ESBD_443343_1754421472957_Pharmaceutical Wholesaler Distributor RFP HHS0015752.pdf

PCS 550 HHS RFP RFP No. HHS0015752 Page 1 of 71

Cecile E. Young, Executive Commissioner

Request for Proposals (RFP) for

Pharmaceutical Wholesaler Distributor

RFP No. HHS0015752

Date of Release: August 5, 2025

Responses Due: Section 3.1 for Schedule of Events

NIGP Class/Item Numbers:

948/72 – Pharmaceutical Services 175/All Items - Chemical Laboratory Equipment and Supplies 193/All Items - Clinical Laboratory Reagents and Tests (Blood Grouping, Diagnostic, Drug

Monitoring, Etc.)

260/All Items - Dental Equipment and Supplies 271/All Items - Drug and Feeding Administration, Infusion, and Irrigation Equipment and

Supplies 465/All Items - Hospital and Surgical Equipment, Instruments, and Supplies 470/All Items - Hospital, Nursing Home, or Residential Specialized Equipment for the

Disabled 475/All Items - Hospital, Surgical, And Medical Related Accessories and Sundry Items 490/All Items - Laboratory Equipment, Accessories and Supplies: General Analytical and

Research for Nuclear, Optical, and Physical 493/All Items - Laboratory Equipment, Accessories, and Supplies: Biochemistry, Chemistry, Environmental Science, Etc.

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Table of Contents Article I. Introduction, Definitions, and Authority

1.1 Introduction

1.2 Definitions

1.3 Authority

Article II. Scope of Work

2.1 Description of Services

2.1.1 TABLE 1 – List of System Agencies’ Participating Programs and Facilities

2.1.2 Contract Participation

2.2 Pricing

2.2.1 Pricing Accuracy

2.3 Online Catalog

2.3.1 Online Access

2.3.2 System Security and Disaster Recovery

2.3.3 Disaster Recovery Plan

2.3.4 Disaster Recovery Test

2.3.5 Performance Monitoring and Management

2.3.6 DCS Exemption

2.3.7 Hosting

2.3.8 Texas Risk and Authorization Management Program

2.3.9 Real-Time Account Status

2.3.10 Purchases

2.3.11 Participating Entity Online Access

2.4 Product Supply, Ordering, Regulatory Requirements

2.4.1 Drug Supply Chain Security Act

2.4.2 Transaction Information

2.4.3 Written Agreement

2.4.4 Ordering

2.5 Confidentiality

2.6 Delivery Requirements

2.6.1 Schedules

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2.6.2 Product Requirements

2.7 Invoicing, Payment, and Auditing

2.7.1 Invoicing

2.7.2 Invoices and Payments

2.7.3 Audit

2.8 Implementation, Facility-Specific Requirements and Training

2.8.1 Implementation

2.8.2 Facility-Specific Requirements

2.8.3 Training

2.9 Reporting

2.9.1 Price Verification and Cumulative Purchasing Reports

2.9.2 Quarterly Performance Measures Report

2.9.3 Credit from a Third-Party Vendor Report

2.9.4 Returned Goods Report

2.9.5 80/20 Report

2.10 Deliverables

2.10.1 Table 2: Deliverables

2.11 System Agency Requirements

2.12 Enhanced Contract and Performance Monitoring

2.12.1 Enhanced Contract Monitoring

2.12.2 Protocols for Enhanced Monitoring

2.12.3 Performance Measures

2.13 Remedies and Corrective Actions

2.13.1 Assessment of Remedial and Corrective Actions

2.13.2 Failure to Provide System Agencies with a Report

2.14 Contract Award, Term, and Historical Compensation

2.14.1 Contract Award and Execution

2.14.2 Contract Term

2.14.3 Historical Compensation

2.15 Data Use Agreement and Security Privacy Inquiry

2.16 No Guarantee of Volume, Usage, or Compensation

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2.17 Governmental Entities

Article III. Administrative Information

3.1 Schedule of Events

3.2 Ambiguity, Conflict, or Discrepancy

3.3 Inquiries

3.3.1 Sole Point of Contact

3.3.2 Prohibited Communication

3.3.3 Exception to Sole Point of Contact

3.3.4 Solicitation Questions

3.4 Pre-proposal Conference

3.4.1 Attendance

3.4.2 Conference Logistical Information

3.4.3 Questions at Pre-Proposal Conference

3.5 Solicitation Response Composition

3.5.1 General Information

3.5.2 Page Limit and Supporting Documentation

3.5.3 Discrepancies

3.5.4 Exceptions

3.5.5 Binding Offer

3.6 Solicitation Response Submission and Delivery

3.6.1 Deadline

3.6.2 Submission Options

3.6.3 Submission Checklist

3.6.4 Labeling and Delivery for USB Submission and Other Materials

3.6.5 Modifications and Withdrawals

Article IV. Solicitation Response Evaluation and Award Process

4.1 Conformance with State Law

4.2 Best Value Determination

4.2.1 Selection Methodology

4.2.2 Minimum Qualifications

4.2.3 Initial Compliance Screening

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4.2.4 Written Solicitation Response Evaluation

