You don't need BOTH columns for Pass and Fail, they're mutually exclusive.

=IF(AND(D2>=VLOOKUP(B2,Sheet2!A$2:E$29,2,0),D2<=VLOOKUP(B2,Sheet2!A$2:E$29,3,0),E2>=VLOOKUP(C2,Sheet2!A$2:E$29,4,0),E2<=VLOOKUP(C2,Sheet2!A$2:E$29,5,0)),"Pass","Fail")