C01-Rhino-Laryngoscope J_A_Redacted.pdf

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: 02/01/22 Page 1 of 3

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS IN

ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C249 23 AP 1588

1. Contracting Activity: Department of Veterans Affairs (VA), Network Contracting Office 09 (NCO 09), located at 1639 Medical Center Parkway, Suite 400, Murfreesboro, TN 37129 in support of Louisville Veteran Affairs Medical Center (VAMC).

PR: 603 232 984 0093

2. Nature and/or Description of the Action Being Processed: This procurement is for a new firm fixed price contract to procure HD Rhino Laryngoscope for the Louisville VA Medical Center 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 13.106 1, Only one source. Requesting sole source to L1 Enterprises, LLC., 618 W.

Patrick St. Frederick, MD 21701.

The total estimated value is: $397,821.81

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The Louisville Veterans Administration Medical Center requires HR Rhino Laryngoscope to conduct invasive procedures on veteran patients in routine and emergency circumstances.

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 ( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) 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):Market research revealed that acquisition can only be procured by Karl Storz (large business) or by authorized distributor L1

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: 02/01/22 Page 2 of 3

Enterprises, LLC. (Service disabled veteran owned small business). After much research and looking into the capabilities required for Rhino Laryngoscope, it has been determined that this is the only product in the market capable of meeting this procurement. This scope is a highly specialized scope and has been determined by trained medical professionals. The Louisville Veterans Administration Medical Center requires ENT scopes to conduct invasive procedures on veteran patients in routine and emergency circumstances. These scopes enable surgical team to treat conditions that adversely impact patient care in the facility. The surgical team is already familiar with and trained on these scopes, and it is compatible with other equipment in the operating room. If this contract is not awarded to L1 Enterprises, LLC., the Louisville Medical Center will be required to cancel surgeries due to inadequate surgery instruments in stock.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:Market research of North American Industry Classification System Codes (NAICS) 339113 found 1 Service Disabled Veteran Owned Small Business (SDVOSB) on the Vendor Information Pages (VIP) using the keyword “Rhino”. Market research conducted on Dynamic Small Business Search (DSBS) with NAICS 339113 returned 2 results under keyword “Rhino”. Intent to Sole Source was posted under 36C24923Q0280 from 04/27/2023 05/11/2023. The OEM (Karl Storz) responded stating that they only distribute to the Federal Government through their SDVOSB partner L1 Enterprises, LLC. SDVOSB. The L1 Enterprises, LLC. also responded by providing a Sole Source letter from Karl Storz. This requirement will be awarded in accordance with FAR 13.106 1(b)(1)(ii), only one source.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Since this is proprietary to one manufacturer, the Contracting officer who awarded the contracts had to rely on the CS’s market research to determine the price reasonableness. The scopes can be procured via Karl Storz GSA #V797D 30255. However, L1 Enterprises, LLC (service disabled veteran owned small business) is a sole authorized distributor and can provide the scopes.

he price has been determined to be fair and reasonable by comparison with the proposed quotes.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Based on the market research, the acquisition can only be provided by Karl Storz (large business) or by authorized distributor L1 Enterprises, LLC. (Service disabled veteran owned small business). L1 Enterprises, LLC. is the sole authorized distributor and can provide the scopes. Intent to Sole Source was posted under 36C24923Q0280 from 04/27/2023 05/11/2023 with no response. The purchasing of these scopes will ensure that there is adequate instrumentation to prevent the cancellation of patient procedures. L1 Enterprises, LLC. (SDVOSB) is the only authorized distributor except for the OEM, and an authorized distributor letter has been provided from L1 Enterprises. This market research information is not more than 12 months old. It is recommended that a sole source award will be made to L1 Enterprises, LLC (SDVOSB) IAW FAR

13.106 1(b)(1)(ii), only one source.

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