36W79719R0001-0008000.docx

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 reference 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 THE CONTRACT ORDER NO. IN ITEM 10A.

15C. DATE SIGNED

B. THE ABOVE NUMBERE

D 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 electronic communication makes reference to the solicitation and this amendmen t, 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 office, 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) 10-17-2019 Department of Veterans Affairs National Acquisition Center (003A4C4) Building 37 1st Avenue, One Block North of 22nd. St.

Hines IL 60141 Department of Veterans Affairs National Acquisition Center (003A4C4) Building 37 1st Avenue, One Block North of 22nd. St.

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.

1. In the VA’s response in Amendment 6, the VA shared that during FY18, there was an estimated $2.6 billion cost avoidance associated with the use of temporary price reductions when compared to the FSS/BIG 4 prices for pharmaceuticals. Can the VA clarify if the $2.6B should be deducted from the $12.15B calculated contract spend (referenced in Amendment 6 question) or from the $11.3B calculated contract spend (referenced in Amendment 5 question) to arrive at the VA’s actual contract spend (not inclusive of the negative distribution fee)?

VA RESPONSE: The $2.6 billion is not directly linked to contract spend. VA looks at all temporary price reductions in the FSS pricing file and then compares those prices to the price that would have been paid if the next lowest FSS/BIG 4 price was applied to the same number of purchases. This runs on a fiscal year cycle and doesn’t necessarily correspond exactly with the data provided for either Amendment 5 or Amendment 6, as those amendments addressed different time periods. The VA’s actual contract spend that was provided with the solicitation is derived from the data provided by the current pharmaceutical prime vendor, and that should be considered the correct depiction of total spend. This data would be reflective of any temporary price reductions that were in place during the period of time that the data was pulled as well as the savings realized from the negative distribution fee.

1. The VA has provided purchase data from different time periods. Attachment A is from October 2017-September 2018, while Attachment D is from May 2018-April 2019. Did VA purchased units go up from the Attachment A to Attachment D time periods, and therefore should we assume that the WAC dollars sales increased in that timeframe?

VA RESPONSE: No comparison should be made between the two data pulls, since they represent different periods of time. During those distinct time periods different pricing was in place, and there was a different mix of product utilization based on demand. The intent of providing the data was so that potential offerors could determine the mix of brand vs. generic vs. specialty vs. med surge items purchased by VA. Pricing and utilization change over time, so it is impossible to compare two different time periods that were pulled for different time intervals (i.e. one year versus one quarter). Again, potential offerors should use the information that was provided initially with the solicitation to determine total spend by ordering site, as it can be assumed that total spend information provided by the current pharmaceutical prime vendor is accurate.

1. In comparing the contract prices on the VA’s Pharmaceutical Pricing file for today vs. a year ago, it appears that the FFS contract prices have increased for many of the covered drugs in the past year and in many instances, the contract price increase was higher than the WAC increase. Can the VA clarify if this increase in contract price was due to the Public Law price update this year? Is this a trend the VA expects to continue in the future?

VA RESPONSE: There was a significant increase in the price of branded drugs realized in January 2019 due to the Public Law 102-585 pricing reset that occurs annually for covered drugs. The increase from 2018 to 2019 was more significant than in years past, because this was considered a “base year” of the five-year pricing cycle and vendors were able to reset their prices based on commercial pricing. For the next four years of the cycle, the price increases are limited by the consumer price index, and pricing increases are likely to be more moderate.

1. Is there a deadline for submitting questions?

VA RESPONSE: While there is no deadline for questions there is also no expectation of an extension.