P03 LSJ OVER SAT- 36C242-23-AP-0345 fully signed.pdf

VHAPG Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT

Effective Date: 02/01/2022 Page 1 of 7

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C242-23-AP-0345

(1) Cntracting Activity: Department of Veterans Affairs, VISN 02, James J. Peters Medical Center (130 W. Kingsbridge Road, Bronx, NY 10468) has submitted Purchase Request Number 526-23-3-168-0013 to the Department of Veterans Affairs, Network Contracting Office (NCO) 2 (2875 Union Road, Suite 3500, Cheektowaga, NY 14227).

(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 is a request for other than full and open competition for the procurement of a 36-month lease and full-service of Olympus GI, Urology, ENT, and Anesthesia department endoscopes and ancillary equipment for the James J. Peters VA Medical Center, 130 W. Kingsbridge, Bronx, NY 10468. The proposed FSS task order will be awarded by Olympus America, Inc. for a period of performance from April 1, 2023 through March 31, 2024 with the provision of two (2) option years. This procurement will be conducted in accordance with FSS contract 36F79721D0168 for an annual consideration of $1,115,484.04 with a grand total of $3,346,452.12. The open market portion shall be in accordance with FAR 8.402(f) which will be addressed in the section 5.

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 $3,540,649.32 ($1,986,490.62 NAC FSS value;

$1,554,158.70 open market value), consisting of $2,216,152.80 ($1,986,490.62 NAC FSS;

$229,654.32 open market value) for lease total and $1,324,504.38 open market value for full-service maintenance total.

The James J. Peters VAMC requires a 36-month lease including FSS contract endoscopes and ancillary equipment and some open market items including open market full-service of all equipment. 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

VHAWNYKRAKOL

Highlight

VHAWNYKRAKOL

Highlight

Acquisition Plan Action ID: 36C242-23-AP-0345

Effective Date: 02/01/2022 Page 2 of 7

GI EQUIPMENT

Description/Part Number Qty UNIT

CV-190 EVIS EXERA III VIDEO PROCESSOR 2 EA

CLV-190 EVIS EXERA III LIGHT SOURCE 2 EA

OEV-262H HIGH DEFINITION LED L CD MONITO 1 EA

CF-HQ190L EVIS EXERA III HD COLONOSCOPE 4 EA

PCF-HQ190L SLIM COLONOSCOPE W/ DUAL FOCUS NBI 2 EA

GF-UCT180 Curvilinear EUS scope, 3.7 mm 1 EA GF-UE160-AL5 Radial array EUS scope 2 EA

BF-MP190F ULTRA-SLIM BRONCHOSCOPE 2 EA

BF-UC190F Ultrasound Bronchoscope ** 2 EA

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

BF-P190 EVIS EXERA III SLIM BRONCH 4.1MM 5 EA

EU-ME2 ULTRASOUND PROCESSOR 1 EA

MAJ-1720 Probe driver for all probes 1 EA

URO EQUIPMENT

Description/Part Number Qty UNIT CYF-VHR HD FlexCystoNephroVideoscope Re 22 EA

URF-P7R URETEROSCOPE, FLEX, FIBER REV 4 EA

URF-V3R URETEROSCOPE, FLEX, VIDEO, REV 2 EA

CH-S200-XZ-EA-U CH wth 3CMOS Autoclavble 6 EA OEV321UH UHD 4K 32 inch Monitor * 2 EA

OTV-S200 NTSC W/ POWER CORD (EN) 1 EA

K10037159 WM-NP3 MOBILE WORKSTATION US 15A URO ** 1 EA

MAJ-2216 LCD MONITOR ARM 6.5-12kg 1 EA

OEP-6 HD OLYMPUS PRINTER 4 EA

WA02944A DUAL CHANNEL URETEROS COPE,STRA * 3 EA

WA2T412A Telescope "OES Elite", 4 mm, 12 deg, HD, 1 EA WA2T430A Telescope "OES Elite" 4 mm 30 degHDg 14 EA WA2T470A Telescope "OES Elite" 4 mm 70 deg HD 4 EA WA33036A PCN Percutaneous Nephroscope 1 EA

