V797D-30172-007.pdf

VHAPM Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT

VHAPM Part 808.405-6 Limiting Sources Page 1 of 7 Original Date: 08/30/2017 Revision 01 Eff Date: 04/23/2018

LIMITED SOURCES JUSTIFICATION

ORDER >SAT

FAR PART 8.405-6

Acquisition Plan Action ID:_______ 36C242-18-AP-2871______________

1. Contracting Activity: Department of Veterans Affairs, VISN 2, Buffalo VA Medical Center 3495 Bailey Avenue Buffalo NY 14215 2237# 528-19-1-4712-0001

2. Description of Action: This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 251 and 40 U.S.C. 501). This is a request for other than full and open competition for the procurement of a 60 month lease of Pentax endoscopes and ancillary equipment for the Buffalo VAMC. The proposed FSS task order shall be provided by Pentax of America, Inc, 3 Paragon Drive Montvale, NJ 07645 from November 1, 2018 through October 31, 2023 for an annual consideration of with a grand total of

Order against: FSS Contract Number: ____V797D-30172_________________ Name of Proposed Contractor: Pentax of America, Inc

Street Address: 3 Paragon Drive

City, State, Zip: Montvale, NJ 07645

Phone: 800-431-5880

3. Description of Supplies or Services:

The estimated value of the proposed action is

The Buffalo VA Medical Center, located at 3495 Bailey Avenue, Buffalo, NY 14215-1129, requires a 60 month lease of the following Pentax endoscopes and ancillary equipment:

Model Quantity Description

EC34-I10L 2

HDVideo Colonscope (i10/10K series)3.8C 116T

1700L FWJ

EC-2990LI 2

HD Video Colonoscope; High Definition; 2.8mm Channel; 9.8mm Tube Diameter; 1700mm Length; 180°/180° U/D; 160°/160° R/L; 140° View; Forward Water Jet

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EC38-I10L 14

Standard HD+ Video Colonoscope - i10 Series - High definition image quality and ergonomic design. Chan. Diameter: 3.8 mm. Ins. Tube Diameter: 13.2 mm. Angulation (U/D):

180/180°, (R/L): 160/160°.

EG29-I10 7

HDVideo Gastroscope (i10/K10 series)3 2C 9 8T 1050L

EG27-I10 2

HDVideo Gastroscope (i10/K10 series)2 8C 9 0T 1050L

EG-1690K 2

Video Gastroscope; 2.0mm Channel; 5.4mm Tube Diameter; 1050mm Length; 210°/120° U/D; 120°/120° R/L; 120° View

EG-3890TK 2

Video Gastroscope; 3.8mm and 2.8mm Channels; 12.8mm Tube Diameter; 1050mm Length; 180°/120° U/D; 120°/120° R/L; 140° View; Forward Water Jet

EB-1575K 3

Video Bronchoscope; 2mm Channel; 5.5mm Distal End OD; 600mm Working Length; 5.2mm Insertion Tube OD; 1200 Field of View;

Up/Down Tip Deflection 2100/1300"

EB-1975K 2

Video Bronchoscope; 2.8mm Channel; 6.3mm Distal End OD; 600mm Working Length; 6.4mm Insertion Tube OD; 1200 Field of View;

Up/Dpwn Tip Deflection 1800/1300,, KUM-EPK-I7010-US 5

HD Video Processor - EPK-i7010 - i-SCAN Technology and OE Optical Enhancement

INCLUDES:

5 OPTIVISTA EPK-i7010 HD Video Processor 5 100160P PENTAX DispoCap Air, 10/PKG

VIDEO/MON CABLE

PK 5 Scope Processor/Monitor Integration Pkg NDS90R0107 5 NDS Radiance Ultra 32" HD Monitor

EGA-501P 4

EGA-501P, PENTAX Medical CO2 Insufflator -heated CO2, 98.6 degrees; variable flow rates -low, medium, high; compatible with D or E size CO2 tanks or NIST wall CO2;

VSB-3430K 2

Small Bowel Enteroscope; 3.8mm Channel;

11.6mm Tube Diameter; 2200mm Length;

180°/180° U/D; 160°/160° R/L; 140° View;

Forward Water Jet

EPK-3000-US 3 Defina HD Video Processor - VNL8-J10 2 Ultraslim HD Nasolaryngoscope

