P03 LSJ 36C242-24-AP-2204 Final.pdf

Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPG Part 808.405-6 Limiting Sources Page 1 of 8 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: _36C242-25-AP-2204_

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C242-25-AP-2204

(1) Contracting Activity: Department of Veterans Affairs, VISN 2, Network

Contracting Office (NCO) 2, 2875 Union Road, Suite 3500, Cheektowaga, NY 14227 procuring the requirement for Department of Veterans Affairs, VISN 02, James J.

Peters VA Medical Center, 130 W Kingsbridge Road, Bronx, NY 10468.

2237: 526-25-2-168-0094

(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).

This procurement of a thirty-six (36) month lease and full-service of Olympus ENT, Speech and Language, Radiology Oncology, and GI department endoscopes and ancillary equipment for the James J. Peters VA Medical Center, 130 W. Kingsbridge, Bronx, NY 10468. This procurement will replace current lease task order 36F79721D0168 36C24222N0560 and service contract 36C24223P1724 which expired 6/30/2025. The proposed FSS task order will be awarded by Olympus America, Inc. for a period of performance from July 1, 2025 through June 30, 2026 with the provision of two (2) option years. This procurement will be conducted in accordance with FSS contract 36F79721D0168.

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: 484-896-5833

(3) Description of Supplies or Services: The estimated value of the proposed action is for an annual consideration of $402,936.60 with a grand total of $1,208,809.80 ($1,003,048.20 lease; $205,761.60 full-service), consisting of $1,003,048.20 ($769,989.24 NAC FSS; $233,058.96 open market value) for lease total and $205,761.60 open market value for full-service maintenance total. The James J.

Peters VAMC requires a thirty-six (36) month lease including FSS contract endoscopes and ancillary equipment and open market items including open market full-service of all equipment. The open market portion shall be in accordance with FAR 8.402(f). The proposed lease involves the following equipment:

https://www.acquisition.gov/far/part-8#FAR_8_405_6 http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3 https://www.gpo.gov/fdsys/pkg/USCODE-2011-title40/pdf/USCODE-2011-title40-subtitleI-chap5-subchapI-sec501.pdf

VHAPG Part 808.405-6 Limiting Sources Page 2 of 8 Revision: 01 Effective Date: 09/01/2024

ENT Clinic Room (Processor, Light & Strobe):

MODEL DESCRIPTION QTY

OTV-S500 OTV-S500 W/POWER CORD (US) 1

MAJ-2547* MAJ-2547 UPGRADE PACK STROBE OTVS500

(US)

MAJ-2548* MAJ-2548 AIR MICROPHONE 1

MAJ-2549* MAJ-2549 THROAT MICROPHONE OTVS500 1

MAJ-2550* MAJ-2550 MICROPHONE EXTENSION CABLE 1

MAJ-2551* MAJ-2551 HDMI CABLE 1

ENT Clinic Room (Camera Head & Tray):

CH-S200-XZ-EA CH-S200-XZ-EA-U CH wth 3CMOS Autoclavable 1 STQ-CHD* STER. CASE CAMERA HEADS 18.1x11x4 in. 1

ENT Clinic Room (Monitor & Cart):

OEV-262H OEV-262H HIGH-DEFINITION LED LCD

MONITOR

K10029894 K10029894 TC-C4 TROLLEY US SET 3 1

MAJ-2147 MAJ-2147 COMPACT LCD MONITOR ARM 1

MAJ-2145* MAJ-2145 ENT SCOPE HANGER 1

MAJ-1665* MAJ-1665 CAMERA HD 1

MAJ-2167 MAJ-2167 NURSES CONTROL ARM 1

FLP-0002-17C MOUNTING ADAPTOR FOR FLAT 1

MAJ-1658 MAJ-1658 Universal Stowage Container WM 1

ENT Clinic Room (nCare 4K Picture & Video Recorder):

ISM-1200389* nCare 4K and Accessories 1 ISM-1200413* nCare 4K Base Software License 1 ISM-1200414* nCare 4K Video Recording 1

ISM-1007451* 15" NCARE MEDICAL GRADE TOUCH PANEL 1

ISM-1007673* Canvys 15" Touch Panel Stand 1 IS40916* IS40916 GX Tally Lamp 1 ISM-1200456* USB to Serial RS-232 Adapter 1

