SOW Appendix D Performance Requirements Summary.pdf

MSPV Gen-Z V1 SOW

Appendix D: Performance Requirements Summary

Required Services (Tasks)

Performance Standards Acceptable Quality Levels Methods of Surveillance

Incentive (Positive and/or

Negative;

Impact on Contractor)

Core Order Accuracy:

Section IV.S.1.

Receipt of the exact medical/surgical supply, at the right price, in the right place, at the right time, in the specified Unit of Measure, in the specified condition and correct quantity order.

99% of total of all orders received

Periodic Inspection – Monthly Review of Monthly Metrics Reports, IFCAP receiving reports, EDI Data, and COR Quarterly Reports

Order Accuracy = Accurate Core List Line Items Received Total Core List Line Items Received

Failure on the PV's part to meet the Acceptable Quality Levels for Core Order Accuracy will be reflected in the Contractor Performance Assessment Reporting System (CPARS) report.

Additionally, failure to meet the Acceptable Quality Levels may result in adjustments made to the payment of fees.

Special and Non-Core Order Accuracy:

Section IV.S.2.

Receipt of the exact medical/surgical supply, at the right price, in the right place, in the specified Unit of Measure, in the specified condition and correct quantity order.

99% of total of all orders received

Periodic Inspection - Monthly Review of Monthly Metrics Reports, IFCAP receiving reports, EDI Data, and COR Quarterly Reports

Order Accuracy = Accurate Non-Core List Line Items Received Total Core List Line Items Received

Failure on the PV's part to meet the Acceptable Quality Levels for Special and Non-Core Order Accuracy will be reflected in the Contractor Performance Assessment Reporting System (CPARS) report.

Additionally, failure to meet the Acceptable Quality

Levels may result in adjustments made to the payment of fees.

Unadjusted Fill Rates:

Section IV.S.3.

PV shall be responsible for meeting a program unadjusted fill-rate metric.

The unadjusted fill-rate metric used shall be calculated using an unadjusted methodology (i.e., any medical/surgical supply not filled at the time of request without exception).

Unadjusted fill rate is the raw fill rate at the line-item level that are for Core List supplies only. Manufacturer backorders and demand spikes are not to be excluded from the calculation;

customer caused rejections will be excluded. All cancelled or “killed”

Unadjusted Fill Rate greater than or equal to 95%

Periodic Inspection - Monthly Review of Monthly Metrics Reports, EDI Data, and COR Quarterly Reports

Fill Rate =

Core List Items Shipped in Full (EDI 856) Core List Items Ordered (EDI 850)

Failure on the PV's part to meet the Acceptable Quality Levels for Unadjusted Fill Rates will be reflected in the Contractor Performance Assessment Reporting System (CPARS) report.

Additionally, failure to meet the Acceptable Quality Levels may result in adjustments

Required Services (Tasks)

Performance Standards

Acceptable

Quality Levels

Methods of Surveillance

Incentive (Positive and/or

Negative;

Impact on Contractor) lines will count against the unadjusted fill rate.

Adjusted Fill Rates:

Section IV.S.4.

PV shall be responsible for meeting a program adjusted fill-rate metric.

Manufacturer backorders, manufacturer recalls, demand spikes over 110%, and customer caused rejections are excluded in this calculation, i.e., these types of orders are subtracted from the number of Core List supplies ordered.

Adjusted Fill Rate greater than or equal to 98%

Periodic Inspection - Monthly Review of Monthly

Adjusted Fill Rate =

Core List Items Shipped in Full (EDI856) (Core List Items Ordered (EDI 850) - Manufactured Backorders & Recalls)

Failure on the PV's part to meet the Acceptable Quality Levels for Adjusted Fill Rates will be reflected in the Contractor Performance Assessment Reporting System (CPARS) report.

Additionally, failure to meet the Acceptable Quality Levels may result in adjustments

Order Lead/Delivery Times:

Section IV.S.5.

The PV shall provide medical/surgical supplies on a routine delivery schedule of five days per week for conventional orders and five days per week for Low Unit of Measure (LUM). The authorized customer may elect to receive deliveries for conventional orders and LUM less than the required five days per week. The PV shall deliver medical/surgical supplies by the close of the next scheduled delivery date after order is accepted for conventional orders greater than or equal to 98% of the time, with an overnight option for LUM. Routine scheduled deliveries will not be required on designated Federal

Order Lead Times:

Conventional (1 delivery day):

98%

LUM (24 hours):

99%

Will Call Orders:

99%

Periodic Inspection - Monthly Review of Monthly

Conventional =

Conventional Core List Line Items Delivered on Time Conventional Core List Line Items Delivered

LUM =

LUM Core List Line Items Delivered on Time LUM Core List Line Items Delivered

Will Call = Will Call Core List Line Items Available on Time?

