Attachment 1: Justification for Limiting Sources for Micro-Purchase Threshold up to the SAT

VHAPG Part 808.405-6 Limiting Sources Page 1 of 4 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C250-26-AP-4265

DEPARTMENT OF VETERANS AFFAIRS

FAR 8 – Justification for Limiting Sources (LSJ) For

Limiting Sources (<SAT)

Acquisition Plan Action ID: 36C250-26-AP-4265

1. Contracting Activity: The Department of Veterans Affairs, Veterans Integrated Service

Network (VISN) 10, Indianapolis Veterans Affairs Medical Center (INDY VAMC), Network Contracting Office (NCO) 10.

Transaction: 541-26-3-250-0489

2. Description of Action: Network Contracting Office (NCO) 10 intends to award a new firm fixed-price, brand-name Delivery Order (DO) for KARL STORZ equipment to support ENT procedures for Veterans at the Louis Stokes Cleveland VA Medical Center (CLE VAMC) Outpatient Surgery Center. The requirement is for a KARL STORZ IMAGE1 S video cart system, including a video cart, monitor stand, two 32-inch 4K/3D monitors, IMAGE1 S CONNECT II with 4U-LINK, X-LINK, keyboard, and adapter, RUBINA light source, insufflator, IMAGE1 S 4U RUBINA camera system, light cable, high-definition camera tray, medical-grade printer, and transmitter/receiver kit. The KARL STORZ system is a modular, high-definition platform that supports advanced ENT visualization and surgical procedures, including Functional Endoscopic Sinus Surgery (FESS) and laryngology. The requested KARL STORZ equipment is compatible and interchangeable with the existing KARL STORZ equipment configuration at CLE VAMC. The acquisition will support expansion of ENT procedures at the Outpatient Surgery Center, accommodate increased patient volume, improve patient throughput, and provide equipment that may be used by multiple service lines.

Order against: FSS Contract Number: 36F79723D0185/36F79719D0097

Name of Proposed Contractor: Karl Storz Endoscopy-America Street Address: 2151 East Grand Avenue City, State, Zip: El Segundo, CA 90245 Phone: (800)421-0837

Name of Proposed Contractor: L1 Enterprises, Inc.

Street Address: 618 West Patrick Street City, State, Zip: Frederick, MD 21701 Phone: (301)698-5798

VHAPG Part 808.405-6 Limiting Sources Page 2 of 4

3. Description of Supplies or Services:

The Department of Veterans Affairs, CLE VAMC, requires a contract for the procurement of a KARL STORZ IMAGE1 S video cart system that includes the following:

Quantity Part Number Description 1 XUSM0015 VIDEO CART VT, 40U, with tank holder surgical cart

1 9402 Variable-height secondary monitor stand for 15-, 19-, 23-, 24-, and 26-inch monitors

2 TM351 32-inch 4K/3D monitor

1 IMAGE1S2-4UX-

KT IMAGE1 S CONNECT II with 4U-LINK, X-LINK, keyboard, and adapter

1 TL400 COLD LIGHT FOUNTAIN POWER LED RUBINA high-performance LED light source

1 UI600 ENDOFLATOR insufflator, power supply, 100–240 VAC, 50/60 Hz 1 TH121 IMAGE1 S 4U RUBINA camera system 1 495ND Light cable, 3.5 mm x 300 cm 1 39301HCTS STERRAD-compatible high-definition camera tray 1 WU1333 Sony UP-DR80MD medical-grade printer for USB use 1 TZ110-KT Transmitter/receiver kit

The KARL STORZ IMAGE1 S video cart system is required to support advanced ENT visualization and surgical procedures at the CLE VAMC Outpatient Surgery Center, including Functional Endoscopic Sinus Surgery (FESS) and laryngology. The requested system provides a modular, high-definition platform with 4K and 3D imaging capabilities.

The requested KARL STORZ equipment is compatible and interchangeable with the existing KARL STORZ equipment configuration at CLE VAMC. Procuring equipment from another manufacturer would require replacement or modification of existing KARL STORZ equipment and accessories, resulting in additional cost, integration effort, training requirements, and potential disruption to clinical operations. The requested system will expand ENT surgical capability at the Outpatient Surgery Center, support increased patient volume, improve patient throughput, and provide equipment that may be used by multiple service lines. This procurement directly supports the Department of Veterans Affairs’ mission to improve the health, well-being, and continuity of care for the Veteran population.

ESTIMATED DOLLAR VALUE:

REQUIRED DELIVERY DATE: 30 Days ARO

VHAPG Part 808.405-6 Limiting Sources Page 3 of 4

Acquisition ID#: 36C250-26-AP-4265

4. Authority:

Order Against FSS: Authority of the Multiple Award Schedule Program, Title III of the Federal Property and Administrative Services Act of 1949 (41 USC 251, et seq.); Title 40 USC 501, Services for Executive Agencies; and implemented by Revolutionary FAR Overhaul (RFO) FAR 8.401(b) and GSAR Subpart 538.71, Federal Supply Schedule Ordering Procedures, as established by GSA Class Deviation RFO-2025-FSS-GSAR 538. Mark the applicable exception:

Items peculiar to one manufacturer. An item peculiar to one manufacturer can be a particular brand name, product, or a feature of a product peculiar to one manufacturer. A brand-name item, whether available on one or more Federal Supply Schedule contracts, is an item peculiar to one manufacturer (GSAR 538.7104-4).

