8-Attachment B - Scope of Work.docx

Attachment B: Scope of Work WIC Pharmacy Services, 2027 - 2032

Article 1

DEFINITIONS

1.1 Definitions. In this contract the following definitions apply:

“Back Order” means a Product that is temporarily out of stock with the manufacturer, not the wholesaler/supplier.

“Product” means the medical food or medical formula to be ordered for a Utah WIC participant.

“SharePoint” means the WIC SharePoint website where orders will be processed.

“WIC” means the federal Women, Infants and Children program.

Article 2

SERVICE REQUIREMENTS

2.1 Service Requirements. The Contractor shall:

(1) maintain a storage facility within the State to:

(A) maintain sufficient stock of Product on hand for immediate availability and delivery to local WIC clinics statewide;

(B) store Product at proper temperatures and conditions to prevent degradation and spoilage: and

(C) store Product according to industry and government regulations.

(2) receive orders through SharePoint for Product:

(A) Products must be packaged and delivered or shipped in separate boxes per WIC participant and labeled with the WIC participant name, WIC family identification number, Product quantity on each box, and “Health Department [name] – WIC” listed on the delivery invoice;

(B) deliver Product within five business days of the order being placed in “Ordered” status in SharePoint.

(C) deliver premature formula or other Products for premature infants within three business days of order being placed in “Ordered” status in SharePoint:

(i) the date the order is placed in “Ordered” status between 8:00 am – 1:00 pm is considered business day one:

(a) if orders are placed in SharePoint between 1:00 pm – 5:00 pm, this is Day 0; and

(b) day one begins the next business day at 8:00 am.

(ii) if a request is made for expedited shipping, overnight delivery will be provided to the clinic or WIC participant home; and

(iii) inform DHHS as soon as it learns that a Product is on Back Order and will take longer than the specified time frame to deliver.

(D) use an alternate wholesaler/supplier to fill the order to meet delivery timeframes if the usual wholesaler/supplier is out of stock of any Product ordered.

(E) assume responsibility for the correct Product’s safe delivery to all Utah WIC clinics:

(i) Product must have an expiration date of at least three months from the date of delivery;

(ii) Product damaged in transit will not be accepted by the local WIC clinic;

(ii) damaged Product must be replaced by the Contractor within three business days;

(iii) incorrect Product will not be accepted and must be replaced by the Contractor with the correct Product within three business days;

(iv) incorrect or damaged Product must be picked up by the Contractor within seven business days, and;

(v) incorrect Product ordered by DHHS must be accepted for return to the Contractor and credited back to DHHS.

(F) pick up or accept return shipment of Product not issued to the participant because of a Product change deemed necessary by the licensed prescriptive authority within five business days and credit Product cost back to DHHS:

(G) palletized orders cannot be delivered due to limited abilities of local health departments to receive freight.

(H) provide daily oversight, coordination, and communication through a point person that must be available during business hours (8:00 am – 5:00 pm Mountain Time) to monitor, review, and process all Utah WIC SharePoint system orders:

(i) a back-up person must be trained if the first point contact is Unavailable;

(ii) all order fulfillment must be overseen by a registered pharmacist or doctor of pharmacy; and

(iii) pharmacy staff must respond to DHHS inquiries within one business day (24-hours) from the point of inquiry.

2.2 Contract Reimbursement Penalties for Late Deliveries. The invoices will be reduced by:

(1) 10% if the order is delivered one business? day late;

(2) 20% if the order is delivered two to five business days late;

(3) 30% reduction if the order is delivered six business days or more late.

2.3 Contract Reimbursement Penalty and Back Orders for the month of December. The Contractor shall:

(1) not receive a reimbursement penalty if the Contractor notifies DHHS in writing within two business days of order placement that a Product is backordered, by providing DHHS with official manufacturer documentation confirming the back order:

(A) due to peak holiday delivery volumes by shipping vendors, DHHS shall waive late delivery penalties for orders shipped during the month of December, if the following conditions are met:

(i) Prompt Shipment: Products are shipped within two business days of Contractor receipt of the order from DHHS; and

(ii) SharePoint Entry: The shipment date is entered into SharePoint at the time of shipment. If the shipment date is not recorded in SharePoint, standard late penalties shall apply.

Article 3

PAYMENTS AND INVOICING

3.1 Payments and Invoicing. The Contractor shall:

(1) cover the standard shipping and handling cost to deliver Product to a WIC clinic and must be equal to the amount provided on Attachment C cost sheet;

(2) invoice the additional shipping cost when overnighted/expedited shipping is required and when Product is required to be delivered to a participant residence;

(3) provide Products in addition to those listed on Attachment C Cost Sheet if they are ordered through DHHS by a license prescriptive authority:

(A) DHHS shall use the markup rate for Products listed on the Cost sheet.

Article 4

PRICING

4.1 Pricing.

(1) The cost of Products on the Contractor’s cost sheet is fixed for one year from the contract effective date unless a wholesale price increase is substantiated to the Utah WIC Program;

(2) Pricing increases in future years cannot exceed 5% of the prior year’s pricing plus documented wholesale price increases; and

(3) Any amendment to change the maximum amount of the contract must be approved by State Purchasing and DHHS.

Article 5

OUTCOMES

5.1 Outcomes. The Contactor shall improve the health of WIC participants by providing specialty medical foods and formulas to high-risk WIC participants within the timeframes outlined above.

5.2 Performance Measure. DHHS shall provide a weekly audit of the delivery timeframes, sent via email to the pharmacy point of contact(s) and DHHS finance staff. The email will contain a list of any orders that have been delivered late. If Products are late, a reimbursement penalty will be applied as outlined in section 2.2 above.

5.3 Invoice Reporting. DHHS shall ensure that all invoice elements are included and accurate for each order so that no invoice is paid twice by DHHS. If any errors are found, the errors will be sent to the Contractor for the invoice to be resubmitted.