PM_Part813.5_Atch1_FAR13.5_JA_OVER_SAT - Olympus_Redacted.pdf

PM Part 813.5 SAP for Certain Commercial Items Page 1 of 5 Original Date: 08/30/17 Revision 03 Date: 02/11/2021

DEPARTMENT OF VETERANS AFFAIRS

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL

ITEMS IN ACCORDANCE WITH FAR 13.5

Acquisition Plan Action ID: 36C261-21-AP-2055

1. Contracting Activity: Department of Veterans Affairs, VISN 21, Department of Veterans Affairs, Northern California Healthcare System, 10535 Hospital Way, Mather, CA 95655. 612-21-2-445-0001

2. Nature and/or Description of the Action Being Processed: Network Contracting Office (NCO) 21 anticipates the award of a firm fixed price contract to deliver three (3) each mobile Opterating Room (OR) Trailers 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 contract will be full and open competition for OR trailers with the installation of a brand name requirement for Olympus Video Routing System in the trailers.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: The procurement is for the delivery of 3 each OR Trailers which will include the installation of brand name Olympus Video Routing System in the trailers for the VANCHCS.

The Olympus ImageStream Video Routing System, three (3) each, one (1) each per trailer is required to meet the government’s minimum needs for proper integration and quality of services required in the OR trailers.

The Olympus ImageStream video routing system is intended to route video feeds throughout the OR and output the feeds to various monitors in the surgical suite. This enables better cohesion within the operating or procedure room and across the healthcare system by facilitating display, management, and capture of high definition medical video and images. The video routing system also sends video and images through the currently deployed Olympus VaultStream server and connects the images to the patient record through a worklist generated through CPRS and VistA.

This system can interface with any standard video assisted surgical equipment and display that image on the monitors in the operating/procedure room.

Three (3) EasySuite integration systems, including monitors, accompanying cabling and mounts, video recording, and streaming channel, are to be configured and installed within the OR trailers.

This system will be connected to the existing Olympus Image Stream infrastructure already established at the VA Northern California healthcare system.

The estimated value of the Olympus Brand Name is .

4. Statutory Authority Permitting Restricted Competition:

FAR 13.5 Simplified Procedures for Certain Commercial Items. The statutory authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. § 1901 and is implemented

PM Part 813.5 SAP for Certain Commercial Items Page 2 of 5

Revision 03 Date: 02/11/2021 by FAR 13.106-1(b)(2) for restricting competition on this procurement. Competition is restricted on this procurement for the reason below:

( X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements

( ) Unusual and Compelling Urgency ( ) Industrial Mobilization, Engineering, Developmental or Research Capability or Expert

Services ( ) International Agreement ( ) Authorized or Required by Statute ( ) National Security ( ) Public Interest

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 current infrastructure for video and image capturing, and integration system in several departments in the VA Northern California Healthcare System is Olympus Image Stream. The Olympus Image Stream system was first purchased for the Cath Lab expansion construction project in Fiscal Year (FY)15 at a total cost of $64,997.60 for two systems. An order of Olympus nStream boxes for the ENT and Urology clinics were ordered in FY18 at a cost of $240,001.92 for 8 individual devices that could transmit data direct to the Vaultstream server. The Olympus Image Stream system was also purchased for the Mather OR in FY19 at a total cost of $466,009.20 for 4 video routing systems with additional integration components. This does not include the current Olympus Lease for ENT/Urology scopes which also include nStream boxes for integration into the existing system as well. To maintain consistency and compatibility throughout the VA Northern California Healthcare System, additional Imagestream integration systems are required to be purchased for the OR trailers. The OR department also currently uses the Olympus image and video capturing equipment. Therefore, the selected contractor must be able to supply and install the ImageStream system.

From previous discussions with other manufacturers (Stryker and Steris), they are unable to connect their data to the Olympus VaultStream system to send images to the patient record and allow pulling a patient from the Olympus worklist. Without this integration capability, a whole separate video system would need to be put in place and interface developed with VistA/CPRS. This would create multiple workflows for Surgical services in order to capture video feeds of procedures and send the images to CPRS/VistA Imaging. There would be an added cost overall to purchase a new backend system, and overall future support managing two different systems. To maintain standardization from a clinical workflow and overall technical maintenance, VA Northern California Healthcare System would need to replace the entire infrastructure for all locations in the OR, Cath Lab, and ENT/Urology clinics at more than $750K, most of which were just implemented the last two years. This also doesn’t include the current Olympus Scope lease, which will require additional capital cost for another vendor to integrate Olympus data with the new system being implemented.

With two different integration systems, there will be delays with care as the data may not be transferred to the proper location and images connected to the patient record.

The VA Northern California Healthcare system has standardized the image/video capturing and integration across all sites. Over the past 5 years, there has been the purchase and implemented the Olympus image stream image and video capture systems in the OR department, ENT, Urology, and Cath labs. This procurement is an expansion/upgrade of the existing system in the OR and various surgical specialty clinics. Any other brand will not be compatible with the infrastructure that has

PM Part 813.5 SAP for Certain Commercial Items Page 4 of 5

Revision 03 Date: 02/11/2021 website is under construction and it cannot be determined if they fabricate the kind of trailer in this procurement.

The SBA DSBS was queried utilizing NAICS 321991 and keyword “operating room” which resulted in no prospective contractors.

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

10. Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: – Large Business offering Brand Name, – Small Business offering Equal to Brand Name

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: No actions are anticipated to remove or overcome barriers to competition as there is no anticipation of future procurments for OR Trailers for the VA Northern California Health Care System.

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.

Victor Wei Date Supervisory Biomedical Engineer VA Northern California Health Care System

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.

Megan Barr Date Contracting Officer VA Sierra Nevada Health Care System

PM Part 813.5 SAP for Certain Commercial Items Page 5 of 5

Revision 03 Date: 02/11/2021

b. One Level Above the Contracting Officer (Required over SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition.

Brooke C. Robison Date Director of Contracting

Network Contracting Office (NCO) 21