P03 FAR 13.5 Sole Source Justification.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: 11/15/24 Page 1 of 4

REVISION: 01

Acquisition ID#: 36C263-26-AP-0470

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN

COMMERCIAL ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: #36C263-26-AP-0470

1. Contracting Activity: Department of Veterans Affairs, Network/Program Contracting Office

23, located at 316 Robert St N, Ste 506, St. Paul, MN 55101, in support of the VISN 23 VA Health Care Systems, VISN 23 Office 2805 Dodd Rd, Eagan, MN 55121.

2. Nature and/or Description of the Action Being Processed: This is a new procurement package for a firm-fixed price, single year contract for Karl Storz Video Integration System Equipment Support and Service to L1 Enterprises.

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

This is a follow-on contract for Karl Storz Video Integration System Equipment Support and Service. The existing Karl Storz Video Integration System Equipment and software were procured via the current IDIQ contract #36C26321D0091 awarded 09/24/2021 for POP 09/24/2021 – 09/23/2026. The current IDIQ reached its ceiling cap with the FY25 Black Hills task order, so a new VISN 23 contract is needed to complete and maintain the current upgrades and provide follow on equipment, accessories, support, and services.

See the schedule of items screenshots below:

Item # Description/Part Number*

Qty Price Extended Amount

FAR ANNUAL SUPPORT, WUISK03NEO1FAR,

NEOIP OR 1 & OR 3

2 $8,013.60 $16,027.20

FAR ANNUAL SUPPORT, WUISK03NEO2FAR,

NEOIP OR 2, OR 4 & OR 5

3 $9,676.80 $29,030.40

FAR ANNUAL SUPPORT, WUISK03SCFAR,

StreamConnect

1 $15,140.76 $15,140.76

CIH ANNUAL SUPPORT, WUISK03NEODM,

NEOIP OR 1 - OR 5

5 $12,404.70 $62,023.50

CIH ANNUAL SUPPORT, WUISK03SCDM,

StreamConnect

1 $13,897.02 $13,897.02

BHH ANNUAL SUPPORT, WUISK03NEOBH,

NEOIP

3 $7,900.20 $23,700.60

BHH ANNUAL SUPPORT, WUISK03COBH,

CollaboratOR

1 $15,858.15 $15,858.15

Effective Date: 11/15/24 Page 2 of 4

Acquisition ID#: 36C263-26-AP-0470

BHH ANNUAL SUPPORT, WUISK03SCBH,

StreamConnect

1 $13,879.05 $13,879.05

STC ANNUAL SUPPORT, WUISK03NEOSC,

NEOIP

3 $12,404.70 $37,214.10

STC ANNUAL SUPPORT, WUISK03SCSC,

StreamConnect

1 $13,879.14 $13,879.14

MIN ANNUAL SUPPORT, WUISK03NEOMIN,

NEOIP OR 4 - OR 7

4 $8,870.40 $35,481.60

MIN ANNUAL SUPPORT, WUISK03SCMIN,

StreamConnect

1 $13,879.08 $13,879.08

IOW ANNUAL SUPPORT, WUISK03NEOIOW,

NEOIP OR 1 - OR 6

6 $13,532.40 $81,194.40

IOW ANNUAL SUPPORT, WUISK03AIR1IOW,

E37, E40, E41 AIR System

3 $12,889.80 $38,669.40

IOW ANNUAL SUPPORT, WUISK03AIR2IOW,

E38 AIR System

1 $11,226.60 $11,226.60

IOW ANNUAL SUPPORT, WUISK03CYSIOW,

Cysto 4K Boom Room

1 $4,082.40 $ 4,082.40

IOW ANNUAL SUPPORT, WUISK03SCIOW,

StreamConnect

1 $15,140.76 $15,140.76

TOTAL $440,324.16

The IGCE estimated total contract value of $440,324.16.

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

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

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

This requirement is limited to only Karl Storz or L1 Enterprises Inc due to there being no third-party organizations that have Karl Storz certified training to provide, or at the very least who are active in the Midwest, Karl Storz does not provide access to essential OEM parts necessary for the functioning of their equipment to third party organizations and Karl Storz does not provide access to their proprietary software to third party organizations. Therefore, any third-party organizations that provided maintenance on this equipment would have neither expert training on it, access to OEM parts nor Karl Storz software and would be very unlikely to be able to provide quality services. See “P02 Sole Source Letter” in the Acq-plan briefcase.

Effective Date: 11/15/24 Page 3 of 4

Acquisition ID#: 36C263-26-AP-0470

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

The pricing is anticipated to be fair and reasonable based on the fact that these services offered have already been obtained on other VA contracts and therefore have already been found to be fair and reasonable.

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

The SBA Database was queried for NAICS code 811210 and 804 VOSB’s/SDVOSB’s were identified.

An intent to sole source was published 10/14/2025 with a response deadline of 10/20/2025 with no responses.

A quote was obtained from L1 Enterprise Inc for 1 year of maintenance services.

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

None.

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

L1 Enterprises Inc, UEI: RK5ZXQ77CN73

10. 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:

For equipment already purchased the vendors make every effort to limit competition through limitations on access to training, parts and software necessary to effect maintenance and repairs on their equipment and software. Therefore, while it would barriers cannot be overcome for this requirement, future supply purchases for non-Karl Storz parts opens up the opportunity for other vendors to offer support services for their equipment and potentially for third party vendors.

11. 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.

Petroula Hansen Biomedical Engineer VISN 23, Healthcare Technology Management

12. 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.

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

Effective Date: 11/15/24 Page 4 of 4

Acquisition ID#: 36C263-26-AP-0470

Jeffrey Brown Contracting Officer

NCO 23

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $900K): I certify the justification meets requirements for other than full and open competition.

Michae Casper Service/Supply Team 4 Branch Chief

NCO 23