Will Call Core List Line Items Ordered

Failure on the PV's part to meet the Acceptable Quality Levels for Order Lead/Delivery Times will be reflected in the Contractor Performance Assessment Reporting System (CPARS) report.

Additionally, failure to meet the Acceptable Quality Levels may result in adjustments

Required Services (Tasks)

Performance Standards Acceptable Quality Levels Methods of Surveillance

Incentive (Positive and/or

Negative; Impact on Contractor) holidays and weekends (although weekend and holiday deliveries may be offered as options and will be held to this standard). These standards will be measured monthly as a raw/unadjusted calculation (manufacture backorders will be included in the formula for measuring this performance standard).

Order and Shipping Confirmation:

Section IV. G.

The PV shall provide capabilities for visibility into the shipping through confirmation of the shipment and delivery date as well as drop shipped orders from authorized supplier or alternative supplier directly to the ordering facility. These orders will be confirmed and captured through the EDI 850, 856, and 214 transactions.

PVs will propose a flat fee for drop ship services and other additional distribution fees will not apply to drop ship orders.

No deviation from Performance Standards set forth in SOW regarding order and shipping confirmation requirements or invoice accuracy including applicable drop shipment requirements

Periodic Inspection - Monthly Review of Monthly Metrics Reports, EDI Data, Invoice validation

* For drop ship supplies, the EDI 214 transaction set will replace the EDI 856 transaction set in fill- rate calculations.

Failure on the PV's part to meet the Acceptable Quality Levels for Order and Shipping Confirmation will be reflected in the Contractor Performance Assessment Reporting System (CPARS) report.

Stock Out Report:

Section IV.S.6.

Report provided by PVs to ordering facilities, to notify them of supplies not in stock and related information. First report due by midnight on the first day of PV services. Reporting schedule following first report: Daily.

Information Required:

Stock out listing for all Core List medical/surgical supplies Estimated date of supply availability Any ordering restrictions, quotas, special instructions Any substitute supplies available

Sent to each ordering facility served by the PV

No more than two reports per fiscal year delivered after midnight, facility local time

Periodic Inspection - Monthly Review of Monthly Metrics Reports and COR Quarterly Reports

Failure on the PV's part to meet the Acceptable Quality Levels for Stock Out Report will be reflected in the Contractor Performance

Required Services (Tasks)

Performance Standards Acceptable Quality Levels Methods of Surveillance

Incentive (Positive and/or

Negative; Impact on Contractor)

Stock Out Probability Report:

Section IV.S.7.

Report provided by PVs to ordering facilities, notifying them of anticipated stock outs and potential mitigations.

First report due prior to midnight, local facility time, of the last business day of first consecutive week of PV services. Reporting schedule following first report: Weekly.

Information Required:

Anticipated stock out listing for medical/surgical supplies with a greater than 75% chance of being out of stock Actions taken to mitigate stock out probability

Sent to each ordering facility served by the PV

No more than two reports per fiscal year delivered after midnight, local facility time, on the last business day of each consecutive week

Periodic Inspection – Monthly Review of Monthly Metrics Reports and COR Quarterly Reports

Failure on the PV's part to meet the Acceptable Quality Levels for Stock Out Probability Report will be reflected in the Contractor Performance

Required Services (Tasks)

Performance Standards Acceptable Quality Levels Methods of Surveillance

Incentive (Positive and/or

Negative; Impact on Contractor)

Non-Core List Unadjusted Fill Rates:

Section IV.S.8.

PV shall be responsible for meeting a Non-Core List unadjusted fill-rate metric. The Non-Core List unadjusted fill-rate metric used shall be calculated using an unadjusted methodology (i.e., any medical/surgical supply not filled at the time of request without exception). Non-Core List unadjusted fill rate is the raw fill rate at the line-item level that are for Non-Core List supplies only. Manufacturer backorders and demand spikes are not to be excluded from the calculation;

customer caused rejections will be excluded. All cancelled or “killed” lines will count against the Non-Core List unadjusted fill rate.

Non-Core Unadjusted Fill Rate greater than or equal to 80%

Periodic Inspection – Monthly Review of Monthly Metrics Reports, EDI Data, and COR Quarterly Reports

Fill Rate = Non-Core List Items Shipped in Full (EDI 856) Non-Core List Items Ordered (EDI 850)

* For drop ship supplies, the EDI 214 transaction set will replace the EDI 856 transaction set in fill-rate calculations.

