PM_Part806.3_Atch2_FAR6_JA_OVER_SAT - Redacted_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: 36C261-20-AP-6223

1. Contracting Activity: Department of Veterans Affairs, VISN 21, NCO21, VA Central California Health

Care System, 2615 E. Clinton Avenue, Fresno, CA 93703, Purchase Request Numbers 570-21-2-201-

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 Olympus GI endoscopes 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.

The procurement is a sole source to Olympus America Inc, 3500 Corporate Parkway, Center Valley, PA 18034. There are no other source of supply/service that will satisfy agency requirements. The Olympus scopes are already being leased and maintained for the GI department at the VA Central California Health Care System, 2615 E. Clinton Avenue, Fresno, CA 93703.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The procurement is for the rental and maintenance for the following Scopes: 7 each Gastroscopes, 1 each Pediatric

Gastroscope, 1 each Therapeutic Gastroscope, 8 each Colonoscopes and 7 each Pediatric

Colonoscpoes.

The contract will include 52.217-6 Option for Increased Quantity at 10% of the value of the rental

The estimated value of this acquisition is

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 the orifices such as the mouth and rectum into different parts of the digestive tract. These instruments help to

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Revision 09 Date: 04/17/2020 visualize and diagnose intestinal disorders, to obtain biopsies, to place stents, 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-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 Olympus scopes are already being leased and maintained for the GI department at the VA Central California Health Care System2615 E. Clinton Avenue, Fresno, CA 93703. Being that the Olympus scopes are in use, the VA Central California Health Care System has the light sources and cameras that connect to the Olympus scopes. To purchase other than Olympus scopes would mean the loss of capital in the approximate amount of $500,000. The light sources and cameras are not interchangeable with any other scope. To purchase any other scope, the VA would have to purchase all new light sources and cameras that connect to that scope. It will also eliminate the need to purchase additional cleaning equipment and will reduce training requirements.

In addition, Olympus America Inc. 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, Olympus America Inc. 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, Olympus America Inc., 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 November 2, 2020 under 36C26121Q0096 requesting interested firms to respond to the notice. The notice closed November 17, 2020 with zero responses received. The only known source is Olympus America Inc.

This requirement will be synopsized and the solicitation posted to betaSAM with a statement that any interested and capable vendor should submit a quote or capability statement which will be considered by the Government.

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:

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Revision 09 Date: 04/17/2020

A notice of intent to sole source was posted November 2, 2020 under 36C26121Q0096 requesting interested firms to respond to the notice. The notice closed November 17, 2020 with zero responses received. The only known source is Olympus America Inc.

The DSBS was searched under NAICS 532490 and keyword “scope” that resulted in 11 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 532490 and keyword “scope” that resulted in 4 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 532490 and keyword “scope” that resulted in 2 VOSBs. 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 Olympus America Inc.

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 and prior to exercising any options to extend the contract, 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.