P03-_JA_for_Over_SAT-_Final.pdf

VA250-18-AP-9687 J&A for Maintenance Service of Olympus Leased Scope Equipment

OFOC SOP Revision 08 Page 1 of 4 Original Date: 03/22/11 Revision 08 Date: 04/18/2018

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A) For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: VA250-18-AP-9687

1. Contracting Activity: Department of Veterans Affairs, Network Contracting Office 10, on behalf of

Veteran Health Indiana, Richard L. Roudebush VA Medical Center located at 1481 West 10th Street, Indianapolis, IN 46202-2803. VA Form 2237# 583-18-4-169-0089 has been submitted to fund the action supported by this justification.

2. Nature and/or Description of the Action Being Processed: The action being approved through this justification is a single source award to Olympus America, Inc., 3500 Corporate Parkway, Center Valley, PA 18034 for GI Endoscope and Bronchoscope Maintenance/Repair Services on Leased Endoscope Equipment.

Currently there are two contracts covering the maintenance of the leased endoscopes: VA251-13-C- 0118 – GI Scope Lease and Maintenance Services; and VA251-15-C-0214 – Bronchoscope Maintenance Services. Both of the current contracts expire on September 15, 2018.

The procurement effort described herein will combine the Maintenance only portion for both of these contracts. The new requests to lease equipment are being procured under VA250-18-AP- 8668/583-18-4-071-0076 (GI Scopes) & VA250-18-AP-8715/583-18-4-071-0077 (Bronchoscopes).

The contract action proposed by this justification will be an open market, single sourced, firm, fixed price, definitive contract effective September 16, 2018 through September 15, 2019, with three (3) option years. The Independent Government Estimate for these services is $902,000.00. Full Maintenance/Repair Services are not available under Olympus America Inc.’s Federal Supply Schedule Contract or National BPA.

This procurement is 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.

3. Description of Supplies/Services Required to Meet the Agency’s Needs: Veterans Health Indiana, Richard L. Roudebush VA Medical Center has a requirement for Full Endoscope Maintenance/Repair services (which include supervision, labor, tools, parts, materials, and travel) for the Olympus Leased Equipment listed in the below table. Period of performance for this procurement is September 16, 2018 through September 15, 2021 (inclusive of option years).