4.2.5 Written Response Evaluation Criteria

4.2.6 Competitive Range

4.2.7 Best and Final Offer (BAFO)

4.2.8 Final Written Response Score and Total Score

4.2.9 Summary of Best Value Determination

4.3 Questions or Requests for Clarification

Article V. Narrative Proposal

5.1 Narrative Proposal

5.1.1 Executive Summary

5.1.2 Minimum Qualification Documentation

5.1.3 Experience and Qualifications

5.1.4 Project Work Plan

Article VI. Required Respondent Information

6.1 Company Information

6.1.1 Company Narrative

6.1.2 Company Profile

6.2 Authorization to Conduct Business in Texas

6.3 Contract Breakdowns, Performance Assessments, and Litigation

6.4 References

6.5 Major Subcontractor Information

6.6 Affirmations and Certifications

6.7 Other Reports

6.7.1 Dun and Bradstreet Reports

6.7.2 Financial Statements and Financial Solvency

6.7.3 Alternate Report

6.8 Corporate Guarantee

6.9 HUB Subcontracting Plan

Article VII. Cost Proposal

7.1 Cost Proposal

Article VIII. General Terms and Conditions

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8.1 General Conditions

8.1.1 Changes, Modifications, and Cancellation

8.1.2 Offer Period

8.1.3 Costs Incurred

8.1.4 Contract Responsibility

8.1.5 Public Information Act - Respondent Requirements Regarding Disclosure

8.1.6 Respondent Waiver – Intellectual Property

8.1.7 Standards of Conduct for Vendors

8.1.8 Disclosure of Interested Parties

8.2 Insurance

8.2.1 Required Coverage

8.2.2 Alternative Insurability

8.3 Protest

Article IX. List of Exhibits and Attachments

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ARTICLE I. INTRODUCTION, DEFINITIONS, AND AUTHORITY

1.1 INTRODUCTION

The Health and Human Services Commission (HHSC) requests sealed Proposals from eligible pharmaceutical wholesalers to establish a Contract for the fulfilment of pharmaceuticals and other items available primarily through their Group Purchasing Organization Contract (collectively, the “Pharmaceutical Products”) required to support HHSC, the Department of State Health Services (DSHS), and Other Eligible Participants’ (OEPs) healthcare programs. The primary focus of this Solicitation is the purchase of pharmaceuticals; purchases of other items will be secondary and optional.

HHSC PCS will administer the procurement process for this Solicitation, which includes RFP publication, handling of communications from vendors, as well as managing the receipt of Solicitation Responses for review and evaluation.

To be considered for award, a Respondent must execute Exhibit A, HHS Solicitation Affirmations Version 2.7 and provide all other required information and documentation as set forth in this Solicitation.

Information regarding HHSC and DSHS and its programs is available online and can currently be accessed at http:hhs.texas.gov.

1.2 DEFINITIONS

Refer to Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, Version 3.4, Exhibit C, Health and Human Services (HHS) Additional Provisions, Version 1.0, and Exhibit M, Data Use Agreement (DUA), for additional definitions.

As used in this Solicitation, unless a different definition is specified or the context clearly indicates otherwise, the following terms and conditions have the meanings assigned below:

“340B Drug Pricing” or “340B” means pricing established by a federal program on covered outpatient drugs from drug manufacturers that provide discounted drug pricing at or below the statutorily defined ceiling price.

“Adequate Supply” means a supply of Pharmaceutical Products made available to a Participating Entity that allows conformity with the parameter of the fill-rate and historical purchase patterns of that Participating Entity.

“Addendum” means a written clarification or revision to this Solicitation issued by HHSC PCS and posted to the ESBD.

http://hhs.texas.gov/

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“Award Consideration (AC) Documents” means documents Respondent must submit as part of the Solicitation Response to be considered for negotiations or award.

“Business Days” means the official working days of the week to include Monday through Friday, except for legal holidays observed by the State of Texas.

“Calendar Days” means all the days of the year, including, weekdays, weekends, and holidays.

“Cloud Computing” or "Cloud Computing Service” has the meaning assigned to it in Section

2157.007 of Texas Government Code.

“Competitive Range” has the same meaning as the definition under Title 1 of the Texas Administrative Code (TAC) Part 15, Chapter 391, Subchapter A, Rule §391.107 (3).

“Contract” has the same meaning as the definition in Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, Version 3.4

“Contractor” means the Party selected to provide the Goods or Services under this Contract, if any.

“Contract Term” means the period of time beginning with the commencement date or Effective Date of a Contract and ending when the Contract expires in accordance with its terms, or when it has been terminated.

“Disaster” means a serious disruption to business operations; sudden event, such as an accident or a natural catastrophe.

“Disaster Recovery Plan” means the Contractor’s solutions and procedures to maintain Services and operations during and after a catastrophe whether natural or human caused. This includes recovery, security, and virus protection.

“Drug Enforcement Agency (DEA) Number” means a registration number assigned to all legitimate handlers of controlled substances (e.g. manufacturers, distributors, physicians, pharmacies, and others) by the United States Drug Enforcement Agency.

“Drug Supply Chain Security Act” or “DSCSA” means Title II of the federal Drug Quality and Security Act (DQSA), which established, among other things, drug product tracing requirements for certain prescription drugs. Information regarding DSCSA is at: https://www.fda.gov/drugs/drug-supply-chain-integrity/drug-supply-chain-security-act-dscsa.

“DSHS” means the Department of State Health Services.

“DSHS Pharmacy Branch” means the branch under the direction of DSHS that provides pharmaceutical support to DSHS medication programs for disease prevention and treatment.

https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2157.htm#2157.007 https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2157.htm#2157.007 https://texas-sos.appianportalsgov.com/rules-and-meetings?$locale=en_US&interface=VIEW_TAC_SUMMARY&queryAsDate=04%2F23%2F2025&recordId=208793 https://www.fda.gov/drugs/drug-supply-chain-integrity/drug-supply-chain-security-act-dscsa

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“Effective Date” has the same meaning as the definition in Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, Version 3.4.

“ESBD” means the Electronic State Business Daily, the electronic marketplace where State of Texas bid opportunities over $25,000 are posted. The ESBD may currently be accessed at http://www.txsmartbuy.com/esbd.

“Executive Commissioner” means the Executive Commissioner of the Health and Human Services Commission.

“Group Purchasing Organization” or “GPO” means an entity that specializes in the procurement and management of vendor contracts for goods and services that are made available to other entities and member operations through contract (in this case primarily for pharmaceuticals). For this Solicitation, the GPO is the Minnesota Multistate Contracting Alliance for Pharmacy (MMCAP) Infuse.