5. Rationale/explanation to support cited authority:

The unique characteristics of the requested KARL STORZ IMAGE1 S video cart system are its compatibility and interchangeability with the existing KARL STORZ equipment configuration at the Louis Stokes Cleveland VA Medical Center (CLE VAMC). The requested system includes KARL STORZ-specific IMAGE1 S CONNECT II, 4U-LINK, X-LINK, IMAGE1 S 4U RUBINA camera system, RUBINA light source, insufflator, and associated components that operate together as a modular high-definition platform supporting 4K and 3D imaging for advanced ENT visualization and surgical procedures, including Functional Endoscopic Sinus Surgery (FESS) and laryngology.

Use of another manufacturer’s endoscopic video system would require replacement or modification of existing KARL STORZ components and accessories, would create additional integration and training requirements, and would not be cost advantageous to the Government. The requested KARL STORZ equipment is necessary to maintain the current equipment configuration while expanding ENT surgical capability at the Outpatient Surgery Center, supporting increased patient volume, and improving patient throughput.

The Contracting Officer, working with Service, conducted market research to identify commercially available endoscopic video cart systems capable of meeting the Government’s minimum requirements for the Louis Stokes Cleveland VA Medical Center (CLE VAMC) Outpatient Surgery Center.

Before beginning the research, the Government identified the minimum functional requirements for the requested equipment. At a minimum, the required system must support advanced ENT visualization and surgical procedures, including Functional Endoscopic Sinus Surgery (FESS) and laryngology; provide a modular, high-definition video platform with 4K and 3D imaging capability; be compatible and interchangeable with the existing KARL STORZ equipment configuration; and support use at the Outpatient Surgery Center to expand surgical capability, accommodate increased patient volume, and improve patient throughput. The requirement includes a video cart, monitor stand, two 32-inch 4K/3D monitors, IMAGE1 S CONNECT II with 4U-LINK, X-LINK, keyboard, and adapter, RUBINA light source, insufflator, IMAGE1 S 4U RUBINA camera system, light cable, high-definition camera tray, medical-grade printer, and transmitter/receiver kit.

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On August 25, 2026, the Contracting Officer reviewed GSA Advantage, GSA eLibrary, National Contracts, ECAT, SAM.gov, Interagency Contract Directories, NAC, FPDS, SCMC, OMB, and BIC using keywords including “KARL STORZ,” “IMAGE1 S,” “IMAGE1 S CONNECT II,” “4U RUBINA,” “ENT video cart,” “4K 3D endoscopic video system,” “endoscopic camera system,” “Functional Endoscopic Sinus Surgery,” and “laryngology.” SBA Small Business Search was also reviewed under the applicable NAICS code and identified five (5) results. Market research identified KARL STORZ endoscopic video equipment available through Federal Supply Schedule contracts, including KARL STORZ Endoscopy-America under FSS Contract No. 36F79723D0185 and L1 Enterprises under FSS Contract No. 36F79719D0097. The L1 Enterprises quote identifies the requested KARL STORZ video-cart system configuration as available under its FSS contract.

Market research also identified other manufacturers offering endoscopic video systems with generally similar visualization capabilities. However, none of the identified alternative systems were established as compatible or interchangeable with the existing KARL STORZ equipment configuration at CLE VAMC. The SBA Small Business Search results also did not identify a small business capable of providing a system that meets the Government’s requirement for compatibility and interchangeability with the existing KARL STORZ equipment. Use of another manufacturer’s system would require replacement or modification of existing KARL STORZ components and accessories and would not meet the Government’s requirement to maintain the current equipment configuration without additional cost, integration effort, training, and potential disruption to clinical operations.

Market research determined that the KARL STORZ IMAGE1 S video cart system meets the Government’s minimum functional requirements. The requested system provides the required modular high-definition imaging platform with 4K and 3D capabilities and is compatible with the existing KARL STORZ equipment configuration. The system is required to extend ENT procedures to the Outpatient Surgery Center, support increased patient demand for sinus and nasal procedures, improve patient throughput, and provide capacity for use by multiple service lines. The Contracting Officer, working with Service, determined that only KARL STORZ equipment meets the Government’s requirement for compatibility with the existing equipment configuration.

The Nonmanufacturer Rule (NMR) applies to this procurement under NAICS 339112, and the SBA has not provided a waiver. Market research identified KARL STORZ Endoscopy-America, the OEM manufacturer, under FSS Contract No. 36F79723D0185, and L1 Enterprises, Inc., an authorized SDVOSB distributor of KARL STORZ equipment, under FSS Contract No. 36F79719D0097. The Government will compete the requirement as a FSS unrestricted brand-name acquisition.

Rachelle J. Hamer Contracting Officer

NCO 10

RACHELL

E HAMER

Digitally signed by RACHELLE

HAMER

Date: 2026.08.25 12:18:29 -04'00'