SPL-T SHOCKPULSE LITHOTRIPSY TRANSDUCER. 1 EA

SPL-NC SHOCKPULSE LITHOTRIPSY NOSE CONE 1 EA

SPL-FS SHOCKPULSE LITHOTRIPSY FOOTSWITCH 1 EA

SPL-W SHOCKPULSE LITHOTRIPSY WRENCH ** 1 EA

TFL-PLS PREMIUM LASER SYSTEM 1 EA

TFL-AFSW Laser Footswitch - Wired 1 EA

Effective Date: 02/01/2022 Page 3 of 7

HDVC-6-1 HDVC-6 6FT HD-SDI CABLE 4 EA

WA95622A: USA POWER CORD FOR ESG 1 EA

MAJ-854 REMOTE CABLE CV-160 FOR SVR PRIN 4 EA

WA91307C ESG-410 Electrosurgical Generator * 1 EA WA91301W Footswitch Double Pedaled, Wired * 1 EA

WA95622A: USA POWER CORD FOR ESG 1 EA

TC-E410 CART 110-120V US SET 1 * 1 EA

ENT Equipment Description/Part Number Qty UNIT

OTV-S200 NTSC W/ POWER CORD (EN) 3 EA

CV-190 EVIS EXERA III VIDEO PROCESSOR 1 EA

CLV-190 EVIS EXERA III LIGHT SOURCE 1 EA

CH-S200-XZ-EA-U CH wth 3CMOS Autoclavble 3 EA

OTV-S7PROH-HD-10E CAM HEAD 1.0X EYEPIECE 10E 1 EA

OEV-262H HIGH DEFINITION LED L CD MONITO 4 EA

WA97010A STROBE LED CLL-S1 ** 3 EA

ISM-1003399 LAPEL MICROPHONE KIT WIRELESS ** 3 EA

ISM-1007451 15" NCARE MEDICAL GRADE TOUCH PANEL ** 4 EA

ISM-1007673 Canvys 15" Touch Panel Stand ** 4 EA

MAJ-854 REMOTE CABLE CV-160 FOR SVR PRIN 4 EA

ENF-VH Flexible video HD Rhino Laryngo S 18 EA ENF-V3 Flexible ultra thin video Rhino L 2 EA ENF-GP2 Portable Fiber Rhinolaryngoscope 10 EA ENF-VT3 Video Theraputic Rhinolaryngoscope 1 EA STF-SVS STER. CASE FLEXIBLE VIDEO 23.5x11x4 in. * 5 EA

Anesthesia Equipment Description/Part Number Qty UNIT

BF-H190 EEIII HIGH DEF DIAGNOS IC BRONCH 1 EA

BF-H190 EEIII HIGH DEF DIAGNOS IC BRONCH 1 EA

BF-H190 EEIII HIGH DEF DIAGNOS IC BRONCH 1 EA

BF-H190 EEIII HIGH DEF DIAGNOS IC BRONCH 1 EA

*Open Market Item **Open Market compared with DAPA/ECAT Pricing

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 April 1, 2023 through March 31, 2024 with the provision of two option years.

Effective Date: 02/01/2022 Page 4 of 7

The total task order value shall be solely based on the pricing of the 36month 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;

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 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 lease items pricing has been compared to the Medical Electronic Catalog (ECAT) to determine price reasonableness. The open market OEV321UH UHD 4K 32 inch Monitors, WA02944A DUAL CHANNEL URETEROS COPE, STRA, WA91307C ESG-410 https://www.acquisition.gov/far/part-8#FAR_8_405_6 https://www.acquisition.gov/far/part-8#FAR_8_405_6 https://www.acquisition.gov/far/part-8#FAR_8_405_6 https://www.acquisition.gov/far/part-8#FAR_8_405_6

Effective Date: 02/01/2022 Page 5 of 7

Electrosurgical Generator, WA91301W Footswitch Double Pedaled, Wired, TC-E410 CART 110- 120V US SET 1, and STF-SVS STER. CASE FLEXIBLE VIDEO 23.5x11x4 in. are not found on ECAT, therefore the lease price was compared to the purchase price quoted to determine price reasonableness. The lease price of $28,022.05 is less than the purchase price of $82,911.45, which is 64% ($54,889.40) savings to the government to lease.