“Final Written Response Score” refers to the final scoring of the written response as documented in the Solicitation.

“Health Level Seven (HL7)” means a set of international standards for exchanging and sharing electronic health information.

“HHSC” means the Health and Human Services Commission.

“HHSC PCS” means Procurement and Contracting Services (PCS), a division of HHSC.

“HUB” means Historically Underutilized Business, as defined by Section 2161.001(2) of the Texas Government Code.

“HUB Subcontracting Plan” or “HSP” means written documentation regarding the use of Subcontractors, which is required by Section 2161.252 of the Texas Government Code, for a purchase with an expected value of $100,000 or more when the State agency has determined subcontracting opportunities are probable. The HSP subsequently becomes a provision of the Contract and Contractor’s compliance with the HSP will be monitored during the Contract Term.

“National Drug Code” or “NDC” means the unique number that is a unique universal product identifier number for all medication packages of non-prescription and prescription drugs. The NDC identifies the labeler code and product code (strength, formulation, and dosage form).

“Non-GPO” means drugs that are not under GPO contract.

“Non-PHS Eligible” means drugs that are not eligible for 340B Drug Pricing and PHS Pricing that can be purchased from the pharmaceutical wholesaler.

http://www.txsmartbuy.com/esbd https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm#2161.001 https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm#2161.001 https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2161.htm#2161.252

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“Operational Start Date” means the first day on which the Contractor is responsible for providing Services under the operations phase of the Contract and occurs after the Transition Phase is completed.

“Other Eligible Participants” or “OEPs” means a State agency, a local agency, a local mental health authority, or a local intellectual and developmental disability authority, as defined under State law, that expends public money with providing or coordinating the provision of intellectual disability Services or mental health Services, or both, to purchase Goods or Services with public money.

“Participating Entity” means HHSC, DSHS, and OEPs.

“Pharmaceuticals” means the preparation, use or sale of drugs to be used for medical purposes, both legend and over the counter.

“Pharmaceutical Products” includes Pharmaceuticals, clinical laboratory reagents and supplies, capital equipment, radiology supplies and equipment, respiratory therapy supplies and equipment, dental supplies and equipment, and general materials management products such as storage equipment, cabinets, and other work-area related items.

“Post-product” means the stage of a drug's lifecycle after it has been approved and is commercially available.

“Product(s)” means the items requested by a Participating Entity and delivered by or through the Contractor.

“Public Health Service (PHS) Pricing” is 340B pricing which has been established by a federal program on covered outpatient drugs from drug manufacturers that provides discounted drug pricing at or below the statutorily defined ceiling price.

“Quarterly” or “Quarter” means a three-month period, four times in a calendar year.

“Respondent” means the individual or entity responding to this Solicitation.

“RFP” means this request for proposals.

“Software-as-a-Service” or “SaaS” means the service model described by the National Institute of Standards and Technology (NIST) in Special Publication No. 800-145 (https://csrc.nist.gov/pubs/sp/800/145/final) to be the capability provided to the consumer to use the provider’s applications running on a cloud infrastructure. The applications are accessible from various client devices through a thin client interface such as a web browser (e.g., web-based e-mail).

The consumer does not manage or control the underlying cloud infrastructure including network, servicers, operating systems, storage or even individual application capabilities, with possible exception of limited user-specific application configuration settings.

“Scope of Work” has the same meaning as the definition in Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, Version 3.4.

https://csrc.nist.gov/pubs/sp/800/145/final

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“Solicitation” has the same meaning as the definition in Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, Version 3.4.

“Solicitation Consideration (SC) Documents” means documents that must be submitted by Respondent with the Solicitation Response in order to be considered for evaluation and cannot be resubmitted or have errors remedied after the submission due date and time in the Schedule of Events has passed.

“Solicitation Response” has the same meaning as the definition in Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, Version 3.4. Also, may be referred to as “Proposal” in this Solicitation, exhibits, attachments or Addenda.

“State” means the State of Texas and its instrumentalities, including HHSC or DSHS, and any other State agency, its officers, employees, or authorized agents.

“State Fiscal Year” has the same meaning as the definition in Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, Version 3.4.

“State Hospitals” means the hospitals under the direction of HHSC that provide in-patient psychiatric care for adults, adolescents, and children.

“State Supported Living Centers” or “SSLCs” means the living centers under the direction of HHSC that provide campus-based direct Services and supports to people with intellectual and developmental disabilities.

“System Agency” has the same meaning as the definition in Exhibit B, Health and Human Services (HHS) Uniform Terms and Conditions – Vendor, Version 3.4.

“Third-Party Vendor” is an external entity, such as a company or individual, that provides Goods or Services to a business or organization. In any Contract resulting from this Solicitation, they provide pharmaceuticals and other items to Contractor.

“Total Score” means the Final Written Response Score plus any additional points for secondary evaluation activities, as outlined by this Solicitation.

“Transaction Data” means the information including but not limited to the name of the product, strength and dosage, National Drug Code (NDC) number, lot number, date of transaction, date of shipment of the pharmaceuticals and/or supplies.

“Transaction Error” means the issues that prevent an electronic data interchange document from being processed correctly by the sender and/or receiver, involved in the exchange.

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“Transition Phase” means a period from Contract Effective Date to the Operational Start Date.

“Transition Plan” means a plan to transition all Deliverables, activities, materials, products, Services, and reports to be generated during the Contract Term, from the current, incumbent contractor to the selected Contractor in order to timely commence operations on the Operational Start Date.

“Turnover Plan” means a plan developed by Contractor that describes Contractor’s policies and procedures that will ensure the least disruption in the delivery of the Work during turnover to System Agency or its designee.

“TX-RAMP” means the Texas Risk and Authorization Plan established by the Texas Department of Information Resources (DIR) that provides a standardized approach for security assessment, authorization, and continuous monitoring of cloud computing Services that process the data of a state agency. To become TX-RAMP certified, entities must submit prescribed documentation to DIR. Information regarding TX-RAMP is currently located at: https://dir.texas.gov/information-security/tx-ramp-eligibility-and-requirements.

