36W79719R0001-001.docx

37W79719R0001

PAGE 1 OF

1. REQUISITION NO.

2. CONTRACT NO.

3. AWARD/EFFECTIVE DATE

4. ORDER NO.

5. SOLICITATION NUMBER

6. SOLICITATION ISSUE DATE

a. NAME

b. TELEPHONE NO. (No Collect Calls)

8. OFFER DUE DATE/LOCAL

TIME

9. ISSUED BY

CODE

10. THIS ACQUISITION IS

UNRESTRICTED OR

SET ASIDE:

% FOR:

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SMALL BUSINESS PROGRAM

EDWOSB

8(A)

NAICS:

SIZE STANDARD:

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13b. RATING

14. METHOD OF SOLICITATION

RFQ

IFB

RFP

15. DELIVER TO

CODE

16. ADMINISTERED BY

CODE

17a. CONTRACTOR/OFFEROR

CODE

FACILITY CODE

18a. PAYMENT WILL BE MADE BY

CODE

TELEPHONE NO.

DUNS:

DUNS+4:

PHONE:

FAX:

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER 18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW IS CHECKED

SEE ADDENDUM

19.

20.

21.

22.

23.

24.

ITEM NO.

SCHEDULE OF SUPPLIES/SERVICES

QUANTITY

UNIT

UNIT PRICE

AMOUNT

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA

26. TOTAL AWARD AMOUNT (For Govt. Use Only) 27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA

ARE

ARE NOT ATTACHED.

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

ARE

ARE NOT ATTACHED

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN _______________

29. AWARD OF CONTRACT: REF. ___________________________________ OFFER

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

DATED ________________________________. YOUR OFFER ON SOLICITATION

DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY

(BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED

SET FORTH HEREIN IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER) 30b. NAME AND TITLE OF SIGNER (TYPE OR PRINT) 30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (TYPE OR PRINT) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION

(REV. 2/2012)

PREVIOUS EDITION IS NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53.212

7. FOR SOLICITATION

INFORMATION CALL:

STANDARD FORM 1449

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

37W79719R0001 9-10-2019 KAREN ADE (karen.ade@va.gov) 708-786-5231 10-25-2019

1:30PM CT

003A4C Department of Veterans Affairs National Acquisition Center (003A4C4) Building 37 1st Avenue, One Block North of 22nd St.

Hines IL 60141 X 325412 1,250 Employees X Net 30 N/A X Facilities listed in Attachment A

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

Facilities listed in Attachment A

Pharmaceutical Prime Vendor Program See Attached Schedule of Services Proposals shall be received at:

the address in block 9 by the solicitation due date $0.00 X X X Karen E. Ade Contracting Officer

Table of Contents

ADDENDUM TO STANDARD FORM 1449 (continued) Continuation of Blocks 19-24:

SCHEDULE OF SUPPLIES/SERVICES

PURPOSE:

The Department of Veterans Affairs, National Acquisition Center (NAC) intends to award a prime vendor contract for “just-in-time” deliveries of pharmaceutical products and limited medical/surgical products to VA facilities, State Veterans Homes, and other participating Government agencies in the United States, Washington, DC, Puerto Rico, Virgin Islands, Saipan, and the Philippines. The price structure for the pharmaceutical products furnished under this solicitation separates the product price from the distribution fee except for WAC Based Priced Generics (WBPG) pharmaceuticals. This solicitation establishes the distribution fee expressed in percent form for product categories under this contract, except for WBPG pharmaceuticals. WBPG pharmaceuticals are priced under the resultant PPV contract, in accordance with section I-27.

With the exception of WBPG pharmaceuticals, prices for the pharmaceutical products to be distributed under the Pharmaceutical Prime Vendor (PPV) Program have been established separate from this solicitation, through Federal Supply Schedule (FSS) contract, VA National Contracts under the National Standardization Contract program, Blanket Purchase Agreements (BPAs) and Basic Ordering Agreements. Contracts for the majority of the pharmaceutical products to be distributed under the resultant contract are established by FSS Schedule Part 65 I B. Limited quantities of medical and surgical products, strictly for outpatient dispensing use by Medical Facilities may also be required to be provided by the contractor. Contracts for the required limited quantities of medical and surgical products are only on VA National Contracts, under the National Standardization Contract program.

Non-contracted items (open marked) are excluded from this solicitation and the resultant prime vendor contract.

Offerors are cautioned about taking exception to any of the terms in this solicitation. Normally, award may not be made to an offer that takes exception to any term. If any exception does not meet the minimum requirements of the solicitation, the offeror’s proposal may be eliminated from award consideration. The Government reserves the right to conduct discussions but intends to make award on initial proposals. Offerors may not have the opportunity to submit a revised proposal removing exceptions.

