JA Karl Storz Scopes_Final_Redacted.pdf

Sole Source Justification and Approval Under FAR Part 13.501

1. Contracting Activity: Medical Readiness Contracting Office – Pacific, Joint Base Lewis-McChord Health Contracting Branch, 673 Woodland Square Loop SE, Suite 101, Lacey WA, 98503

2. Description of Action: New Contract; Type of Contract – Firm-Fixed Price (FFP); Type of Funds – Defense Health Program (DHP).

3. Description of Supplies/Services: This requirement is for Maintenance, Repair and Replacement services for various Karl Storz Endoscopes. The estimated value is for a 5-year ordering period.

4. Authority Cited: 41 United States Code 1901 as implemented in Federal Acquisition Regulation 13.501(a)(1)(ii) and 15 United States Code 567f as implemented by Federal Acquisition Regulation 19.1406(a).

5. Reason for Authority Cited: The original equipment manufacturer (OEM), Karl Storz, has only one authorized reseller for the required services. They maintain an authorized distributor agreement with Small Disadvantaged Veteran Owned Small Business (SDVOSB), L1 Enterprises, Inc. Due to the proprietary nature of the equipment, repairs, replacements and software, Karl Storz does not provide certification to any other entities to provide services to Karl Storz endoscopes. This makes L1 Enterprises, Inc. the only SDVOSB available that can meet the government’s requirement per the authority cited in paragraph 4 above.

6.a. Efforts to Obtain Competition: The notices required by FAR 5.201 shall be or have been published and that any bids or proposals received shall be considered. The government conducted market research, details of which are in the market research section of this document. None of these efforts yielded additional potential sources.

There is no competition anticipated for this procurement.

6.b. Subcontracting Competition: The services to be performed by L1 Enterprises, Inc.

will be completed a minimum of 51% internally. In accordance with FAR 19.702(b)(1) L1 Enterprises, Inc.as a SDVOSB concern is exempt from the requirements of a small business subcontracting plan.

7. Actions to Increase Competition: Ongoing market research will be performed to determine if alternate sources become available.

8. Market Research: Market research was conducted throughout the requirement review process and the completed market research report is contained within the contract file.

Market Research consisted of:

-Contacting knowledgeable people (Government and industry) in specific markets.

-Querying Government databases (FPDS-NG, PPIRS, CPARS, GSA, SAM.gov, SBA databases, e-Portals in Commerce (e-PIC), Contract Management Research Tool in ASFI etc.) that provide relevant information on acquisitions.

-Use of Internet tools and web searches.

-Review of historical contracts and market research results for on similar requirements.

-Review of Mandatory sources.

- Sources Sought Notice was posted to the Government Point of Entry. The Sources Sought Notice was posted on 17 June 2024 and closed on 21 June 2024. Four responses were received. Of the four responses only L1 Enterprises, Inc holds an agreement with the OEM to offer the required services.

IAW FAR 19.1406(a), the Contracting Officer reviewed the results of the market research and found that a sole source to L1 Enterprises, Inc. was in the best interest of the government. As required by FAR 19.1406(a), the Contracting Officer reviewed FAR

19.203 and special consideration was given to FAR 19.203(d). Market Research results demonstrated that Karl Storz is the OEM. Additionally, Market Research results demonstrate that L1 Enterprises, Inc., an SDVOSB, is the only SDVOSB source with a service agreement with the OEM authorized to perform the service and capable of satisfying the agency’s requirement.

The research has shown that preventive maintenance and repairs on Karl Storz Endoscopes are commercial in nature and are utilized by private, public, and government medical institutions.

9. Interested Sources: Karl Storz, has written to express an interest in the acquisition and provide a

L1 Enterprises, Inc., a SDVOSB concern, is an authorized distributor for Karl Storz, and responded to the sources sought. L1 Enterprises, Inc.is the only authorized distributor authorized by Karl Storz.

Two other companies responded to the sources sought notice. Fiber Tech Medical USA is not registered in SAM.gov. BHPE LLC, a SDVOSB concern, but is not an authorized distributor for Karl Storz. Each of the companies did not submit any evidence of being fully capable of meeting the requirement, specifically each of these companies lacked access to Karl Storz proprietary information that is required for this requirement. To date, no other sources have written to express an interest.

10. Other Facts:

a. Procurement History

(1) Contract numbers and dates of all awarded contracts for these same requirements.

Contract W81K0223P0094 was awarded 08/08/2023.

Contract W81K0222P0066 was awarded 08/09/2022.

Contract W81K0221P0107 was awarded 07/15/2021.