“UOM” means unit of measure.

“VPTS” means Vendor Performance Tracking System maintained by the Texas Comptroller of Public Accounts. The VPTS may be currently accessed at https://comptroller.texas.gov/purchasing/programs/vendor-performance-tracking/.

“Written Agreement” means a Drug Supply Chain Security Act (DSCSA) mandate that regulates the management of transactional data between a pharmacy and a wholesaler.

1.3 AUTHORITY

System Agency is soliciting the Services stated in this Solicitation pursuant to Section 2155.144(b- 1)(2) of the Texas Government Code. Pursuant to Sections 533.017 and 533A.017 of the Texas Health and Safety Code, the Executive Commissioner may allow Other Eligible Participants to participate in the Contract.

https://dir.texas.gov/information-security/tx-ramp-eligibility-and-requirements https://dir.texas.gov/information-security/tx-ramp-eligibility-and-requirements https://comptroller.texas.gov/purchasing/programs/vendor-performance-tracking/ https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2155.htm#2155.144 https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2155.htm#2155.144 https://statutes.capitol.texas.gov/Docs/HS/htm/HS.533.htm#533.017 https://statutes.capitol.texas.gov/Docs/HS/htm/HS.533A.htm

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ARTICLE II. SCOPE OF WORK

2.1 DESCRIPTION OF SERVICES

Awarded Contractor shall provide wholesale Pharmaceutical Products and Services to support certain programs operated by System Agencies’ healthcare programs (collectively, the “Programs”).

The Programs participating in this Solicitation are listed in TABLE 1 (List of System Agencies’ Participating Programs and Facilities). System Agencies reserve the right to revise the number of Programs or facilities, or both, covered under the Contract. If a System Agency adds one or more facilities or Programs, or both, Contractor shall begin delivering Pharmaceutical Products to the added Program or facility within sixty (60) Business Days from the date of notice of such addition.

2.1.1 TABLE 1 – List of System Agencies’ Participating Programs and Facilities

340B Eligible Account

System Agency

Eligible Program

Name

DEA/340/

FDA/Dal

#’s

Mailing Address

Physical Address

DSHS Pharmacy Branch Programs Yes DSHS DSHS

Pharmacy Branch – HIV Program

No DEA # /

340B ID

RWIID92 /

340B ID

RWIIR78756

P.O. Box 149347 Austin, TX 78714-9347

1111 W. North Loop Blvd., Austin, TX 78756

Yes DSHS DSHS Pharmacy Branch – TB Program

No DEA # /

340B ID

TB787561

P.O. Box 149347 Austin, TX 78714-9347

1111 W. North Loop Blvd., Austin, TX 78756

No DSHS DSHS Pharmacy Branch – TB Program

No DEA # /

FDA

Registration #1641400 / Dal Labeler #055695

P.O. Box 149347 Austin, TX 78714-9347

1111 W. North Loop Blvd., Austin, TX 78756

No DSHS DSHS Pharmacy Branch – Hansen’s Disease Program

No DEA # /

FDA

Registration #1641400 / Dal Labeler #055695

P.O. Box 149347 Austin, TX 78714-9347

1111 W. North Loop Blvd., Austin, TX 78756

Yes DSHS DSHS Pharmacy Branch – STD Program

No DEA # /

340B ID

STD787563

P.O. Box 149347 Austin, TX 78714-9347

1111 W. North Loop Blvd., Austin, TX 78756

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Account

System Agency

Eligible Program

Name

DEA/340/

FDA/Dal

#’s

Mailing Address

Physical Address

DSHS Pharmacy Branch Programs No DSHS DSHS

Pharmacy Branch – Immunization Branch

No DEA # /

FDA

Registration #1641400 / Dal Labeler #055695

P.O. Box 149347 Austin, TX 78714-9347

1111 W. North Loop Blvd., Austin, TX 78756

No DSHS DSHS Pharmacy Branch

No DEA # /

FDA

Registration #1641400 / Dal Labeler #055695

P.O. Box 149347 Austin, TX 78714-9347

1111 W. North Loop Blvd., Austin, TX 78756

No DSHS DSHS Pharmacy Lubbock

(PHR 1)

No DEA # / No Federal Registration# / No DAL Labeler

6302 Iola Avenue Lubbock, TX 79424

6302 Iola Avenue Lubbock, TX 79424

No DSHS DSHS Pharmacy Arlington (PHR 2/3)

No DEA # / No Federal Registration# / No DAL Labeler

1301 S Bowen Rd Ste 200 Arlington, TX 76013

1301 S Bowen Rd Ste 200 Arlington, TX 76013

No DSHS DSHS Pharmacy Tyler

(PHR 4/5)

No DEA # / No Federal Registration# / No DAL Labeler

2521 W Front Street Tyler TX 75702

2521 W Front Street Tyler TX 75702

No DSHS DSHS Pharmacy Houston (PHR 6)

No DEA # / No Federal Registration# / No DAL Labeler

5425 Polk St Ste. J Houston TX 77023

5425 Polk St Ste. J Houston TX 77023

No DSHS DSHS Pharmacy Temple (PHR 7)

No DEA # / No Federal Registration# / No DAL Labeler

2408 S, 37th St.

Temple TX 76501

2408 S, 37th St.

Temple TX 76501

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Account

System Agency

Eligible Program

Name

DEA/340/

FDA/Dal

#’s

Mailing Address

Physical Address

DSHS Pharmacy Branch Programs No DSHS DSHS

Pharmacy San Antionio (PHR 8)

No DEA # / No Federal Registration# / No DAL Labeler

7430 Louis Pasteur Drive San Antonio, TX 78229

7430 Louis Pasteur Drive San Antonio, TX 78229

No DSHS DSHS Pharmacy Eagle Pass (PHR 8)

