65--Kavo Dental Equipment

Intent to Sole Source Service Area Office (SAO) East intends to award purchase request (PR) number 573-13-1-7201-0043 as a new firm fixed-price (FFP) contract with Kavo Dental Technologies, LLC ("Kavo"), 11727 Fruehauf Dr, Charlotte, NC 28241. The Malcom Randall VAMC requires the delivery and installation of the supplies necessary to upgrade several dental laboratory technician workstations that include benches, chairs, cupboards, etc., and the dental equipment and supplies necessary for denture manufacturing, etc., at those workstations. The workstation components themselves represent approximately 85% of the total cost, while the installation fee represents only 15% of the total cost. The new workstation components must interface with the existing workstation components presently installed. Kavo custom-manufactured the existing workstation components over 30 years ago, and Kavo no longer maintains or repairs those components. Only Kavo's current-generation workstation components (branded "MASTERspace") can interface with this legacy equipment. Therefore, the Malcom Randall VAMC cannot repair the existing workstation components, nor replace them with other brand-name items, but may replace them with new Kavo workstation components. The government cannot make any effort to solicit offers from any other sources. Market research determined that-while small businesses provide Kavo brand-name items (e.g., standard dental handpieces) under their Federal Supply Schedule (FSS) contract-the Malcom Randall VAMC can purchase the custom-manufactured Kavo workstation components they require only from Kavo. Kavo themselves confirmed this fact. FAR Part 8 requires the VA to acquire materials from FSS contract holders when available. Kavo holds a VA FSS 65 II C ("Dental Equipment and Supplies") contract. Also, more than two small businesses provide Kavo brand-name items under their FSS contract. However, the Malcom Randall VAMC requires non-schedule, custom-manufactured workstation components, and can only purchase them directly from Kavo. Upgrading the laboratory by replacing aging workstation components presents a far more cost­ effective solution than constructing an entirely new laboratory. At this time, the Malcom Randall VAMC does not have the funds to replace all of the workstation components, and must replace what they can- in this case, the aging workstation components. The Malcom Randall VAMC will continue to make efforts in subsequent acquisitions to confirm that Kavo will continue to provide the required items at fair and reasonable prices. If subsequent price estimates do not demonstrate fair and reasonable prices, the Malcom Randall VAMC will consider competitively constructing an entirely new laboratory. Also, if funds to construct and entirely new laboratory become available, the Malcom Randall VAMC will consider competitively constructing an entirely new laboratory.