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VHAPG Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT Page 1 of 4 LIMITED SOURCES JUSTIFICATION ORDER >SAT FAR PART 8.405-6 Acquisition Plan Action ... VHAPG Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT Page 1 of 4 LIMITED SOURCES JUSTIFICATION ORDER >SAT FAR PART 8.405-6 Acquisition Plan Action ID: 36C250-22-AP-2649 (1) Contracting Activity: Department of Veterans Affairs, Network Contracting Office 10, located at 2215 Fuller Road, Ann Arbor MI 48105, in support of VISN 10 Lieutenant Colonel Charles S. Kettles VA Medical Center; 2237: 506-22-3-1041-0022. (2) Description of Action: This acquisition is conducted under the authority of the Multiple-Award Schedule Program (41 U.S.C. 152(3) and 40 U.S.C. 501). This is a new requirement for a lease of Endoscopy/Gastroenterology scopes. Order against: FSS Contract Number: 36F79721D0168 Name of Proposed Contractor: Olympus America, Inc Street Address: 3500 Corporate Parkway PO Box 610 City, State, Zip: Center Valley, PA 18034 Phone: 484-896-5436 (3) Description of Supplies or Services: The estimated value of the proposed action is $1,236,745.04; No options are included. This is a lease of scopes and associated equipment necessary to conduct the services and procedures offered by Gastroenterology/Pulmonary services. The period of performance is 04/01/2022 to 03/31/2023. The list of scopes and associated equipment is given below: QTY Item # Description Seven (7) CV-190 CV-190 EVIS EXERA III VIDEO PROCESSOR Seven (7) CLV-190 CLV-190 EVIS EXERA III LIGHT SOURCE Eight (8) MAJ-1951 MAJ-1951 SDI CABLE 2.5M Seven (7) MAJ-1916 MAJ-1916 CV-190 INTERFACE CONVERT DEVICE Seven (7) MAJ-1918 MAJ-1918 REMOTE CABLE PERIPH DEVICE 1.8M Seven (7) MAJ-1430 MAJ-1430 VIDEOSCOPE CABLE EVIS EXERA II Fourteen (14) OEV-262H OEV-262H HIGH DEFINITION LED L CD MONITO Eight (8) OFP-2 OFP-2 FLUSHING PUMP Four (4) TJF-Q180V TJF-Q180V VIDEO DUODENOSCOPE NBI, GUIDEW Four (4) PCF-H190DL PCF-H190DL W/ SCOPEGUIDE Twenty (20) CF-HQ190L CF-HQ190L EVIS EXERA III HD COLONOSCOPE Twelve (12) GIF-HQ190 GIF-HQ190 EVIS EXERA III HDTV DF NBI One (1) GIF-XP190N GIF-XP190N ULTRA-SLIM SCOPE, 4-WAY, NBI Two (2) GIF-2TH180 GIF-2TH180 THERAPEUTIC 2-CHANNEL HDTV GA Three (3) BF-1TH190 BF-1TH190 EEIII HD THERAPEUTIC BRONCH W Two (2) BF-P190 BF-P190 EVIS EXERA III SLIM BRONCH 4.1MM Two (2) BF-XP190 BF-XP190 EVIS EXERA III ULTRA SLM BRNCH Three (3) MAJ-2056 MAJ-2056 DETACHABLE CABLE FOR EUS&EBUS S Three (3) BF-UC180F BF-UC180F ULTRASOUND BRONCHOSCOPE Four (4) GF-UE160-AL5 GF-UE160-AL5 Radial array EUS scope Four (4) GF-UCT180 GF-UCT180 Curvilinear EUS scope, 3.7 mm Three (3) UM-S20-17S UM-S20-17S ULTRASONIC PROBE Two (2) ALT-PRO ALT-PRO AUTOMATIC LEAK TESTER Two (2) MAJ-2020 MAJ-2020 ALT-PRO WALL MOUNT HOLDER Eight (8) MAJ-2009 MAJ-2009 ALT-PRO LEAK TEST AIR TUBE Twenty Five (25) MAJ-1546 MAJ-1546 ID CHIPS, STICKER & STICKER COV One (1) GIF-1TH190 GIF-1TH190 GIF-1TH190 EVIS EXERA III HIG One (1) K10022086 K10022086 WM-DP2 Standard Cart with CO2 Six (6) K10021769 K10021769 WM-NP2 GI CO2 STANDARD SET One (1) CF-Q160S CF-Q160S LARGE IMAGE VIDEO SIGMOIDOSCOPE One (1) GIF-XTQ160 GIF-XTQ160 6.0MM CHANNEL GASTROSCOPE One (1) EU-ME2 EU-ME2 EU-ME2 ULTRASOUND PROCESSOR One (1) MAJ-1720 MAJ-1720 Probe driver for all probes One (1) MAJ-1657 MAJ-1657 Keyboard Arm - Side Mounted WM- One (1) ARIETTA 850 Exclusive Olympus Config EUS Processor Seven (7) UCR UCR ENDOSCOPIC CO2 REGULATION UNIT Seven (7) MAJ-1985 MAJ-1985 CYLINDER HOSE WITH SWITCH OVER One (1) OL-0015-08 OL-0015-08 GCX TALL ROLLSTAND One (1) MAJ-1663 MAJ-1663 EUS Arm Mount Kit WM-P2 One (1) MAJ-683 MAJ-683 Probe driver arm Six (6) MAJ-1545 MAJ-1545 RFID SCOPE TAG AND 2 BANDS One (1) AR850 ELASTOGRAPHY AR850 ELASTOGRAPHY SOFTWARE (4) Identify the Authority and Supporting Rationale (see below and if applicable, a demonstration of the proposed contractor s unique qualifications to provide the required supply or service. FAR 8.405-6(a)(1)(A): An urgent and compelling need exists and following the ordering procedures would result in unacceptable delays: FAR 8.405-6(a)(1)(B): 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; Olympus is the manufacturer of this equipment and sole source. They have been contacted and confirmed there are no authorized distributors for leases. FAR 8.405-6(a)(1)(C): 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. FAR 8.405-6(b): Items peculiar to one manufacturer: A patent, copyright or proprietary data limits competition. The proprietary data is: 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. This contract request is for a lease of endoscopes and all the accessories needed to complete operations. The Lieutenant Colonel Charles S. Kettles VA Medical