VA is the primary user of this contract. Other participants may withdraw from this contract at any time without affecting the terms and conditions of the contract. Additions and deletions of participating facilities will be made by mutual agreement between both parties by way of contract modification.

SOURCE SELECTION Award will be made to the lowest-priced technically acceptable proposal from a responsible offeror. Technical acceptability will be determined based on the technical factors listed under E.8 52.212-2 EVALUATION—COMMERCIAL ITEMS (OCT 2014).

CONTRACT PERIOD The resultant contract shall be effective August 9, 2020. The base performance period is August 9, 2020, through August 8, 2022 with 3, two-year options. Renewal of options is at the VA’s discretion. (Note clause FAR 52.217-9, Option to Extend the Term of the Contract).

TYPE OF CONTRACT The contract awarded under this solicitation will be an Indefinite Delivery - Indefinite Quantity (IDIQ) and Indefinite Delivery – Requirements type contract. The resultant contract for pharmaceutical and medical/surgical items that are priced under separate FSS contracts, VA national Contracts, BPAs and BOAs shall be an Indefinite Delivery, Requirements-Type Contract. (Refer to FAR Clause 52.216-21, “Requirements”).

WBPG Pharmaceuticals shall be Indefinite Delivery-Indefinite Quantity (IDIQ) contracts. (Refer to FAR Clause 52.216-22, “Indefinite Quantity”) ESTIMATED ANNUAL REQUIREMENTS The estimated volume for each facility listed in Attachment “A” represents the Government’s best estimate of annual purchases in dollars for all items to be made available through the resultant contract by line item. No guarantee is given that this volume will be purchased. The estimated annual value of the resultant contract will be based on the estimated annual purchases.

SUBCONTRACTING PLAN REQUIREMENTS Pursuant to the provisions of Public Law 95-705, all large business concerns are required to have an approved subcontracting plan for contracts valued over $700,000.00 before the Government can award a contract (see FAR 52.219-9 for additional details). Large business concerns shall submit with their proposal a currently approved plan or a new plan for review and approval. Attachment “C” includes the subcontracting plan elements required to be addressed and is included to facilitate the submission of a subcontracting plan.

PARTICIPANTS Facilities from the following agencies are participants in this procurement:

· Department of Veterans Affairs (VA)

· State Veterans Homes (SVH)

· Department of Health and Human Services (HHS), Program Support Center, Supply Service Center (SSC), Perry Point, MD

· Department of Health and Human Services Indian Health Service (IHS)

· IHSC (US Immigration and Customs Enforcement Service Corps, formerly DIHS)

· Department of Homeland Security (DHS)

· Bureau of Prisons (BOP)

· Howard University (HOW)

· Public Health Services (PHS), (Saipan, Commonwealth of Northern Mariana Island)

· Federal Health Care Centers (FHCC)

· Peace Corps (PC)

· VA Commercial Repackaging Contractor Participants are further detailed in Attachment “A”.

Offerors are advised that a limited number of additional participants may be added or deleted by modification throughout the life of the contract.

SECTION B - CONTINUATION OF SF 1449 BLOCKS

B.1 DEFINITIONS

For the purpose of and as used throughout this solicitation, and any resultant contract(s), the words or terms are used as defined.

Sufficient Supply - A supply of items made available to the customers that allow conformity with the delivery requirements set forth in 1-18, "Delivery", within the parameters of the fill-rate and historical purchase patterns.

Automatic Replenishment - A management information system tool normally used in a large or warehouse setting. The PPV automated order entry system is linked to a pharmacy management system to create orders based on product usage. The system tool eliminates the guesswork typically involved in the ordering and inventory management processes.

Area Office - A Federal Indian Health Service facility that oversees the day-to-day operations of the Indian Health Service within its specified geographical location. An Area Office may serve as the "Parent" facility for designated IHS facilities.

Basic Ordering Agreements (BOAs) - A BOA is a national non-committed agreement that establishes the product price of an item manufactured or distributed by a National Industries for the Blind (NIB) or National Industries for the Severely Handicapped (NISH) workshop.

BIG 4 - Under Public Law 102-585, Veterans Healthcare Act of 1992, Section 603, the Department of Health and Human Services (including Public Health Services and Indian Health Services), along with the Department of Defense, the Department of Veterans Affairs, and the U.S. Coast Guard are four organizations statutorily entitled to receive the Federal Ceiling Price (FCP) for pharmaceuticals (covered drugs).

