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This justification and approval document outlines a sole source procurement by the Department of Veterans Affairs for EndoSoft Endoscopy Reporting Software support services. The software supports endoscopy reporting capabilities for GI departments at four VA medical centers, and the justification cites EndoSoft as the only supplier of proprietary software support. The proposed sole source contract award to EndoSoft totals $657,467.35 over a base year and four one-year options from April 2021 to April 2025. Market research including a sources sought notice yielded only one response from EndoSoft. The justification was approved to proceed with a sole source award to EndoSoft for the proprietary software support.

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VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 5: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 11 Page 1 of 4 Original Date: 03/22/11 Revision 11 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C249-21-AP-1687

1. Contracting Activity: Department of Veterans Affairs, VISN 9, Memphis, Mt. Home, TVHS and

Louisville VA Medical Center, 1639 Medical Center Parkway, Suite 400, Murfreesboro, TN 37129 Identify purchase request (i.e. 2237) number: 486-21-2-3000-0028

2. Nature and/or Description of the Action Being Processed: The procurement is a new requirement for a firm-fixed price contract for base + (4) one-year option renewal EndoSoft Endoscopy Reporting Software Support Services. FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for a software support contract 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 6.303-2.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The proposed action is to procure EndoSoft Endoscopy Reporting Software Support Services for VISN 9, VA Medical Centers.

The software resides on VA owned servers. It is currently operational in Memphis and Louisville, Mountain Home and Tennessee Valley are in progress. Once these are all operational, we’ll need this contract in place to receive vendor support. The software provides endoscopy reporting capabilities for the GI department. It allows for the creation of reports and capture of images that can then be sent to VistA.

The total estimated contract award of the proposed action is $657,467.35.

Base: $113,846.85 Opt 1: $129,940.00 Opt 2: $133,838.20 Opt 3: $137,853.35 Opt 4: $141,988.95 POP: April 15, 2021 – April 14, 2021; Louisville: June 23, 2021 – April 14, 2021

OFOC SOP Revision 11 Page 2 of 4

Revision 11 Date: 02/11/2021

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(1), as implemented by FAR 6.302-1. The specific paragraph must be cited. Most likely, only the -1 or -2 authorities will be cited. Please be aware that failure to adequately plan for future requirements does not constitute appropriate use of the unusual and compelling urgency statutory authority.

(x) (1) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by FAR 6.302-1;

( ) (2) Unusual and Compelling Urgency per 41 USC §3304(a)(2) as implemented by FAR 6.302-2;

( ) (3) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert Services per 41 USC §3304(a)(3) as implemented by FAR 6.302-3;

( ) (4) International Agreement per 41 USC §3304(a)(4) as implemented by FAR 6.302-4 ( ) (5) Authorized or Required by Statute per 41 USC §3304(a)(5) as implemented by FAR 6.302-5;

( ) (6) National Security per 41 USC §3304(a)(6) as implemented by FAR 6.302-6;

( ) (7) Public Interest per 41 USC §3304(a)(7) as implemented by FAR 6.302-7;

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): The VISN 9 currently has EndoSoft software program installed. The locations needs the software support. The EndoSoft Reporting Software Support Service and applications are proprietary to Utech dba EndSoft LLC. The product for this type of software is proprietary. Accordingly, EndoSoft LLC is the only firm capable of providing the supplies and services described in Section III above without the Veteran’s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Market research was conducted, details of which are included in the contract file. To meet the VA Rule of Two, a review of the Vendor Information Pages (VIP) database in accordance with VAAR Class Deviation 810.001-70 to determine if two or more service-disabled veteran-owned businesses (SDVOSBs) and veteran-owned small businesses (VOSBs), in the appropriate NAICS code, are listed as verified in the VIP database. This effort did yield additional sources that can potentially meet the Government’s requirements.

A sources sought synopsis 36C24921Q0214 was issued 3/26/2021 and closed 3/30/2021. One response were received from the product manufacturer Utech dba Endosoft, a small business.

Utech provide a sole source letter stating no authorized resellers or 3rd party distibutors for the EndoSoft software. Louisville VAMC currently using the EndoSoft sofware and the applications.

Procuring new software which would allow VA to use other manufacturers would not be cost effective. There is no competition anticipated for this acquisition. The proposed contract action IAW FAR 6.305 the justification shall be made publicly available within 14 days after contract award.

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

Reasonable: IAW FAR 13.003(g) (2), the Contracting Officer (CO) intends to use an applicable procedure in FAR 15.404-1(b)(2)(ii), to ensure that the quoted pricing will be determined fair and reasonable based upon comparison to historical prices paid for similar services and the IGCE.

https://www.acquisition.gov/content/part-6-competition-requirements

OFOC SOP Revision 11 Page 3 of 4

Revision 11 Date: 02/11/2021

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by snynopsis of the proposed acquisition and soliciting inquiries from interested parties did not yield additional sources that can potentially meet the Government’s requirement. The market research revealed the acquisition history and experience with the marketplace under previous acquisitions for the same or similar items.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Louisville VAMC previously had the EndoSoft platform software installed. The EndoSoft Endoscopy Reporting Software Support Service is unique; no other product can be used with software and applications.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Utech dba EndoSoft that expressed interest in the Acquisition.

11. A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to

Competition before Making subsequent acquisitions for the supplies or services required:

Although EndoSoft software is proprietary to Utech dba EndoSoft LLC, VA will contact the vendor to see if they have included any additional SDVOSB or VOSB distributors in the future. Further, when the software is recompeted, other vendors will have the opportunity to supply software and applications.

OFOC SOP Revision 11 Page 4 of 4

Revision 11 Date: 02/11/2021

12. 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 and belief.

Brandon Weiss Date Chief Biomedical Engineer

VISN 9

13. Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

a. Contracting Officer or Designee’s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

LaShanda Harrington Date Contracting Officer

NCO 9

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Monica Thompson Date Supply Branch Chief

NCO 9

https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

2021-04-05T13:43:03-0500
Brandon T. Weiss 448860
2021-04-06T07:01:48-0500
LaSHANDA N. HARRINGTON 245288
2021-04-06T13:58:22-0500
MONICA E. THOMPSON 110287

File details come from the government source that posted it. Updated .