P03 JA FY22-289_ 36C260-21-AP-4154_P03 JA Endoscope Brush BPA SDVOSB Sole Source _HCA.pdf

Attachment 1: Request for SDVOSB/VOSB Sole Source Justification Format >SAT

Effective Date: 02/01/2022

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C260-21-AP-4154 JOFOC Log Number: 2022-05-20T09:08:43

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 20 (NCO 20), procuring on behalf of the Western States Network Consortium (WSNC).

Network Contracting Office 20 5115 NE 82nd Ave, Suite 102 Vancouver, WA 98662

2. Nature and/or Description of the Action Being Approved: This will be a new firm fixed price Blanket Purchase Agreement (BPA) with a duration of five years from date of award.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This BPA is intended to streamline the purchase of Olympus BW-412T Channel Cleaning Brushes. This is a disposable single use item used throughout the WSNC to clean gastrointestinal endoscopy equipment and is sold in boxes of fifty. Historically these items have been purchased utilizing the Government Purchase Card (GPC) hence the need for the BPA.

Currently, there are 2,499 Olympus endoscopes in use within the WSNC catchment area. It is estimated that 7,500 boxes will be purchased over the five-year period of the BPA. The price ceiling of the BPA is $1,800,000.00 and it will be effective five years from date of award.

It is important to note that the BW-412T is manufactured in Vietnam. Therefore, a Determination of Domestic Non-Availability has been processed in accordance with 19 U.S.C. § 2512(a)(2)(B) and 41 U.S.C. § 8302(a)(2)(B), as implemented by Federal Acquisition Regulation (FAR) 25.403(c), 25.103(b), respectively and 1.7. The approval of the Determination of Domestic Non-Availability is pending the approval of this JOFOC.

The Small Business Administration (SBA) has issued a class waiver to the nonmanufacturer rule (NMR) for North American Industry Classification System (NAICS) Code 334510 Electromedical and Electrotherapeutic Apparatus Manufacturing and Product Service Code (PSC) 6525 Imaging Equipment and Supplies: Medical, Dental, Veterinary which shall be utilized for this procurement.

However, this item is not covered by the existing waiver per communications with SBA. A request for an Individual Waiver shall be completed and submitted to the SBA for approval.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S.

Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

(X) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or ( ) 819.7008 Sole source awards to a verified veteran-owned small business

5. Demonstration that the Contractor’s Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Olympus America Inc.

has one exclusive authorized Service-Disabled Veteran Owned Small Business (SDVOSB) reseller for endoscopic and surgical products: Alliant Enterprises, LLC.

Title 38 U.S.C. 8127(b) provides the authority for the Department of Veterans Affairs (VA) Contracting Officers to make awards to SDVOSB and Veteran Owned Small Business (VOSB) firms using other than full and open competition when certain conditions are met. In addition, VA Procurement Policy Memorandum (PPM) 2016-05 (Revised AUG 2019) – Class Deviation 819.7007 allows the CO to award to a SDVOSB on a sole source basis as implemented by FAR 6.302-5 Authorized or Required by Statute.

The proposed award to Alliant Enterprises, LLC will meet all required criteria before award is made:

1. Anticipated award amount will not exceed $5,000,000.00.

2. The Justification and Approval (JA) is prepared as per FAR 6.302-5(c)(2)(ii) and posted per

FAR 5.301(d).

3. The SDVOSB has been determined a responsible source.

4. Award must be made at a fair and reasonable price.

Furthermore, Olympus does not validate third party products to be used with their line of endoscopes. Attempting to do so may void the warranty and is not compliant with Olympus’s Instructions for Use (IFU). Therefore, only item BW-412T can meet the needs of the WSNC.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by subpart

5.2 and, if not, which exception under 5.202 applies: As stated above, the required item is only available from one SDVOSB. A synopsis of proposed sole source action shall be publicized before award of the BPA. Additionally, this Justification shall be posted with the award notice per FAR 5.301(d).

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and

Reasonable: The pricing offered by Alliant Enterprises, LLC is fair and reasonable based on historical GPC pricing and pricing offered by the manufacturer Olympus America, Inc. A formal determination of fair and reasonable pricing shall be included in the contract file.

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Market research was conducted pursuant to FAR Part 10, Class Deviation – Veterans First Contracting Program (VFCP 2016) and Veterans Health Administration Procurement Manual (VHAPM) part 810.001. Alliant Enterprises, LLC is the exclusive reseller of the required item. Alliant Enterprises, LLC is a verified SDVOSB in Vendor Information Pages (VIP) at https://www.vetbiz.va.gov/vip/ , and meets all criteria outlined in VAAR 819.7003.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: None.

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

Alliant Enterprises, LLC (SDVOSB), Olympus America Inc. (Large Business Manufacturer).

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: None.

https://www.acquisition.gov/content/part-5-publicizing-contract-actions https://www.acquisition.gov/content/part-5-publicizing-contract-actions https://www.acquisition.gov/content/part-5-publicizing-contract-actions https://www.vetbiz.va.gov/vip/

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.

Stephen Clements Date Acquisition Utilization Specialist Western States Network Consortium

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.

Jacob Jackson Date Contracting Officer, WSNC Branch Network Contracting Office 20 (NCO 20)

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.

S. Dale Allen Date Director of Contracting Network Contracting Office 20 (NCO 20)

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 $75 million) or approve ($750K to $75 million) for other than full and open competition.

Curtis M. Jordan Date Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA) https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx

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For Dale