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FBO DAILY ISSUE OF OCTOBER 29, 2010 FBO #3261
DOCUMENT

65 -- Lease of Medical Scopes, Olympus - Justification and Approval (J&A)

Notice Date

10/27/2010
 

Notice Type

Justification and Approval (J&A)
 

NAICS

339112 — Surgical and Medical Instrument Manufacturing
 

Contracting Office

Department of Veterans Affairs;VISN 22 Network Contracting Activity;Building 149;5901 E. 7th Street;Long Beach CA 90822
 

ZIP Code

90822
 

Archive Date

11/28/2010
 

Point of Contact

Chakka, David
 

E-Mail Address

chandra.chakka@va.gov<br
 

Small Business Set-Aside

N/A
 

Award Number

VA262-BP-0332
 

Award Date

9/29/2010
 

Description

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 lease Medical Scopes and Related Equipment signed by the Medical Service at VA Loma Linda Healthcare System. In accordance with FAR 8.405-6(b)(1), FAR 8.402(f), and FAR 6.302-1 we seek to use limited sources on GSA and sole source open market items to create a Blanket Purchase Agreement (BPA). 2. Nature of Acquisition Being Approved: Negotiation shall be conducted to procure a lease with Olympus American Incorporated. Circumstances require that this be done without the benefit of full and open competition. The proposed contract vehicle shall be a BPA based on Olympus American's current mandatory FSS schedule with a period of up to 3 years. FSS: $1,094,919.87 and Open Market: $815,837.50; total: $1,910,757.37. 3. Description of Requirement: VA Loma Linda Healthcare System requires the leased procurement of Olympus American Inc's medical scopes and related equipment. The majority of the procurement can be purchased through the mandatory FSS schedule. Though, approximately forty percent of the requirement shall require an open market purchase. Olympus is the only known source that has a lease option on the Federal Supply Schedule for scopes and related equipment. 4. Statutory Authority Permitting Other Than Full and Open Competition: This request is pursuant to the authority of FAR Part 8.405-6(b)1, 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 8.405-6(b)1, the use of limited sources procedures for FSS schedules may be used when only one source is capable of responding due to the unique or specialized nature of the work. The VA Loma Linda requires the leasing of numerous medical scopes and related equipment for the gastroenterology department. In the past, VA Loma Linda had simply purchased this equipment but due to standardization and technology demands, the VA Loma Linda must now lease their equipment. 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). This memo states that the Integrated Product Team has deemed leasing to be the new level of standardization as it presents the VA the ability to standardize with greater efficiency, be flexible with new technology and accurately predict future maintenance costs. Currently, Olympus is the only company that has an FSS schedule that allows for leasing of GI medical Scopes. Pentax, its main competitor plans to bring leasing options to its FSS schedule, though it is unclear when this will occur or whether or not it will be successful. Thus Olympus is the only source for this acquisition. B. 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. In the interest of convenience these items should be added to this BPA pursuant to 8.402(f) and for the reasons stated below. C. 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 service that is unique and available from only one responsible source. Many of the required scopes may only be purchased through open market procedures. There are competing companies that can provide other scopes, but due to standardization requirements referenced above, only Olympus scopes can be purchased due to their leasing options. The requirement shall be posted as other than full and open competition which will not allow other contractors to reply to the solicitation. Significant market research has shown that only Olympus is able to provide all of these scopes to the Government with required leasing options. Since Olympus is the only contractor to provide leasing for these scopes, they offer a truly unique product as the sole responsible source. Even though in the future other companies may create leasing options within their FSS schedules, the Government can only evaluate what is currently present. Thus the add-on open market medical scopes should be added to this BPA under other than full and open competition procedures in conjunction with 8.402(f). 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. 8. Results of Market Survey: In accordance with FAR Part 10 Market Research, various VA and Federal Supply Contracts were reviewed. GSA and the internet were also researched. Olympus American Corporation was the only one found to have a Federal Supply Contract in place for this type of leased scope equipment. Furthermore, VA Loma Linda must standardize their equipment according to VHA Directive 2009-004 and VHA Handbook 1761.1. 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: Alternate sources have been given consideration. This procurement involves changing technology in scope procurements and maintenance. Future requirements for this service cannot be accurately predicated at this time. In addition, this procurement shall be in the form of a Blanket Purchase Agreement, should a future contractor pose better pricing and exceptional lease terms, the Government may always opt out the proposed BPA and create a new BPA with other contractors to fulfill this need. 12. I hereby certify that the above is accurate and complete to the best of my knowledge and belief. David Chakka ____9/8/2010______ Contracting Officer(Date) Recommend Approval/Disapproval Aaron Villalpando, Acting Network Contract manager Recommend Approval/Disapproval Delia Adams, Director SAO West Approved/Disapproved Joseph A. Williams, Jr., RN, BSN, MPM, VHA Head of Contracting Activity
 

Web Link

FBO.gov Permalink
(https://www.fbo.gov/notices/ae671cab1434638c2eb960f038fed43e)
 

Document(s)

Justification and Approval (J&A)
 

File Name: VA262-BP-0332 VA262-BP-0332.docx (https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=160660&FileName=VA262-BP-0332-000.docx)

Link: https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=160660&FileName=VA262-BP-0332-000.docx

 

File Name: VA262-BP-0332 P03 SOLE SOURCE OLYMPUS JUSTIFICATION DC APPROVED.PDF (https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=160661&FileName=VA262-BP-0332-001.PDF)

Link: https://www.vendorportal.ecms.va.gov/FBODocumentServer/DocumentServer.aspx?DocumentId=160661&FileName=VA262-BP-0332-001.PDF

 

Note: If links are broken, refer to Point of Contact above or contact the FBO Help Desk at 877-472-3779.
 

Record

SN02317338-W 20101029/101027233835-ae671cab1434638c2eb960f038fed43e (fbodaily.com)
 

Source

FedBizOpps Link to This Notice
(may not be valid after Archive Date)

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