P03 - Single Source Justification MPT to SAT - Leica Buyout.pdf

VHAPG Part 813.106 Simplified Acquisition Procedures: Soliciting from a Single Source Single Source Justification for SAP under the SAT

Last Updated: 02/01/22 Page 1 of 2

DEPARTMENT OF VETERANS AFFAIRS

Justification for Single Source Awards IAW FAR 13.106-1 For

Over Micro-Purchase Threshold but Not Exceeding the SAT ($250K)

Acquisition Plan Action ID: 36C261-24-AP-0497

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office (NCO) 21, 391

Taylor Boulevard, Suite 110, Pleasant Hill, CA 94523. 2237 Number 640-24-1-034-0031.

2. Brief Description of Supplies/ Services required and the intended use/Estimated Amount:

The histology laboratory at VAPAHCS, Palo Alto Division, has been successfully using five (5) Leica microtomes (which are desktop instruments used to cut microscopic slides for pathology review) on a rental basis since October 2018 (see contract 36C26118C0147, awarded September 26, 2018). The equipment has consistently met the needs of staff while delivering excellent patient care. The established track record underscores the value and reliability of the existing equipment, further supporting the rationale for its continued use. Furthermore, all current VA employees working in the histology laboratory are well-acquainted with these specific Leica microtomes instruments, which streamlines its integration into their workflow and minimizes the learning curve.

With this procurement, the VA is being given the opportunity to purchase the existing equipment from Leica Microsystems The cost-effectiveness of purchasing the existing equipment is notable:

acquiring brand new mictromes would typically require a budget of $40,000.00 to $50,000.00 per instrument (or $200,000.00 to $250,000.00 total for all five units.) However, through Leica Microsystems, VAPAHCS was offered a total price of $31,608.00 to secure all five microtome units.

These instruments still have at least three more years of useful operational life. The recommended sole source supplier, Leica Microsystems, offers a cost-effective solution with equipment that has a proven track record, staff familiarity, current onsite location, and a significant financial advantage, all of which align with the government’s minimum salient needs.

Given the established relationship with Leica Microsystems and the historical context, it becomes more cost-effective and operationally efficient to secure the equipment for $31,608.00 to maintain the functionality of the histology lab. Creating new technical data packages or seeking alternative vendors through full and open competition at this time would not only be time-consuming but also potentially more costly, especially when considering the proven performance and familiarity with the current equipment, as specimens would need to be sent offsite to be processed and cut, at charge to VAPAHCS, for a period of time while awaiting new instruments. Therefore, the decision to retain and pay for the existing instrument aligns with maintaining the lab’s operations effectively and economically.

https://www.acquisition.gov/?q=/browse/far/13

VHAPG Part 813.106 Simplified Acquisition Procedures: Soliciting from a Single Source Single Source Justification for SAP under the SAT

Last Updated: 02/01/22 Page 2 of 2

3. Unique characteristics that limit availability to only one source, with the reason no other supplies or services can be used:

The Leica Microsystems microtome equipment is a cost-effective solution, with a proven track record, staff familiarity, is currently onsite, and is being offered at a fair and reasonable price.

4. Description of market research conducted and results or statement why it was not conducted:

This procurement is considered a lease buyout of existing equipment. Market research was conducted to the extent that VA evaluated the cost for new units of the same make and model.

Action will be taken in the future to remove or overcome barriers to competition before subsequent acquisitions for the purchase of new supplies or services are required. The primary reason for this proactive approach is the ensure that the histology laboratory can maintains its current operations efficiently and cost-effectively. By addressing barriers to competition, it not only fosters a more competitive and potentially cost-saving environment but also prevents the need to send work out to external sources, which can be very costly. Maintaining current in-house capabilities is essential to minimize expenses for the next few years and ensure timely delivery of services within the histology laboratory.

5. Contracting Officer's Certification: Purchase is approved in accordance with FAR13.106-1(b). I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. The Contracting Officer has determined that the cost to purchase the existing units is considered fair and reasonable in accordance with FAR part 13.106-3(vii), any other reasonable basis, in this case, a lease buyout, compared to buying new equipment of the same make and model.

Angela M. Oppenheimer Date Contracting Officer https://acquisition.gov/far/current/html/Subpart%2013_1.html#wp1125466