SPECIAL NOTICE
W -- Base-Bronchoscope Equipment Lease and Service (VA-23-00080848)
- Notice Date
- 7/28/2023 6:08:47 AM
- Notice Type
- Special Notice
- NAICS
- 339112
— Surgical and Medical Instrument Manufacturing
- Contracting Office
- 242-NETWORK CONTRACT OFFICE 02 (36C242) ALBANY NY 12208 USA
- ZIP Code
- 12208
- Solicitation Number
- 36C24223Q0962
- Archive Date
- 09/26/2023
- Point of Contact
- Michelle Harsch, Contracting Officer, Phone: 716-862-7373
- E-Mail Address
-
Michelle.Harsch@va.gov
(Michelle.Harsch@va.gov)
- Awardee
- null
- Description
- VHAPG Part 808.405-6 Limiting Sources Attachment 2: Request for Limited Sources Justification Format >SAT Effective Date: 02/01/2022 Page 1 of 4 LIMITED SOURCES JUSTIFICATION ORDER >SAT FAR PART 8.405-6 Acquisition Plan Action ID: 36C242-23-AP-2637 (1) Contracting Activity: Department of Veterans Affairs, Network/Program Contracting Office 2, located at Suite 3500, 2875 Union Road, Cheektowaga, NY 14227, in support of VISN 2 VA Health Care System at Syracuse VAMC, 800 Irving Avenue, Syracuse, NY 13210. (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 requirement involves the trade-in and renewal of Lease Order 36C24220P1048 for trade-in replacement of various newer Evis Exera bronchoscopes and an ultrasound processor as presented in Olympus Lease Quote Q-01440139 dated May 10, 2023 under Federal Supply Schedule (FSS) 36F79721D0168. The lease term proposed for the equipment lease and service agreement consists of a base period plus two (2) option periods for a total term of 36 months. Order against: FSS Contract Number: 36F79721D0168 Name of Proposed Contractor: Olympus America, Inc. Street Address: 3500 Corporate Parkway City, State, Zip: Center Valley, PA 18034-0610 Phone: (484) 896-5000 (3) Description of Supplies or Services: The estimated value of the proposed action is $172,383.30 for the base period plus two (2) option periods for a total lease value of $517,150.08. This requirement is for the lease of bronchoscopes, an ultrasound processor and supporting operational equipment to be located within the Pulmonary department at the Syracuse VA Medical Center. The VA has determined that the scopes should be leased in order to have the flexibility to trade them in at the end of the performance period and lease the newest model(s) on the market at that time. Leasing newer-modeled bronchoscopes ensures that the standard of care is maintained consistently, efficiently and effectively by managing lifecycle maintenance costs and simplifying user training due to product familiarity and consistency. This lease agreement will allow the Syracuse VAMC to continue providing state of the art diagnostic and treatment services and minimize patient risk in addition to maintaining the highest levels of scope availability and operational readiness. (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; These are upgraded bronchoscopes designed to ensure the highest quality of care for the Veterans served by the Syracuse VA Medical Center. The Syracuse VA Medical Center is trading in the Evis Exera II 180 and 190 endoscopes for newer Evis Exera III 190 endoscopes and a newer ultrasound (EUS) processor to avoid poor quality images that result is repeat procedures and the possibility of missing lesions. The marketplace for bronchoscopes is dominated by two manufacturers Olympus and Pentax both of which are large businesses with mandatory Schedule 65IIA FSS contract for leasing equipment. VISN 2 Leadership, in accordance with the VHA National Standardization of scopes, made the decision to standardize scopes in each of the three, network tertiary care facilities (Syracuse, Albany, and WNY). The decision to standardize around the Olympus scopes was based on the following: 1.) The preponderance of scopes in use at that time at the Syracuse VAMC were made by Olympus; 2.) A significant portion of those in use were within their useful life; and 3.) Continued utilization of the scopes that were predominantly in use maintained the standard of care, minimized patient risk associated with large scale changes in clinical practices associated with those scopes, and reduced training and transition cost associated with use of the same manufacturer. While scopes from both manufacturers have comparable functional characteristics, clinician familiarity with a given scope dramatically influences the quality of the procedure, its outcome, and the patient experience. Sterile processing equipment and techniques are in place at the Syracuse VAMC to service Olympus bronchoscopes. Standardization to one manufacturer will enhance the safety and quality of patient care by reducing the variability in the number of different processes required for scope setup and reprocessing, thus reducing the potential for error. For these reasons, maintaining Olympus bronchoscopes in Syracuse as the sole -source supplier provides the best value to the VA and ensures optimal patient outcomes. 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. (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: Syracuse VAMC has standardized their bronchoscopes and used Olympus exclusively since at least Fiscal Year 2012. To use a supplier other than Olympus would cause the Syracuse VAMC to incur significant cost as well as risk to patient care. The prices offered on Olympus s FSS contract have been determined to be fair and reasonable at the base contract level . The Contracting Officer was able to secure a 25% discount off the list price of the included scopes. For these reasons, as well as the reasons in (4) above, Olympus offers the best value to the government under FSS Schedule 65IIA Contract 36F79721D0168. (6) Describe the Market Research Conducted among schedule holders and the results or a statement of the reason market research was not conducted. The product quality, reliability and clinical capability needed to deliver endoscopic procedures can only be provided by one of the two major endoscope manufacturers. Syracuse VAMC Pulmonary providers have met with representative from the Pentax Corporation in the past who brought in their products for demonstration. The Pulmonary providers were not pleased with the way this equipment functioned. Market Research was conducted. A search of VIP and SBA s DSBS returned no results. A no tice of intent to sole source will be posted to FBO, and Olympus provided a statement to the effect of, while they do have small business authorized distributors, they do not have authorized distributors capable of providing a lease. Federal Supply Schedule 65IIA, SIN A -9 was reviewed. While the schedule s contractor listing for SIN A -9 presently contains numerous contractors (several of which are certified as small business concerns), none of the small business concerns sell bronchoscopes that meet the medical center s needs, nor are any authorized dealers for Olympus America, Inc. A new vendor and scopes would result in the need for new storage cabinets and would possibly require additional construction to ensure new cabinets would function properly. For these reasons, and for the reasons outlined above, Olympus is the only viable, cost-effective sources for this procurement. (7) Any Other Facts Supporting the Justification: The medical center has worked closely with the VISN 2 Network Office to standardize the make and model of bronchoscopes utilized in order to reduce training costs and lifecycle maintenance costs. (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: Work with the VA National Acquisition Center (NAC) to identify other manufacturers that can offer scope products comparable to Olympus. Explore sub-contracting maintenance services or establishing a dealer program with small business concerns. (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. _____ SIGNATURE DATE Joan M. Mitchell, MD Chief of Medicine NAME TITLE Syracuse VAMC FACILITY (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. _____ CONTRACTING OFFICER DATE Michelle Harsch VISN 2 NCO NAME AND TITLE FACILITY/NCO/PCO 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. _____ SIGNATURE DATE Joseph Cellino, Branch Chief Services Team I VISN 2 NCO NAME AND TITLE NCO/PCO XX
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