2028 $1,358,158.96 Option Year 2 09/01/2028 – 08/31/2029 $1,357,908.96

This procurement is for a firm-fixed price task order for the continued lease and maintenance for an entire suite of various Olympus flexible endoscopes currently in use by Surgical Service providers at VAPAHCS. These Olympus systems are integral to ongoing diagnostic and

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Acquisition ID#: 36C261-26-AP-3774 therapeutic procedures performed in Bariatric Surgery, Thoracic Surgery, General Surgery, Anesthesia, Otolaryngology, and Urology, and must remain fully compatible with the existing Olympus imaging processors, software platforms, and network infrastructure already in place.

Olympus will provide uninterrupted maintenance coverage, including equipment replacement, priority repairs, technical support, and loaner units, ensuring continuous operational capability.

Revolutionary FAR Overhaul (RFO) clause 52.217-8, Option to Extend Services, will be used if needed to ensure there is no interruption in services to Veterans.

(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)(1)(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)(1)(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:

Olympus endoscopy systems are specialized medical devices built around proprietary optical, electronic, and imaging technologies. Each system combines flexible scopes containing embedded high-density cameras, fiber-optic illumination bundles, and precision bending mechanisms with Olympus-designed processors, towers, monitors, and integration hardware.

These components function as a single, unified platform and are not interoperable with equipment from other manufacturers. VAPAHCS has standardized its clinical areas including Bariatric Surgery, Thoracic Surgery, General Surgery, Anesthesia, Otolaryngology, and Urology on Olympus systems, and all repair, replacement, and maintenance activities require original Olympus parts and manufacturer-certified technicians. The advanced technical features, Original Equipment Manufacturer (OEM) exclusive components, and proprietary design make Olympus the only source capable of providing the required level of quality and performance.

Olympus is the OEM and is the sole entity authorized to lease and maintain Olympus endoscopy systems for the U.S. Government.

Replacing Olympus with another manufacturer would require complete removal of existing processors, towers, peripherals, and software integrations, along with retraining clinical staff and biomedical engineers and enduring significant downtime that would disrupt patient care.

No alternative vendor can provide the unique combination of compatible equipment, OEM-authorized maintenance, next-day replacement shipping, prioritized repair turnaround, and access to manufacturer-specific technical training that Olympus offers. Because the products and services required are unique, highly specialized, and can only be supplied and supported by the original equipment manufacturer, Olympus is the only source capable of

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Acquisition ID#: 36C261-26-AP-3774 meeting the Government’s needs at the necessary level of quality, satisfying GSAM 538.7104- 3(b)(1)(ii).

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. The monthly preventive maintenance service rate provided by Olympus is at a fixed price.

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

A Notice of Intent to Sole Source (36C26126Q0846) was posted on Contracting Opportunities from June 16, 2026, through June 30, 2026. Olympus America Inc. responded to the notice, and no other vendors submitted a response.

A review of Contracting Opportunities for similar procurements revealed sources sought notices 36C24626Q0420, 36C26326Q0355, 36C24E26Q0039, and 36C25026Q0315. These procurements were ultimately awarded under sole source conditions to Olympus.

A search of the VA National Acquisition Center (VA NAC) yielded contract number 36F79721D0168, awarded to Olympus for the lease, maintenance and warranty of Olympus surgical endoscopy scopes.

Market research for the current contract indicates that endoscope requirements at multiple VA facilities have been sole-sourced to Olympus. Relevant awards include:

• 36C26125F0131 – VA Sacramento Medical Center

• 36C26125N0029 – VA Fresno Medical Center

• 36C26126F0091 – VA Las Vegas Medical Center

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Acquisition ID#: 36C261-26-AP-3774

• 36C26124F0412 – VA Palo Alto Medical Center

These findings demonstrate a consistent procurement pattern across the VA for Olympus endoscopy equipment.

The Small Business Administration’s (SBA) Small Business Search (SBS) database was utilized to identify certified, capable Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs). The search was conducted using the North American Industry Classification System (NAICS) code 339112, which refers to Surgical and Medical Instrument Manufacturing. The search yielded five (5) matches for SDVOSBs and VOSBs.

(7) Any Other Facts Supporting Justification: Olympus America 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 considered when the current Olympus endoscopes approaches the end of its life cycle, or when interoperability standards allow other OEMs 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.

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Acquisition ID#: 36C261-26-AP-3774

(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. OALC 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.