36C24820Q0103-002.docx

Performance Work Statement Storage, Inventory Management and Home Delivery Services Contract Background: The Department of Veterans Affairs Caribbean Healthcare System has a requirement for storage, inventory management, and home delivery service of nutritional supplements, medical supplies and refrigerated medications. Performance Period will be an eleven (11) months base period and two (2) option periods of twelve (12) months each.

Description of Services: The Contractor shall provide warehouse storage, inventory management and home delivery service, to eligible beneficiaries. The contractor shall be responsible for:

1. Receiving orders transmitted via electronic encrypted permission only communication (e-mail), facsimile (fax) and/or traditional paper pick up from VACHS Pharmacy Service and delivering them to the beneficiaries’ residential address.

2. Provide adequate care of Government-owned nutritional supplements, refrigerated medications and medical supplies in its possession or control from the time of receipt until properly relieved of responsibility.

3. Provide quarterly inventory reports in electronic format via email to Contracting Officer Representative (COR). For inventory report purposes, the cycle used shall be the Federal Government Fiscal Year (Oct 1 through Sept 30), and reports are due no later than five (5) business days upon completion of the quarter.

4. Utilize a proven inventory management system.

5. Guarantee that supplies shall be delivered to patient’s home within three (3) to five (5) business days after the prescription/order is received. Unavailability of products shall be reported immediately to COR as well as expected availability date via email and telephone. If products are not available and expected availability date exceeds five (5) days upon receipt of order, order shall be immediately returned to COR. Backorders are not authorized.

6. In the event that extraordinary circumstances arise the Contractor may be required to provide services after normal duty hours, during weekends (Saturday and Sunday) and holidays with prior authorization of COR.

Contractor Requirements:

Locations Covered: The contractor shall be responsible for providing all requested services to all municipalities of Puerto Rico except Vieques and Culebra.

Service/Delivery Requirements: The Contractor shall be capable to receive the orders/prescriptions daily via electronic encrypted permission only transmittal, facsimile transmittal and/or by traditional courier pick-up at the designated facility Pharmacy.

The Contractor shall contact the beneficiaries in order to arrange for a designated service date at least three times in a period of two (2) days. All attempts shall be documented. If after the second (2) consecutive day the contractor fails to contact the beneficiary, they shall notify the COR immediately by phone and by e-mail. Only home deliveries are to be provided under this contract, no other mean of delivery (i.e. UPSP, Private mail, etc.) are authorized to be used.

For refrigerated medications, the contractor will appoint a service date with the beneficiary for the delivery and notify the COR of such date in order to coordinate item pick-up at the designated facility Pharmacy. If delivery cannot be fulfilled on the appointed date, contractor shall return the item to the designated facility Pharmacy for storage on the same date. Refrigerated items are not to be stored by the contractor on instances other than in transit transport from the Pharmacy to the beneficiary address.

A legible Delivery Receipt with patient's signature, typed name and date of delivery is required. All carriers shall always have uniforms and an identification badge with photo noticeable to all persons.

The Contractor shall be expected to receive and storage VA owned items such as but not limited to nutritional supplements and medical supplies which will be delivered directly to the contractor's warehouse from the VA suppliers or picked up from the VA designated locations as directed and deliver them to the beneficiary residential address within three (3) to five (5) business days of receiving an order.

Storage Facility and Climate Control: The contractor shall provide a storage space of a minimum of 8,000 square foot up to 12,000 square foot, located within a twenty five (25) miles radio from main facility:

VA Caribbean Healthcare System 10 Casia St.

San Juan, PR 00921-3201.

Consisting of a clean, separate, and secured area for all VA owned nutritional supplements and medical supplies. Storage area must be adequately equipped with industrial shelves. Boxes or containers shall not be stored on the floor, but on raised pallets and/or platforms. Temperature and humidity controls will be as required based on the manufacturers of the item’s being stored and guides provided by USP 659 Packaging and Storage Requirements (see Attached USP 659 guidelines).

Supply storage locations must have a stable environment without extreme changes in temperature and humidity. Items stored within these locations must be maintained in the normal temperature range recommended by manufacturer and as defined by USP 659 Packaging and Storage Requirements. This done to assure the supplies within all storage areas are under climate control conditions regardless of the length of storage time. Facility shall possess a continuous monitoring system for temperature and humidity tracking to produce alerts and historical monitoring reports. Operational temperature and humidity measurement device (i.e. digital logger, gauges, thermometer, etc.) shall be accessible inside the designated storage areas.

