36W79719R0001-0006000.docx

37W79719R0001 AMENDMENT 6

5. PROJECT NUMBER (if applicable)

CODE

7. ADMINISTERED BY

2. AMENDMENT/MODIFICATION NUMBER

CODE

6. ISSUED BY

8. NAME AND ADDRESS OF CONTRACTOR

4. REQUISITION/PURCHASE REQ. NUMBER

3. EFFECTIVE DATE

9A.

AMENDMENT OF SOLICITATION NUMBER

9B. DATED

PAGE OF PAGES

10A. MODIFICATION OF CONTRACT/ORDER NUMBER

10B. DATED

BPA NO.

1. CONTRACT ID CODE

FACILITY CODE

CODE

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers

E. IMPORTANT:

is extended,

(a) By completing Items 8 and 15, and returning __________ copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or electronic communication which includes a r eference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY is not extended.

12. ACCOUNTING AND

APPROPRIATION DATA

(REV. 11/2016)

is required to sign this document and return ___________ copies to the issuing office.

is not, A. THIS CHANGE ORDER IS ISSUED PURSUANT TO:

Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN T

HE CONTRACT ORDER NO. IN ITEM 10A.

15C. DATE SIGNED

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES

SET FORTH IN ITEM 14,

PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by letter or electronic communication, provided each letter or ele ctronic communication makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER

Contractor 16C.

DATE SIGNED

14. DESCRIPTION OF AMENDMENT/MODIFICATION

16B. UNITED STATES OF AMERICA

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER

16A. NAME AND TITLE OF CONTRACTING OFFICER

15B. CONTRACTOR/OFFEROR

STANDARD FORM 30

PREVIOUS EDITION NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53.243 (Type or print) (Type or print) (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

(Number, street, county, State and ZIP Code) (If other than Item 6) (Specify type of modification and authority) (such as changes in paying offi ce, appropriation date, etc.)

(If required)

(SEE ITEM 11)

(SEE ITEM 13)

(X)

CHECK

ONE

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

11. THIS ITEM

ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

(Signature of person authorized to sign) (Signature of Contracting Officer) 10-11-2019 003A4C Department of Veterans Affairs National Acquisition Center (003A4C4) Building 37 1st Avenue, One Block North of 22nd. St.

Hines IL 60141 003A4C Department of Veterans Affairs OA&L National Acquisition Center Building 37 1st Avenue, One Block North of Cermak Hines IL 60141 To all Offerors/Bidders

36W79719R0001 09-10-2019

X X X

X Responses to questions received regarding this RFP are provided on the following pages.

CMOP SITE QUESTIONS

Section

Attachment A

proposed volume by revenue for each location (Volume by Location.xlsx). We would like to request the following information:

Amount of Revenue spend by location in the overview “worksheet” for the following product categories:

- Brand Rx

- Generic Rx

- Over-the-Counter

- Specialty Rx For example, the CMOP overview summary indicates an annual spend of $3,199,719,417.26 and being provided a breakdown of this revenue by the above listed categories would ensure the response is modeled appropriately.

This will allow us to estimate the line and unit volume and labor required to service the VA locations by servicing distribution center. Additionally, this will allow us to estimate effects on storage and throughput.

This information is not readily available at the CMOP sites. A report which shows all items and quantities dispensed by each site monthly is being attached via three excel files with columns A-E, F-H and I-K respectively due to size upload limitations. The file with columns I-K is posted in this amendment. The files with A-E and F-H were posted in prior amendments. The contractor can combine sort this excel report as necessary.

ADDITIONAL QUESTIONS:

1) Given that a subset of the pricing is a confidential agreement between the manufacturer and the VA and has not been shared in the solicitation documentation, does the current Prime Vendor have access to the confidential pricing?

VA RESPONSE: Yes, it is sent to the prime vendor with the VA Pricing feed so that the appropriate pricing can be loaded in the ordering catalog.

2) If the current vendor has access to the current confidential contract pricing, do they process chargebacks for these contracts or is this applied to the VA in the form of a rebate?

VA RESPONSE: Chargebacks.

3) If the current Prime Vendor processes chargebacks and has visibility to the confidential pricing, there is a distinct advantage associated with the knowledge of all chargeback differentials at the NDC level associated with the VA PPV purchases. Distributors are unable to build precise pricing models without clear visibility to the chargeback rate between wholesale acquisition cost (WAC) and Contract price at the item level. Current assumptions based upon the data provided have WAC sales at $24.3B with a 50% chargeback or $12.15B in contract sales however the forecasted information made public (below) indicates $7.3B in contract sales or a 70% chargeback. The difference in the chargeback assumptions materially impacts the pricing models. Will the VA share all pricing detail to allow all vendors a clear understanding of the item level pricing, so that all bidders will be able to create accurate pricing models?

VA RESPONSE: VA feels that the information that has been provided previously is sufficient for all vendors to develop a pricing model. All vendors have the total spend by facility through the PPV program and also three months of purchase data by NDC to determine the product mix that was purchased. Drug prices are fluid, especially with TPRs, which are unilateral on the part of the vendor. Providing the drug prices as they stand today is by no means an accurate depiction of what the VA prices will be in the future. What VA can share is that during FY18, it is estimated that there was a $2.6 billion cost avoidance associated with the use of temporary price reductions when compared to the FSS/BIG 4 prices for pharmaceuticals.

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