P03-Sole Source-36C259-26-AP-4125-Protection1-623.pdf

Request for 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 5 Revision: 05 Effective Date: 12/15/2025

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition

Acquisition Plan Action ID: 36C259-26-AP-4125 Tracking Number: FY26 – NCO 19 - 2433

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 19

(NCO 19), located at 6162 South Willow Drive, Suite 300, Greenwood Village, Colorado, 80111, in support of the VA Health Care System at 1011 Honor Heights Dr., Muskogee, OK 74401

2237#: 623-26-4-091-0213

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

The agency requires OEM‑authorized service coverage for 190 Karl Storz endoscopy devices through the Protection1 Service Plan, provided exclusively by Karl Storz and their sole authorized SDVOSB partner, L1 Enterprises. This plan delivers OEM‑certified repair, maintenance, and rapid scope exchange to minimize downtime and maintain uninterrupted endoscopy services. It is essential for ensuring equipment reliability, meeting patient care metrics, and maintaining full compliance with manufacturer standards.

Because L1 Enterprises is the only SDVOSB authorized to provide this OEM‑certified service and has been verified as a responsible source, their support is required to meet the agency’s operational and clinical needs.

This will be a new, firm-fixed-price contract.

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

The estimated value of the proposed action’s base year is $176,640.72.

The proposed acquisition is for OEM‑authorized service coverage for 190 Karl Storz endoscopy devices under the Protection1 Service Plan, provided exclusively by Karl Storz and their sole authorized SDVOSB partner, L1 Enterprises. The plan includes OEM‑certified repair, maintenance, and rapid scope exchange services designed to minimize equipment downtime and ensure uninterrupted endoscopy operations. These services are required to maintain equipment reliability, support patient care performance metrics, and ensure full compliance with manufacturer standards.

This is a base contract with 4 option years.

Estimated Period of Performance:

Base year 09/18/2026 – 09/17/2027 $176,640.72 Option Year 1 09/18/2027 – 09/17/2028 $176,640.72

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Effective Date: 12/15/2025

Option Year 2 09/18/2028 – 09/17/2029 $176,640.72 Option Year 3 09/18/2029 – 09/17/2030 $176,640.72 Option Year 4 09/18/2030 – 09/17/2031 $176,640.72 Total Value of Contract $883,203.60

The products/services are identified in the tables below:

Products

Item Description/Part Number Qty Unit

0001 PROTECTION1 Comprehensive Service Agreement for Karl Storz Equipment

12 Mthly

1001 PROTECTION1 Comprehensive Service Agreement for Karl Storz Equipment

12 Mthly

2001 PROTECTION1 Comprehensive Service Agreement for Karl Storz Equipment

12 Mthly

3001 PROTECTION1 Comprehensive Service Agreement for Karl Storz Equipment

12 Mthly

4001 PROTECTION1 Comprehensive Service Agreement for Karl Storz Equipment

12 Mthly

4. Statutory Authority Permitting Other than Full and Open Competition: 41 USC

§3304(a)(5), 38 U.S. Code § 8127(c), as implemented by RFO 6.103-5 (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

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):

The Eastern Oklahoma VA Health Care System (EOVAHCS) requires a service agreement for its Karl Storz endoscopy equipment to ensure continuity of operations and prevent interruptions to critical clinical services. Karl Storz, as the original equipment manufacturer (OEM), mandates that all service support for their endoscopy systems be provided exclusively under the Protection1 Service Plan. The OEM has confirmed that only two authorized sources may provide this service: Karl Storz directly or their sole authorized Service-Disabled Veteran-Owned Small Business (SDVOSB) partner, L1 Enterprises.

Because EOVAHCS owns its endoscopy equipment, maintaining a valid service agreement is essential. The Protection1 Service Plan ensures immediate access to https://www.va.gov/oal/library/vaar/vaar819.asp#8197008 https://www.va.gov/oal/library/vaar/vaar819.asp#8197009

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Effective Date: 12/15/2025 replacement scopes while damaged units are being repaired, thereby minimizing downtime and preventing delays in patient care. Extended equipment downtime directly affects patient throughput, procedure wait times, access to diagnostic services, and the facility’s ability to meet key patient care performance metrics such as consult completion rates, timely access standards, and procedural backlog reduction. Maintaining uninterrupted endoscopy capability is critical for detecting and treating gastrointestinal and pulmonary conditions, and delays may negatively impact clinical outcomes and overall patient experience scores.

Because only Karl Storz and their sole authorized SDVOSB partner, L1 Enterprises, can provide OEM-certified repair, replacement, and maintenance under the required Protection1 Service Plan, the requirement is both proprietary and mission-critical.

Maintaining uninterrupted endoscopy capability directly affects patient throughput, wait times, consult completion rates, and overall access to timely diagnostic care.

Under 38 U.S.C. 8127(c), VA is authorized to issue sole-source awards to SDVOSBs when the contractor is determined to be a responsible source. L1 Enterprises is the only SDVOSB authorized by the OEM and has been verified as fully capable of performing the required services.

Given the OEM restrictions, the essential impact on patient care metrics, and the statutory authority supporting SDVOSB sole-source awards, a direct award to L1 Enterprises is fully justified. This approach ensures compliance with OEM requirements, protects patient access to critical clinical services, and maintains operational readiness while advancing VA’s commitment to supporting veteran-owned small businesses.

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 RFO 6.301 and, if not, which exemption under RFO 5.101(b)(1) applies:

Karl Storz, the Original Equipment Manufacturer (OEM), was emailed to determine what authorized distributors were capable of supplying the needed equipment. Karl Storz responded that there is only one business that is an authorized distributor – and that is L1 Enterprises.

The contracting officer has made a determination that a sole source award to L1 Enterprises, an SDVOSB, is in best interest of the government.

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

The anticipated cost to the Government will be determined to be fair and reasonable based on comparison of previous comprehensive service agreements, IAW RFO 6.104- 1(7).

https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-6#FAR_6_301 https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-5#FAR_5_101 https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-5#FAR_5_101

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Effective Date: 12/15/2025

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

DSBS search for Karl Storz Comprehensive Service Agreement using NAICS 532490 resulted in 0 results.

DSBS was pulled to verify L1 Enterprise INC.

FPDS search showed 1 contract option within the last year was to L1 enterprises an

SDVOSB

The manufacturer, Karl Storz, was contacted to determine all authorized agents for the service agreement. The manufacturer identified that besides themselves, L1 Enterprise Incorporated (SDVOSB), as the only authorized vendor.

The vendor met the eligibility criteria outlined in VAAR 819.7003(DEVIATION), they are a certified SDVOSB IAW RFO 19.101(a)(2)(1), and the action is below the $5M threshold.

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

None, authority under 38 USC 8127(c).

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

L1 Enterprises.

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:

The Jack C Montgomery VA Medical Center will continue working with NCO 19 in conducting market research to identify opportunities to obtain competition in the future.

Subject matter experts and contract specialists will reach out to various companies within the industry to gather information necessary to maximize competition.

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.

Eulice Trindad Supervisory Biomedical Engineer

EOVAHCS

https://www.acquisition.gov/far-overhaul/far-part-deviation-guide/far-overhaul-part-19#FAR_19_101

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Effective Date: 12/15/2025

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.

Mitchael Purdom Contracting Officer NCO 19 Oklahoma Supply/Services https://dvagov.sharepoint.com/sites/vhapromanual/SitePages/VHAPM-Part-806.3.aspx