Limiting_Sources_Justification_OVER_SAT OLYMPUS.pdf

Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPG Part 808.405-6 Limiting Sources Page 1 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C242-25-AP-3962

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C242-25-AP-3962

(1) Contracting Activity: Department of Veterans Affairs, Network Contracting Office 02, located at 400 Fort Hill Ave, Canandaigua, NY, in support of VISN 02 Rochester Outpatient Clinic VA Health Care System at 260 Calkins Rd, Rochester, NY .

2237:

(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).

Order against: FSS Contract Number: 36F79721D0168

Name of Proposed Contractor: Olympus America, Inc.

Street Address: 3500 Corporate Parkway

City, State, Zip: Center Valley, PA 18034-0610

Phone: 484-896-5838

(3) Description of Supplies or Services:

The estimated value of the proposed action is $640,024.92

The total estimated value of the base and 2 (two) options is $640,024.92. The base year period of performance is 09-30-2025 to 09-29-2026. Two subsequent option years will be included for a total possible period of performance from 09-30-2025 to 09-29-2028.

The ROPC GI Department requires a lease of endoscopes with cameras and associated equipment to do diagnostic endoscopic procedures. Types of scopes and accessories required include:

Two (2) CV-1500 Video System Center

Two (2) Provation Trigger Cable 10ft

Two (2) 3GDA Mini-Converter

Two (2) AJA Medical Grade PSU - 5VDC 5A

VHAPG Part 808.405-6 Limiting Sources Page 2 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C242-25-AP-3962

One (1) KV-6 SUCTION PUMP US

Six (6) EVIS X1 Gastroscope

Two (2) EVIS X1 HD Colonoscope

Five (5) SLIM COLONO W/ DUAL FOCUS NBI

Two (2) OIS-BR555 55 HI-RES

(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.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(B): 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;

A proprietary Letter was Received From Olympus dated March 31,2025 stating that the Olympus CV-1500 video processor and light source or EXERA system is a proprietary system that is not compatible with any other manufacturers brand endoscopes, including video gastroscopes and colonoscopes. Due to the highly specialized nature of this equipment and other regulatory considerations, there is no technical compatibility between different manufacture’s video tower and video endoscopes. Olympus brand video endoscopes will not function with another brand light source or video processor and vice versa.

FAR 8.405-6(a)(1)(C): 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.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

VHAPG Part 808.405-6 Limiting Sources Page 3 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C242-25-AP-3962

(5) Describe Why You Believe the Order Represents the Best Value consistent with FAR 8.404(d) to aid the contracting officer in making this best value determination:

Lease of Olympus Scopes is only available directly through Olympus. A lease has been determined to be the VA’s best interest in order to have the flexibility to trade them in at the end of the order performance period and lease the newest model(s) on the market at that time. Leasing newer-model endoscopes ensures that the standard of care is maintained consistently, efficiently and effectively managing lifecycle maintenance costs, and simplifying user training due to product familiarity. This lease arrangement minimizes patient risk in addition to maintaining the highest levels of scope availability and operational readiness.

(6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted

A search conducted on SBADSBS using the key word “Olympus” using NAICS code 339112 identified one Small Business Elite Endoscopy Services Corp. that could potentially meet the requirements of this procurement. However, a review of the profile confirmed that they could not meet the leasing requirements of this procurement.

A search was conducted on GSA using key words “Olympus America”. It was identified that Olympus has a current FSS contract 36F79721D0168 that expires 12/31/2026.

A proprietary Letter was Received from Olympus dated March 31,2025 stating that the Olympus CV-1500 video processor and light source or EXERA system is a proprietary system that is not compatible with any other manufacturers brand endoscopes, including video gastroscopes and colonoscopes. Due to the highly specialized nature of this equipment and other regulatory considerations, there is no technical compatibility between different manufacture’s video tower and video endoscopes. Olympus brand video endoscopes will not function with another brand light source or video processor and vice versa.

Intent to Sole Source was posted to SAM.gov from 8/13/2025-8/20/2025 and no quotes were received.

(7) Any Other Facts Supporting Justification: None

(8) A Statement of the Actions, if any, the agency may take to remove or overcome any barriers that led to the restricted consideration before any subsequent acquisition for the supplies or services is made:None

(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

VHAPG Part 808.405-6 Limiting Sources Page 4 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C242-25-AP-3962 cognizance, which are included in the justification, are accurate and complete to the best of my knowledge. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4. (This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)

SIGNATURE DATE

NAME TITLE SERVICE LINE/SECTION

FACILITY

(10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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

Tevia Mastykarz Contracting Officer Network Contracting Office 02

b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K):

I certify the justification meets requirements for other than full and open competition.

Joseph Cellino Acting Branch Chief Network Contracting Office 02

TEVIA MASTYKARZ Digitally signed by TEVIA MASTYKARZ Date: 2025.08.24 07:46:40 -04'00'

JOSEPH CELLINO Digitally signed by JOSEPH CELLINO Date: 2025.09.04 11:25:34 -04'00'

VHAPG Part 808.405-6 Limiting Sources Page 5 of 5 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C242-25-AP-3962