OFOC SOP Revision 08 Page 2 of 4

Revision 08 Date: 04/18/2018

EQUIPMENT

Quantity Equipment Equipment Description

Two (2) BF-P190 BF-P190 EVIS EXERA III SLIM BRONCH 4.1MM

Eight (8) CLV-190 CLV-190 EVIS Exera III Light Source

Eight (8) CV-190 CV-190 EVIS Exera III Video Processor

Three (3) BF-H190 BF-H190 EEIII High Def Diagnostic Bronchoscope

Four (4) BF-1TH190 BF-TH190 EEIII HD Therapeutic Bronchoscope

Two (2) BF-UC180F BF-UC180F Ultrasound Bronchoscope

One (1) EU-ME2 EU-ME2 Ultrasound Processor

Twenty-five (25) CF-HQ190L CF-HQ190L EVIS EXERA III Colonovideoscope

Four (4) GF-UCT180 GF-UCT180 EUS/EBUS

Three (3) GF-UE160-AL5 GF-UE160-AL5 EUS/EBUS

One (1) GIF-1TQ160 GIF-1TQ160 EVIS EXERA Gastrovideoscope

One (1) GIF-2TH180 GIF-2TH180 EVIS EXERA II Gastrovideoscope

Eight (8) GIF-H190 GIF-H190 EVIS EXERA III Gastroscope

Nine (9) GIF-HQ190 GIF-HQ190 EVIS EXERA III Gastroscope

One (1) GIF-XP190N GIF-XP190N EVIS EXERA III Gastroscope

Five (5) OEV-261H OEV-261H LCD Monitor

Five (5) PCF-H190L PCF-H190L EVIS EXERA III Colonovideoscope

One (1) SIF-Q180 SIF-Q180 EVIS EXERA II Small Intestinal Videoscope

Three (3) TJF-Q180V TJF-Q180V GI Duodenoscope

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

(X) FAR13.5 Simplified Procedures for Certain Commercial Items: The authority for applying the Simplified Procedures for Commercial Items of FAR 13.5 is 41 U.S.C. 1901 and is implemented by for restricting competition on this procurement via 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): Olympus America, Inc. is the OEM and the only source capable to provide the required endoscope maintenance and repair services for the leased Bronchoscopes and GI scopes. Olympus America does not sell their parts or provide training to 3rd party sources. As stated in section 3, if any other source provides maintenance services it will void the leased equipment’s warranty. Leased scopes and related

OFOC SOP Revision 08 Page 3 of 4

Revision 08 Date: 04/18/2018 equipment are covered under a manufacturer’s warranty. If any third party provides repair services to the Olympus Leased Endoscopes it will void the warranty and at the end of the Lease the VA will be required to fully restore the endoscopes to their original equipment manufacturers (OEM) specifications, thus replacing any 3rd party parts at the sole expense of the Government. Those repairs could far exceed the total estimated value of this procurement. Accordingly, Olympus America, Inc. is the only firm capable of providing the services described in Section 3 above without the Veterans Health Administration experiencing substantial duplication of cost that could not be expected to be recovered through competition.

6. Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable: Market Research was conducted and found that there are no other potential sources that have the capability to provide these services. Olympus America Inc. does not provide training nor sell their parts to 3rd party sources.

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

Reasonable: Price reasonableness shall be determined by comparing the proposed pricing with the Independent Government Estimate (IGE) and by conducting a comparison of prices found reasonable under previous contracts, such as VA251-15-C-0214 (Scope Maintenance Services of Leased Equipment).

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

Market Research Was Not Conducted: Market Research was conducted and found that there are no other potential sources that have the capability to provide these services. Olympus America Inc.

does not provide training nor sell their parts to 3rd party sources. A search was conducted on GSA/FSS and found that Olympus America’s Contract# V797P-2065D only provides one-time repair services. The services requested for Full Maintenance and Repair Services can only be found on the open market and can only be provided by Olympus America, Inc.

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

None.

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

Olympus America Inc.

3500 Corporate Parkway Center Valley, PA 18034 800-401-1075

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: Market Research will continue to be conducted for future procurements in an effort to seek out other available sources.

OFOC SOP Revision 08 Page 4 of 4

Revision 08 Date: 04/18/2018

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.

Jordan Keebaugh Date Chief, HTM Veterans Health Indiana (Roudebush VAMC)

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.

Lisa Frymier Contracting Officer Network Contracting Office 10

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.

Toni Waggoner-Boykin Branch Chief, Services Team #3 Network Contracting Office 10

Monae D. Heath Division Chief, Healthcare and Services

Terry L. Spitzmiller Director of Contracting

c. VHA SAO 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.

Randy L. Hays Acting Executive Director, SAO Central

06/19/2018

JORDAN A

KEEBAUGH 587927

Digitally signed by JORDAN

A KEEBAUGH 587927

Date: 2018.06.19 15:59:05 -04'00'

Lisa D. Frymier 320908 Digitally signed by Lisa D. Frymier 320908 Date: 2018.06.19 16:02:20 -04'00'

Toni D. Waggoner-Boykin 393105 Digitally signed by Toni D. Waggoner-Boykin 393105 Date: 2018.06.19 16:04:38 -04'00'

Monae D. Heath 199291 Digitally signed by Monae D. Heath 199291 Date: 2018.06.19 16:31:32 -04'00'

TERRY L.

SPITZMILLER 394683

Digitally signed by TERRY L.

SPITZMILLER 394683

Date: 2018.06.20 18:41:32 -04'00'

Randy L. Hays 534204

Digitally signed by Randy L.

Hays 534204 Date: 2018.06.21 07:44:38 -07'00'