Blanket Purchase Agreement (BPA) - a simplified method of filling anticipated repetitive needs by establishing “charge accounts” with qualified sources of supply.

Bulk - (Used in relation to orders and deliveries): A customer order of a large quantity of a single product or the combination of numerous products that are palletized and shrink wrapped versus being delivered via case or tote. Bulk deliveries are required by VA CMOPs, HHS, SSC Perry Point facility and the VA National Acquisition Center's accounts.

Chargeback Arrangements/agreements (Chargebacks) - A reimbursement agreement between the PPV and the product suppliers/manufacturers which allows the PPV to be made fiscally whole for products sold to authorized customers of this program. The Government will not become involved in these agreements, nor will the Government assume any responsibility for resultant monies. Chargebacks shall be handled in accordance with industry standards.

Closed Distribution Products (CDP) - These products are often high cost, low volume medications where the manufacturer has limited distribution to a small network of distributors outside of traditional wholesale channels. The products may also have additional registration, safety or monitoring requirements that must be performed by the pharmacy. The CDP may or may not be limited to pass through depending on the manufacturer’s distribution model. Utilization of a CDP does not violate the requirements clause of this contract.

Community Based Out Patient Clinic (CBOC) - A VA-managed or contracted satellite facility located in the local community to provide service to eligible Veterans.

Confirmation Printback - An electronic confirmation report generated from the PPV' s ordering system and electronically sent back to the ordering facility indicating that the requested items are available, on manufacturer back order, out of stock, or deleted, etc. Confirmation printback is also referred to as the "Confirmation Print back Report".

CMOP - Consolidated Mail Outpatient Pharmacy - A system currently consisting of seven large automated VA facilities that nationally support the filling and mailing out of prescriptions directly to eligible patients.

Contracting Officer (CO) - Government official designated to award, administer, and obligate the Government to the responsibilities of any resultant contract(s) awarded against this solicitation.

The CO for this contract is located at the Department of Veterans Affairs, National Acquisition Center (NAC), in Hines Illinois. The CO serves as the liaison between the PPV and all customers participating under this program. The terms "the NACCO" or" VA NACCO", or "the "VA's CO" have the same meaning and may be used interchangeably throughout the solicitation.

Contracting Officer Technical Representative (COTR) - A Government official delegated by the VANAC Contracting Officer and serves as a liaison between the PPV and the VANAC Contracting Officer. The term Contracting Officers' Representative (COR) has the same meaning and may be used interchangeably throughout the solicitation.

Covered Drugs -Sole source and multi-source innovator drugs for which a prescription is required and is marketed under an original New Drug Application (NDA) approved by the Food & Drug Administration (FDA); Biologic License Application (BLA) approve by the FDA; and Generics that are marketed under an NDA (commonly referred to as authorized generics). Pricing for Covered Drugs are covered under Section 603 of Public Law 102-585. See definition of Federal Ceiling Price (FCP). Covered Drugs are identified in the daily and complete Government price file with a letter "T” for covered and “F” for non-covered in column 25.

Customer - A VA or Other Government Agency (OGA), authorized to use resultant contract(s).

Customer is also referred to as "facility" or "using facility."

Diversion - Products ordered under Federal contracts are intended solely for the use of authorized ordering activities in carrying out their Federal missions they are not intended for resale or barter. Any transfer of Federal contract-priced items that does not service the ordering activity's defined mission, as well as any transfer for the purpose of generating a profit on the difference between contract prices and commercial prices (such as "A WP") is an improper diversion of Federal supplies. (See Reports Section I- 28)

Drop Shipments - Products ordered by the customer through the Prime Vendor Program and shipped directly to the customer from the product supplier. Drop ship arrangements are usually short term.

Electronic Data Interchange (EDI) - Inter-process (computer to computer application) communication of business information in a standardized electronic form.

Fast Pay/ Alternate Payment Program - An expedited payment procedure used under the Pharmaceutical Prime Vendor Program, wherein payments are made to the PPV within 24 to 48 hours. The VA has negotiated with a financial institution (currently US Bank) to provide any resultant PPV contractor(s) payment within 24-48 hours. At the current time, there is a transaction fee per invoice that shall be paid by the PPV to the financial institution processing invoices. All VA orders shall be processed in this manner, with some OGAs also making payments under the Fast Pay method. (See Attachment A for list of customers paying under the Fast Pay Program)

Federal Ceiling Price (FCP) - FCP is the application of Section 603 of the Veterans Health Care Act, Public Law 102-585 (the Act). Section 603 enacts a drug discounting process administered by the Department of Veterans Affairs (DV A) for the benefits of Federal Agencies considered the "Big 4" (Dept. of Veterans Affairs, Dept. of Defense, Dept. of Health and Human Services (which includes Indian Health Service and Centers for Disease Control], and the Coast Guard).

