P03-Part808.405-6 LSJ Over SAT BC Signed Redacted_Redacted.pdf

Request for Limited Sources Justification Format >SAT

36C252-24-AP-4655

VHAPG Part 808.405-6 Limiting Sources Page 1 of 4 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C252-24-AP-4655

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID: 36C252-24-AP-4655

(1) Contracting Activity: Department of Veterans Affairs, VISN 12, Oscar G. Johnson VA Medical Center has submitted 585-25-2-023-0002 for Endoscope Lease and Service to the Great Lakes Acquisition Center (NCO12).

(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 justification and approval is for the Endoscope Lease and Service which will be sole sourced using FAR Part 8 to Olympus America, Inc. and awarded as a firm-fixed-priced Task Order. This equipment will give the Jesse Brown VA Medical Center the ability to continue the Endoscope procedures for the next 5 years.

Order against: FSS Contract Number: 36F79721D0168

Name of Proposed Contractor: OLYMPUS AMERICA INC Street Address: 3500 CORPORATE PKWY City, State, Zip: CENTER VALLEY, PA 18034-8229 Email: chris.ulizzi@olympus.com

(3) Description of Supplies or Services:

The estimated value of the proposed action is $585,485.64 (Base+2 One Year Options)

Oscar G. Johnson VA Medical Center currently uses owned and leased Olympus endoscopic equipment. Per VHA National Standardization of Endoscopic Equipment, Oscar G. Johnson VA Medical Center endoscopic equipment has been standardized to the Olympus platform.

Additional leased devices and support are needed for ongoing support of the Hospital.

Quantity Equipment Description

One (1) CV-1500 CV-1500 Video System Center Eight (8) CF-HQ1100DL CF-HQ1100DL EVIS X1 HD Colonoscope Six (6) GIF-1100 GIF-1100 EVIS X1 Gastroscope One (1) MAJ-2429 12G-SDI cable 8.5M One (1) MAJ-1666 MAJ-1666 Side Shelf WM-P2 One (1) 3GDA 3GDA Mini-Converter Two (2) MAJ-150 SOCKET ADAPTOR CABLE USA

VHAPG Part 808.405-6 Limiting Sources Page 2 of 4 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C252-24-AP-4655

Assets to Rollover:

GIF-XP190N GIF-XP190N ULTRA-SLI 2135566

(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; Olympus America, Inc. is the only firm capable of providing the supplies and services described in Section 3. The Oscar G Johnson VAMC has standardized to the Olympus endoscopes and ancillary equipment. The Olympus system is interconnected and interfaced with the VA system. Olympus scopes run off proprietary software. This software is compatible and interconnected with other surgical equipment the surgery service already owns. Olympus is the Original Equipment Manufacturer (OEM) and the only authorized vendor that can provide a lease for these scopes. Olympus America, Inc. does not authorize any small business entities to lease their scopes and peripheral video processor 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 Contracting Officer reviewed the cost of purchasing equipment in full instead of leasing. If the VA would purchase this equipment, it would cost the government approximately

VHAPG Part 808.405-6 Limiting Sources Page 3 of 4 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C252-24-AP-4655

$597,325.02 immediately and not include any repairs or servicing of equipment over the next three (3) years. A service agreement for the three years will cost $144,749.88. The total cost of purchase and service agreement is $742,074.90. With leasing this equipment, it would bring the total cost over the same Period of Performance to an estimated $585,485.64. The estimated annual property taxes for the three-year lease is $25,175.18. Additionally, the National Acquisition Contracting Office has already determined the prices of supplies and fixed-price services, and rates for services offered at hourly rates, under schedule contracts to be fair and reasonable. Additionally, IAW FAR 8.405-4, the Contracting Officer will seek a price reduction.

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

Original Equipment Manufacturer (OEM) for this requirement is Olympus America Inc who is considered an Other Than Small Business (OTSB) per Fed data Reps & Certs. Vet cert page was completed using NAICS code 334510 that resulted in 322 SDVOSB/VOSB but this doesn’t represent interested parties or authorized distributors. An inquiry to the OEM was completed to maximize competition. OEM identified it has only one (1) Distributors Authorized to Sell Olympus Products to the Department of Veteran Affairs and its Facilities. This company is is an authorized vendor, but they are not authorized to lease the Olympus Products to the Veterans affairs per Olympus America regulations. Contracting specialist did a search on GSA Advantage and found Olympus America Inc on contract (36F79721D0168). A notice of intent (36C25225Q0086) was published by the Department of Veterans Affairs to negotiate a limited source contract with Olympus America. There were no responses that came back in reference to the Intent to Sole Source to Olympus America.

(7) Any Other Facts Supporting the Justification: None

(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:

(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.)

VHAPG Part 808.405-6 Limiting Sources Page 4 of 4 Revision: 01 Effective Date: 09/01/2024 Acquisition ID#: 36C252-24-AP-4655

SIGNATURE DATE

NAME TITLE SERVICE LINE/SECTION

FACILITY

(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.

CONTRACTING OFFICER/DESIGNEE’S SIGNATURE DATE

Matthew Hohl Contracting Officer Great Lakes Acquisition Center NCO 12

NAME AND TITLE FACILITY/NCO/PCO

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.

SIGNATURE DATE

David Picchi NCO-12, Branch Chief

MARIAN JOHNSON Digitally signed by MARIAN JOHNSON Date: 2024.11.21 13:03:47 -06'00'

Marian J. Johnson HSS Nursing and Patient Care Services

Oscar G. Johnson VAMC

MATTHEW HOHL Digitally signed by MATTHEW HOHL Date: 2024.11.22 07:25:13 -06'00'

DAVID PICCHI Digitally signed by DAVID PICCHI Date: 2024.11.22 13:37:26 -06'00'