PM_Part806.3_Atch2_FAR6_JA_OVER_SAT_Redacted.pdf

OFOC SOP Revision 09 Page 1 of 4 Original Date: 03/22/11 Revision 09 Date: 04/17/2020

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C261-19-AP-6034

1. Contracting Activity: Department of Veterans Affairs, NCO21, VA Southern Nevada Health Care

System, 6900 N Pecos Rd, North Las Vegas, NV 89086, Purchase Request Numbers 593-20-1-405- 0001.

2. Nature and/or Description of the Action Being Processed: FAR13.5 Simplified Procedures for Certain Commercial Items: This procurement is for a firm fixed price contract with one base year and four one-year options for the rental and maintenance of Karl Storz scopes for the urology department in accordance with FAR 13.5 Simplified Procedures for Certain Commercial Items and specifically FAR 13.501 Special Documentation Requirements, where acquisitions conducted under Simplified Acquisition Procedures are exempt from the requirements of FAR Part 6, but still require a justification using the format of FAR 6.303-2.

This procurement is a sole souce to KARL STORZ Endoscopy-America, Inc., 2151 E. Grand Avenue, El Segundo, CA 90245. There are no other source of supply/service that will satisfy agency requirements. The Karl Storz scopes are already being leased and maintained for the Urology Department at the VA Southern Nevada Health Care System, 6900 N Pecos Rd, North Las Vegas, NV 89086.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: This procurement is for the rental and maintenance for the following: 4 each Flexible Video Cytoscope, and 6 each Flexible

Uretheroscope; and the maintenance of the following owned scopes: 18 each Flexible Videio

Cytoscope, and 3 each Flexible Cytoscopes.

The estimated value of this acquisition is Base Year with Four One-Year

Option Periods).

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

( X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per FAR 13.5 is 41 U.S.C. 1901 as implemented by FAR 13.106-1(b)(2).

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 scopes are highly sophisticated flexible instruments that are inserted through orifices. These instruments help to visualize and diagnose disorders, to obtain biopsies, to remove tumors, and to curb internal hemorrhage. The scopes are connected to a very high intensity light source and a video processing unit. The flexible scope that is inserted into the patient has an embedded high

OFOC SOP Revision 09 Page 2 of 4

Revision 09 Date: 04/17/2020 density video camera that transmits a video image, and a fiber-optic light bundle to transmit the light from the light source into the innards of the patient. The video is obtained with the help of the light from the light source, and is processed and stored by the video processing unit.

The Karl Storz scopes are already being leased, owned and maintained for the Urology Department at the VA Southern Nevada Health Care System, 6900 N Pecos Rd, North Las Vegas, NV 89086. Being that the Karl Storz scopes are in use, the VA Southern Nevada Health Care System has the light sources and cameras that connect to the Karl Storz scopes. To purchase other than Karl Storz scopes would mean the loss of capital in the approximate amount of $1,500,000 ($1,000,000 for the owned scopes and $500,000 to replace cleaning and reprocessing equipment). The existing owned Karl Storz video endoscopes and, the requested video endoscopes, can only be used with the existing Karl Storz video platform. Also, all of the Karl Storz Rigid Relescopes, Cystoscopy Sheaths, Bridges, Resectoscope Sheaths, Working Elements and accessories must be compatible and interchangeable with existing Karl Storz Rigid Cysto, Resection, Blue Light PDD and electrosurgical unit currently owned and in use at the VA Southern Nevada Health Care System.

In addition, Karl Storz is the only source that can perform repairs/maintenance to the scopes due to the proprietary nature of this equipment, no other company was found that has authorized third-party service providers.

Accordingly, Karl Storz is the only firm capable of providing the supplies and services described in Section 3 above without the Veteran’s Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition.

The only known source, Karl Storz, has expressed interest in this procurement.

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

A notice of intent to sole source was posted April 14, 2020 under 36C26120Q0528 requesting interested firms to respond to the notice. The notice closed April 29, 2020 with zero responses received. The only known source is Karl Storz.

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

Reasonable:

The pricing quoted will be determined fair and reasonable in accordance with (IAW) FAR 13.106- 3(a)(2)(ii) prices found reasonable on previous purchases. They will also be compared with similar items in a related industry IAW FAR 13.106-3(a)(2)(iv).

8. Description of the Market Research Conducted and the Results, or a Statement of the Reasons

Market Research Was Not Conducted:

A notice of intent to sole source was posted April 14, 2020 under 36C26120Q0528 requesting interested firms to respond to the notice. The notice closed April 29, 2020 with zero responses received. The only known source is Karl Storz.

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Revision 09 Date: 04/17/2020

The DSBS was searched under NAICS 811219 and keyword “scopes” that resulted in 42 prospective contractors. Their capability narratives were reviewed and it was determined that the contractors didn’t have the capability to both rent and maintain scopes.

VIP was searched only for SDVOSBs under NAICS 811219 and keyword “scopes” that resulted in 7 SDVOSBs. Their websites/narratives were reviewed and it was determined that the contractors didn’t have the capability to both rent and maintain scopes.

VIP was searched only for VOSBs under NAICS 811219 and keyword “scopes” that resulted in 2 VOSB. Their websites/narratives were reviewed and it was determined that the contractors didn’t have the capability to both rent and maintain scopes.

9. Any Other Facts Supporting the Use of Other than Full and Open Competition: No other factors are applicable at this time.

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

The only known source is Karl Storz.

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:

In future acquisitions, VA contracting staff will continue to conduct appropriate market research to determine if sources capable of meeting the agency’s requirement become available in the marketplace.

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.

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Revision 09 Date: 04/17/2020

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $700K): I certify the justification meets requirements for other than full and open competition.

c. VHA RPO HCA Review and Approval: I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and recommend approval (if over $68 million) or approve ($700K to $68 million) for other than full and open competition.