No DEA # / No Federal Registration# / No DAL Labeler

1593 S Veterans Blvd. Eagle Pass TX 78852

1593 S Veterans Blvd. Eagle Pass TX 78852

No DSHS DSHS Pharmacy Del Rio (PHR 8)

No DEA # / No Federal Registration# / No DAL Labeler

173 Wildcat Dr. Del Rio

TX 78840

173 Wildcat Dr. Del Rio

TX 78840

No DSHS Texas DSHS Pharmacy Big Spring (PHR 9/10)

No DEA # / No FDA Registration # / No Dal Labeler

2301 North Big Spring, Suite 300 Midland, TX 79705

501 Birdwell Lane, Suite 28-B Big Spring, TX 79720

No DSHS Texas DSHS Pharmacy Brady

(PHR 9/10)

No DEA # / No FDA Registration # / No Dal Labeler

2301 North Big Spring, Suite 300 Midland, TX 79705

1004 South Bridge Street Brady, TX 76825

No DSHS Texas DSHS Pharmacy Marfa

(PHR 9/10)

No DEA # / No FDA Registration # / No Dal Labeler

2301 North Big Spring, Suite 300 Midland, TX 79705

205 East El Paso Street Marfa, TX 79843

No DSHS Texas DSHS Pharmacy Midland

(PHR 9/10)

No DEA # / No FDA Registration # / No Dal Labeler

2301 North Big Spring, Suite 300 Midland, TX 79705

2301 North Big Spring, Suite 300 Midland, TX 79705

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Account

System Agency

Eligible Program

Name

DEA/340/

FDA/Dal

#’s

Mailing Address

Physical Address

DSHS Pharmacy Branch Programs No DSHS Texas DSHS

Pharmacy Alpine

(PHR 9/10)

No DEA # / No FDA Registration # / No Dal Labeler

2301 North Big Spring, Suite 300 Midland, TX 79705

2005 North Cockrell Alpine, TX 79830

No DSHS Texas DSHS Pharmacy El Paso (PHR 9/10)

No DEA # / No Federal Registration# / No DAL Labeler

2301 North Big Spring, Suite 300 Midland, TX 79705

401 E.

Franklin Ave., Ste El Paso, TX 79901

No DSHS Texas DSHS Pharmacy Harlingen

(PHR 11)

No DEA # / No FDA Registration # / No Dal Labeler

601 W. Sesame Drive Harlingen, TX 78550

601 W. Sesame Drive Harlingen, TX 78550

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Account

System Agency

Eligible Program

Name

DEA# Mailing Address

Physical Address

HHSC State Supported Living Centers No HHSC Abilene State

Supported Living Center

To be provided to Contractor

PO Box 451 Abilene, TX 79602

2501 Maple Street Abilene, TX 79602

No HHSC Austin State Supported Living Center

To be provided to Contractor

2203 W. 35th Street Austin, TX 78703

Same

No HHSC Brenham State Supported Living Center

To be provided to Contractor

4001 Hwy 36 South Brenham, TX 77833

Same

No HHSC Corpus Christi State Supported Living Center

To be provided to Contractor

PO Box 9297 Corpus Christi, TX 78405

902 Airport Road Corpus Christi, TX 78405

No HHSC Denton State Supported Living Center

To be provided to Contractor

3980 State School Road Denton, TX 76210

Same

No HHSC El Paso State Supported Living Center

To be provided to Contractor

6700 Delta Drive El Paso, TX 77905

Same

No HHSC Lubbock State Supported Living Center

To be provided to Contractor

PO Box 5396 Lubbock, TX 79417

3401 N.

University Avenue Lubbock, TX 79417

No HHSC Lufkin State Supported Living Center

To be provided to Contractor

PO Drawer 1648 Pollock, TX 75969

6844 N. U.S.

Highway 69 Pollock, TX 75969

No HHSC Mexia State Supported Living Center

To be provided to Contractor

PO Box 1132 Mexia, TX 76667

540 Chapel Drive Mexia, TX 76667

No HHSC Richmond State Supported Living Center

To be provided to Contractor

2100 Preston Street Richmond, TX 77469

Same

PCS 550 HHS RFP RFP No. HHS0015752 Page 18 of 71

Eligible Program

Name

DEA# Mailing Address

Physical Address

HHSC State Supported Living Centers No HHSC San Angelo

State Supported Living Center

To be provided to Contractor

11640 U.S.

Hwy 87 N.

Box 38 Carlsbad, TX 76934

Same

No HHSC San Antonio State Supported Living Center

To be provided to Contractor

6711 S. New Braunfels Avenue, Suite 500, Bldg. 667 San Antonio, TX 78223

Eligible Program Name

DEA# Mailing Address Physical Address

HHSC State Hospitals No HHSC Austin

State Hospital

To be provided to Contractor

Guadalupe Street Austin, TX 78751

Same

No HHSC Big Spring State Hospital

To be provided to Contractor

1901 N. Hwy Big Spring, TX 79720

Same

No HHSC El Paso Psychiatric Center

To be provided to Contractor

4615 Alameda Avenue El Paso, TX 79905

Same

No HHSC Kerrville State Hospital

To be provided to Contractor

721 Thompson Drive Kerrville, TX 78028

Same

No HHSC North Texas State Hospital

To be provided to Contractor

PO Box 2231 Vernon, TX 76385

4730 College Drive Vernon, TX 76385

No HHSC North Texas State Hospital

To be provided to Contractor

PO Box 300 Lake Road Wichita Falls, TX 76308

6515 Kemp Blvd.

Wichita Falls, TX 76308

No HHSC Rio Grande State Center

To be provided to Contractor

1401 S.

Rangerfield Rd.

Harlingen, TX

PCS 550 HHS RFP RFP No. HHS0015752 Page 19 of 71

Eligible Program Name

DEA# Mailing Address Physical Address

HHSC State Hospitals No

HHSC

Rio Grande State Center

To be provided to Contractor

1401 S.

Rangerfield Rd.