Federal Supply Schedule (FSS) - Also known as the General Services Administration (GSA) Schedules Program or the Multiple Award Schedule Program. The Federal Supply Schedule program is directed and managed by GSA and provides federal agencies a simplified process for obtaining commercial supplies and services at prices associated with volume buying. Indefinite delivery contracts are awarded to provide supplies and services at stated prices for given periods of time. GSA has delegated authority to VA to procure medical supplies under the VA Federal Supply Schedules program. FSS contracts for pharmaceuticals, medical supplies, and other medical-related items and services are awarded and administered by VA.

Fill or Kill - Products or quantities not filled by the PPV are canceled from the order.

First Fill - In some instances the PPV shall be required to first fill the government's PPV orders before filling their commercial customers' orders. The NAC contracting officer will notify the PPV when the PPV is required to fill the government's orders first. A written agreement between VA and the product contractor may also be provided to the PPV.

Indian Health Service (IHS) - An Agency within the Department of Health and Human Services which is responsible for providing Federal Health Services to American Indians and Alaska Natives.

IHS Geographical Area - Commonly referred to as "IHS Area". A group of IHS (including all IHS and tribal) facilities within a geographical area.

Implementation Period - A 120 calendar day period from date of award. The implementation period will be used as a phase-out, phase-in transition period from the current contract to the newly-awarded contract. "Transition Period" is also referred as "Implementation Period".

Manufacturer Back Order (MBO) - A physical order placed by the PPV to a product supplier and which is not shipped to the prime vendor from the product supplier within ten calendar days.

National Acquisition Center Account - A Department of Veterans Affairs customer account that generally requires large bulk deliveries that are shrink-wrapped and palletized.

National Standardization Contract Items - Products awarded under competitive procedures on a national contract. National contracts are committed-use, mandatory source contracts for VA facilities. The mandatory use by the VA facilities helps facilitate VA's standardization of its National Formulary as well as the consolidation of volume buying requirements. OGAs and Option 1 State Veteran Homes have restricted access to National Standardization Contracts unless a formal commitment is made between the OGA, VA and the contractor.

National Supply Service Center (NSSC) - A Federal Indian Health Service Facility in Oklahoma City, Oklahoma that serves as a procurement agency for Indian Health Service and tribal facilities located throughout the United States. The NSSC serves as the "Parent" facility for its designated IHS facilities.

Next-Day Delivery - Orders placed by participating customers by 6:00p.m. customer local time (local time at the ordering facility) shall be delivered the next business day (Monday-Friday), (Monday-Saturday for CMOP’s only). For example, orders placed by 6:00p.m. customer local time on Wednesday will be delivered to the customer on Thursday; orders placed on Friday or Saturday will be delivered on Monday except that orders placed by the CMOP on Friday will be delivered on Saturday and Saturday orders from the CMOP will be delivered on Monday.

Next-Scheduled Delivery Day - Based on the terms of this solicitation and any resultant contract, the next-scheduled delivery day is the day agreed upon by the prime vendor and the customer for delivery of products. For some OGA's the next scheduled delivery day may not necessarily denote that the delivery shall be made within 24 hours. (See Section 1-18 Delivery).

Offer - Synonymous term for proposal. Offer means a response to a solicitation that, if accepted by the Government, will bind the offeror to perform the resultant contract.

Ordering Account - An ordering account is a physical location within a facility where ordering capability, versus read-only capability, from the PPV's ordering system is given. Account functionality is controlled by the level of access granted. An ordering account creates a financial obligation when the order for pharmaceuticals is transmitted to the PPV. (Example: Pharmacy inpatient ordering account vs. Pharmacy Chief read-only access.) Facilities may have more than one ordering account (e.g. inpatient, outpatient, etc.). Only designated ordering officers shall be given ordering access.

Ordering Officer (Applicable to VA only) - Non-warranted federal employees designated in writing as ordering officers by the NAC contracting officer. Ordering Officers are authorized to place orders through the PPV contract.

Outpatient Center (OPC) –A VA satellite facility, located on the grounds of a VAMC or in the local community to provide service to Veterans. Also referred to as an Outpatient Clinic.

Paperless Invoice System - A feature on the PPV's electronic ordering system which provides each customer a complete invoice. The electronic invoice must reflect the requirements outlined throughout the solicitation and must be provided in printable format to customers.

Parent Facility - A participating facility responsible for the approval and/or payment process of its affiliated satellite facilities. For the Indian Health Service, the "Parent Facility" may be represented by a RSSC, Area Office, or the NSSC.