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VNL15-J10 2 Therapeutic HD Nasolaryngoscop VNL11-J10 22 Slim HD Nasolaryngoscope NDS24ENDO 3 NDS 24" Endovue LED Monitor 80225-2 3 Compact Cart (HUI) 80228 3 Monitor Arm Mounting Kit FNL-10RP3 10 Nasolaryngoscope-P Series AL-AL 10 Adapter to ACMI Light Source f 7154 10 LED-Light Source - ACMI (Minia) 9215 1 HD Camera (HD MOS) 9703 1 Lens Adaptor 20mm

The purpose of this lease is to ensure that the Gastrointestinal and Ears, Nose and Throat Departments of the Buffalo VA Medical Center has the appropriate surgical equipment to diagnose and treat veterans seeking medical attention. This will be a firm-fixed price task order off of FSS contract V797D-30172 for the anticipated period of performance of November 1, 2018 to October 31, 2023. The annual cost of leasing the endoscopes and ancillary equipment is for a total of for the complete lease period. Pricing was agreed upon to be an equal annual cost between Pentax of America, Inc. and accepted by the VA NAC.

(4) IDENTIFY THE AUTHORITY AND SUPPORTING RATIONALE (see 8.405-6(a)(1)(i)(A), (B), and

(C) or 8.405-6(b)), AND IF APPLICABLE, A DEMONSTRATION OF THE PROPOSED

CONTRACTOR’S UNIQUE QUALIFICATIONS TO PROVIDE THE REQUIRED SUPPLY OR SERVICE.

An urgent and compelling need exists, and following the ordering procedures would result in unacceptable delays.

Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized;

Market research indicates that Pentax of America, Inc. is the only vendor that has an FSS contract that includes line items for the lease of Pentax endoscopes and ancillary equipment.

In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order must not have been previously issued under sole source or limited source procedures.

Items peculiar to one manufacturer:

A patent, copyright or proprietary data limits competition. The proprietary data is: (If FAR 8.405-6(a)(2)iii before posting. Do not include specific proprietary data.

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Only mention the type of equipment, procedure, etc. to show that proprietary supplies or services are being procured.)

These are “direct replacements” parts/components for existing equipment.

The material/service must be compatible in all aspects (form, fit and function) with existing systems presently installed/performing. Describe the equipment/function you have now and how the new item/service must coordinate, connect, or interface with the existing system.

(5) DESCRIBE WHY YOU BELIEVE THE ORDER REPRESENTS THE BEST VALUE CONSISTENT WITH

FAR 8.404(d) TO AID THE CONTRACTING OFFICER IN MAKING THIS BEST VALUE DETERMINATION: The anticipated cost to the government has been considered fair and reasonable based upon adequate competition of the FSS contract requirements and negotiation of prices prior to contract award. The quoted pricing for this 60 month endoscope lease has been determined to be identical to the pricing available under their FSS contract. The Contracting Officer has contacted Pentax of America Inc seeking additional discounts on July 25, 2018 and received a reply from John Vasquez, Pentax’s Leasing Sales Executive that no further discounts were available.

To determine whether the proposed pricing for the lease of equipment listed in this task order is considered to be the best value to the government, it has been compared to the FSS pricing provided in regards to a 36 month lease term and the purchase price of the equipment to be leased. The FSS purchase price of the equipment to be leased after all discounts has been quoted at . The proposed pricing of a 36 month lease of the same equipment has been quoted at or a year. After discussions with the vendor it was identified that a significant portion of the equipment to be leased consists of ancillary equipment that does not have any or minimal residual value. As a result, when the interest to be paid as part of the leasing agreement is taken into consideration, there is very little difference between the purchase price and the cost to lease the equipment for a 36 month term. The facility was informed of this information and it was suggested that the facility inquire to see if there was any funds available to purchase the requested ancillary equipment, as this would be a better value to the government. The facility responded that sufficient funds were not available to purchase the ancillary equipment and to proceed with the 60 month lease agreement as is. The proposed pricing of a 60 month lease of the same equipment has been quoted at or a year. If the government were to enter into a 36 month lease of this equipment, it would need to enter a subsequent 36 month lease to obtain the use of the required endoscopes and ancillary equipment over a 60 month period. Assuming the cost of the lease does not increase for the second lease term it would cost the government . This is more than what was quoted for the 60 month lease, which would be to lease the equipment for the same period of time. Considering that the equipment to be leased has a 5-7 year lifespan, it has been determined that the best value for the government is to enter into a 60 month lease, rather than leasing the equipment for 36 months and then entering into another 36 month lease for the same equipment.

