36C26122P1475_1.docx

SUBJECT*

570-22-4-202-0084 Urology Endoscope Lease (VA-22-00057996)

GENERAL INFORMATION

BASE NOTICE TYPE

SET-ASIDE

Network Contracting Office 21 VA Southern Nevada Healthcare System 6900 N. Pecos Road, Building 6 North Las Vegas NV 89086

POINT OF CONTACT*

Contracting Officer Richard Leistiko

702-791-9000 ext 13320

AWARD INFORMATION

LINE ITEM NUMBER

AWARDEE ADDRESS LINE 1*

AWARDEE ADDRESS LINE 2*

AWARDEE ADDRESS LINE 4*

ADDITIONAL INFORMATION

AGENCY’S URL

URL DESCRIPTION

AGENCY CONTACT’S EMAIL ADDRESS

EMAIL DESCRIPTION

Award Notice Award Notice

DESCRIPTION

*= Required Field Award Notice Award Notice

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID:_ 36C261-22-AP-3359

1. Contracting Activity:

Department of Veterans Affairs, Veterans Health Administration, Regional Procurement Office West (RPOW), Network Contracting Office 21 (NCO 21) on behalf of Veterans Affairs Central California Health Care System (VACCHCS), Fresno, CA.

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

This procurement is for new and replacement KARL STORZ branded urology endoscopes, and necessary support, for the Fresno VA Medical Center (VAMC) 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 procurement is a firm-fixed price (FFP) sole source contract to L1 Enterprises, 618 West Patrick St, Frederick, MD 21701. L1 Enterprises is a Service-Disabled Veteran-Owned Small Business (SDVOSB) and is the sole authorized distributor and service provider of the Original Equipment Manufacturer (OEM), KARL STORZ, branded medical supplies and medical equipment, to include replacement parts.

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

The Fresno VAMC (facility) has a requirement for urology endoscopes. These scopes are used to aid the physicians in finding and diagnosing bladder cancer before it becomes an issue. The facility requires the purchase of Karl Storz endoscopes, because it is the only company that can provide the necessary and compatible equipment needed. The Blue light Cystoscopy with Cysview can not only provide enhanced bladder cancer detection and subsequent resection with their Photodynamic Diagnosis, but also support/complement the flexible urology scopes and imaging system the facility has already in place. The system must be compatible to existing imaging system. It must also be compatible with existing scopes that are currently in use. The requirement will be for one (1) base year, plus four (4) one-year options, with each year estimated at $273,265.44 for the estimated value of $1,366,327.20. The planned performance of the base year is August 01, 2022, through July 31, 2022. If all four (4) options years are exercised, the ultimate completion date would be July 31, 2027. This will be a Sole Source (SS) FFP contract to L1 Enterprises, 618 West Patrick St, Frederick, MD 21701. L1 Enterprises is a Service-Disabled Veteran-Owned Small Business (SDVOSB) and is the sole authorized distributor and service provider of the Original Equipment Manufacturer (OEM), KARL STORZ, branded medical supplies and medical equipment, to include replacement parts.

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:

VHAPG

Part

813.5

Simplified

Acquisition

Procedures for

Certain

Commercial

Items Attachment

1:

Request for

Sole

Source

Justification

>SAT-$7.5M

under

FAR13.5

Effective

Date:

02/01/2022 Page of

( ) 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

(X) 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):

38 U.S.C. 8127(c) sole source contracts for contracts above the simplified acquisition threshold. For purposes of meeting the goals under subsection (a), and in accordance with this section, a Contracting Officer may award a contract to a small business concern owned and controlled by veterans using procedures other than competitive procedures if: (1) such concern is determined to be a responsible source with respect to performance of such contract opportunity; (2) the anticipated award price of the contract (including options) will exceed the simplified acquisition threshold (as defined in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403)) but will not exceed $5,000,000; and (3) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price that offers best value to the United States.

Accordingly, (1) L1 Enterprises is a verified SDVOSB and is a responsible concern who is an authorized distributor for Karl Storz; (2) this acquisition will not exceed $5,000,000; and (3) the contract award can be made at a fair and reasonable price based on a comparison to prices found reasonable on previous purchases in accordance with FAR 13.106-3(a)(2)(ii).

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

Market research was completed and the current incumbent (Karl Storz) provided an OEM Authorized Sole Distributor letter stating that L1 Enterprises, an SDVOSB, is the authorized distributor for Karl Storz products. The letter goes on to state that Karl Storz will assume all of the warranty service and repairs for the Karl Storz branded products. With this information in hand, the Contracting Officer (CO) has decided this will be a SS FFP contract to L1 Enterprises, 618 West Patrick St, Frederick, MD 21701. L1 Enterprises is a Service-Disabled Veteran-Owned Small Business (SDVOSB) and is the sole authorized distributor and service provider of the Original Equipment Manufacturer (OEM), KARL STORZ, branded medical supplies and medical equipment, to include replacement parts.

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

Pricing will be determined fair and reasonable in accordance with FAR 13.106-3(a)(2)(ii) prices found reasonable on previous purchases. Prices will also be compared with similar items within the industry in accordance with FAR 13.106-3(a)(2)(iv).

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

The Contracting Officer has verified SDVOSB status in the Vendor Information Page and has reviewed the capabilities of the intended sole source.

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

There have been no problems or issues with the performance/reliability of the KARL STORZ endoscopes.

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

L1 Enterprises has expressed an interest in the acquisition.

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:

The industry is ever- evolving and, as it continues to evolve, the VA will review alternate methods of testing and equipment to best meet the needs of the U.S. Veteran. Accordingly, The VA will continue to search for alternate sources to meet these needs.

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.

FRANK

L.

Digitally signed by

FRANK

L.

OLIVEIRA

540413

OLIVEIRA

540413

Date:

2022.07.25

11:25:26 07'00' Frank Oliveira Date Clinical Contracting Liaison VA Fresno

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.

Richard H.

Digitally signed by Richard H. Leistiko 390723

Page 1 of Leistiko 390723 Date: 2022.07.25 11:32:22 -07'00'

Richard Leistiko Date Contracting Officer NCO 21 Supply II

Page 1 of

b. Second 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.

BROOKE

ROBISON

ROBISON

Digitally signed by

BROOKE

Date:

2022.07.25

12:59:10

07'00' Brooke C. Robison Date

JUL

)Director of Contracting Network Contracting Office 21 (NCO 21)

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

JORDAN

)Digitally signed by CURTIS JORDAN Date: 2022.07.27 11:08:15 -06'00'

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