ENT Clinic Room (Portable Disposable Scopes Monitor):

DVM-B2* DVM-B2 Portable Video Processor for SUS 1

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SLP (Speech & Language) Video Tower:

OTV-S500* OTV-S500 W/POWER CORD (US) 1

MAJ-2547* MAJ-2547 UPGRADE PACK STROBE OTVS500

(US)

LMD-

2110MD/OL*

LMD-2110MD/OL 21.5" HD Widescreen Medica 1

ISM-1200389* nCare 4K and Accessories 1 ISM-1200413* nCare 4K Base Software License 1 ISM-1200414* nCare 4K Video Recording 1

DVI-HDMI

CABLE*

DVI-HDMI CABLE 1

ENF-V4 ENF-V4 FLEX, SLIM RHINOLARY, PISTOL

GRIP

MAJ-2548* MAJ-2548 AIR MICROPHONE 1

MAJ-2549* MAJ-2549 THROAT MICROPHONE OTV-S500 1

MAJ-2550* MAJ-2550 MICROPHONE EXTENSION CABLE 1

MAJ-2551* MAJ-2551 HDMI CABLE 1

IS40916* IS40916 GX Tally Lamp 1

Radiation Oncology- Basement:

OTV-S500* OTV-S500 W/POWER CORD (US) 1

LMD-

2110MD/OL*

LMD-2110MD/OL 21.5" HD Widescreen Medica 1

ISM-1200389* nCare 4K and Accessories 1 ISM-1200413* nCare 4K Base Software License 1 ISM-1200414* nCare 4K Video Recording 1

DVI-HDMI

CABLE*

DVI-HDMI CABLE 1

IS40916* IS40916 GX Tally Lamp 1

ENF-V3 ENF-V3 Flexible ultra thin video Rhino L 2

GI Endoscopes:

CV-1500 CV-1500 Video System Center 1 MAJ-2426 12G-SDI cable 1.5M 2 MAJ-2428 12G-SDI cable 2.9M 2 Z4640-00* Provation p-emulator trigger cable 1

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CF-HQ1100DL CF-HQ1100DL EVIS X1 HD Colonoscope 9

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

GIF-HQ190 GIF-HQ190 EVIS EXERA III HDTV DF NBI 7

GIF-XP190N GIF-XP190N ULTRA-SLIM SCOPE, 4-WAY, NBI 1

MAJ-2056 MAJ-2056 DETACHABLE CABLE FOR

EUS&EBUS S

PCF-HQ190L SLIM COLONOSCOPE W/ DUAL FOCUS NBI 1

UCR UCR WITH CYLINDER HOSE (US) 4

EU-ME3 XT* EU-ME3 with Advanced Features 1

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

MAJ-2383* SWQ SOFTWARE OPTION 1

MAJ-2382* ELST SOFTWARE OPTION 1

MAJ-2381* CHE SOFTWARE OPTION 1

USB-3.5-10* CV-1500 – Provation Trigger Cable 10ft 1

Rollover Equipment:

K10037159* WM-NP3 MOBILE WORKSTATION 1

MAJ-2216 MAJ-2216 LCD MONITOR 1

K10030136 TC-C3 TROLLEY SET 3 1

K10030136 TC-C3 TROLLEY SET 3 1

ISM-100942* EDID EMULATOR EDID M 1

*Open Market Item

The purpose of this lease with full-service at the end of the leasing period is to reduce service costs and continue using the latest technology in endoscopic procedures. This will be a firm-fixed price FSS task order off of FSS contract 36F79721D0168 for the anticipated period of performance of July 1, 2025 through June 30, 2026 with the provision of two option years. The total task order value shall be solely based on the pricing of the thirty-six (36) month lease. Open market equipment shall be leased in accordance with FAR 8.402(f).

(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.

FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays:

FAR 8.405-6(a)(1)(B): 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;

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Market research indicates that Olympus America, Inc. is the only vendor that has an FSS contract that includes line items for the lease of Olympus endoscopes and ancillary equipment.

FAR 8.405-6(a)(1)(C): In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

FAR 8.405-6(b): Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is:

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing.