Failure on the PV's part to meet the Acceptable Quality Levels for Non- Core List Unadjusted Fill Rates will be reflected in the Contractor Performance Assessment Reporting System (CPARS) report.

Additionally, failure to meet the Acceptable Quality Levels may result in adjustments made to the payment of fees.

Supplier Agreement Report:

Section II.A.3

Report that details Authorized Suppliers with whom PVs have been able and unable to create a commercial agreement. First report due 60-consecutive days into the implementation period. Second report due 120-consecutive days into the implementation period. Reporting schedule following second report:

Monthly.

Information Required:

VA Contract Number Name of Authorized Supplier Date Agreement Entered, if applicable Detailed Explanation for lack of

No more than two late reports per fiscal year.

Periodic Inspection - Monthly Random Monitoring

Failure on the PV's part to meet the Acceptable Quality Levels for Lack of Supplier Agreement will be reflected in the Contractor Performance

Required Services (Tasks)

Performance Standards Acceptable Quality Levels Methods of Surveillance

Incentive (Positive and/or

Negative; Impact on Contractor) agreement, if applicable

Sent to SAC and MSPO

Customer Spend Analysis Report:

Section II.C.3

Report that details customer ordering history on both Core and Non-Core List supplies, including order frequency and seasonal trends. First Report due prior to the seventh business day of month following reporting period. Reporting schedule following first report: Monthly, prior to seventh business day of month following reporting periods.

Information Required:

Historic monthly order frequency for Core List supplies Historic monthly order frequency for Non-Core List supplies Analysis of facility ordering patterns Estimate of anticipated facility demand

No more than two reports per fiscal year delivered after the 7th business day of the month following the end of the month being reported on

Periodic Inspection – Monthly Review of Monthly Metrics Reports, EDI Data, and COR Quarterly Reports

Failure on the PV's part to meet the Acceptable Quality Levels for Customer Spend Analysis Report will be reflected in the Contractor Performance

Required Services (Tasks)

Performance Standards Acceptable Quality Levels Methods of Surveillance

Incentive (Positive and/or

Negative; Impact on Contractor)

Sent to each ordering facility served by the PV

EDI Order Confirmation:

Section III.A.4

Report that details how often PVs do not generate EDI order confirmation to FSC within two hours after receipt of EDI Orders including explanation for delay. Report schedule: Monthly.

Information Required:

Date/Time Stamp on EDI 850 Date/Time Stamp on EDI 855

Sent to FSC and MSPO

No more than two late reports per fiscal year.

Periodic Inspection – Monthly Review of Monthly Metrics Reports, EDI Data, and COR Quarterly Reports

Failure on the PV's part to meet the Acceptable Quality Levels for EDI Order Confirmation will be reflected in the Contractor Performance

Required Services (Tasks)

Performance Standards Acceptable Quality Levels Methods of Surveillance

Incentive (Positive and/or

Negative; Impact on Contractor)

Outgoing PV Report:

Section IV.A.5.

a.

Report provided by a PV as they transition out of the contract, intended to assist the new PV and facility with managing the transition. Report due within 30-consecutive days of delivery order expiration or IDIQ off-ramping.

Information Required:

Core List usage data for the past 12 months Non-Core List usage data for the past 12 months Total VISN MSPV spend per month for the past 12 months Lessons-learned from each facility and

VISN

Supply substitution list in common commercial format List of additional agreements between PV and facility

Sent to MSPO

No deviation from Performance Standards set forth in SOW.

100% Inspection Failure on the PV's part to meet the Acceptable Quality Levels for Outgoing PV Report will be reflected in the Contractor Performance

Required Services (Tasks)

Performance Standards Acceptable Quality Levels Methods of Surveillance

Incentive (Positive and/or

Negative; Impact on Contractor)

Final Reconciliation Report:

Section IV.A.5.

b

Report provided by a PV starting- 120-consecutive days prior to the delivery order expiration date or off-ramping, intended to close any gaps or errors in delivery or payments. Reports are required to be delivered monthly during the 120-consecutive day period.

Information Required:

All outstanding credits, rebills, and PO invoices All outstanding invoices for fees Listing of all outstanding orders

Sent to MSPO and each ordering facility served by the PV

No deviation from Performance Standards set forth in SOW.

100% Inspection Failure on the PV's part to meet the Acceptable Quality Levels for Final Reconciliation Report will be reflected in the Contractor Performance Assessment Reporting System (CPARS) report.