Inventory Management The contractor works with the onsite COR but is ultimately responsible for maintaining inventory controls and preparation of a perpetual inventory records. All records shall be available on electronic format upon request. Inventory shall be documented using item description as listed on orders/prescriptions instead of manufacturers reference numbers or other descriptions.

The contractor shall perform weekly inventory to maintain the required inventory levels (enough inventory to prevent over and under stocking) and ensure that the proper inventory procedure is operating effectively. No backorders are authorized.

Products to be expired shall be notified to COR or to the designee three (3) months before expiration date to complete credits process.

Immediately upon termination or completion of the contract, the contractor in concert with the COR shall conduct a physical inventory of all Government owned nutritional Supplements and medical supplies applicable to the contract. The contractor and the COR will certify the final Inventory Control Record document within 72 hours after termination or completion and submit to the Contracting Officer (CO).

Contractor Vehicles The Contractor shall have licensed vehicles able to transport the maximum weight recommended by the vehicle manufacturer. All vehicles used in the performance of services under the contract shall be clearly marked with company identification. The Contractor shall ensure that all vehicles meet Local, State and Federal codes and maintain motor vehicle liability insurance in accordance with the laws of Puerto Rico. All drivers shall possess a valid state issued license for the category of vehicle being used.

*Additions/Deletions of Requirements* The Government foresees the possibility of no longer having the need for storage and inventory management at any point during the duration of this contract. If such circumstances arise the Contractor shall be notified within 60 days of line item being deleted via supplemental agreement.

Performance Improvement /Quality Control: The contractor shall initiate and maintain an ongoing performance improvement/ quality control program to objectively and systematically monitor and evaluate the quality and appropriateness of service provided, resolve identified problems, pursue opportunities for improving patient care and provide a self-assessment of compliance with requirements of this contract. There must be a systematic process to collect and analyze data and take appropriate action. Commitment of resources by leadership to address areas requiring improvement must be demonstrated.

The contractor shall perform reviews of its quality control program (i.e. customer satisfaction survey) on a semi-annual basis and provide a written report prepared by an external source to the Chief Pharmacy and the COR.

Safety Requirements: The contractor shall take such safety precautions reasonably necessary to protect the lives and health of the occupants of the building as the CO or designee may determine to be necessary. The contractor shall practice universal precautions in the performance of all aspects of services provided under this contract in accordance with Joint Commission requirements.

Incidents Involving a VA Beneficiary All accidents, injuries and deaths related to the deliveries shall be immediately reported verbally to the COR. The contractor shall follow with a written report of contact describing the event, analysis of cause /effect, and corrective action taken. The report should be provided within 24 hours of verbal report.

The contractor shall make a written report of all inquiries, complaints, and requests received from patients or caregivers and furnish a copy to the COR within five (5) calendar days. The written report must contain at a minimum the nature of the inquiry, complaint, or request; the contractor’s decision; and the basis for the decision and outcome. The report shall be signed by the contractor’s employee who received the call or in person inquiry, complaint or request, the action taken and the contractor’s supervisor. All complaints shall be addressed and resolved within fifteen (15) calendar days.

Interactions between Contractor Personnel and VA The VA beneficiaries serviced by this contract have significant physical disabilities or chronic illnesses that, in many cases, influence their behavior and lifestyle. It is of the upmost importance that a high degree of sensitivity and professionalism be demonstrated when VA beneficiary/caregiver contact is made. The contractor and his representatives are expected to be discreet and tactful, and to demonstrate concern, compassion and patience. The VA reserves the right to remove any contractor employee from the performance of service under this contract if their behavior and the level of service provided are not in accordance with the specifications and requirements contained herein Unusual Conditions The Contractor shall notify the COR, immediately; if any of the following unusual conditions are known to exist concerning the VA beneficiary: VA beneficiary is hospitalized or deceased, VA beneficiary cannot be reached, any beneficiary complains related to merchandise.

Insurance Requirements Before commencing work under the contract, the Contractor shall furnish to the CO a Certificate of Insurance indicating the coverage and containing an endorsement to the effect that cancellation of, or any material change in the policies which adversely affect the interests of the Government in such insurance shall not be effective unless a 30 day advance written notice of cancellation or change is furnished the Government.

Service Hours: The contractor is expected to perform services under this contract between the hours of 7:00am and 7:00pm AST, Monday thru Friday, excluding Federal Holidays.

Federal Holidays are:

Emergency Procedures The Contractor shall have an emergency preparedness plan which must demonstrate the ability to restore service within the minimum timeframe possible in the event of an emergency which results in interruption of services. The Contractor shall perform management reviews of its quality control program and contingency plans.

