C01- SAMS POST- Sole Source _Redacted.pdf

Request for Sole Source Format >SAT GSAM 538.7104-3(b) Sole Source Justifications - Federal Supply Schedule Ordering

Procedures

AP#36C247-26-AP-1068

SOLE SOURCE JUSTIFICATION

GSAM 538.7104-3(b)

This justification aligns with the deviation outlined in the Revolutionary FAR Overhaul (RFO) for FAR 8.4 - Ordering under the Federal Supply Schedule and GSAM 538.71, as required by Executive Order (E.O.) 14275, Restoring Common Sense to Federal Procurement, signed April 15, 2025. Deviation effective date: November 3, 2025.

Acquisition Plan Action ID: 36C247-26-AP-1068

1. Contracting Activity: Department of Veterans Affairs, Networking Contracting Office 7, located at 3700 Crestwood Parkway, Suite 500, Duluth, GA 30096, in support of VISN 7 6439 Garners Ferry Rd, Columbia, SC 29209 PR# (544-26-2-756-0001).

2. Description of Action: This acquisition is conducted under the authority of the Multiple- Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). The upgrade of new medical scope equipment lease agreement for the Columbia VAMC.

Order against: FSS Contract Number: 36F79721D0168 Name of Proposed Contractor: Olympus America, Inc.

Street Address: 3500 Corporate Pkwy City, State, Zip: Center Valley, PA 18034 Phone: 1-800-848-9024

3. Description of Supplies or Services:

The estimated value of the proposed action is $

This medical scope lease is a renewal and upgrade of new equipment under contract 36C24722C0093 and delivery order 36C24722F0178. Due to the NAC FSS contract’s terms and conditions requires all VAMCs to establish new leases when new equipment is required.

The new Delivery Order under the NAC FSS Contract will provide Columbia VAMC software updates and life expectancy of equipment and will need to be replaced with the updated equipment, not identical.

This requirement will be awarded as a firm-fixed-price delivery order contract for a base year plus three option years, with an estimated value of $ and an estimated award date effective 03/29/2026 through 03/28/2027 with three provisional option years, ultimate completion date of 03/28/2030.

Procedures

AP#36C247-26-AP-1068

Period of Performance Funding Totals

BASE YEAR

03-29-2026 to 03-28-2027

Option Year 1

03-29-2027 to 03-28-2028

Option Year 2

03-29-2028 to 03-28-2029

Option Year 3

03-29-2029 to 03-28-2030

Total $

Due to the repair turnover rate, RME turnover, leasing equipment is more cost effective because the lease agreement allows them to have loaned equipment while the equipment, we are paying for monthly is in repair without additional cost. In addition to having full service and repairs, it also includes training, shipping, technical support. Only certified Olympus technicians are authorized to repair Olympus scopes.

The scopes and accessories are the only FDA approved scopes and accessories that are compatible with the upgraded software system in place.

Procedures

AP#36C247-26-AP-1068

At the William Jennings Bryan Dorn Department of Veterans Affairs Medical Center in Columbia, South Carolina, a total of 571 Olympus scopes will be used for various medical procedures. The specific requirements are as follows:

204 scopes for the Ear, Nose, and Throat Department

177 scopes for the Surgical Department

394 scopes for the Urology Department

4. Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service.

GSAM 538.7104-3(b)(1)(i): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

GSAM 538.7104-3(b)(1)(ii): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized; Olympus is the only OEM that currently holds the Flex Videoscopes Series that is on available on the market to connect with the Columbia VAMC imaging platforms within the departments that the equipment is assigned in for medical treatment.

Additionally, the VHA Procurement and Logistics Office established an Integrated Product team (IPT) to develop requirements for the national standardization of endoscopes throughout VHA. This IPT has determined that national standardization creates the best value, enhances the safety and quality of patient care, and results in reduced variability in the number of different processes required for the endoscope setup, use, and reprocessing, thus reducing the potential for negative patient outcomes and errors. In accordance with VA Deputy Under Secretary for Health for Operations and Management Memo Dated December 21, 2012, “Facilities are expected to standardize endoscopes inventories to one vendor through the use of national leasing contracts.”

GSAM 538.7104-3(b)(1)(iii): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

GSAM 538.7104-3(b)(1)(iv): It is necessary to place the order with a particular FSS contractor to satisfy a minimum guarantee established in the FSS BPA; or

GSAM 538.7104-3(b)(1)(v): A law expressly authorizes or requires that the purchase be made from a specified source.

Procedures

AP#36C247-26-AP-1068

GSAM 538.7104-4: Items peculiar to one manufacturer:

5. Describe Why You Believe the Order Represents the Best Value consistent with GSAM 538.7102-2(b)(4) to aid the contracting officer in making this best value determination. GSA has already determined the prices of supplies under schedule contracts to be fair and reasonable. Considering the price, special features, and the reduced administrative cost of placing a delivery order by writing an open-market contract, the CO has determined the price offered under Olympus’s FSS contract represents the best value to the Governmentwide aid the contracting officer in making this best value determination.

6. Describe the Market Research Conducted. Market research was conducted in accordance with the VHA National Standardization requirement outlined in VHA Directive 2009-004, Handbook 1761(2). Services were provided by Olympus America, Inc., and contact was made with the company to identify any authorized distributors that could furnish this service.

It was determined that there are currently no authorized distributors that can provide the Olympus lease requirements at this time.

7. Any Other Facts Supporting the Justification: The requested Olympus scopes and accessory equipment are only available as market items that are compatible and will function with the station’s existing equipment. Additionally, medical staff have already been trained and compiled hundreds of hours of experience using this equipment through the years of prior contracts. The VHA has established policies to standardize and lease endoscopes rather than purchase them. The VHA Procurement and Logistics Office established an IPT to develop requirements for this national standardization of endoscopes across the VAMCs.

Currently, no alternative options meet the needs of the medical center without incurring additional costs or causing delays in services.

8. A Statement of the Actions, if any, the agency may take action to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made. The agency will continue to pursue additional competition as Olympus adds authorized distributors to their company. Additionally, the service team will research alternative equipment featuring advanced technology and expanded capabilities across other brands to ensure we meet our requirements and enhance the services provided to Veterans.

9. 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. I understand that processing of this sole source justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by GSAM 538.71 as directed by FAR 8.4. (This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)