Brand Name Justification.pdf

VHAPG Part 813.106 Simplified Acquisition Procedures: Soliciting from a Single Source Single Source Justification for SAP under the SAT

Revision: 01 Effective Date: 11/15/2024 Page 1 of 3 Acquisition ID# 36C262-25-AP-5354

DEPARTMENT OF VETERANS AFFAIRS

Brand Name Justification for Single Source Awards IAW FAR 13.106-1 For

Over Micro-Purchase Threshold but Not Exceeding the SAT ($250K)

Acquisition Plan Action ID: 36C262-25-AP-5354

1. Contracting Activity: Department of Veterans Affairs, VISN 22, Network

Contracting Office (NCO) 22 on behalf of VA San Diego Healthcare System (VASDHS). VASDHS is located at 3350 La Jolla Village Drive, San Diego, CA 92161. 2237 transaction number 691-25-2-685-0050.

2. Brief Description of Supplies/ Services required and the intended use/Estimated Amount: The purpose of this action is to justify the purchase of brand name only Medical Video Editing and Production System. The brand name requested is manufactured by Olympus America, Inc. (“Olympus”). The estimated purchase price for this supply item is $24,000.00

3. Unique characteristics that limit availability to only one brand, with the reason no other brand can be used: VASDHS is requesting this brand name only purchase to maintain consistency and streamline operations. Their current inventory of Olympus nCARE medical recorders that capture full-HD images and videos from up to two surgical devices has proven to be of high quality and reliability, meeting the Government’s needs and expectations. By purchasing compatible Medical Video Editing and Production System, VASDHS can ensure consistent user experience for their caregivers and patients. Based on market research, VASDHS current inventory of Olympus nCare system is only compatible with Olympus Vaultstream software. This consistency simplifies training, maintenance, and troubleshooting, as VASDHS can rely on the same performance and specifications as their existing units. Additionally, it eliminates the need to adapt to different interfaces or operational procedures, which can be time-consuming and potentially disruptive. VASDHS understands that purchasing the same brand may sometimes involve a premium, but VASDHS believes the benefits of not having to replace the existing nCARE medical recorders with another brand, along with consistency and familiarity of the same brand, outweighs the cost in this instance. This approach reduces the cost and the risk associated with introducing unknown brand name products and ensures a smoother workflow for the VASDHS team. Furthermore, it allows VASDHS to maintain a high standard of quality throughout their operations, which is crucial for their continued success.

Accordingly, Olympus is the only brand name capable of providing the required Medical Video Editing and Production System without VASDHS experiencing a substantial duplication of cost, estimated at $23,600.00, that could not be expected https://www.acquisition.gov/?q=/browse/far/13

Effective Date: 11/15/2024 Page 2 of 3 Acquisition ID# 36C262-25-AP-5354 to be recovered through competition. his is based on taking into account an scenario where the purchase price for the equal product is the same as the brand name product; then adding the cost of technical evaluation of the equal product prior to contract award; the operational cost for initial and ongoing training to familiarize the caregivers to the equal product; operational cost for integration of the equal product;

new maintenance contracts for the equal product, and total efficiency loss.

4. Description of market research conducted and results or statement why it was not conducted: In accordance with FAR Part 10, VAAR 810, and VAAM M810 market research has been conducted for this new requirement under North American Industry Classification System (NAICS) Code 334111(Electronic Computer Manufacturing), Product or Service Code (PSC) 7A20 (IT and Telecom - Application Development Software - Perpetual License Software). The Contracting Officer (CO) used Veteran Small Business Certification (VetCert) database to identify certified capable Service Disabled Veteran Owned Small Business (SDVOSB) and Veteran Owned Small Business (VOSB), as a result, there are 510 Veteran Small Businesses under NAICS 334111and only one is capable of meeting the requirement.

The CO also reviewed the results of recent market research undertaken to meet similar or identical requirements. The market research efforts reviewed resulted in the award of the following similar requirements:

a. Open market award of contract number 36C26122P0990 for a total price of $28,500.00. dated 05/04/2022, to Olympus America, Inc. (“Olympus”);

b. Open market award of contract number 36C25221P0733 for a total price of $23,600.00, dated 05-04-2021 to Alliant Enterprises LLC (“Alliant”); and

c. NASA SEWP award of 36C24119F0282 (NASA SEWP Order) for a total of $22,065.62, dated 08-12-2019 to Thundercat Technology LLC (“Thundercat”) .

Based on the above, the CO identified three (3) sources that have previously provided the required software:

a. Olympus, OEM and Large Business.

b. Thundercat, Service-Disabled Veteran-Owned Small Business (SDVOSB).

c. Alliant, SDVOSB.

Generally, Small Business concerns, including SDVOSB and other socio-economic categories, interested in participating in a set-side solicitation while acting as a nonmanufacturer must generally meet the Nonmanufacturer Rule (NMR) requirements such as having 500 or fewer employees, being primarily engaged in retail or wholesale trade, and taking ownership of the items. A critical requirement is that the item must be manufactured by a small business in the United States unless a waiver is granted.

There is no current SBA waiver at this time. For this reason, this requirement cannot be set-aside to any small business category or Sole-Sourced to SDVOSB under FAR

19.1406 and VAAR 819.7008.

Effective Date: 11/15/2024 Page 3 of 3 Acquisition ID# 36C262-25-AP-5354

Based upon the above results on market research, the CO determined that VA is likely to only receive proposals from Olympus and Alliant if this solicitation is issued unrestricted. Alliant, a SDVOSB, does not need to meet the nonmanufacturer rule under unrestricted solicitation. The CO determined that two (2) of these concerns appear to be capable of providing the required software as they have an existing retail partnership.

Alliant (Prime) with Olympus (subcontractor) have several previous contracts providing Vaultstream for the VA in the past and are therefore capable. Olympus has provided Vaultstream for the VA in the past and is therefore capable.

Based on the foregoing, the CO determined that at least Olympus and Alliant are capable of delivering the required supply and performing the work required by this facility.

The Vaultstream software purchase contract will be awarded to the offeror who presents the best value to the Government, where price will be a substantial factor in selecting the contract awardee. Based upon the level of interest present by two (2) concerns performing the same service and appear to be capable of performing the work, the CO determined there will be adequate price competition for this procurement. As such, the CO can rely upon the expectation of price competition among these two (2) concerns to conclude that the prices offered will be fair and reasonable.

Based upon the information discussed above, the CO determined that the SBA Rule of Two and the VA Rule of Two cannot be met for this procurement and that this procurement should be solicited unrestricted. The CO determined that there are at least two (2) concerns who are likely to submit proposals for this procurement, who are capable of performing the work required by this procurement, and that a contract award is likely to be made at a fair and reasonable price. It is recommended to procure this requirement from the open market with unrestricted solicitation IAW FAR 13.106-1 for purchases under $25K.

5. Contracting Officer's Certification: Purchase is approved in accordance with

FAR13.106-1(b). I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

Edgar Alvizar Date Contracting Officer https://acquisition.gov/far/current/html/Subpart%2013_1.html#wp1125466