Request for Sole Source Justification Format >SAT
Attachment 1: 36C24526AP1403 Full Service maintenance and repair of leased scopes
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VHAPG Part 806.3 OFOC
Revision: 04 Effective Date: 12/15/25
Acquisition ID#: 36C24526AP1403
DEPARTMENT OF VETERANS AFFAIRS
Justification and Approval (J&A) For
Other Than Full and Open Competition (>SAT)
Acquisition Plan Action ID: 36C24526AP1403
Contracting Activity:
Department of Veterans Affairs/Veterans Health Administration: Baltimore VA Medical Center, 10 North Green St, Baltimore, MD 21201. Network Contracting Office: VA Capitol Health Care Network 5 (NC0 5), 849 International Drive, Suite 275 Linthicum, MD. The purchase request number is 512-
26-3-046-0011.
Nature and/or Description of the Action Being Processed: This justification is to add open market full service maintenance and repair for the Gastroenterology (GI) and pulmonary scopes from an unrestricted GSA ebuy RFQ posting response. The action will be a new contract under FAR 8 and open market.
Description of Supplies/Services Required to Meet the Agency s Needs:
Project: Preventative Maintenance and Full Service Repair of Leased GI and Pulmonary Scopes Facility: Department of Veterans Affairs, VISN 05 Baltimore VA Medical Center
Solicitation Method: Unrestricted GSA Federal Supply Schedule (FSS) RFQ, incorporating Open Market items
Awardee: Olympus America Inc. (Large Business) GSA Schedule Contract: 36F79721D0168
Task Order Number: 36C24526F0235
Requirement Overview
Baltimore VAMC has an approved and funded requirement for the preventative maintenance and full service repair of leased GI and pulmonary scopes. This equipment supports Veteran patient procedures, contributing to early detection and treatment of malignant colon and pulmonary lesions, positively impacting Veteran health outcomes.
Competitive Solicitation / Market Research
The requirement was solicited as an unrestricted RFQ on the GSA eBuy platform under the Federal Supply Schedule to support the lease of inherited GI scopes and associated maintenance/repair. Despite unrestricted ebuy RFQ posting and previous RFI reponses, Olympus America Inc., the original equipment manufacturer, was the only vendor responsive able to offer the required maintenance and repair services for their proprietary leased scopes; no other response or quote solutions were received.
Use of Open Market Items
Some components of the required maintenance and repair services are not included on the vendor s Federal Supply Schedule (FSS) contract. Per FAR 8 the contracting officer may, for administrative convenience, add open market items to a FSS task order, provided:
All applicable acquisition regulations (e.g., publicizing, competition, pricing, etc.) have been followed for the open market item(s); and
Open market items are clearly identified and priced separately from the FSS items in the contract documentation.
Contract Structure & Anticipated Value
This requirement will be fulfilled via a new firm-fixed-price task order using FAR Part 8 and open market procedures, and will provide open market service coverage for a 12-month base period with up to four 12-month option periods (as authorized under clause 52.217-9 and 52.217-8 for potential extensions).
Estimated Open Market Service Cost:
Base Year (Jun 1, 2026 May 31, 2027): $183,000
Option Year 1 (Jun 1, 2027 May 31, 2028): $183,000
Option Year 2 (Jun 1, 2028 May 31, 2029): $183,000
Option Year 3 (Jun 1, 2029 May 31, 2030): $183,000
Option Year 4 (Jun 1, 2030 May 31, 2031): $183,000 Total Potential Open Market Value: $911,000
Total Contract Value FSS and Open market Combined is $ 2,417,770.80.
Conclusion
This acquisition strategy maximizes administrative efficiency and ensures compliance with FAR requirements while securing uninterrupted maintenance and repair of mission-essential medical equipment. This procurement supports both the operational readiness of the Baltimore VAMC and the health of the Veterans it serves.This open market equipment portion is preventative maintenance and full service repair of leased scopes RFQ response that are a part of leased scope unrestricted GSA RFQ from a federal supply schedule RFQ order under GSA schedule contract number 36F79721D0168 36C24526F0235 to OLYMPUS AMERICA INC a large business. The contracting officer is using their authority granted under FAR 8 for administrative convenience contracting officer may add items not on the Federal Supply Schedule.
Statutory Authority Permitting Restricted Competition: Competition is restricted on this procurement for the reason below:
(X ) Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements per 41 USC §3304(a)(1) as implemented by RFO 6.103-1;
Demonstration that the Contractor s Unique Qualifications or Nature of the Acquisition Requires the Use of the Authority Cited Above (applicability of authority):
a.Only One Responsible Source the Olympus America Inc. is the only responsible source capable of providing the highly specialized maintenance and repair services required for their leased GI and pulmonary scope equipment. Failure to provide OEM-authorized service would jeopardize equipment operation, risking substantial VA investment loss, patient procedure cancellations, and
negative impacts on Veterans care and health outcomes. The manufacturer and lessor does not authorize any other vendors to maintain, repair, or service their leased equipment.
