6515--Olympus 4KHD Scope System and Vault Stream For the Columbus VA Ambulatory Care Center

The Department of Veterans Affairs, Chalmers P. Wylie VA Ambulatory Care Center Columbus, intends to negotiate a sole source contract with Olympus authorized Service-Disabled Veteran-Owned Small Business (SDVOSB) Distributor, Alliant Healthcare Products to purchase Olympus 4KHD ENT Scope System and VaultStream. The Columbus VA currently owns associated connectors and adapters that are needed to interact with the new ENT Scopes and VaultStream. Both the existing and new Scopes are a part of the same product family (ENF-series). Cannibalizing certain parts along with the trading in of currently owned ENT Scopes will reduce cost along with the familiarity of the Physicians with the equipment are primary factors for sole sourcing. Additionally, since these scopes are in the same family of products that we currently possess, SPS already has the appropriate equipment on hand for cleaning and sterilization of the equipment. This newer technology will allow for better visualization and in conjunction with the VaultStream software package will enable physicians to better compare imaging and enhance their ability to detect abnormal growths through image comparison. The North American Industry Classification System Code (NAICS) is 339113. The Government believes that Olympus is the only provider that can satisfy the agency requirements. Therefore, the Government intends to proceed with a sole source for the required 4KHD ENT Scope System and VaultStream. This procurement is being conducted in accordance with FAR 6.302-1 only one responsible source and no other vendor will satisfy agency requirements. To the best of our knowledge, Olympus is the only source that provides the above indicated services/supplies. This notice of intent is not a request for competitive quotes. No solicitation document is available; however, any firm that believes it can meet these requirements may give written notification to the Contracting Officer within three (3) business days from the date of publication of this synopsis. Supporting evidence must be furnished in sufficient detail to demonstrate the ability to comply with the above requirements. Information can be sent to the Contracting Officer, VA Ambulatory Care Center, 420 N. James Road, Columbus, Ohio 43219-1834 or faxed to 614.388.7500 or emailed to gina.crank@va.gov. Responses received will be evaluated, however a determination by the Government not to compete the proposed procurement based upon responses to this notice is solely within the discretion of the Government. If no responses are received, the VA Ambulatory Care Center Columbus will proceed with the sole source negotiation with Olympus authorized Service-Disabled Veteran-Owned Small Business (SDVOSB) Distributor, Alliant Healthcare Products.

DEPARTMENT OF VETERANS AFFAIRS

Justification and Approval (J&A)

For

Other Than Full and Open Competition (>SAT)

Acquisition Plan Action ID: 36C250-20-AP-3007 and 36C250-20-AP-3008

Contracting Activity: Department of Veterans Affairs, VISN 10, NCO 10, Chalmers P. Wylie Ambulatory Care Center, 420 N. James Road, Columbus, OH 43219 using transaction # s 757-20-3-196-0116 and 757-20-3-196-0119.

Nature and/or Description of the Action Being Approved: The purchase of an ENT Scope System and VaultStream. This will be awarded as a new firm fixed-price Contract. Total value $437,582.88.

Description of Supplies/Services Required to Meet the Agency s Needs: The supplies / equipment that the agency is obtaining are ENT video endoscopes, which pair to a tower that provides a light source and suction for ENT procedures. Additionally, 4 rigid endoscopes are included in the contract. The maintenance contract for the existing equipment is expiring and extending that contract would likely be cost-prohibitive given that the current equipment is beyond its warranty period. Certain connectors / adapters from our current inventory of Olympus ENT scopes will be cannibalized and used with the new ENT scopes as both the new and old scopes are part of the same product family (ENF-series). This need for cannibalizing certain parts to reduce costs, along with the familiarity of the physicians with the equipment, are primary factors in requesting a sole source purchase. This newer technology will allow for better visualization and in conjunction with the VaultStream software package will enable physicians to better compare imaging and enhance their ability to detect abnormal growths through image comparison. Additionally, as these scopes in the same family of products that we currently possess, SPS already has the appropriate equipment on hand for cleaning and sterilization of the equipment. As far as human factors are concerned, the continued use of the Olympus scopes reduces or eliminates retraining not only for clinical staff, but also for SPS staff.

Statutory Authority Permitting Other than Full and Open Competition: 41 USC §3304(a)(5), 38 U.S. Code § 8127(c), as implemented by FAR 6.302-5 (Authorized or Required by Statute). COs may use the non-competitive (sole source) procedures authorized in VAAR 819.7007 or 819.7008 up to $5,000,000. Check the specific VAAR clause used below:

( x ) 819.7007 Sole source awards to a verified service-disabled veteran-owned small business; or

( ) 819.7008 Sole source awards to a verified veteran-owned small business

Demonstration that the Contractor s Unique Qualifications and/or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority): Certain connectors / adapters from our current inventory of Olympus ENT scopes will be cannibalized and used with the new ENT scopes as both the new and old scopes are part of the same product family (ENF-series). This need for cannibalizing certain parts to reduce costs, along with the familiarity of the physicians with the equipment, are primary factors in requesting a sole source purchase. This newer technology will allow for better visualization and in conjunction with the VaultStream software package will enable physicians to better compare imaging and enhance their ability to detect abnormal growths through image comparison. Additionally, as these scopes in the same family of products that we currently possess, SPS already has the appropriate equipment on hand for cleaning and sterilization of the equipment. As far as human factors are concerned, the continued use of the Olympus scopes reduces or eliminates retraining not only for clinical staff, but also for SPS staff.

Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable, including whether a notice was or will be publicized as required by subpart 5.2 and, if not, which exception under 5.202 applies:

Additional sources were sought out but based on the reasons listed above in Paragraph 3, it was been determined that this requirement is a sole source to Olympus. An Intent to Sole Source will be posted on Contract Opportunities.

Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: This is the best value option since it allows the facility to continue using all other equipment associated with this requirement. The Contracting Officer has ensured that the offered cost is consistent with the Independent Government Cost Estimate (IGCE). In addition, Alliant Healthcare Products, Olympus exclusive authorized Service-Disabled Veteran-Owned Small Business (SDVOSB) Distributor is offering the requirement for the exact same price as Olympus, the large business manufacture.

Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted: Comparable endoscopy equipment was reviewed and is similar in its capabilities. However, given the fact that we would not need to retrain clinical staff or SPS staff to be able to begin to use the Olympus ENT equipment as it is received and avoid any delays in care. Also, the lack of familiarity with another manufacturers ENT equipment might result in the need to order additional software/hardware to reach the level of functionality that we currently see available with the Olympus ENT equipment.

Any Other Facts Supporting the Use of Other than Full and Open Competition: None

Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Olympus Endoscopy. No other offers were made or received and there were no other inquiries that were brought forward.

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 the future, I think that we may need to look outside of our traditional vendors and systems to see if there are other viable options. The challenge is that much of our equipment purchasing is based on physician preference and the customer experience and the upgrade paths that are offered by our current suppliers. As we strive to be fiscally conservative when purchasing equipment, we will need to continue to weigh the importance of patient care vs. fiscal conservatism when selecting and purchasing equipment.

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.

_____________________________ ________________________

Paul Frazier Date

Assistant Nurse Manager, Surgery Clinics

Chalmers P. Wylie VA Ambulatory Care Center

Approvals in accordance with the VHAPM Part 806.3 OFOC SOP:

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.

_____________________________ ________________________

Gina P. Crank Date

Contracting Officer

NCO 10

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.

_____________________________ ________________________

Adam P. Weber Date

Branch Chief Supply Team #1

NCO 10