Bldg. 500 Harlingen, TX

No HHSC Rusk State Hospital

To be provided to Contractor

PO Box 318 Rusk, TX 75785

805 N.

Dickinson Drive Rusk, TX 75785

No HHSC San Antonio State Hospital

To be provided to Contractor

6711 S. New Braunfels, Suite 100 San Antonio, TX 78223

Same

No HHSC Terrell State Hospital

To be provided to Contractor

PO Box 70 Terrell, TX 75160

1200 E. Brin Terrell, TX 75160

2.1.2 Contract Participation

Contractor shall extend the terms and conditions of the Contract to those OEPs, if any, that the Executive Commissioner may allow to participate in the Contract.

2.2 PRICING

One of the main purposes and goals of the Contract is to get the best available pricing on pharmaceuticals.

Contractor’s pricing package minus any agreed upon discounts shall not include any fees, administrative or otherwise.

Product pricing will be in accordance with the GPO contract at the time of purchase, 340B and PHS-pricing for eligible Programs or, if applicable, Contractor’s negotiated price with drug manufacturers. See Table 1 – List of System Agencies’ Participating Programs and Facilities for accounts eligible for 340B and PHS pricing. Contractor shall ensure confidentiality of pricing agreements is maintained.

Contractor shall not substitute more expensive, Non-GPO or Non-PHS Eligible Pharmaceuticals or other Products when contract or PHS-Pricing eligible products are available.

Participating Entities will not pay any fees, percentages, or costs that Contractor did not identify and expressly agree to in its Contract.

PCS 550 HHS RFP RFP No. HHS0015752 Page 20 of 71

2.2.1 Pricing Accuracy

Contractor shall maintain accurate GPO-contract and PHS-eligible pricing. The Contractor’s ordering system shall reflect the most up to date pricing. Contractor shall issue credit memos for overcharges no later than thirty (30) Calendar Days of their discovery. Contractor shall issue invoices for undercharges no later than thirty (30) Calendar Days of their discovery; such invoices shall include all applicable discounts to which the Participating Entity is entitled under the Contract.

2.3 ONLINE CATALOG

2.3.1 Online Access

Contractor shall provide and maintain each Participating Entity’s online access to Contractor’s ordering system including Contractor’s comprehensive list of all available Pharmaceutical Products including current GPO-contract and PHS-eligible pricing to each Participating Entity.

2.3.2 System Security and Disaster Recovery

Contractor shall protect technological architecture, including the development and implementation measures that will provide security and protection for the system. This includes backup, recovery, and virus protection. Services and operations shall be reinstated in the event of a Disaster.

2.3.3 Disaster Recovery Plan

Contractor shall provide System Agency with a Disaster Recovery Plan within 10 Business Days of Contract’s Effective Date. The Disaster Recovery Plan shall include specifications on any hardware and software components utilized by the proposed security and disaster recovery solutions.

2.3.4 Disaster Recovery Test

At least once per State Fiscal Year, for no additional compensation, Contractor shall conduct a Disaster recovery test to assess the effectiveness of the Contractor’s Disaster Recovery Plan.

Contractor shall develop the Disaster recovery testing procedures in coordination with System Agency. Contractor shall provide System Agency at least thirty (30) Calendar Days advance written notification of each Disaster recovery test. System Agency may monitor Contractor’s Disaster recovery testing activities. During the Disaster recovery exercises, Contractor shall simulate daily operations that occur in a production setting and, at a minimum, test the recovered environments, accessibility, data integrity, and functionality. Contractor will provide System Agency with a written summary report detailing the results of each Disaster recovery test. A lesson learned meeting will be conducted by Contractor no later than thirty (30) Calendar Days following the completion of the Disaster recovery test. Upon System Agency’s written request, Contractor shall make Contract personnel available to discuss with System Agency, the results of the Disaster recovery test. If Disaster recovery test is unsuccessful, Contractor will (1) develop a remediation plan on or before

PCS 550 HHS RFP RFP No. HHS0015752 Page 21 of 71 the thirtieth (30th) Calendar Day following the unsuccessful Disaster recovery test and (2) implement such remediation plan on or before the ninetieth (90th) Calendar Day following the unsuccessful Disaster recovery test unless an alternate timeframe is mutually agreed by System Agency and Contractor. Upon System Agency written request, Contractor shall conduct, for no additional compensation, an additional Disaster recovery test during the State Fiscal Year to validate the successful implementation of Contractor’s remediation activities.

2.3.5 Performance Monitoring and Management

Contractor shall monitor system performance. This includes centrally managing system resources such as servers, backup, archiving and recovery equipment, databases, and applications.

Additionally, Contractor shall audit, trace, and scan the system to prevent system outages and maximize Services and their quality.

2.3.6 DCS Exemption

The online ordering system, including web-based Services, shall host the application or solution in compliance with the DCS program, using either public or private cloud services and DCS managed services provided unless otherwise approved by DIR through a Data Center Services Exemption.

Contractor shall provide Services that comply with DCS hosting or obtain a DCS (DIR) exception in accordance with the Exhibit O, Data Center Services or Exemption.

Section 2054.391 of the Texas Government Code requires State agencies included in the Data Center Services (DCS) program to use such services. If a DCS Exemption is granted, but then expires or is otherwise revoked during Contract Term, Contractor is required to comply with the Section of the Texas Government Code cited above.

2.3.7 Hosting

If the online catalog is a SaaS Solution, Respondent shall provide information that clearly demonstrates that the Solution meets the National Institute of Standards and Technology (NIST) standard definition of SaaS, see Section 1.2 (Definitions). Per NIST SP 800-145, the SaaS solution shall have the following five essential characteristics:

a. On-demand self-service. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service provider.

b. Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, tablets, laptops, and workstations).

c. Resource pooling. The provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2054.htm#2054.391

PCS 550 HHS RFP RFP No. HHS0015752 Page 22 of 71 dynamically assigned and reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, and network bandwidth.

d. Rapid elasticity. Capabilities can be elastically provisioned and released, in some cases automatically, to scale rapidly outward and inward commensurate with demand. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be appropriated in any quantity at any time.

e. Measured service. Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported, providing transparency for both the provider and consumer of the utilized service.

