P03 JOFOC 36C260-21-AP-0883 Olympus Lease - HCA Signed.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 10 Page 1 of 4 Original Date: 03/22/11 Revision 10 Date: 09/10/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C260-21-AP-0883

1. Contracting Activity: Department of Veterans Affairs, Veterans Healthcare Administration, Regional Procurement Office West, Network Contracting Office 20 on behalf of Roseburg and Eugene VA Medical Centers. 2237: 653-21-3-9961-0006.

2. Nature and/or Description of the Action Being Processed: This request is for a sole source justification to Olympus America, the manufacturer, as a new firm-fixed price contract for a base + option lease plus maintenance/repair for Roseburg and Eugene VA Medical Center’s Care Surgery Services endoscopy equipment.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The endoscopy equipment to be provided are rhinolaryngoscopes, various fiber scopes, 4K UHD units and processors used for several Surgical Specialties, Bronchoscopes, ultrasonic probes, Ureteroscopes, and laser systems, light sources, video processor, ultrasound processor, etc.

Equipment at the start of the lease will be a mix of factory new and continued utilization of specific scopes from previous lease. Option years will continue to utilize the equipment provided at the start of the lease.

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;

Period POP Price

Base 5/1/21 – 4/31/22 $528,900.00

OY1 5/1/22 – 4/31/23 $528,900.00

OY2 5/1/23 – 4/31/24 $528,900.00

Lease Price $1,586,700.00

Purchase Price $2,065,551.93

SAVINGS TO LEASE $478,851.93

36 Month Maintenance $351,921.00

Total 36 Month Lease + Maint

$2,071,941.00

OFOC SOP Revision 10 Page 2 of 4

5. Demonstration that the Contractor’s Unique Qualifications or Nature of the Acquisition

Requires the Use of the Authority Cited Above (applicability of authority): These are direct replacements/technology upgrades for current scopes and accessories in use at the

VAMC.

a. The endoscopes required are currently direct replacements for existing leased equipment. At the start of the lease, factory new models shall replace existing models of equipment. 65 endoscopes scopes will be returned to Olympus in exchange for 50 new scopes and 44 pieces of ancillary equipment. Six distinct scope types/styles are being traded for updating. This upgrade ensures that the Roseburg and Eugene VA Medical Center’s can maintain the highest, state of the art, operation, functionality and quality of patient care for our veteran patients and ensure that Roseburg VA patient care stays commensurate with or higher than the surrounding community and current standards of care.

b. The new leased equipment must communicate and be directly and seamlessly compatible in form, fit and function with the existing Olympus equipment already in place at the Roseburg VA. It must connect, interface, and communicate seamlessly with the existing Olympus components without the use of adapters or other interfacing connectors. Each piece of equipment must be specifically designed for direct connection and operation with Olympus equipment, and this is only possible by using Olympus equipment.

c. Selection of Olympus as the sole source of the equipment is required to ensure the highest level of patient safety and to minimize potential use errors and the resulting litigation caused by alternate (non‐ Olympus ‘gray market’) equipment as well as potential operational interface errors and patient incident risks caused by the use of after‐market interfaces.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Olympus has one SDVOSB vendor who could offer if the equipment were to be purchased, however, they do not have capability to perform services nor leasing of equipment. Any subsequent endeavor will have the marketplace surveyed to see if there is availability of competition.

7. Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: The NAC has required contractors to remove leasing from their FSS schedules.

Olympus is still providing the VA their NAC FSS pricing, even though this is open market. If the VA were to purchase this equipment, we would receive a discounted structure of 20% off GSA list pricing. Additionally the overall lease pricing is $478,351.93 below purchase price, therefore the overall pricing is anticipated to be fair and reasonable and in the best interst to the government.

OFOC SOP Revision 10 Page 3 of 4

Revision 10 Date: 09/10/2020

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Previous to this current Olympus contract the two FSS Endoscope contract vendors were compared and presented to surgeons, staff and sterile processing services. Olympus scopes were determined to provide the level of operability, resolution, function and versatility to best meet the needs of these various stakeholders. No additional Market Research has been conducted for this continuance lease as the current Endoscopes and ancillary equipment have been determined to meet our expectations during this contract period.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: If, for any reason, the equipment were to be purchased, this could be obtained easily through Olympus’ exclusive SDVOSB partner. In the long term view, by leasing this equipment, rather than purchasing, future technologies or standards are easily introduced during the regular intervals of lease renewal.

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

America

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: Any subsequent endeavor will have the marketplace surveyed to see if there is availability of competition.

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.

Aaron Peters Acquisition & Utilization Specialist Roseburg VA Medical Center

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.

Michael Allred Branch Chief, Medical Equipment Network Contracting Office 20 http://vaww.pclo.infoshare.va.gov/PMWeb/VHAPM_Part_806.3.aspx

OFOC SOP Revision 10 Page 4 of 4

RPO West J&A Log: 2021-01-29T12:39:11

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.

S. Dale Allen Director of Contracting Network Contracting Office 20

c. VHA RPO West 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.

Curtis M. Jordan Executive Director, Regional Procurement Office West Head of Contracting Activity (HCA)