Lease of Medical Scopes, Olympus

Added: Apr 22, 2011 1:07 pm

1. Agency and Contracting Activity Identification: The Department of Veterans Affairs Network VISN 22 Contracting Activity (NCA), 5901 East Seventh Street, Long Beach, CA 90822, has received a requirement to modify VA262-BP-0332, an existing blanket purchase agreement based upon an FSS contract by adding open market line items from the same contractor.



2. Nature of Acquisition Being Approved: Negotiation shall be conducted to procure a lease with Olympus American Incorporated for these open market items. Circumstances require that this be done without the benefit of full and open competition. The proposed contract vehicle shall be a modification to the above mentioned BPA based on Olympus American's current mandatory FSS schedule with a period of up to 3 years. Total Cost: $480,146.95



3. Description of Requirement: This is a supply BPA that currently provides Leased Medical Scopes and Related Equipment for use within VISN 22. This modification shall add open market incidental items that are necessary for the continued function of new medical scopes added from FSS schedules for the VA Loma Linda and VA San Diego Healthcare Systems.



4. Statutory Authority Permitting Other Than Full and Open Competition: This request is pursuant to the authority of FAR Part 8.402(f), and FAR Part 6.302-1(a).



5. The Nature of the Acquisition Requires Use of the Authority Cited:

A. Under 8.402(f), an ordering activity for convenience, may add items not on the Federal Supply Schedule to a BPA based off of an FSS contract under certain conditions. 1) The add-on must comply with all publicizing and competition requirements of the FAR, including FAR part 5, 6, 12, 13, 14, and 15; 2) the price of these items have been deemed fair and reasonable; 3) the items are clearly labeled as open market items; 4) all clauses applicable to items not on the Federal Supply Schedule are included in the order. The items as attached addenda are all support items for actual medical scopes which are the primary items within the BPA. These support/incidental items have been negotiated with the contractor to obtain significant discounts. In addition, when these items are compared to FSS schedule items of similar quality, they are within the same price range but command a slight premium due to their new features. Most of these incidental items are new items that have not yet been added to Olympus America's FSS schedule. Further, these items shall be clearly marked as open market items within the current BPA and all clauses applicable to these items shall be added into the modification. In the interest of convenience these items should be added to this BPA pursuant to 8.402(f) as they satisfy the above requirements.

B. FAR Part 6.302-1(a) allows for the procurement of items through other than full and open competition; applicable when the agency's minimum needs may only be satisfied by a supply or service that is unique and available from only one responsible source. The equipment being added to this BPA under this modification is required for the proper use and function of these medical scopes. The medical scopes within this BPA have many proprietary features which require the use of these open market items. However some companies are able to provide a small portion of these open market items with universal alternatives, though due to standardization requirements outlined within VHA Directive 2009-004 and VHA Handbook 1761.1 it is in the best interest to purchase these items from one manufacturer. Under VHA Directive 2009-004 and VHA Handbook 1761.1, VHA authority has mandated that standardization of equipment, processes and procedures be implemented immediately to ensure patient safety and health. In addition, the April 19, 2010 Deputy Undersecretary for Health Operations and Management (DUSHOM)(10N) memo outlines guidance for VHA standardization of Endoscopes (WebCIMS No. 451818). Purchasing universal alternatives would cause issues with standardization which would also cause issues with cleaning and decontamination of these instruments. This could cause serious bodily damage and harm as it did in viral outbreak incidents in Tennessee, Georgia and Florida which prompted the creation of the standardization procedures above. Thus Olympus is the only contractor that can provide the necessary items to meet the needs of VISN 22.



6. A Description of Efforts Made to Ensure That Offers From as Many Potential Sources As Practicable and Whether a Notice Will Be Publicized. A Notice shall be publicized and synopsized under requirements stated in FAR Part 5.



7. Anticipated Cost: The anticipated cost of this procurement presented by Olympus American, Inc is fair and reasonable to the Government based on using service estimates and previous purchasing history of prices. In addition, when compared to items of previous generations and like quality that have been deemed fair and reasonable by GSA, these items only command a small price premium of about 10-15% due to their cutting edge technology.



8. Results of Market Survey: In accordance with FAR Part 10 Market Research, various VA and Federal Supply Contracts were reviewed. Olympus America is the appropriate distributor of these items to Government Accounts. Other contractors were found with universal alternatives of some of the items attached, but only Olympus America could provide all of the necessary items needed to fulfill the needs of the VISN.



9. Any Other Facts Supporting the Use of Other Than Full and Open Competition: None. See Items 5 above.



10. Any Other Interested Sources? There are no other sources that have expressed an interest to date.





11. A Statement of the Actions, if any, the Agency May Take To Remove of Overcome Any Barriers to Competition Before Any Subsequent Acquisition is required: This agency will attempt to remove barriers to competition at the expiration of this BPA to promote stronger pricing. Though, due to the nature of the current BPA and standardization requirements; the addition of these items is necessary to continue services to our veterans.



12. Requirements Certification: See attached.



13. Approvals in accordance with FAR 6.304

A. I hereby certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.







_____________________________ ________________________

Name: David Chakka Date

Title: Contracting Officer

Facility: NCA 22



B. VISN/PCA QA: I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief.







_____________________________ ________________________

Name: Edwin Cotto Date

Title: Supply Section Supervisor

Facility: NCA 22



C. NCM/PCM: I certify the justification meets requirements for other than full and open competition.









_____________________________ ________________________

Name: Kevin Blanchard Date

Network Contract Manager

NCA 22