Price reasonableness shall also be determined through comparing the lease pricing portion of the previous eight contracts: task orders 36C24220N0223 for Pulmonary scopes 12/7/2019- 3/31/2023, $536,560.12; 36C24220N0224 for ENT scopes 12/7/2019-3/31/2023, $519,946.01;

36C24220N0278 for Pulmonary scopes 12/7/2019-3/31/2023, $71,606.57; 36C24220N0334 for Anesthesia scopes 1/1/2020-12/31/2022, $77,586.12; 36C24220N0348 for ENT scopes 2/1/2020-3/31/2023, $321,723.58; 36C24220N0432 for Urology scopes 4/1/2020-3/31/2023, $420,716.16; 36C24220N0440 for Pulmonary scopes 4/1/2020-3/31/2023, $200,053.08;

36C24220N0446 for Urology scopes 4/1/2020-3/31/2023, $460,747.08; and all of these tasks orders were awarded off Olympus’s FSS contract V797P2065D. The combined total dollar value of lease pricing for these task orders is $2,608,938.72, which is around 16% more than the proposed dollar value for 3 years lease of $2,216,152.80. The 16% 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. As a result, the pricing has been determined to be fair and reasonable.

Services are open market and only authorized to be completed by the OEM. The open market three-year, full-service ($1,324,504.38) is priced at 39% of the total lease price ($2,216,144.94). Comparably, NAC FSS task order V797P-2065D 36C24219N0410 open market three-year, hardware maintenance service ($259,650.00) is priced at 32% of the total lease price ($821,656.01). This comparative pricing reflects that the three-year maintenance service price is in line with a lease and maintenance task order which recently expired 6/30/2022, 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 VIP database was conducted utilizing NAICS 339112 with keywords “Olympus” which resulted in 1 SDVOSB, Alliance Enterprises, LLC. However, a review of their VIP profile confirms that they could not meet the leasing requirements of this procurement. This does not satisfy the rule of two for SDVOSB/VOSB set-aside in accordance with 38 U.S.C. 8127(d).

Conducted a search of SBA utilizing NAICS 339112 and keywords “Olympus” produced 1 WOSB, Elite Endoscopy Services Corp and 1 SDVOSB, Solmar Solutions Inc. Their capabilities list they can provide repair services, but neither meet the requested need for leasing equipment.

Conducted a GSA search for Services with keywords “Olympus lease” which produced the large

VHAWNYKRAKOL

Highlight

Effective Date: 02/01/2022 Page 6 of 7 business Original Equipment Manufacturer (OEM) Olympus America Inc. and a small business Technical Communities, Inc. Olympus contract# 36F79721D0168 covers leasing but not services of equipment. Technical Communities, Inc. contract# 36F79720D0159 is for medical equipment and supplies but does not contain Olympus scopes or leasing.

Conducted a National Acquisition Center (NAC) MedSurg search which produce the Olympus FSS contract# 36F79721D0168 which includes leasing of requested Olympus equipment.

Posted a Notice of Intent to Sole Source (36C24223Q0290) on Contract Opportunities from 1/24/2023 – 1/31/2023 which produced no results.

(7) Any Other Facts Supporting the Justification:

Deputy Under Secretary for Health and Management’s (DUSHOM) Memo “VHA National Standardization of Endoscopes” dated 12/06/2010 states that all endoscopes shall be leased off of the Original Equipment Manufacturer’s (OEM) Federal Supply Schedule (FSS) approved government leasing contract.

(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 Deputy Under Secretary for Health and Management’s (DUSHOM) Memo “VHA National Standardization of Endoscopes” dated 12/06/2010 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. (This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)

DESIREE FLORES DATE

Acquisition Utilization Specialist James J. Peters (Bronx) VA Medical Center

Effective Date: 02/01/2022 Page 7 of 7

(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.

SAFA SHLEIWET DATE

Contracting Officer NC0 2- James J. Peters VA Medical Center

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.

DATE ANTHONY MURRAY

NCO 2 Division I Chief Stratton 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.

JOSEPH P. MALETTA DATE

Executive Director Regional Procurement Office – East (RPO-E) https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM2/VHAPM_Part_806.3.aspx