P03-Brand Name Justification 36C259-26-AP-3387 Karl Storz-623 redacted.pdf

GSAR 538.7104-3 Sole Source Justifications Page 1 of 4 Acquisition ID#: 36C259-26-AP-3387

BRAND NAME JUSTIFICATION

ORDER >SAT

GSAR 538.7104-3

Acquisition Plan Action ID: 36C259-26-AP-3387 Tracking Number: FY26 - NCO 19 - 2502

(1) Contracting Activity: Department of Veterans Affairs (VA), Network Contracting Office (NCO19), VISN 19, 6162 S Willow Drive, Suite 300, Greenwood Village, CO 80111 in support of VISN 19, Eastern Colorado Healthcare System, Muskogee VA Medical Center, 1011 Honor Heights Dr, Muskogee, OK 74401-1318.

2237#: 623-26-3-3184-0143

(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 purpose of this requirement is to establish a new, firm-fixed-price delivery order for a brand name only procurement for the Karl Storz Light source’s and camera heads to perform medical evaluations and various surgeries at the Muskogee VA Medical Center.

FSS Contract Number: 36F79719D0097

Name of Proposed Contractor: L1 Enterprises, Inc.

Street Address: 618 W. Patrick St.

City, State, Zip: Frederick, MD 21701 Phone: 301-698-5798

FSS Contract Number: 36F79723D0185

Name of Proposed Contractor: Karl Storz Endoscopy-America Street Address: 2151 E. Grand Ave.

City, State, Zip: El Segundo, CA 90245 Phone: 714-814-6839

(3) Description of Supplies or Services:

The estimated value of the proposed action is $452,014.15

The Muskogee VAMC requires the procurement of Karl Storz endoscopy imaging components required to support Muskogee VAMC’s existing Karl Storz platform, including POWER LED RUBINA light sources that provide white light and NIR/ICG fluorescence illumination, secondary monitor stands, transmitter/receiver kits for Karl Storz video routing, long-run DisplayPort 1.4

GSAR 538.7104-3 Sole Source Justifications Page 3 of 4 including all camera control units, processors, light sources, scopes, cabling, monitors, video routing hardware, and recording/storage systems.

Biomedical engineering and clinical leadership estimate that replacing the Karl Storz-based infrastructure with an alternate system would entail substantial costs, including equipment replacement, facility modifications, revalidation of sterile processing workflows, and extensive staff retraining for surgeons, OR nurses, and clinical engineering personnel. Retraining alone would result in significant lost surgical time, travel, and certification expenses at approximately $100,000-$150,000. Transitioning systems would also introduce operational downtime— potentially several weeks—leading to reduced surgical capacity and delayed care for veterans.

In contrast, acquiring only the Karl Storz scopes and components needed to maintain continuity with the existing platform ensures full compatibility with the medical center’s already owned Karl Storz processors, light sources, software, and imaging equipment. Maintaining Karl Storz continuity avoids:

• Complete system replacement costs

• Disruption to patient care and surgical scheduling

• Loss of imaging capability during removal and installation

• Revalidation of sterile processing workflows

• Retraining of Gastroenterology staff

• Replacement of the Karl Storz image management and storage system

The current Karl Storz platform provides essential clinical capabilities— high-definition Complementary Metal-Oxide-Semiconductor (CMOS) sensor technology, advanced visualization modes, and robust image management—used for detection of subtle pathology and early cancerous changes. These features are integral to gastrointestinal diagnostic and surgical operations and cannot be replicated without full system replacement

(5) Describe Why You Believe the Order Represents the Best Value consistent with GSAR 538.7104-3 to aid the contracting officer in making this best value determination: The prices stated on the FSS have already been competed and found to be fair and reasonable.

(6) Describe the Market Research Conducted Market research using FPDS, similar acquisitions, and GSA eLibrary identified two relevant schedule holders: L1 Enterprises, Inc., an authorized SDVOSB reseller under FSS Contract 36F79719D0097, and Karl Storz Endoscopy‑America, Inc., the manufacturer holding FSS Contract 36F79723D0185. Karl Storz maintains full proprietary rights over its endoscopy systems, and only Karl Storz and its authorized reseller, L1 Enterprises, are permitted to provide OEM equipment and service support. No other FSS vendors or Veterans First‑eligible firms can supply or service Karl Storz‑brand equipment due to manufacturer‑controlled proprietary architecture and exclusive distribution. As the requirement is brand‑specific and only Karl Storz equipment meets the Government’s minimum technical needs, additional market research was not conducted, and this procurement will be

GSAR 538.7104-3 Sole Source Justifications Page 4 of 4 issued as a brand‑name solicitation through the only authorized sources—Karl Storz Endoscopy‑America, Inc. and L1 Enterprises, Inc.

(7) Any Other Facts Supporting the Justification: There are no additional supporting facts to include in this section of justification.

(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 Muskogee VAMC will continue working with NCO 19 in conducting market research to identify opportunities to obtain competition in the future.

Subject matter experts and contract specialists will reach out to various companies within the industry to gather information necessary in order to maximize competition.

(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 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 GSAR 538.7104-3. (This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)

Ginger Williams Date Acquisition Utilization Specialist Muskogee VAMC

(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.

Mitchael Purdom Date Contracting Officer NCO 19, OKC Supply/Services Branch