Emergency VAPHS Karl Storz Endoscopy UCJA All signed_Redacted.pdf

VHAPG Part 806.3 OFOC Page 1 of 5 Revision: 04 Effective Date: 12/15/25 Acquisition ID#: 36C244-26-AP-1985

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C244-26-AP-1985

1. Contracting Activity:

Department of Veterans Affairs, VISN 04, VA Pittsburgh Healthcare System located at 1 University Drive C, Pittsburgh, PA 15201. 2237#

2. Nature and/or Description of the Action Being Approved:

This is an emergency procurement for the Karl Storz-brand NEO IP, an operating room integration solution designed for healthcare settings. This is a network-based operating room integration via internet protocol, acting as the digital backbone of an integrated operating room, linking surgical equipment, video feeds, and hospital systems.

This action will be awarded as a new contract. The items being procured are replacing those within three out of the four operating rooms at the facility as they were damaged beyond repair by unforeseen flooding. The contemplated award is for a Single-Station firm fixed price contract.

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

The Karl Storz NEO IP is a network based operating room integration system designed to manage and distribute surgical video signals, control compatible operating room equipment, and facilitate documentation and communication within the surgical environment. The system enables centralized control of video routing, image capture, device integration, and communication between surgical equipment and hospital information systems. This technology supports minimally invasive surgical procedures and improves workflow efficiency by allowing surgical staff to manage multiple devices through a single integrated interface.

The estimated total value of this procurement is

The items required are as follows:

Part Number Description Quantity Cath Lab A:

WUISK04 OR® NEO IP 1

Cath Lab B:

VHAPG Part 806.3 OFOC Page 2 of 5

Acquisition ID#: 36C244-26-AP-1985

WUISK04 OR® NEO IP 1

EP:

WUISK04 OR® NEO IP 1

Displays- (2) 32” per room:

WUIS3707 ENDOSCOPY IQS 1

4. Statutory Authority Permitting Other than Full and Open Competition:

( ) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by

RFO 6.103-1;

( X ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by RFO 6.103-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by RFO 6.103-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by RFO 6.103-4

( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by RFO 6.103-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by RFO 6.103-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by RFO 6.103-7;

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 acquisition is authorized pursuant to RFO 6.103-2, Unusual and Compelling Urgency.

During the week of January 23rd, a coil in the HVAC system burst above the Cardiology operating rooms. This resulted in a massive flood that caused irreparable damage to the existing Karl Storz routing equipment that is installed within the three rooms. After extensive investigation, biomed and the vendor both deemed the equipment a total loss that must be replaced. As a result, three out of the four available operating rooms are not unusable and have caused delays in patient treatment.

It is imperative to replace the damaged equipment as soon as possible to avoid any further interruptions in patient care procedures. Having three of our four rooms unavailable poses a serious risk to patient health and safety if an emergency were to occur and the one working room is in use at that time. Additionally, if anything were to render the one working room inoperable, this department of the facility would be completely out of service.

VHAPG Part 806.3 OFOC Page 3 of 5

Acquisition ID#: 36C244-26-AP-1985

Finally, the Karl Storz NEO IP system is proprietary technology within the Karl Stroz surgical visualization ecosystem currently installed in the facility’s operating rooms.

The system integrates directly with existing Karl Storz endoscopic cameras, light sources, and recording components. Due to the proprietary architecture of the integration platform, Karl Storz is the only manufacturer capable of providing the required system and ensuring full compatibility with the existing surgical equipment.

Procuring an alternative integration system from another manufacturer would require replacement of existing Karl Storz visualization equipment and extensive system redesign, which would significantly delay restoration of operating room functionality and needlessly increase costs to the Government. Given the urgent need to restore surgical capacity following the flooding damage, only Karl Storz can provide the required system within the timeframe necessary to support continued patient care.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as possible (including whether a notice was or will be publicized as required by RFO Part 5 and, if not, which exception under RFO Part 5 applies):

Limited efforts were made to ensure that offers are solicited from as many potential sources as possible due to the urgent and compelling circumstances surrounding this procurement. Should there be any future requirements operating under ordinary circumstances, efforts to ensure offers are solicited from as many potential sources as possible will be taken to the fullest extent practicable. A notice of award will be posted to the GPE after award.

7. Determination by the CO that the Anticipated Cost to the Government will be

Fair and Reasonable:

This procurement is being sole sourced due to the exigent circumstances surrounding the requirement. As such, price reasonableness will not be determined against competition. However, the Government is receiving an estimated 46.7% off the list price, as referenced by the informal quotation provided by Karl Storz. With such a discount, it is reasonable to assume that any ordinary individual under the same or similar exigent circumstances would accept the quoted price as “fair and reasonable.” As such, the quoted price has been determined to be fair and reasonable.

8. Description of the Market Research Conducted and the Results, or a

Statement of the Reasons Market Research Was Not Conducted:

Market Research was limited due to exigent circumstances. However, an informal quote was provided by Karl Storz reflecting advantageous pricing to the Government. Additionally, a historical award, PIID: 36C24419P0905, made to Karl Storz supplying the same or similar items at the requesting facility was discovered;

and, after further review of the contract file, it was confirmed that documents within supported a sole source award to Storz.