Pass-Through Orders - A customer order for contracted products that are not normally stocked by the PPV, usually at the direction of the product supplier, which is usually based on the nature or handling of the product (frozen etc.) The customer orders the product directly with the Government product supplier or the PPV, and the product is delivered directly to the customer by the product supplier. The product supplier notifies and bills the PPV, who then invoices and receives payment from the customer. Pass-through arrangements are developed in advance and are ongoing.

Pharmacy Benefits Management {PBM) - The VA's program office for the Pharmaceutical Prime Vendor program.

Pharmaceutical Prime Vendor (PPV) - A business concern that serves as the major provider of a broad range of pharmaceutical products to customers within a geographic area. A prime vendor is responsible for maintaining suitable and sufficient inventory levels and delivering products to participating facilities next-scheduled business day. A pharmaceutical prime vendor is also referred to as "contractor" and/or "prime vendor".

Products/Items/Units - Synonymously used to denote the merchandise requested by the customers to be delivered through the prime vendor program.

Point of Contact (POC) - A designated person at each facility, VISN or national agency authorized to assist the PPV. This person usually has minimal or no contract authority to represent the CO or the COTR but serves as a contact source between the PPV and the facility.

Reservation Orders - A separate PPV order placed at the discretion of the customer, only in situations of MBOs; wherein the PPV reserves the customer's request for products until the products become available for release. (See Section 1-8)

RPMS (Resource and Patient Management System) -The primary information system used by Indian Health Service.

Satellite Facility - A participating facility whose order must have the approval of another participating facility before the PPV can fill the order. Only the satellite's parent facility has the authority to approve the order on behalf of the Government.

Split-Screen Order System-A PPV provided software program feature that is required to be part of the PPV's automated ordering system for facilities identified by the VAN AC as being a satellite facility requiring approval of orders from a parent facility. Facilities that may require this feature are Option 2 SVHs, identified OPCs, and identified BOP, IHS and Tribal facilities.

Specialty Pharmaceuticals - Medications which treat chronic, complex or rare diseases, and which have a minimum of four out of seven additional characteristics related to the distribution, care delivery and/or cost of the medicines. These seven characteristics include: list price in excess of $6,000 per year, initiated/maintained by a specialist, requiring administration by another individual or health care professional, requiring special handling in the supply chain, requiring patient payment assistance, distributed through non-traditional channels, or medication has significant side-effects that require additional monitoring of therapy and/or disease requires additional monitoring of therapy.

State Veteran Home (SVH) Option 1 - A participating SVH with an approved Sharing Agreement with a VA Medical Center (VAMC). An Option 1 SVH places its own delivery orders to the PPV and pays the PPV directly utilizing state funds. (See Attachment A for designated Option 1 SVHs).

State Veteran Home (SVH) Option 2 - A participating SVH with an approved Sharing Agreement with a VA Medical Center (VAMC). The Option 2 SVH's parent facility (VAMC) may require approval of the delivery order before the PPV can fill the order. The VAMC pays the PPV utilizing VA funds. (See Attachment A for designated Option 2 SVHs).

Stock Outage - An occurrence wherein the PPV is unable to provide customers with requested products. As opposed to an MBO situation, the PPV is held responsible for stock outages.

Tribal (638) Facility -A federally recognized American Indian or Alaska Native facility operated under the management of the Tribe versus the auspice of a federal IHS facility. Synonymously referred to as a "638" facility. Public Law 93-638 authorized the tribe to operate healthcare facilities. To participate in the VA PPV program, 638 Tribal Facilities must have a contract or compact with IHS.

Universal Product Numbers (UPNs) - A unique identifier of healthcare products. It is derived from either the HIBCC-LIC or UCC/EAN bar code labeling data structures. The HIBC-LIC format is variable in length, alpha-numeric and consists of the manufacturer LIC assigned by HIBCC, the labeler's product or catalog number, and the package level (or inventory unit) indicator. The UCC/EAN format is fixed length, all numeric and consists of the UCC/EAN assigned product supplier number (company prefix), numeric item number, a package level (or inventory unit) indicator, and a calculated check character. This definition specifies that a unique UPN should be created and assigned to each packaging level (or inventory unit) of each product, and to create UPN standard compliant barcode labels on all of their healthcare products at each unit of inventory. The term "Universal" means that the UPN is to be the key identifier for all product units. It should be used to communicate information about all product units between all trading partners in the supply chain. In consonance with this request, contractors awarded a contract under this solicitation shall utilize UPNs that are commercially available from product suppliers. The UPNs shall be the key reference to healthcare product information in all product recalls, business documents, and reports called for under the terms of this contract. PPV contractors are not required to mandate that product suppliers obtain UPNs. If a UPN is established independently by a product supplier for a healthcare product required to be supplied to the ordering facilities, authorized to utilize the PPV contract, the PPV is required to obtain from such product supplier and utilize that UPN in accordance with the requirements of this solicitation.

