P03 36C242-26-AP-0698 Final.pdf

Request for Sole Source Format >SAT GSAM/R 538.7104-3(b) Sole Source Justifications - Federal Supply Schedule Ordering

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AP 36C242-26-AP-0698

SOLE SOURCE JUSTIFICATION

GSAM/R 538.7104-3(b)

This justification aligns with the deviation outlined in the Revolutionary FAR Overhaul (RFO) for FAR 8.4 - Ordering under the Federal Supply Schedule and GSAM/R 538.71, as required by Executive Order (E.O.) 14275, Restoring Common Sense to Federal Procurement, signed April 15, 2025. Deviation effective date: November 3, 2025.

Acquisition Plan Action ID: 36C242-26-AP-0698

1. Contracting Activity: Department of Veterans Affairs, VISN 2, Network Contracting Office (NCO) 2, 400 Fort Hill Ave, Canandaigua, NY 14424 procuring the requirement for Department of Veterans Affairs, VISN 02, NJ Healthcare System Center- East Orange Campus 385 Tremont Avenue East Orange NJ 07018.

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).

The VA New Jersey Healthcare System, East Orange Campus, requests a new requirement for firm-fixed-price delivery order for a 36-month lease of Olympus endoscopy equipment.

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

Phone: 484-896-5838

3. Description of Supplies or Services:

The estimated value of the proposed action is $2,057,736.24 This requirement will be awarded as a firm-fixed-price delivery order for the lease of Olympus endoscopy equipment. The acquisition includes a base period and two

(2) 12-month option periods. This delivery order supports continuity of care for the VA New Jersey Healthcare System– East Orange Campus by ensuring uninterrupted access to Olympus endoscopy equipment necessary for ongoing diagnostic and therapeutic procedures. The equipment lease includes full-service support, preventive maintenance, and all required accessories for operational readiness throughout the performance period.

Estimated Contract Value:

$2,057,736.24 (inclusive of all anticipated option periods)

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The lease of Olympus endoscopes is only available directly through Olympus. Leasing has been determined to be in VA's best interest as it provides: flexibility to trade in equipment at the end of the performance period and obtain the newest models available. This approach ensures:

Consistent Standard of Care: Access to the latest technology supports high-quality patient care

Lifecycle Cost Management: Leasing minimizes maintenance costs and eliminates large capital expenditure.

Operational Readiness: Ensures high scope availability and reduces downtime.

Simplified Training: Product familiarity across models streamlines staff training.

Patient Safety: Reduces risk by maintaining equipment reliability and performance.

This lease arrangement allows the VA to efficiently manage resources while maintaining the highest levels of operational readiness and patient safety.

Types of scopes and accessories required include:

Pulmonary Endoscopes and Ancillary Equipment:

MODEL DESCRIPTION QTY

K10035366 K10035366 WM-NP3 WORKSTATION US GI 20A 1

CV-190 CV-190 EVIS EXERA III VIDEO PROCESSOR 1

OEV321UH OEV321UH UHD 4K 32 inch Monitor 1

OL-0015-10* TALL HEAVY ROLL STAND FOR 32" MONITOR LM 1

BF-1TH190 BF-1TH190 EEIII HD THERAPEUTIC BRONCH W 1

BF-H190 BF-H190 EEIII HIGH DEF DIAGNOS IC BRONCH 2

BF-UC190F-A BF-UC190F SCOPE WITH ULTRASOUND CABLE 1

MAJ-2056 DETACHABLE CABLE FOR EUS&EBUS S 1

Period of Performance: Funding Totals

Est. Base Year: 04/13/2026 – 03/31/2027 $685,912.08

Option Year 1: 04/01/2027 – 03/31/2028 $685,912.08

Option Year 2: 04/01/2028 – 03/31/2029 $685,912.08

Ultimate Completion Date: 03/31/2029 $2,057,736.24

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BF-UC190F ULTRASOUND BRONCHOSCOPE 1

MAJ-1916 MAJ-1916 CV-190 INTERFACE CONVERT DEVICE 1

MAJ-1918 MAJ-1918 REMOTE CABLE PERIPH DEVICE 1.8M 1

55645L25-1 55645L25-1 25'CV-160/180/190 DIGI FILE 1

CLV-190 CLV-190 100V W/ POWER CORD (US) 1

EU-ME3 EU-ME3 NTSC W/ POWER CORD (US) 1

MAJ-2056 MAJ-2056 DETACHABLE CABLE FOR EUS&EBUS S 1

GI Endoscopes and Ancillary Equipment:

MODEL DESCRIPTION QTY

CV-190 CV-190 EVIS EXERA III VIDEO PROCESSOR 3

K10035366 K10035366 WM-NP3 WORKSTATION US GI 20A 3

MAJ-1916 MAJ-1916 CV-190 INTERFACE CONVERT DEVICE 3

MAJ-1918 MAJ-1918 REMOTE CABLE PERIPH DEVICE 1.8M 3

55645L25-1 55645L25-1 25'CV-160/180/190 DIGI FILE 3

OEV321UH OEV321UH UHD 4K 32 INCH MONITOR 3

CF-HQ190L CF-HQ190L EVIS EXERA III HD COLONOSCOPE 9

PCF-HQ190L PCF-HQ190L SLIM COLONO W/ DUAL FOCUS NBI 3

GIF-HQ190 GIF-HQ190 EVIS EXERA III HDTV DF NBI 9

GIF-XP190N GIF-XP190N ULTRA-SLIM SCOPE, 4-WAY, NBI 3

OL-0015-10* TALL HEAVY ROLL STAND FOR 32" MONITOR LM 3

CLV-190 CLV-190 100V W/ POWER CORD (US) 3

GIF-1TH190 GIF-1TH190 (US) 1

TJF-Q190V TJF-Q190V (US) 2

ARIETTA 850 AT ARIETTA 850 AT Excl OLY Conf/Adv Feature 1

MAJ-2056 MAJ-2056 DETACHABLE CABLE FOR EUS&EBUS S 2

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GF-UE160-AL5 GF-UE160-AL5 Radial array EUS scope 1

