P03 Olympus Leasing Justification - Redacted(V2).pdf

VHAPG Part 813.5 Simplified Acquisition Procedures for Certain Commercial Items Attachment 1: Request for Sole Source Justification Template >SAT-$7.5M under FAR13.5

Effective Date: 02/01/2022 Page 1 of 4

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C257-22-AP-4609 JOFOC Tracker number: 2022-10-10T13:42:14

1. Contracting Activity: Department of Veterans Affairs, VISN 17, Olin E. Teague Medical Center

Central Texas Veterans Healthcare System 1901 Veterans Memorial Dr. Temple TX 76504 and

Network Contracting Officer 17 124 E. HWY 67 Suite 100 Duncanville TX 75137

2237:674-23-2-024-0001

2. Nature and/or Description of the Action Being Processed:

Austin Outpatient Clinic (AOPC) requires endoscopes and full - service maintenance services to maintain the Central Texas Veterans Healthcare Systems’ AOPC Gastroenterology Endoscopy (GE) Laboratories. The period of performance is a twelve-month base period plus two (2) option years.

The nature of the acquisition requires use of standardization of equipment, processes and procedures to ensure patient safety and health. This is a new requirement and will result in a new firm-fixed price contract.

3. Description of Supplies/Services Required to Meet the Agency’s Needs:

The below chart shows the quantity and description for each piece of equipment requiring to be leased and included in the full-service maintence plan. Supplies and services will be utilized in the AOPC daily for direct patienct care.

MODEL QUANTITY

CF-HQ1: CF-HQ190L EVIS EXERA III

COLONOSCOPE

GIF-HQ190: GIF-HQ190 EVIS EXERA III

HDTV DF NBI

PCF-HQ1: SLIM COLONOSCOPE W/ DUAL

FOCUS NBI

PERIOD OF PERFORMANCE:

BASE: February 1, 2023 -January 31, 2024 OPTION YEAR February 1, 2024 to January 31, 2025 OPTION 2: February 01, 2025 -July 31, 2025

4. Statutory Authority Permitting Restricted Competition:

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FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented by FAR 13.106-1(b)(2) for restricting competition on this procurement.

Competition is restricted on this procurement for the reason below:

(X) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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

The endoscopic GE scopes must be compatible in all aspects, form, fit, and function with existing GE support systems presently in use throughout CTVHCS. CTVHCS currently has all Olympus towers which includes light sources and video processing hardware devices. These towers do not function with alternate brands of scopes. Additional equipment requiring compatibility includes:

Electrosurgical Units, Endoscopic Telescopes, Nstream GX single channel HS video system, VISERA 4k UHD camera video system, VISERA 4k UHD camera head Olympus, and a pro video monitor ystem.

Also, repair of Olympus scopes requires the use of Olympus repair parts to retain scope image and scope safety. Per Olympus’ policy, Olympus does not sell repair parts to third parties, nor do they warranty scopes repaired by third parties as they do not authorize third party repairs. Using alternate products not compatible with equipment purchased/owned currently in use by CTVHCS will result in duplication of costs of approximately require additional personnel training.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:

Market Research was conducted and while other companies provide Olympus scopes, Olympus policy and maintenance service agreement restrict use from other sources. A sources sought synopsis was posted from 08 November 2022 through 11 November 2022 with an intent to solely negotiate with Olympus America, no responses were received. The synopsis remained active until 26 November 2022.

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

Price is expected to be fair and reasonable and will be evaluated against prices in the current market for similar items and services, comparison of proposed prices found reasonable on previous purchases, current price catalogs Olympus change the public and other Government entities for the same items and services, and comparison to the Independent Government Estimate.

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8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:

As described in Section 6 above, market research, in accordance with FAR Part 10, was conducted by synopsis of the proposed acquisition, advising industry of the pending acquisition, and soliciting inquiries from interested parties. No SB concerns in any socio-economic category responded to the notice, nor appears capable of fulfilling this requirement. This requirement can be fulfilled by Oympus to ensure compatibility, maintain proper Veteran care, and avoid duplication of costs. The buy American Act does apply, FAR 52.225-5 Trade Agreements and FAR 52.225-6 Trade Agreements Certificate will be included in the solicitation.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition:

No additional facts apply.

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

Olympus America Incorporated, 3500 Corporate Parkway, P.O. Box 610, Center Valley, PA 18034-0610.

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: Ongoing market research will be conducted during the life of the contract to determine any market changes.

Should the facility have a new requirement for similar items and services that do not require compatibility with existing equipment, further market research will be completed to determine availability of such items/services in the marketplace. Also, the Government will continue to assess availability and compatibility of other open market medical equipment with existing equipment for future acquisitions.

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.

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.

https://dvagov.sharepoint.com/sites/VHAProcurement/VHAPM/VHAPM_Part_806.3.aspx

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

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K):

I certify the justification meets requirements for other than full and open competition.