Veterans Affairs Medical Centers (VAMCs) - The medical facilities operated by VA.

Department of Veterans Affairs National Acquisition Center (VANAC) - The contracting office for this procurement.

Veterans Integrated Service Network (VISN) - A VISN is a group of VA Medical facilities within a geographic area. Currently 18 VISNs exist within VA.

Veterans Integrated Systems Technology Architecture (VISTA) - The Department of Veterans Affairs' primary information system.

WAC Based Priced Generics (WBPG)-Any generic pharmaceutical that is not under a current Federal Government contract or Government pricing agreement. A generic pharmaceutical item that is not priced separately under an existing contract and is priced under the PPV contract based on the published Wholesale Acquisition Cost (WAC) shall be known as WAC Based Priced Generics (WBPG). A WAC Based Priced Generics is the lowest priority in the ordering hierarchy of contracted items when loading the customers' prices under the VA PPV contract. Only TAA compliant WBPG can appear on this screen.

B.2 CONTRACT ADMINISTRATION DATA

(continuation from Standard Form 1449, block 18A.)

1. Contract Administration: All contract administration matters will be handled by the following individuals:

a. CONTRACTOR:

b. GOVERNMENT: Contracting Officer 36C797 Department of Veterans Affairs National Acquisition Center (003A4C4) Building 37 1st Avenue, One Block North of 22nd St.

Hines IL 60141

2. CONTRACTOR REMITTANCE ADDRESS: All payments by the Government to the contractor will be made in accordance with:

3. INVOICES: Invoices shall be submitted in arrears:

4. GOVERNMENT INVOICE ADDRESS: All Invoices from the contractor shall be submitted electronically in accordance with VAAR Clause 852.232-72 Electronic Submission of Payment Requests.

Government facilities per individual orders ACKNOWLEDGMENT OF AMENDMENTS: The offeror acknowledges receipt of amendments to the Solicitation numbered and dated as follows:

B.3 MANDATORY WRITTEN DISCLOSURES

Mandatory written disclosures required by FAR clause 52.203-13 to the Department of Veterans Affairs, Office of Inspector General (OIG) must be made electronically through the VA OIG Hotline at http://www.va.gov/oig/contacts/hotline.asp and clicking on "FAR clause 52.203-13 Reporting." If you experience difficulty accessing the website, call the Hotline at 1-800-488-8244 for further instructions.

B.4 COST RECOVERY FEE AND SUBMISSION OF QUARTERLY SALES REPORT

(a) Quarterly Reports. The Contractor shall report all actual credits received and total dollar value of disposal services under this contract as separate line items and submit collected 0.5% Cost Recovery Fees on dollar amount of credits received and value of disposal services as follows:

(1) The Contractor shall accurately report the dollar value, in U.S. dollars and rounded to the nearest whole dollar, of all sales made under this contract by calendar quarter (January 1–March 31, April 1–June 30, July 1–September 30, and October 1–December 31). Reported credits received and total dollar value of disposal services must include all credits received and total dollar value of disposal services made to all authorized contract users. The report shall reflect actual credits received and total dollar value of disposal services by separate line item and shall be segmented by the Department of Veterans Affairs (VA) and Other Government Agencies (OGA). A Cost Recovery Fee equivalent to 0.5% of the total actual credits received and total dollar value of disposal services shall be collected from all contract users. The 0.5% Cost Recovery Fee shall be imbedded in the awarded contract fees/prices and offers submitted in response to this solicitation shall include the Cost Recovery Fee in every line item fee/price offered. The reported contract totals shall include the cost recovery fee and each quarterly report shall show the total cost recovery fee amount collected on the reported actual credits received and total dollar value of disposal services. The Contractor shall maintain a consistent accounting method of reporting, based on the Contractor’s established commercial accounting practice.

(2) Contract reports are due to the VA contracting officer within 60 calendar days following the completion of each reporting quarter or completion of the contract, whichever occurs first. A report is required even when no billings or invoices are issued, or no credits or disposal services are performed during the contract period.

(3) The report signed by an authorized representative of the contractor shall be sent by email to karen.ade@va.gov or mail to the contracting officer. Mailed reports shall be sent to the address listed below.

