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Chapter VI: Other Than Full and Open Competition (OFOC) SOP Attachment 2: Request for Limited Sources Justification Format >$150K OFOC SOP Revision 05 Page 3 of 3 Original Date: 03/22/11 Revision 05 Date: 05/02/2016 LIMITED SOURCES JUSTIFICATION ORDER >$150,000 FAR PART 8.405-6 Acquisition Plan Action ID: VA259-17-AP-4942 This acquisition is conducted under the authority of the Multiple Award Schedule Program. The material or service listed in par. 3 below is sole source, therefore, consideration of the number of contractors required by FAR Subpart 8.4 Federal Supply Schedules, is precluded for the reasons indicated below. Restricted to the following source: Olympus America Inc.: There is not another company that can provide Olympus, FDA approved, equipment and a Service Agreement required by the OKC VAHCS. Manufacturer/Contractor: Olympus America Inc. Manufacturer/Contractor POC & phone number: Matthew Myers 405-315-3017 Mfgr/Contractor Address: 3500 Corporate Parkway, Center Valley, PA 18034-0610 Dealer/Rep address/phone number: N/A The requested material or service represents the minimum requirements of the Government. (1) AGENCY AND CONTRACTING ACTIVITY: Department of Veterans Affairs Rocky Mountain Acquisition Center____ 4100 Mississippi Ave_______________ Denver, CO 80220_________________ VISN: 19 (2) NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED: Gastrointestinal (GI) scopes and an ultrasound machine are being leased from Olympus to replace the outdated machine and scopes currently used by the Oklahoma VAMC. A service agreement will be included in the contract to cover the leased scopes and various Olympus scopes owned by the Oklahoma VAMC as they do not currently have a service agreement in their leases. (a) A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY S NEED: This is an all inclusive award for leased equipment and VA owned equipment. Leased Equipment: One new ultrasound and Permier PROSOUND processor - $REDACTED, 2 new scopes with 360 degree scanning scopes - $ REDACTED, 2 new scopes with curved linear array transducer with enhanced governance of the scope and maneuverability - $ REDACTED, 4 duodenoscopes, - $ REDACTED, 10 colonovidescopes with responsive insertion technology (RIT) - $ REDACTED, 4 colonovideoscope with wide view to provide greater detail during an examinations - $ REDACTED, and 14 gastroscope that are able to be used to perform upper and intra-operative endoscopy - $ REDACTED. Owned Equipment: 21 Endoscopes The lease will be for the base year plus four Option Years (OY). The new leased scopes and existing, owned 21 Olympus endoscopes will be on the same Maintenance Agreement for continuity and to allow for uninterrupted patient care and quick turnaround of damaged scopes. (b) ESTIMATED DOLLAR VALUE: $REDACTED (c) REQUIRED DELIVERY DATE: Base: 7/1/2017-6/30/2018, OY1: 7/1/2018-6/30/2019, OY2: 7/1/2019-6/30/2020, OY3: 7/1/2020-6/30/2021, OY4: 7/1/2021-6/30/2022 (4) IDENTIFICATION OF THE JUSTIFICATION RATIONALE (SEE FAR 8.405-6), AND IF APPLICABLE, A DEMONSTRATION OF THE PROPOSED CONTRACTOR S UNIQUE QUALIFICATIONS TO PROVIDE THE REQUIRED SUPPLY OR SERVICE. Specific characteristics of the material or service that limit the availability to a sole source (unique features, function of the item, etc.). Describe in detail why only this suggested source can furnish the requirements to the exclusion of other sources. Additional Expense: Currently, the Physicians, Biomedical Employees, and Sterile Processing Employees are trained how to use the equipment, clean, and fix (on a limited basis) the Olympus Scopes and Ultrasound. If another company were chosen the Physicians, Biomedical Employees, and Sterile Processing Employees would require new training on how to operate, clean, and repair the equipment. The extra trainings would delay patient care. To avoid patient access issues patients would need to be fee d out. This would increase the Hospitals patient care costs and decrease the work force in Sterile Processing and Biomedical. Currently, Olympus is offering a trade in value for the current Olympus scopes and Ultrasound. This adds a value of $REDACTED which reduces the overall lease of the scopes from $REDACTED to $REDACTED. The Oklahoma City VAMC currently owns the sterilization specific to the Olympus scopes. Procuring another brand would require the purchase of additional sterilization equipment. Proprietary information: Olympus has developed proprietary information on the GI scopes, increasing physician diagnostic accuracy and improving the quality of patient care. These proprietary characteristics include; variable stiffness, responsive insertion technology, passive bending, best commercially available image, narrow band imaging, waterproof one-touch connector, 170 FOV, rotatable, near focus, high force transmission, and enhanced buffering technology. Extenuating circumstances: A Service Agreement will be included in this lease for the items on the lease and the Olympus scopes the OKC VAHCS already owns. Olympus is reverting the non-traded GI Scopes to OEM standards free of charge. This will save the OKC VAHCS approximately $REDACTED. Therefore, the Service Agreement for all the scopes can only be set up through Olympus. (5) DESCRIBE WHY YOU BELIEVE THE ORDER REPRESENTS THE BEST VALUE CONSISTENT WITH FAR 8.4 TO AID THE CONTRACTING OFFICER IN MAKING THIS BEST VALUE DETERMINATION: The order represents the best value because the scopes have been nationally negotiated and the company is offering trade in value for current scopes. Having all scopes owned by the Oklahoma VAMC on one service agreement will save administrative costs because they currently have multiple separate contracts to cover maintenance and scope leases. The anticipated costs will be considered fair and reasonable by the Contracting Officer. (6) DESCRIBE THE MARKET RESEARCH CONDUCTED AMONG SCHEDULE HOLDERS AND THE RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED: Market research was conducted using Olympus FSS Contract, internet sources, and search for any distributors. Olympus does not allow distributors for leased items. The market research found an Olympus contract V797P-2065D. (7) ANY OTHER FACTS SUPPORTING THE JUSTIFICATION: Although Alliant is an SDVOSB distributor of Olympus, they are not authorized by Olympus to manage leases or maintenance agreements. (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: The current scopes owned by the VA are Olympus and Olympus will refurbish them for free. The scopes requested for lease are solely manufactured by Olympus and no distributors can provide the lease or maintenance. (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.) REDACTED (10) APPROVALS IN ACCORDANCE WITH THE VHAPM, Volume 6, Chapter VI: 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. REDACTED b. Director of Contracting/DESIGNEE: I certify that the foregoing justification is accurate and complete to the best of my knowledge and belief. REDACTED HIGHER LEVEL APPROVAL (Required For orders over $700,000): c. VHA SAO HCA REVIEW AND APPROVAL (over $700,000 to $13.5 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 REDACTED