(5) Describe Why You Believe the Order Represents the Best Value consistent with

FAR 8.404(d) to aid the contracting officer in making this best value determination:

The Contractor has an indefinite delivery contract with the Department of Veterans Affairs on the GSA Federal Supply Schedule and is an incumbent Contractor for this requirement. The anticipated cost for FSS equipment is considered fair and reasonable based on the FSS contract having already been determined fair and reasonable. Award to Olympus America, Inc. for standardized items as a National Acquisition Center (NAC) Order represents the Best Value to the Government. Open market equipment shall be leased in accordance with FAR 8.402(f) and shall be determined fair and reasonable based on comparison with other similar current contracts below in paragraph 3.

Price reasonableness shall also be determined through comparing the lease pricing portion of the previous contracts: task order 36F79721D0168 36C24222N0560 for ENT, Sleep, Radiation Oncology, and GI leased scopes 7/1/2022-6/30/2025, $688,259.52 and contract 36C24223P1724 for services of these scopes 9/15/2023- 6/30/2025, $110,485.59 both were awarded to Olympus. The total dollar value of lease pricing for the task order 36C24222N0560 is around 32% less than the proposed dollar value for the new three (3) year lease estimated at $1,003,048.20.

The 32% can be attributed to the fact that the current leases were evaluated by individual departments to determined changes in need for continued use of scopes and ancillary equipment to be leased under the current quote. Thirty-eight (38) additional leased scopes were added to the new requirement. As a result, the pricing has been determined to be fair and reasonable.

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Services are open market and only authorized to be completed by the OEM. The open market three-year, full-service for $205,761.60 is priced at 17% of the total lease price of $1,208,809.80. Comparably, contract 36C24223P1724 open market one (1) year and nine and a half (9.5) months hardware maintenance service ($110,485.59) which is $61,570.92 per year is priced at 21% of the total lease price of task order 36C24222N0560 and compared to current proposed price is priced at 11% of the services ($205,761.60 or $68,587.20 per year). This comparative pricing reflects that the three-year maintenance service price is in line with current lease task order and maintenance contracts which are due to expire 6/30/2025, and for that reason, is determined to be fair and reasonable. Contracting Officer will obtain a quote for open market maintenance services and will complete an S19 Award Decision Documentation Form for the open market items and maintenance services.

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

A search of the Veteran Small Business Certification (VetCert) database was conducted utilizing NAICS 339112 which produced 667 results. The website does not give the ability to further sort to relevant results.

Conducted a search of SBA utilizing NAICS 339112 and keywords “Olympus” produced no results.

Conducted a GSA eLibrary search for “Olympus America” produced FSS contract 36F79721D0168 which expires December 31, 2026. This contract includes lease of equipment but not service maintenance.

Conducted a NAC MedSurg search which produce Olympus FSS contract# 36F79721D0168 and includes leasing of requested Olympus equipment.

Reached out to NAC CO for some clarification about FSS Olympus contract 36F79721D0168. Learned that the FSS contract base year ends 12/31/2026, but it has five (5), one (1) year options which can be exercised until 12/31/2030.

Posted a Notice of Intent to Sole Source (NOI SS) on Contract Opportunities, SAM.gov (36C24225Q0507) from 4/2/2025 – 4/8/2025 which received no responses. This does not satisfy the rule of two for SDVOSB/VOSB set-aside in accordance with 38 U.S.C. 8127(d).

(7) Any Other Facts Supporting the Justification: Deputy Under Secretary for Health and Management’s (DUSHOM) Memo “VHA National Standardization of Endoscopes” dated 12/21/2012 states that facilities are expected to standardize endoscope inventories to one vendor through the use of national leasing contracts.

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(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:

This requirement is being procured in accordance with DUSHOM Memo “VHA National Standardization of Endoscopes” dated 12/21/2012 and FAR 8.402(f). No further actions can be taken to overcome any barriers that led to this restricted consideration.

(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 FAR Subpart 8.4.

Francis Alieu DATE Staff Assistant/COR James J. Peters (Bronx) VA Medical Center

(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.

Dolores Sachuk-Thompson DATE Contracting Officer, RPO-East, NCO 2, Buffalo VA Medical Center https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx

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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.

Janine Childs DATE Branch Chief, Services Team II RPO-East, NCO2, Buffalo VA Medical Center

HIGHER LEVEL APPROVAL (Required for orders over $750,000):

c. VHA RPO HCA Review and Approval (over $750,000 to $75 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 FAR Subpart 8.4.

Gerald F. Jacobs DATE Executive Director Regional Procurement Office East