2.3.8 Texas Risk and Authorization Management Program

The Contractor shall comply with the program requirements of TX-RAMP, if online catalog is a SaaS. Commencing on the Effective Date, the Contractor shall have achieved TX-RAMP Level 2 Certification, and the Contractor shall maintain such certification for the duration of the Contract Term. At the sole discretion of System Agency, the Contractor’s attainment of TX-RAMP Provisional Certification may satisfy the TX-RAMP Certification Level 2 requirement for the length of active TX-RAMP Provisional Certification. If System Agency permits TX-RAMP Provisional Certification, the Contractor is solely responsible for obtaining and maintaining TX-RAMP Level 2 Certification prior to the expiration of TX-RAMP Provisional Certification. Contractor acknowledges that System Agency shall not provide Agency-sponsored Interim Provisional Certification or otherwise assist Contractor in Contractor’s compliance with TX-RAMP requirements.

In addition, Contractor shall:

a. Upon System Agency’s request, provide Contractor’s submission(s) to DIR that supports DIR’s approval of certification status and respond to System Agency and DIR TX-RAMP staff inquiries promptly;

b. Provide written notification to System Agency of any lapse in TX-RAMP certification including, but not limited to, DIR revocation of TX-RAMP certification within two (2) Business Days of Contractor’s discovery of non-compliance with TX-RAMP requirements;

c. Complete all TX-RAMP monitoring reports required by DIR and submit copies of reports to System Agency on or before the second (2nd) Business Day following the DIR submission deadline;

PCS 550 HHS RFP RFP No. HHS0015752 Page 23 of 71

d. Routinely assess and monitor for compliance with required security controls and demonstrate that the security posture of the cloud computing Services offered is acceptable to maintain TX-RAMP certification;

e. If the Contractor has TX-RAMP Provisional Certification, provide a progress update to System Agency on Contractor’s application for TX-RAMP Level 2 Certification no later than the third (3rd) Business Day of each calendar month, unless System Agency requires more frequent reporting, until the expiration of the TX-RAMP Provisional Certification; and

f. If the Contractor has TX-RAMP Level 2 Certification, commencing six months prior to the expiration date of the TX-RAMP Level 2 Certification, provide a progress update to System Agency on Contractor’s application for renewal or extension of its TX-RAMP Level 2 Certification no later than the third (3rd) Business Day of each calendar month, unless System Agency requires more frequent reporting.

The Contractor’s failure to comply with any TX-RAMP requirements including, but not limited to, continuous maintenance of the minimum certification required by the Contract may constitute a material breach of Contract, and System Agency reserves the right to hold Contractor accountable by taking any remedial or corrective actions available under the Contract, at law, or in equity. If Contractor is unable to achieve TX-RAMP Level 2 Certification or re-certification, as applicable, for any reason before the 120th Calendar Day prior to the expiration date of the TX-RAMP Provisional Certification or TX-RAMP Level 2 Certification, as applicable, the Contractor shall provide, at no cost to System Agency, turnover Services in accordance with Section 2.8.1.3 (Turnover Plan).

System Agency reserves the right to confirm TX-RAMP certification status on the DIR website and request additional information from a Respondent to supplement the TX-RAMP documentation submitted in its Solicitation Response.

TX-RAMP Provisional Certification does not indicate compliance with TX-RAMP security baseline standards of a cloud computing service product.

2.3.9 Real-Time Account Status

Contractor provided online catalog shall include each Participating Entity’s access to view real-time account status that includes information on any past due dollar amounts, open transactions, processed transactions, actual statements, and invoices with the capability of printing these from the online catalog. The online catalog shall provide each Participating Entity the following security measures:

a. Implement HTTPS across entire customer portal;

b. Implement the x-xss-protection security header;

c. Implement a content security policy;

d. Apply sub resource integrity to <script> or <link> elements;

e. Utilize TLS 1.2 or greater;

f. Require strong passwords that employ a minimum combination of eight (8)

PCS 550 HHS RFP RFP No. HHS0015752 Page 24 of 71 alphanumeric and special characters;

g. Set password lockout threshold to three failed login attempts within sixty

(60) minutes’ results in a 20-minute lockout period;

h. Limit password age to 120 Calendar Days; and

i. Prevent password re-use for one year.

2.3.10 Purchases

Contractor shall provide online access to all data relating to the Products purchased by each Participating Entity account. The data shall include the following elements:

a. Date purchased;

b. Product name;

c. Product NDC;

d. Classification;

e. Controlled substance classification;

f. Therapeutic classification;

g. Package size;

h. Quantity of packages purchased;

i. Price;

j. Indication of whether the product was part of a GPO eligible, 340B, PHS, or is Non-

GPO/Non-PHS Eligible;

k. Invoice date; and

l. Name of the facility and address where the Products were delivered.

2.3.11 Participating Entity Online Access

A Participating Entity’s online access to data shall include, at the minimum:

a. A means for reporting each individual account purchases, as well as being capable of running reports of select groups of accounts;

b. The ability to build reports based on each System Agencies’ requirements, either directly through the Contractor’s system or through the ability to transfer data into spreadsheets in a Microsoft Office compatible format; and

c. Be limited to only that Participating Entity’s purchases.

PCS 550 HHS RFP RFP No. HHS0015752 Page 25 of 71

2.4 PRODUCT SUPPLY, ORDERING, REGULATORY REQUIREMENTS

Contractor shall maintain for distribution an Adequate Supply of all Products to support each Participating Entity.