GF-UCT180 GF-UCT180 Curvilinear EUS scope, 3.7 mm 2

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.

GSAM/R 538.7104-3(b)(1)(ii): 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;

The Government requires the use of Olympus flexible endoscopes across multiple clinical service lines at the East Orange VA, including ENT, Surgical, and Urology, because these the existing compatibility. Additionally, the VHA Procurement and Logistics Office established an Integrated Product Team (IPT) to develop requirements for national endoscope standardization throughout VHA. The IPT determined that national standardization provides the best value, enhances patient safety and quality of care, and reduces variability in setup, use, and reprocessing procedures, thereby reducing the potential for errors and negative patient outcomes.

5. Describe Why You Believe the Order Represents the Best Value consistent with GSAM/R 538.7102-2(4) to aid the contracting officer in making this best value determination:

GSA has already determined the prices of supplies under schedule contracts to be fair and reasonable. Considering the price, special features, and the reduced administrative cost of placing a delivery order by writing an open-market contract, the CO has determined the price offered under Olympus’s FSS contract represents the best value to the Governmentwide aid the contracting officer in making this best value determination.

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

Market research was conducted in accordance with the VHA National Standardization requirement outlined in VHA Directive 2009-004, Handbook 1761(2). Services were provided by Olympus America, Inc., and contact was made with the company to identify any authorized distributors that could furnish this service/lease. It was determined that there are currently no authorized distributors that can provide the Olympus lease requirements at this time.

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AP 36C242-26-AP-0698

On January 30, 2026, the NAC Contracting Officer confirmed via email the Government’s intent to renew and exercise the available option periods, extending contract 36F79721D0168 through December 31, 2031, for an additional five years. The NAC CO further confirmed that the contract includes FAR clause 52.216-22, which permits task orders to remain in effect for up to sixty (60) months beyond the expiration of the schedule contract, and that all terms and conditions of the potentially expired FSS contract would continue to apply for the full duration of the order.

Intent to Sole Source was posted to SAM.gov from 11/05/2025-11/12/2025 and no responses were received.

The Trade Agreements Act (TAA), FAR 52.225-5 as prescribed in 25.1101(c)(1), is applicable to this procurement. Per GSA, all Multiple Award Schedule (MAS) contract offerings are subject to the TAA, requiring contractors to provide only U.S.–made or designated country end products and services. Although the applicability of the TAA or Buy American Act (BAA) is determined at the FSS base contract level, ensuring the appropriate clauses flow down to the order, the planned leased equipment is covered under the World Trade Organization Government Procurement Agreement (WTO GPA) for Germany, Ireland, Japan, Taiwan, and the United Kingdom. It is also covered under the Free Trade Agreement applicable to the Dominican Republic. Therefore, the base award/IDC is TAA compliant.

An email was received from the NAC Contracting Officer assigned to the FSS contract verifying that the FSS contract was compliant with the Trade Agreements Act.

7. Any Other Facts Supporting the Justification:

The requested Olympus scopes and accessory equipment are only available as market items that are compatible and will function with the station’s existing equipment. Additionally, medical staff have already been trained and compiled hundreds of hours of experience using this equipment through the years of prior contracts. The VHA has established policies to standardize and lease endoscopes rather than purchase them. The VHA Procurement and Logistics Office established an IPT to develop requirements for this national standardization of endoscopes across the VAMCs. Currently, no alternative options meet the needs of the medical center without incurring additional costs or causing delays in services.

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:

The agency will continue to pursue additional competition as Olympus adds authorized distributors to their company. Additionally, the service team will research alternative equipment featuring advanced technology and expanded capabilities across other brands to ensure we meet our requirements and enhance the services provided to Veterans.

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

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AP 36C242-26-AP-0698

cognizance, which are included in the justification, are accurate and complete to the best of my knowledge. I understand that processing of this sole source justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by GSAM/R 538.71 as directed by FAR 8.4.

Jody Schulz Contracting Officer Representative

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.

Lisa Harris Contracting Officer

HIGHER LEVEL APPROVAL (Required for orders over $900,000)

b. VHA RPO HCA Review and Approval (over $900,000 to $90 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by GSAM/R 538.71 ordering procedures as directed by FAR 8.4.

Gerald F. Jacobs Executive Director, Regional Procurement Office East VHA Head of Contracting Activity (HCA)

LISA HARRIS Digitally signed by LISA HARRIS Date: 2026.03.30 09:15:21 -04'00'

JODY

SCHULZ

Digitally signed by JODY

SCHULZ

Date: 2026.03.31 08:54:18 -04'00'