PV

Identification of Supplier/ Backorder Issues:

Section TBD

Reporting requirements will be identified at a later date.

(Positive and/or

Negative; Impact on Contractor)

Core List Supply Report:

Section IV.E.

Report provided by PV to facility detailing their Core List supplies, intended to support maintenance of the Core List. First report due 60-consecutive days into the implementation period. Second report due 120-consecutive days into the implementation period. Reporting schedule following second report:

Monthly.

Information Required:

Current Core List supplies, including:

PVON

Contract ID Number Authorized Supplier Manufacturer Part Number Manufacturer Name

UPN/NDC

Unit of Sale Order quantities for past 3 months Order quantities for current month PV recommendation to be Core or Non-Core

Sent to each ordering facility served by the PV

No more than two late reports per fiscal year.

Periodic Inspection - Monthly COR Quarterly Reports Issue Management (IM) Tool or successor

Failure on the PV's part to meet the Acceptable Quality Levels for Core List Supply Report will be reflected in the Contractor Performance

(Positive and/or

Negative; Impact on Contractor)

Consumption Report:

Section IV.Q.1.

Report provided by PV to SAC and MSPO, which includes sales, usage, and orders placed but not filled by the MSPV for program-level analysis.

First report due by the tenth business day of month following first month of PV services. Reporting schedule following first report: Monthly, prior to tenth business day of month following reporting period.

Monthly Sales Data Monthly Demand Data for all facilities served by PV Core List supplies with no usage for reported month

Sent to SAC, MSPO, and Ordering facilities

No more than two reports per fiscal year delivered after the 10th business day of the month following the end of the month being reported on

Periodic Inspection – Monthly Review of Monthly Metrics Reports and COR Quarterly Reports

Failure on the PV's part to meet the Acceptable Quality Levels for Consumption Report will be reflected in the Contractor Performance Assessment Reporting System (CPARS) report.

Pricing Discrepancy Report:

Section IV.Q.2.

Report provided by PVs to SAC and MSPO, detailing price discrepancies and providing resolution. First report due 15th of the month following first month of PV services. Reporting schedule following first report:

Monthly, on 15th of each month.

Provide rationale for all potential overcharges Credit amount issued

No more than two reports per fiscal year delivered after the 15th of the month following the end of the month being reported on

Periodic Inspection - Monthly Review of Monthly Metrics Reports and COR Quarterly Reports

Failure on the PV's part to meet the Acceptable Quality Levels for Pricing Discrepancy Report will be reflected in the Contractor Performance Assessment Reporting System (CPARS) report.

(Positive and/or

Negative; Impact on Contractor)

Re-bill amount issued Total refunded to Government Date of refund provided to customer

Sent to SAC and MSPO

Monthly Report provided by PVs to ordering No more than two Periodic Inspection – Monthly Review of Failure on the PV's part Inventory facilities, to assist the facilities with reports per fiscal Monthly Metrics Reports and COR Quarterly to meet the Acceptable Recommendation: inventory management and reduce year delivered Reports Quality Levels for Section IV.Q.3 program costs. First report due after the 5th Monthly Inventory prior to the fifth business day of the business day of Recommendations will month following first month of PV the month be reflected in the services. Reporting schedule following the end Contractor Performance following first report: Monthly, prior of the month Assessment Reporting to fifth business day of month being reported on System (CPARS) report.

following reporting period.

Information Required:

Provide inventory recommendations to facilities:

Bringing new medical/surgical supplies into stock Removing medical/surgical supplies from stock Review distribution center usage data for Core and Non-Core List supplies

(Positive and/or

Negative; Impact on Contractor)

Rationale for recommendation with potential cost and space savings

Sent to each ordering facility served by the PV

Authorized Supplier Utilization Report: Section

IV.R.

Report provided by PVs to MSPO, to support tracking use of authorized suppliers across MSPV Gen-Z V1 program. First report due within 30-consecutive days of the last day of the first quarter of PV coverage.

Reporting schedule following first report: Quarterly.

Number of supplies sourced from Authorized Suppliers in PV's geographical area For each supply sourced from Authorized Suppliers: Product Number Supply PUM per VA contract Number of PUM ordered by facilities in PV's geographical area Total amount spent on the sourced supply

No more than two reports per fiscal year delivered after 30 consecutive days past the last day of the quarter being reported on.

Periodic Inspection - Quarterly COR Quarterly Reports Issue Management (IM) Tool or successor

Failure on the PV's part to meet the Acceptable Quality Levels for Authorized Supplier Utilization Report will be reflected in the Contractor Performance