(4) In addition to the submission of quarterly reports due to the contracting officer within 60 days after the end of each reporting quarter, contractors shall provide copies of reports simultaneously with contractor’s cost recovery fee payment submissions via facsimile, to the attention of C.R. Agent Cashier, fax: (708) 786-7525.

(b) Cost Recovery Fee. The 0.5% Cost Recovery Fee amount collected and due shall be paid either electronically or by check and shall be addressed to the “Department of Veterans Affairs”. When the Contractor has multiple national contracts, the fee may be consolidated into one check. Consolidated payments for multiple contracts shall identify each contract number included, dollar amount remitted for each contract number, and reporting quarter.

To ensure that the payment is credited properly, the contractor shall identify the check or electronic transmission as a “Cost Recovery Fee” and include a copy of the applicable Report. The Cost Recovery Fee payment is due to the Fiscal Division at the same time the sales report is due to the contracting officer, i.e., within 60 calendar days following the completion of each reporting quarter or completion of the contract.

Cost Recovery Fee payments shall not be combined with any Industrial Fund Fee payments. Contractors shall remit separately any Industrial Fund Fee payments in support of any of the Contractor’s Federal Supply Schedule contracts.

(1) Cost recovery fee payments made electronically shall include the following information:

(2) Cost recovery fee payments made in check form shall be made to the attention of “Department of Veterans Affairs” and mailed to the following address:

(c) The Government reserves the right to inspect without further notice, such records of the Contractor as pertain to actual credits received or total dollar value of disposal services under any contract resulting from this solicitation. Willful failure or refusal to furnish the required reports, or falsification thereof, shall constitute sufficient cause for terminating the contract under FAR 52.212-4(m), Contract Terms and Conditions - Commercial Items, Termination for Cause.

(d) Failure to remit the full amount of the Cost Recovery Fee within 60 calendar days after the end of the applicable reporting period constitutes a contract debt to the United States Government under the terms of Federal Acquisition Regulation (FAR) Subpart 32.6. The Government may exercise all rights under the Debt Collection Improvement Act of 1996, including withholding or setting off payments and interest on the debt (see FAR clause 52.232-17, Interest). Should the Contractor fail to submit the required sales reports, falsify them, or fail to timely pay the Cost Recovery Fee, the Government shall have, in addition to the rights and remedies described in this clause, all other rights and remedies permitted by Federal law and statutes.

B.5 DIVERSION OF PRODUCTS

(1) Products ordered under Federal contracts are intended solely for the use of authorized ordering activities in carrying out their Federal missions they are not intended for resale or barter. Any transfer of Federal contract-priced items that does not service the ordering activity's defined mission, as well as any transfer for the purpose of generating a profit on the difference between contract prices and commercial prices (such as "A WP") is an improper diversion of Federal supplies.

(2) The Contractor may require an ordering activity that is not listed in the appendices to GSA Adm. Order 4800.2E (and its later revisions) or a pharmaceutical prime vendor ordering on an activity’s behalf to demonstrate its eligibility to place FSS orders. The Contractor may also require an authorized ordering activity to disclose the intended use of ordered pharmaceuticals before commencing delivery. The Contractor is not required to fill an FSS order (or that portion of an order) that investigational facts suggest will be diverted into the commercial market or will otherwise be diverted from usage by authorized FSS ordering activities. (An example of such facts might be the tripling of usual ordered quantities by an activity, coupled with its failure to demonstrate a corresponding increase in its institutional size or patient base.) However, the Contractor may not unreasonably delay filling an FSS order, pending its investigation of the intended use of the items ordered. Based on investigational facts that suggest that a pattern of diversion has occurred, a Contractor may elect not to fill indirect orders of an activity through an authorized Government PPV and, instead, to accept only direct orders.

(3) If the Contractor refuses to fill an FSS order because of an expectation that some or all of the orders will be diverted or refuses to continue accepting indirect orders because of a perceived pattern of diversion, Contractor must notify the Schedule contracting officer (CO) of its decision within 48 hours and state the basis for the refusal. The CO may instruct the Contractor to fill an executive-agency-level order and/or resume acceptance of executive agency indirect orders if the CO finds that there is no factual basis for the Contractor’s decision. No authorized FSS ordering activity may be suspended from eligibility under the Schedule by any Contractor, except on the written instruction of the Schedule CO issued after: a) full consideration of all evidence of diversion or other improper practices, and b) affording the ordering activity an opportunity to present its position on the claimed abuse of the Schedule. An ordering activity suspended by the Schedule CO may appeal that decision in writing to the VA Deputy Assistant Secretary for Acquisition and Materiel Management, within 30 days of the CO’s decision.