2.4.1 Drug Supply Chain Security Act

Contractor shall comply with all aspects of the Drug Supply Chain Security Act (DSCSA) located at Drug Supply Chain Security Act (DSCSA) | FDA and shall serve as repository for all legally required information for the programs/facilities.

2.4.2 Transaction Information

The ordering program/facility will not accept ownership of a Product, unless the previous owner prior to, or at the time of the transaction, provides the transaction history, the transaction information, and the transaction statement. Contractor shall maintain all transactional data for all Products ordered through the Contractor.

2.4.3 Written Agreement

Contractor shall provide to each Participating Entity a written agreement that contains transactional information, transaction history, and transaction statements (collectively, the “transaction data”).

This written agreement will be maintained confidentially as required under DSCSA. If the Contract is terminated, Contractor shall provide each Participating Entity with their respective transaction data.

2.4.4 Ordering

a. All Products will be purchased on an as needed or on an as ordered basis.

b. Contractor shall not restrict orders for new Pharmaceutical Products.

2.5 CONFIDENTIALITY

Contractor shall maintain the confidentiality of each Participating Entity’s DEA number, if applicable, and other confidential information in accordance with all federal and State laws, including without limitation, Texas Business and Commerce Code, Chapter 521 at https://statutes.capitol.texas.gov/docs/bc/htm/bc.521.htm.

https://statutes.capitol.texas.gov/docs/bc/htm/bc.521.htm

PCS 550 HHS RFP RFP No. HHS0015752 Page 26 of 71

2.6 DELIVERY REQUIREMENTS

2.6.1 Schedules

Except for designated State and federal holidays, product deliveries shall be made to each Program or facility, or both, Monday through Friday. Lead time from order entry to order delivery shall be next day. Except as otherwise provided in this SOW, all deliveries shall be delivered to the ordering Program or facility or both during System Agencies’ business hours of operation.

2.6.1.1 Emergency Deliveries

a. Contractor shall make emergency deliveries. Emergencies include, without limitation:

1. Regulatory actions taken by any entity that suspends or terminates Contractor’s ability to meet the requirements of the Contract;

2. Natural disasters; and

3. Manufacturer shortages (collectively, the “emergency deliveries”).

b. Contractor shall provide for support and flexibility in filling orders after regular business hours especially for emergency deliveries, to include either pick-up by authorized agency personnel or direct delivery to designated locations within agency directed timeframes.

c. Contractor shall assist as necessary to identify sources for requested bulk quantities of Pharmaceuticals for emergency and/or disaster situations.

2.6.2 Product Requirements

2.6.2.1 Sources

Contractor shall ensure Pharmaceuticals have been purchased directly from a manufacturer and are being delivered directly from the Contractor’s distribution center. Exceptions to the foregoing requirement must be approved in writing by the ordering Program or facility. This requirement does not apply to the Contractor’s option to use repackaging services. Repackaging services receive pharmaceuticals from Contractor and then ship the repackaged pharmaceuticals to the ordering facility pharmacy. Pharmaceuticals purchased from a third-party distributor are not acceptable.

2.6.2.2 Packaging

For Programs or facilities that provide bulk distribution of pharmaceuticals, Contractor shall deliver all product orders in full-unopened case quantities, except for orders that require less than a full case of product.

PCS 550 HHS RFP RFP No. HHS0015752 Page 27 of 71

Contractor shall ship in cold packs to preserve the integrity of the Pharmaceuticals where required by the manufacturer.

2.6.2.3 Labeling

Contractor shall provide and include labels with each delivery. At a minimum, the labels shall contain the order-entry number, date of purchase, and the item acquisition price. A list of GPO contract items shall also be provided with each delivery, complete with order-entry numbers and notation for those items not stocked in inventory. Contractor shall provide facilities bar-coded shelf labels annually, or as frequent as necessary to meet account needs. Contractor’s coding system shall include a method for identifying GPO contract vs. Non-GPO products.

2.6.2.4 Damaged Products

If there is visible damage to products, packaging, or labeling, System Agencies shall refuse receipt of the delivery. Contractor shall replace damaged products within 24 hours from the time of its delivery or at the next delivery, whichever is sooner.

2.7 INVOICING, PAYMENT, AND AUDITING

2.7.1 Invoicing

a. Invoicing for each order shall be to each individual Participating Entity, as listed on each order.

At a minimum, the invoice shall include:

1. Account name and address;

2. Account number;

3. Item number;

4. Quantity;

5. Number of units;

6. Description of item (i.e., product name, strength and UOM);

7. Service date(s);

8. Amount;

9. Invoice number;

10. Invoice date;

11. Purchase order number;

12. Manufacturer;

PCS 550 HHS RFP RFP No. HHS0015752 Page 28 of 71

13. NDC;

14. Control classification;

15. Product identification as GPO contract, PHS, or Non-GPO, and Non-PHS Eligible;

16. Price per UOM;

17. Extension price (price per UOM times quantity); and

18. Total invoice price.

b. Contractor shall use the lesser of cost as defined in the Contract resulting from this RFP, or the appropriate Contractor PHS price for eligible accounts as identified in Table 1– List of System Agencies’ Participating Programs and Facilities as the basis for invoicing each individual Participating Entity, by ordering Program or facility.

2.7.2 Invoices and Payments

All payments to a Contractor by the System Agency, any payments by a Contractor to any Subcontractor, and any payments by a Subcontractor to any other person or entity that provides Goods or Services under this Contract shall be made in compliance with Chapter 2251 of the Texas Government Code.

Contractor shall submit invoices monthly in accordance with Title 34 of the Texas Administrative Code Part 1, Chapter 20, Subchapter F, Division 1, Rule §20.487 or as otherwise agreed upon.

Invoices submitted to the System Agency shall include the Contract or purchase order number and shall provide the Goods and Services delivered in detail, for which payment is requested. The detail of the Goods and Services delivered shall comply with the Scope of Work.

Contractor shall accept electronic funds transfer for…