Center as well as all medical centers in VISN 10 currently use these scopes in Urology, Ear Nose Throat (ENT) and the Surgery Service. These scopes can be transferred to another medical center as circumstances arise. Consideration of a different vendor would result in many tertiary effects that would, at a minimum, create very high and unnecessary cost and, in the worst case, have a significant impact upon patient safety. The current estimate made by the Charles S. Kettles Medical Center to replace the entire suite of scopes, current networking, and interchangeable parts and systems would be about $9.3 million dollars. Also, the University of Michigan uses the same model of scope and would negatively impact patient safety by having doctors switching back and forth from different models and suites. Each scope requires a Light source and a processor which are interchangeable between all scopes and associated hardware. The Charles S. Kettles Medical Center uses proprietary Provation software that communicates with Olympus systems. Changing vendors would require changing the software. An entirely new system would result in the requirement for new supplies and consumables, none of which would be interchangeable with existing systems within medical center and would not include the cost for re-procuring, new software, and BioMed support. (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: This lease is not just needed for the standardization of Olympus equipment, but it must attach to and communicate with other existing equipment/software throughout the facility that is not a part of this lease. If the VAAAHS were to choose a different system, the cost of replacing all other Olympus equipment located within Gastroenterology/Endoscopy would not offset the cost associated with possible competition but would rather have a significant negative impact on patient care, patient waiting times, patient safety, total cost, burdensome training, and policy changes. National Acquisition Center (NAC) has already determined the price to be fair and reasonable. (6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted. Extensive Market research was conducted. Olympus America, Inc is the only contractor that can meet the government s requirement. VetBiz was searched for NAICS 339112 and 433 concerns were found. VetBiz was searched for the above NAICS and keyword Olympus for which one concern was found. The SBA s Dynamic Small Business Search (DSBS) was searched for the above NAICS and keyword Olympus and two concerns were found. These concerns were contacted as detailed in the market research report and their inability to meet the government s requirement. These emails are meta-tagged in the contract file as P02 s. A catalogue search of GSA/NAC, AbilityOne, Federal Prison Industries, NASA SEWP and the Strategic Acquisition Center (SAC) resulted in no additional sources. These results are meta-tagged as P02 s in the contract file. Olympus is the only contractor on schedule that can meet the government s need. Olympus was contacted directly concerning SDVOSB and VOSB distributors either on contract or open market. No additional concerns were found. The VA rule of two cannot be met. There are no small business concerns that can meet the government s requirement. (7) Any Other Facts Supporting the Justification: There are no additional facts supporting this justification. (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: Should a requisition of this nature recur, additional market research will be conducted to review what is available on the market at that point. (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.) //original signed// Erica Booth Program Analyst Lieutenant Colonel Charles S. Kettles VA Medical Center (10) Approvals in accordance with the VHAPM Part 806.3 OFOC SOP: a. Contracting Officer s Certification (required): I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. //original signed// Kellie J. Konopinski Contracting Officer, Supply Team 3 Network Contracting Office 10 b. One Level Above the Contracting Officer (Required over the SAT but not exceeding $750K): I certify the justification meets requirements for other than full and open competition. //original signed// Diana J. Pittman Branch Chief, Supply Team 3 Network Contracting Office 10 //original signed// Thomas P. Moore Division Chief, Supply/Prosthetics Network Contracting Office 10 //original signed// Marie Smith Director of Contracting Network Contracting Office 10 HIGHER LEVEL APPROVAL (Required for orders over $750,000): c. VHA RPO HCA Review and Approval (over $750,000 to $75 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. //original signed// Terry L. Spitzmiller Executive Director Regional Procurement Office Central (VHA)