Other Than Full and Open Competition Sole Source Justification.pdf

VHAPM Part 806.3 Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Sole Source Justification Format >SAT

OFOC SOP Revision 09 Page 1 of 4 Original Date: 03/22/11 Revision 09 Date: 04/17/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C241-20-AP-1270

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 1, 200 Springs Rd, Bedford, MA 07130 is responsible for the proposed contracting action.

2. Nature and/or Description of the Action Being Processed: This is a request for a new noncompetitive, firm fixed price contract leasing BPA with Olympus Corporation of the Americas, 3500 Corporate Parkway, Center Valley, PA 18034-0610. This is to include all surgical scopes products, equipment, video systems, accessories, materials, installation services, repair services, and training services specified in the attached equipment list. These systems are located throughout medical centers in VISN 1.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The estimated value of the proposed action is $ 6,990,000.00 Million 5-year BPA with each task order being determined by the medical centers procuring the equipment. The specific list of equipment is attached in the PWS and includes equipment, video systems, accessories, materials, installation services, repair services, and training services. Services will include all labor, personnel, equipment, tools, materials, supervision and other items and services necessary to perform such tasks.

All new equipment must be compatible with existing systems owned by VISN 1 sites or under a continued leasing model. The following VISN 1 VA Medical Centers (VAMCs) currently have Olympus Scope Systems: Boston, West Haven, Manchester, and Providence. Scopes and accessories under the leasing model shall be the original equipment manufacturer (OEM).

The VISN is seeking a contractual tool to ensure direct replacement parts, components, accessories, and equipment can be ordered simply and efficiently from the OEM in the most expedient manner possible for all sites using Olympus. Further, those sites which currently do not use Olympus will have the opportunity to replace existing scope systems with Olympus if they so choose. A new firm fixed price contract leasing BPA with Olympus will provide the following advantages to the agency:

More consistent patient experience across VISN 1 Increase clinical staff efficiency by reducing learning curves when going to different sites Increase efficiency for Clinical Engineering support and maintenance Increase efficiency for Sterile Processing support and maintenance Optimize the use and replacement of integrated equipment to avoid impact to patient services Speed of obtaining new equipment and ability to trade out older equipment via a Leasing model Having up-to-date equipment each time the option is awarded, and the time is extended

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

(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;

OFOC SOP Revision 09 Page 2 of 4 Original Date: 03/22/11 Revision 09 Date: 04/17/2020

() (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): There are several sites within VISN 1 that currently use and have been using Olympus branded Scope Systems for years including Boston, Connecticut, Manchester, and Providence. This BPA would allow those sites and others within the VISN to order direct replacement parts, components, accessories, and equipment. These systems are integrated into the workflow, patient care and patient treatment. These systems are highly specialized and require specific training to use by clinical staff as well as clean by sterile processing staff. Any new Scopes Systems will replace existing scopes and accessories. The new scopes must be compatible with existing Olympus equipment, including software, video systems and connectors.

The Olympus systems are operated by proprietary software/hardware that can only be replaced or expanded upon by the OEM. Third party vendors cannot maintain a leasing model for Olympus equipment over a 12-month period as it would void the OEM warranty. Third party providers do not have the technical knowledge or levels of support to maintain these critical systems as part of a lease package. The Scope annual option plan is structured so that the equipment must be returned to the OEM upon term completion. Only Olympus has the expertise and services required to maintain the integrity of the scope equipment, video systems, accessories, provide adequate clinical and technical training, and meet the VA’s needs during the warranty term. As the sole OEM provider of this equipment, all parts and labor will be acquired from Olympus

Accordingly, Olympus is the only firm capable of providing the supplies and services described above without VHA experiencing substantial duplication of cost that could not be expected to be recovered through competition. With the BPA in place, discounts from the OEM are offered from the previous GSA contracts.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Researched vetbiz and used keyword “surgical scopes” which yielded no results for a returnable term BPA. Contracting also performed researched which resulted in no suitable vendors for this requirement other than the OEM for a returnable term BPA.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The total cost of the individual items for Lease are listed in the PWS attachment. These are provided at a discounted rate to the open market. For a five-year BPA these are considered fair and reasonable based on a comparison with the commercial market and other VA contracts for similar services. To ensure the final contract price will be fair and reasonable Contracting will be meeting with the vendor to finalize discounted services.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: The current BPA’s in place that are awarded to Olympus does not fulfill the entire needs of VISN 1. The VISN needs a more expansive and inclusive agreement that allows sites to order more types of equipment, video systems, accessories, and

OFOC SOP Revision 09 Page 3 of 4 Original Date: 03/22/11 Revision 09 Date: 04/17/2020 materials in a timely manner. After consulting with Physicians, Clinical Engineering, and Health System Specialists, Olympus will provide the leasing model available that meets the needs of expansion and standardization across the VISN.

Market research was conducted through online research of the specifications of the equipment and services to determine if the services and support offered from another company could be compatible.

The Olympus systems are operated by proprietary software/hardware that can only be replaced or expanded upon by the OEM during the period in which the leasing model is active. Third party vendors cannot maintain term Leased equipment as it would void the OEM warranty. Third party providers do not have the technical knowledge or levels of support to maintain these critical systems.

Term leases are structured so that the equipment must be returned to the OEM upon term completion.

Only Olympus has the expertise and services required to maintain the integrity of the scope equipment, video systems, accessories, provide adequate clinical and technical training, and meet the VA’s needs while operating within the term. As the sole OEM provider of this equipment, all parts and labor will be acquired from Olympus

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: Third party vendors are not able to meet the needs of the Term BPA for leased scopes.

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: N/A

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:

There are no actions planned at this time due to proprietary limitations and to maintain the Leasing structure for the duration of the five year Lease BPA.

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.

_____________________________ ____8/3/2020____________________ Ashley O’Mara Date VISN 1 Chief Biomedical Engineer VA New England Healthcare System

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.

Harold Nice Date Contracting Officer

VISN 1

ASHLEY S.

O'MARA 233020

Digitally signed by ASHLEY

S. O'MARA 233020

Date: 2020.08.03 10:41:19 -04'00'

8/3/2020

HAROLD W.

NICE 405602

Digitally signed by

HAROLD W. NICE 405602

Date: 2020.08.03 12:24:32 -04'00'

OFOC SOP Revision 09 Page 4 of 4 Original Date: 03/22/11 Revision 09 Date: 04/17/2020

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

Tammy Fox Date NCO 1 Division Chief

VISN 1

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $68 million) or approve ($700K to $68 million) for other than full and open competition.

Joseph P. Maletta Date Executive Director, Regional Procurment Office East (RPO-E)

Tammy A Fox 706200

Digitally signed by Tammy A Fox 706200 Date: 2020.08.06 13:37:43 -04'00'