FAR6_JA_OVER_SAT_36C245-23-AP-0335_HD Camera Heads_Redacted.pdf

Request for SDVOSB/VOSB Sole Source Justification Format >SAT

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C245-23-AP-0335

1. Contracting Activity: Department of Veterans Affairs, VISN 05, 613 Martinsburg VA Medical Center

Regional Procurement Office East, Network Contracting Office 5. PR # 613-23-1-3005-0001.

2. Nature and/or Description of the Action Being Approved: The justification is being reviewed to procure commercial items requirement under a sole source acquisition. The action will be awarded as a new requirement and as a Firm Fixed Price contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: High Definition (HD)

Camera Heads for Arthroscopy. Estimated value for the proposed action is $247,243.48.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S.

Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or ( ) 819.7008 Sole source awards to a verified veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):

The product that is being sought out to procure is required to be compatible with the following current utilized equipment at the Martinsburg VA Medical Center: Karl Storz IMAGE1 S CONNECT II – Item # TC201 and Karl Storz IMAGE1 S H3-LINK – Item # TC300. The manufacturer Karl Storz stated in a sources sought notice response “the Karl Storz IMAGE1 S High Definition Camera head (part number TH100) is the only model that is compatible with the current video system at the VA Martinsburg.” Karl Storz OEM product offerings are the only items capable of fulfilling the requirement without the Veteran’s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition. There is one VIP verified SDVOSB that has been deemed a responsible source (L1 Enterprises, Inc.), as well as an authorized distributor of Karl Storz OEM products. It is recommended that the requirement be procured via an open market SDVOSB set-aside sole source acquisition, utilizing authority found in 38 U.S.C. 8127(c).

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by subpart

5.2 and, if not, which exception under 5.202 applies:

A Sources Sought Notice (#36C24523Q0119) was posted on SAM.gov on 11.14.22. The notice garnered responses from five vendors. The responses have been uploaded to the eCMS briefcase.

Please see below a summary of the responses –

KPaul – Response received 11.14.22

SDVOSB

Response did not indicate that the vendor would be able to fulfill the requirement.

Request for SDVOSB/VOSB Sole Source Justification Format >SAT

Effective Date: 02/01/2022 Page 2 of 4

Alliant Healthcare - Response received 11.14.22

SDVOSB

Response did not indicate that the vendor would be able to fulfill the requirement. The vendor would see if they had a compatible product with the current utilized equipment at the Martinsburg

VAMC.

L1 Enterprises, Inc. – Response received 11.17.22

SDVOSB

Response indicated that they would be able to provide brand name products (Karl Storz) in accordance with OEM terms and conditions. They also provided an authorized distributor letter.

Karl Storz – Response received 11.17.22 Other than Small Response indicated that they would be able to provide the product for the requirement as the original manufacturer of the currently utilized equipment at the Martinsburg VAMC. They stated, “the Karl Storz IMAGE1 S High Definition Camera head (part number TH100) is the only model that is compatible with the current video system at the VA Martinsburg.” Also stated “Karl Storz, a large business, works with L1 Enterprises, Inc. as the authorized SDVOSB reseller of the Karl Storz equipment.”

PROAIM Americas, LLC – Response received 11.17.22

SB

Response indicated that they would be able to provide brand-name Smith & Nephew products, which is not compatible with currently utilized Karl Storz equipment at the Martinsburg VAMC.

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

Reasonable: Karl Storz, the manufacturer of the current utilized equipment at the Martinsburg VAMC has a GSA/FSS schedule (# V797D-30255). The price list has been uploaded to the eCMS briefcase. To ensure the final contract price will be fair and reasonable, the quote response price will be analyzed compared to the price listed on the FSS schedule.

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

Market Research Was Not Conducted: Two separate searches were conducted on the VIP database for the SDVOSBs and VOSBs who could potentially fulfill the requirement. Based on the search criteria used, five SDVOSBS were found, while no VOSBs were found. A Sources Sought Notice was published to SAM.gov and garnered five responses. Three SDVOSBs, one SB, and one other than small responses were received. Two SDVOSBs respondents indicate that they can offer endoscopic camera head equipment that could potentially fulfill the requirement. One respondent (Karl Storz) has an active GSA/FSS schedule. There is an NMR class waiver for NAICS code 334510 for electromedical endoscopic equipment. With the following information, the VA Rule of Two can be met. Only one SDVOSB respondent (L1 Enterprises, Inc.) is an authorized distributor of Karl Storz OEM equipment.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None. It is recommended that the requirement be procured via an open market SDVOSB set-aside sole source acquisition, utilizing authority found in 38 U.S.C. 8127(c).