Approved Justification Endoscope Lease - W81K0426FA289_Redacted.pdf

CUI//SP-PROCURE//FEDCON

Control Number: 26-HRCO-56

CUI//PROCURE JUNE 2025

JUSTIFICATION REVIEW DOCUMENT

Subpart 538.71— Federal Supply Schedule Ordering Procedures

Sole Source Justifications

Program/Equipment: Base + 2 Option Year Olympus Endoscopic Probe Lease, Service, and Maintenance contract for the Department of General Surgery at Blanchfield Army Community Hospital (BACH) on Fort Campbell, Kentucky.

Authority: 538.7104-3 Sole Source Justifications

Amount: $

Prepared by: Jason A. Honeycutt Phone:

Title: COR Date: 04/14/2026 E-mail:

Contracting Officer: Lorena Cruz Phone:

Contracting Officer Date: 04/18/2026

Technical: Christine Rasnic CNOIC, General Surgery E-mail:

Phone:

Date: 04/20/2026

Requirements:

Jason A. Honeycutt

Title: COR

Phone:

Date: 04/14/2026

Reviews: I have reviewed this justification and find it adequate to support other than full and open competition.

Program Manager/Program Executive Officer:

Typed Name: Rachael Mann Phone:

Title: Chief, Clinical Services, DOS E-mail:

a. Background: BACH is in possession of Government owned equipment in the Department of Surgery that has been purchased and installed. This equipment includes Olympus CV-190 Endoscopy Image Processor, Olympus UCR Endoscopic Insufflator, Olympus CVL-190 Flexible Endoscope Fiber Optic Cable Light Source, and Olympus WM-DP2 Endoscopic Video. The equipment is designed to work as a system. The only equipment BACH did not purchase was the endoscopes due to the limited lifespan of these devices. A lease versus purchase decision was made heavily in favor of leased equipment as the service plan includes loaner equipment during times of repair work.

The existing government-owned Olympus endoscopic workstations would not function with other manufacturer endoscopes and would represent a significant and unrecoverable cost for the Government. These items aid in the conducting of Gastric and General surgical procedures, and work in tandem with Endoscopic Probes, allowing Surgeons and medical professionals to safely and effectively perform required surgical procedures on patients. The requested Scopes from Olympus America, Inc. are the only endoscopic scopes that maintain seamless compatibility with this pre-existing equipment. The CV-190 Endoscopy Image Processor, light sources, and video systems utilize proprietary Olympus connections and software. Probes from other manufacturers (e.g. Stryker, Pentax, Fujifilm) are not physically or electronically compatible with this system. Therefore, the Olympus America Inc. probes are the only ones capable of functioning with this Government-owned equipment. Olympus America Inc. does not authorize any small business entities or third-party distributors to lease their scopes and equipment to the U.S. Government (see vendor proprietary letter included in this file), making Olympus the sole-source for the compatible scopes lease required to function with the existing Government-owned equipment.

b. Alternatives: BACH has explored alternatives to increase competition in this arena. However, related purchases of equipment via Defense Health Agency sources, along with competitively awarded contracts (W9124825FA157) for software that is solely compatible with the requested Endoscopic Scopes have made an open competition impractical, as multiple systems, both government owned and competitively sourced preclude the procurement of other market equipment without abandoning in lifecycle equipment and terminating competitively awarded contracts, thus subjecting the government to substantial duplication of costs and efforts that would not be recovered through competition.

c. Impact if not approved: Failure to approve this contracting action will have significant and far-reaching consequences for BACH, the 101st Airborne Division, Fort Campbell tenant units, and the overall readiness posture of the U.S. Army at-large.

BACH is the primary enrollee for 21,000 Active Duty Servicemembers, responsible for the health and medical readiness of each of these soldiers. Without approval of this action, BACH will be forced to divert beneficiaries for 100% of gastric and endoscopic procedures, and a significant percentage of all General Surgery patients to the network.

This will result in a complete loss of follow-on care, compromising the mission of providing a medically ready force capable of fighting anywhere in the world tonight.

1) Previous contract issued at BACH for these services was

W91YTZ22P0053

2) This action was completed as a sole-source.

3) Authority previously was FAR 6.302-1

4) There are no unusual patterns or several consecutive, urgent buys for this requirement.

5) There is no protest history for this requirement

b. Other facts. N/A