Description
The Veterans Health Care System of the Ozarks intends to award a Sole Source contract for the maintenance of Olympus Scopes for the duration of the lease. Due to Proprietary rights on the equipment the award is being made under FAR 6.302-1 Only One Responsible Source. The contract will be for the maintenance, repair or replacement of the newly leased surgical scopes from Olympus, who ownes proprietary rights with the instruments that affects the warranty as only Olympus is authorized to work on these items. Department of Veterans Affairs VISN 16 Justification and Approval 1. Identification of Agency and Contracting Activity Veteran's Health Care System of the Ozarks Purchasing and Contracting (90C) 1100 N. College Ave. Fayetteville, AR 72703 2. Nature/Description of Action The Veterans Health Care System of the Ozarks plans to award a Sole Source contract for the repair and maintenance of 35 medical surgical scopes. 3. Description of Supplies/Services Repair and maintenance of 35 medical surgical scopes at the VHSO in Fayetteville, AR. Estimated Value: $268,244.66 4. Identification of Statutory Authority (X) 41 U.S.C. 253 (c) (1) Only One Responsible Source ( ) 41 U.S.C. 253 (c) (2) Unusual and Compelling Urgency ( ) 41 U.S.C. 253 (c) (3) Industrial, Mobilization, Engineering, Developmental, or Research Capability or Expert Services ( ) 41 U.S.C. 253 (c) (4) International Agreement ( ) 41 U.S.C. 253 (c) (5) Authorized or Required by Statute ( ) 41 U.S.C. 253 (c) (6) National Security ( ) 41 U.S.C. 253 (c) (7) Public Interest 5. Rationale in support of citation in Paragraph 4 above: a. Description of contractor and or of acquisition action that demonstrates that the proposed contractor's unique qualifications or the nature of the acquisition requires use of the authority cited: The surgical scopes on station are Olympus scopes that contain proprietary rights on many parts that only the manufacturer, Olympus, can sell. (Please see the attached Letter from Olympus explaining the proprietary rights on these scope parts.) b. Efforts made to ensure that offers are solicited from as many potential sources as practical: Several contractors were contacted in order to identify sources that would be able to handle the repairs but all avenues came back to Olympus's proprietary rights on parts for their scopes. c. If the Sole Source Exception (c) (1) was chosen, state the date of synopsis or the basis for waivers. A synopsis was not completed as Surgery has contacted several companies to increase competition but to no avail. d. If the Urgency Exception was chosen and this J&A was prepared after the procurement action was carried out, state the reasons. The above acquisition will be negotiated with: Olympus 3500 CORPORATE PARKWAY PO BOX 610 Center Valley, PA 18034-0610 6. Determination of a Fair and Reasonable Cost The Contracting Officer determines that the anticipated cost to the government will be fair and reasonable because a complete analysis of all costs or a price analysis will be fully utilized prior to award of the contract. 7. Description of market survey and any interested sources. If no market survey was conducted, state the reason. A market survey was not conducted but several compaies were contacted regarding the repair of surgical scope. We will also seek pricing throughout the VISN to ensure the price is Fair and Reasonable. 8. Additional Support for the use of other than full and open competition: a. Explanation of why technical data, specifications, engineering descriptions, statement of work or purchase descriptions suitable for full open and competition have not been developed or are not available: The surgical scopes on station are Olympus scopes that contain proprietary rights on many parts that only the manufacturer, Olympus, can sell. (Please see the attached Letter from Olympus explaining the proprietary rights on these scope parts.) b. When the sole source exception is used in the case of a follow-on acquisition, provide an estimate of the cost that would be duplicated and describe how the estimate was derived if the contract is awarded to other than the incumbent: N/A c. When the urgency exception is cited provide the data, estimate of cost or other rationale as to the extent of harm to the government if the contract is not awarded expediently: N/A 9. Sources expressing an interest: Olympus 3500 CORPORATE PARKWAY PO BOX 610 Center Valley, PA 18034-0610 10. Actions, if any, being taken to remove barriers to full and open competition: No actions can be taken in this situation as no other company is qualified to make the necessary repairs to the surgical scopes because of the proprietary rights Olympus has on these new scopes. 11. Delivery Requirements: 12. Acquisition Plan: An Acquisition Plan ( ) is (X) is not required for this acquisition. 13. IT Approval: IT Approval ( ) is (X) is not required for this acquisition. If it is, include appropriate approvals. Contracting Officers Certification The Contracting Officer has determined that the justification is accurate and complete to the best of the Contracting Officer's knowledge and belief.