P03 PG_Part819.7008-7009_Atch1_IAW_FAR6.302-5_VAAR_819.7008-7009 Fully Signed.pdf

SDVOSB/VOSB Sole Source Justification Format IAW VAAR 819.7008/9

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 1 of 4 Revision: 04 Effective Date: 11/15/2024

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition

Acquisition Plan Action ID: 36C263-26-AP-3924

1. Contracting Activity:

Department of Veterans Affairs, Network 23 Contracting Office (NCO 23) , VISN 23: VA Midwest Health Care Network, 2805 Dodd Road, Suite 250, Eagan, MN 55121, is the organizational activity requesting the proposed contract action.

Purchase request number 499-26-4-6765-0128

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

This procurement is for a Karl Storz StreamConnect Video Integration System in support of the VA Medical Centers within VISN 23.

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

The Department of Veterans Affairs, VISN 23, requires a single source award to L1 Enterprises, Inc., a Service-Disabled Veteran Owned Small Business (SDVOSB) and the sole authorized reseller of KARL STORZ-branded products and services, for continued support, maintenance, and interface configuration/testing/cutover services for the Karl Storz StreamConnect Video Integration System across eight VISN 23 facilities (Black Hills, Central Iowa, Fargo, Iowa City, Minneapolis, Nebraska- Western Iowa, St. Cloud, and Sioux Falls).

The intended use of this acquisition is to ensure continuous clinical availability of the StreamConnect video integration platform — including software support, hardware/server support, EHR interface support (ehrLINC Worklist/Archive), and technical support — while VISN 23 facilities undergo interface reconfiguration, testing, and cutover coordinated with the ongoing VISN 23 Oracle Health Electronic Health Record Modernization (EHRM) migration. This includes the transition of each facility's StreamConnect interface from the legacy VistA environment to the Federal EHR (Oracle Health) environment, per the attached Performance Work Statement (PWS).

Estimated Amount: $227,448.90 (Base Year, 1-year Period of Performance), per the Independent Government Cost Estimate (IGCE) based on informal vendor pricing provided by L1 Enterprises.

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S.

Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7008 (DEVIATION) or VAAR

819.7009 (DEVIATION)- up to $5,000,000. Check the specific VAAR clause used below:

( X ) 819.7008 Sole source awards to a certified service-disabled veteran-owned small business;

or ( ) 819.7009 Sole source awards to a certified veteran-owned small business

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 2 of 4

Effective Date: 11/15/2024

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

KARL STORZ United States has designated L1 Enterprises, Inc. as its sole authorized Service-Disabled Veteran Owned Small Business (SDVOSB) reseller of KARL STORZ-branded products and services (see attached KARL STORZ letter dated January 1, 2024). KARL STORZ is the sole authorized distributor and provider of KARL STORZ-branded medical equipment, software, and services contracts for maintenance of KARL STORZ medical equipment, including the StreamConnect Video Integration System currently installed and in use at all eight VISN 23 facilities identified in the PWS.

The StreamConnect platform, its licensed software modules (including ehrLINC Worklist, ehrLINC Archive, VOD, TOMS, and BIOMED Dashboard), and its underlying source code, interface specifications, and diagnostic/service credentials are proprietary to KARL STORZ. No other vendor possesses authorized access, proprietary technical documentation, licensing rights, or manufacturer-authorized service credentials necessary to configure, test, maintain, or support the StreamConnect interfaces during the ongoing transition from VistA to the Federal EHR (Oracle Health), as required under the attached PWS.

As the currently installed and VA-owned system at all eight VISN 23 facilities, replacing StreamConnect with a competing product is not a viable or cost-effective alternative given the immediate operational need to maintain uninterrupted surgical video integration and EHR interface continuity throughout the EHRM migration timeline (Cutover Orientation milestone: 1/26/2027).

Additionally, KARL STORZ requires that its StreamConnect servers be made available for configuration a minimum of 60 days prior to each facility's scheduled interface installation date, making continuity of support from the incumbent authorized source essential to avoid delay in the EHRM migration schedule

As per 38 U.S.C 8127(c) and VAAR 819.7008 a sole source award to a verified service-disabled veteran-owned small business a contracting officer may award to a VIP listed SDVOSB using other than competitive procedures provided that the anticipated award price of the contract will not exceed $5 Million; the requirement is synopsized and required justification is posted in accordance with FAR part 5; the SDVOSB has been determined to be a responsible contractor with respect to performance; and in the estimation of the contracting officer contract award can be made at a fair and reasonable price that offers best value to the Government.

These four stipulations have been met therefor the determination to sole source to L1 Enterprises is a business decision wholly within the discretion of the contracting officer.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies:

An Intent to sole source was posted to SAM.gov 07/30/26 with zero responses.

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

Reasonable:

The anticipated cost will be determined fair and reasonable by analyzing the final contract price against similar contracts that were published within the Federal Procurement Data system.

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 3 of 4

Effective Date: 11/15/2024

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

Market research was conducted to confirm that L1 Enterprises, Inc. remains the sole authorized SDVOSB reseller for KARL STORZ-branded products and services applicable to this requirement. This research consisted of review of the KARL STORZ authorization letter dated January 1, 2024, confirming L1 Enterprises' designation as KARL STORZ's sole authorized SDVOSB reseller for KARL STORZ-branded medical equipment, software, and maintenance/service contracts. No other authorized resellers or distributors of KARL STORZ-branded StreamConnect software, licensing, or interface support services were identified. Given that the requirement is for continued support of an already-installed, proprietary KARL STORZ system, and that L1 Enterprises holds sole SDVOSB reseller authorization from the manufacturer, no additional sources were identified that could fulfill this requirement.

With further research and VAAR 819.7008 and 38 U.S.C 8127(c) L1 Enterprises, Inc meets all criteria

1. the anticipated award price of the contract will not exceed $5 Million; 2. The requirement is synopsized and the required justification pursuant to FAR 6.302-5(c)(2)(ii) is posted; 3. The SDVOSB has been determined to be a responsible contractor with respect to performance; 4. In the estimation of the contracting officer contract award can be made at a fair and reasonable price that offers best value to the Government.

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

None - 38 USC 8127(c).

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

L1 Enterprises, Inc 618 W. Patrick St.

Frederick, MD 21701

UEI: RK5ZXQ77CN73

301-698-5798

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:

All future requirements are to be considered for competition and addressed accordingly based on the mission needs.

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.

Petroula Hansen 08/18/2026 Biomedical Engineer

VISN 23

VHAPG Part 819.7008/7009 Sole Source Awards to SDVOSB/VOSB Page 4 of 4 Revision: 04 Effective Date: 11/15/2024

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.

Date

Marie Weathers Contracting Officer Network Contracting Office 23

08/18/2026