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(6) DESCRIBE THE MARKET RESEARCH CONDUCTED AMONG SCHEDULE HOLDERS AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED:

A search on the VetBiz website using NAICs Code 339112 and keyword “endoscope” identified one SDVOSB, Alliant Enterprises, LLC that could possibly meet the requirements of this procurement. A review of their VIP profile confirmed that they could not meet the requirements of this procurement.

A search on GSA elibrary using keyword “Pentax” has identified that Olympus America does have a FSS contract (V797D-30172). The contracting officer for this contract provided me with the leasing terms portion of this FSS contract.

A search on DSBS using NAICs code 339112 and keyword “Pentax” did identify one SDVOSB vendor that could possibly meet the requirements of this procurement, Bitterroot Services and Technology LLC; however, a review of the vendors profile clearly indicated that the vendor could not meet the requirements of this procurement.

(7) ANY OTHER FACTS SUPPORTING THE JUSTIFICATION: This procurement replaces two task orders off of Pentax of America’s FSS contract (V797D-30172/ VA242-16-F-1825 and V797D- 30172/ VA242-17-F-0786) for the lease of Pentax endoscopes at the Buffalo VA Medical Center. Both of these task orders were awarded as sole source FSS task orders to Pentax of America and end on 10/31/2018.

Deputy Under Secretary for Health and Management’s (DUSHOM) memo “VHA National Standardization of Endoscopes” dated 12/06/2010 states that all endoscopes shall be leased off of the Original Equipment Manufacturer’s (OEM) Federal Supply Schedule (FSS) approved government leasing contract.

(8) A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS THAT LED TO THE RESTRICTED CONSIDERATION BEFORE ANY

SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES IS MADE: This requirement is being procured in accordance with Deputy Under Secretary for Health and Management’s (DUSHOM) memo “VHA National Standardization of Endoscopes” dated 12/06/2010. No further actions can be taken to overcome any barriers that led to this restricted consideration.

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(9) 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. I understand that processing of this limited sources justification restricts consideration of Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4. (This signature is the requestor’s supervisor, fund control point official, chief of service or someone with responsibility and accountability.)

SIGNATURE DATE

Ian Bush Acquisition Utilization Specialist Logistics____________

NAME TITLE SERVICE LINE/SECTION

Buffalo VA Medical Center

FACILITY

(10) APPROVALS IN ACCORDANCE WITH THE VHAPM Part 806.3 OFOC SOP: 1

a. CONTRACTING OFFICER’S CERTIFICATION (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.

CONTRACTING OFFICER SIGNATURE DATE

Cheryl Brimmer/Branch Chief NCO2, Service Team 1_________________

NAME AND TITLE FACILITY

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

SIGNATURE DATE

Irma Ferro NCO 2 Division Chief of Contracting Construction, Prosthetics, Services, and Specialized Teams

Ian P. Bush 452698 Digitally signed by Ian P. Bush 452698 Date: 2018.09.04 14:24:51 -04'00'

Cheryl M Brimmer 113171

Digitally signed by Cheryl M Brimmer 113171 Date: 2018.09.05 12:26:26 -04'00'

Irma Ferro 108521 Digitally signed by Irma Ferro 108521 Date: 2018.09.06 08:32:25 -04'00'

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HIGHER LEVEL APPROVAL (Required for orders over $700,000):

c. VHA SAO HCA REVIEW AND APPROVAL (over $700,000 to $68 million): I have reviewed the foregoing justification and find it to be complete and accurate to the best of my knowledge and belief and approve for restricting consideration of the Federal Supply Schedule contractors to fewer than the number required by FAR Subpart 8.4.

Brent Goe DATE Acting Executive Director, SAO East

Brent Goe 625253 Digitally signed by Brent Goe 625253 Date: 2018.09.06 15:51:10 -04'00'