B.6 SPECIAL WBPG CLAUSES

The following two (2) clauses are applicable to WBPG Pharmaceuticals.

a) GUARANTEED MINIMUM: The minimum dollar value that the Government agrees to order under the WBPG is $2,500.00. If the Contractor receives total orders for less than the minimum amounts, the Government will pay the difference between the amount ordered and the minimum dollar value. The Government’s obligation for the minimum amount only applies to the base period of each awarded contract.

(1) Payment of any amount due under this requirement shall be contingent upon the Contractor’s timely submission of sales reports during the period of the contract.

(2) The guaranteed minimum applies only if the contract expires or contract is terminated for the convenience of the Government. The guaranteed minimum does not apply if the contract is terminated for cause or the contractor agrees to a “no cost” termination.

b) MAXIMUM QUANTITY: The maximum annual amount to be ordered under any resulting contract is $365,000,000.00.

B.7 STATEMENT OF WORK

STATEMENT OF WORK:

I-1 Scope The Pharmaceutical Prime Vendor (PPV) contract is meant for pharmacy ordering only.

a. The Pharmaceutical Prime Vendor (PPV) shall maintain an adequate supply and distribute all drug/pharmaceutical (Federal Supply Class 65) items and other contracted items dispensed under Government supply contracts. These items are sold under various Federal Supply Schedules (FSS), Blanket Purchase Agreements (BPAs), Basic Ordering Agreements (BOA) and VA National Contracts established under the Pharmaceutical Standardization Program (NCS). Prospective prime vendors shall have a minimum of 5-years’ experience as a pharmaceutical prime vendor.

b. Products and any incidental services under any resultant contract(s) are for direct use by the facilities covered under this contract. Resale of products by participating facilities is prohibited. The Government anticipates that after award additional facilities/agencies may be added to the contract(s) on a quarterly basis. The Government will negotiate a bilateral modification to add a facility. Facility deletions will also be processed by modification.

c. The Government anticipates that payment under any resultant contract(s) will be made to the PPV contractor(s) within the terms and conditions of the Prompt Payment Act, (clause included). Fast Pay, a VA administered alternate payment program for the PPV, is mandatory for all VA facilities participating in this contract. The use of the Fast Pay Program is OPTIONAL for Other Government Agencies (OGAs) participating under this contract. Currently there are approximately 400 VA and OGA accounts making payments using the existing Fast Pay Program (See Attachment A). The Government anticipates offers of a larger negative Distribution Fee for those customer accounts using the Fast Pay Program (See Section I-28 Distribution Fee). At any time during the performance period of this contract, when a NET 30 day (calculated from the bulk weekly invoice date) paying customer commits to making payments under the Fast Pay program in order to receive the awarded larger negative distribution fee, the Government will notify the contractor to include the FAST Pay Customer at the awarded Fast Pay distribution fee.

d. The PPV shall provide and have in effect an emergency contingency plan for disaster recovery to protect the Government from disruption of the requirements outlined in this solicitation to include but not limited to government data, physical inventory and deliveries. The PPV is required to submit an emergency contingency plan annually or when there is a change in the plan. A plan sufficient to ensure normal operations in the event there are two or more natural disasters in different geographical regions of the country.

e. The PPV shall be required to make available upon request, the following product categories at the established government prices. The product categories are listed as Special Item Numbers (SINs) on Federal Supply Schedule (FSS) Group 65, Part I, Section B, Drugs, Pharmaceuticals & Hematology Related Products. In the event there is a non-availability determination specific authorization for each exception will be provided to the PPV.

Table 1: Special Item Categories

f. In addition to the above product categories, the PPV shall also maintain an adequate supply of, and distribute products under the FSS and NCS contract’s programs listed below.

1. Blood-glucose test strip items included on a National Contract or Federal Supply Schedule Group 65, Part VII, In-Vitro Diagnostics, Reagents, Test Kits, and Test Sets.

2. Only Medical/surgical products on VA' s NCS National Standardization Contracts in the categories listed in Table 2 below shall be made available at established contract prices. Availability and delivery of medical/surgical items through the PPV contract shall be in limited quantities strictly for outpatient pharmacy dispensing at the medical facility level. The PPV is prohibited from fulfilling bulk orders (i.e., bulk orders placed by VA's CMOP facilities) for this category of items (with the exceptions noted in number 3 below). The medical/surgical items to be included on VA' s NCS National Standardization Contracts provided on the PPV contract(s) are shown in Table 2. The purchase of medical and surgical products through the PPV contract(s) is optional for ordering facilities.

3. Insulin Syringes: Consolidated Mail Outpatient Pharmacies (CMOPs) may purchase Insulin Syringes and pen needles on contract through the Pharmaceutical Prime…