Immediately after contract award, the contractor shall provide a point of contact to include telephone, facsimile and cellular phone number for twenty-four (24) hour emergency services.

The Contractor shall notify the CO or the COR, immediately in the event of a disaster, natural or otherwise, that may affect the services covered under this contract. A Contingency Plan must be in effect.

Key Personnel A record of each employee's qualifications, characteristic, and competence capability of performing the duties required shall be maintained at the Contractor's office and made available for inspection upon request by the CO. Personnel must submit to drug testing and background check', Contractor must adhere to the provisions of Public Law 104-191, Health Insurance Portability and Accountability Act (HIPPAA) of 1996 and the National Standards to Protect the Privacy and Security of Protected Health Information (PHI). As required by HIPAA, the Department of Health and Human Services (DHHS) has promulgated rules governing the security and use and disclosure of protected health information by covered entities, including the Department of Veterans Affairs.

Driver shall possess all necessary licenses and/or permits to perform work under this contract. Drivers shall be dressed in company uniforms that are neat and clean, presenting a well-groomed professional appearance always.

Contractor personnel shall always have visible picture identification bearing the company’s name and the employee’s name; Orders and/or items will not be issue to carriers not found in compliance with the proper identifying requirement (i.e. uniform, employee id, etc.)

The Contractor shall provide a contact person whom the Department of Veterans Affairs may contact during the period of this contract for prompt action on matters pertaining to the administration of this contract.

Performance Standards and Quality Measurement

Information Security Precautions To ensure that VA sensitive information, which includes Patient Identifiable Information (PII) is adequately protected, the contractor shall adhere and comply with applicable VA security regulations and policies. Although, you as contractor do not need Patient Health Information (PHI) from VA to perform contract requirements neither the VA needs to provide access to PHI for your company to perform this contract. The contractor shall take necessary precautions to avoid disclosure of PII that might reside in the equipment hard drive or any other place.

As contractor of the VA, you are committed to safeguard the personal information that veterans and their families have entrusted to the Department of Veterans Affairs. Sensitive information /data is any data and/or information the contractor may obtain or learn as result of the performance of the resulting contract. Therefore, the same shall not be removed, transmitted, read, printed or shared to third parties.

The contractor shall have required to handle limited patient’s information to coordinate date, time and site of deliveries of goods. The contractor will receive orders by electronic encrypted transmittal, facsimile transmittal or traditional courier pick-up orders/prescriptions from the VA Pharmacy Service designated locations. For facsimile transmitted orders, Contractor will ensure facsimile equipment is located in a secure area (i.e. office room) of its processing center where only authorized personnel could access the documents. If traditional courier pick-up is used, the orders will be placed in a security courier pouch and hand carried to the contractor processing center. These orders bare the medical supplies, devices and dietetic supplements been prescribed as well as patients dwellings address.

Once prescriptions are processed, they will be returned to the originator location in the same manner they were brought in. Contractor will require keeping a database with the patient’s name, address and telephoning information. The database (main and back-up) will be kept in secure computer hard disk. These hard disks become property of the VA and the VACHS assume its custody at the expiration of the contract. The information shall be stored and safeguarded in according with HIPAA and VA Policies and Regulations regarding safeguarding patient’s sensitive information. The contractor must have encryption certified equipment and devices, to receive and handle messages with PII from the VA.

The C & A requirements do not apply, and that a Security Accreditation Package is not required.

Business Associate Agreement The Health Insurance Portability and Accountability Act of 1996 (HIPPA) requires that patient lists, names of patients, and any information concerning patients, are considered privileged information and shall not be disclosed or revealed in any way for use outside the VA. The Contractor is subject to the same penalties and liabilities for unauthorized disclosures of such information as the VA. Patient confidentiality will be adhered to at all times.

As Contractor personnel will potentially have access to any patient information related to their performance of duties under this BPA, Contractor shall make its personnel aware that any such information that they might become aware of during the course of their performance is considered privileged information and shall not be disclosed or revealed in any way outside communications with COR. Contractor shall sign a Business Associate Agreement (see Solicitation Attachment – BAA Template) upon award, adhering to this policy.

Service Contract Act Requirements Work performed by the following personnel related to Contractor is applicable to FAR Subpart 22.10 (Service Contract Labor Standards) and such shall follow U.S Department of Labor Wage Determinations:

Please refer to Solicitation Attachment (Wage Determinations) for listing of wage determinations applicable.