The Department of Veterans Affairs (VA) requires the maintenance and repair of new leased scope equipment. These highly specialized services can only be performed by the original equipment manufacturer (OEM). No other vendors possess the proprietary knowledge, authorization, specialized tools, or access to OEM parts necessary to maintenance and service the equipment in a manner that meets manufacturer standards and VA requirements.
Failure to properly maintain these leased scopes would expose the VA to significant financial risk, including:
Equipment loss that would cost the VA thousands of dollars,
Canceled patient procedures, resulting in scheduling backlogs and delays, and
Negative impacts to Veteran patient care and health outcomes, including potential delays in diagnosis or treatment.
Accordingly, award to any other source is not possible without significant risk and adverse impact to
VA s mission and patient care.
Description of Efforts Made to ensure that offers are solicited from as many potential sources as deemed practicable:
Sources Sought Synopsis: under NAICS 532490 identified 10,376 Small business includes all categories and 2,103 SDVOSB were identified. None responded interested to Ebuy RFI posted 15 days in Ebuy.
Ebuy RFQ A unrestricted posted in Ebuy 20 days resulted in eight no quote and received one GSA schedule quote. A Request for Quote (RFQ) was posted as an unrestricted solicitation on GSA eBuy to allow for full and open competition. No interested vendors, other than the OEM, submitted a response or quote solution. This confirms the OEM as the only responsible source capable of fulfilling the VA's requirement for the maintenance and repair of these scopes.
Determination by the CO that the Anticipated Cost to the Government will be Fair and Reasonable: Competitive quotations were relied on to find the price reasonable. Since there is only one source the contracting officer used the previous prices, existing prices on other contracts ,and comparison of the proposed price with prices found reasonable on previous purchases, and market research of historical rates with other VA Hospitals, that we will pay are fair and reasonable. The open market sole source portion is based on availability and ability to meet qualified service requirement.
Description of the Market Research Conducted and the Results, or a Statement of the Reasons Market Research Was Not Conducted:
In accordance with FAR Part 10, was conducted by Ebuy RFI and RFQ of the proposed acquisition, advising industry of the pending acquisition and soliciting inquiries from interested parties.
Market research was conducted by reviewing past procurements 36C24521C0084, 36F79721D0168 , searching Veteran Small Business Certification (VetCert), FPDS-NG, SBA-Dynamic, Adds UP, NAC, ECMS, GSA Advantage, and the internet.
A search on the Veteran Small Business Certification (VetCert) on the SBA website showed that there were 82 vendors under the NAICS code 532490 identified five SDVOSB, emailed three SDVOSB none offered small business products. Further research did not find any VOSB or SDVOSB companies that could provide the full service maintenance and repair of Olympus leased GI scopes on FSS or in the open market that will meet the hospital s requirement. None respond to the unrestricted Ebuy RFQ posted in Ebuy.
Market research has been conducted on GSA Schedule and Open Market and we have found one provider that can provide open market service, maintenance, and repairs on the GI scope leased equipment: Olympus offers the service on open market.
There are no SDVOSBs, VOSBs, 8(a), HUBZone or other socioeconomic categories that are authorized to repair, service, maintenance, or lease Olympus equipment.
Only One Responsible Source exists and following the ordering procedures would result in unacceptable delays that would cause serious risks to veterans, their families, and staff health and safety at the hospital. There are no SDVOSBs, VOSBs, 8(a), HUBZone or other socioeconomic that can provide full service maintenance and repair of leased on Olympus scopes; however, there are many that have the same NIACS codes, but none are authorized to provide full service maintenance and repair within the Government s timeline.
Any Other Facts Supporting the Use of Other than Full and Open Competition: None.
Listing of Sources that Expressed, in Writing, an Interest in the Acquisition: Provide list of sources that expressed interest in the Acquisition; none responded interested to unrestricted RFQ posted in Ebuy.
A Statement of the Actions, if any, the Agency May Take to Remove or Overcome any Barriers to Competition before Making subsequent acquisitions for the supplies or services required:
Only One Responsible Source exists and following the ordering procedures would result in unacceptable delays that would cause serious risks to veterans, their families, and staff health and safety at the hospital. There are no SDVOSBs, VOSBs, 8(a), HUBZone or other socioeconomic that can provide full service maintenance and repair on the leased GI scopes Olympus scopes; however, there are many that have the same NIACS codes, but none are authorized full service maintenance and repair within the Government s leased GI scoped equipment.