HSP44 Medical Commodities_Request for Response_06.01.2022_FINAL.docx

COMMONWEALTH OF MASSACHUSETTS

OPERATIONAL SERVICES DIVISION

Request for Response (RFR)

Document Title: Medical Commodities

Agency Document Number: HSP44

COMMBUYS Bid#: BD-22-1080-OSD03-SRC01-71969 Bid # UPDATED BD-23-1080-OSD03-SRC01-76140

June 1, 2022

Please Note: This is a single document associated with a complete Bid (also referred to as Solicitation) that can be found on www.COMMBUYS.com. Bidders are responsible for reviewing and complying with all Bid requirements. Bidders may contact the OSD Help Desk at OSDHelpdesk@mass.gov or at 1-888-MA-STATE for technical assistance with COMMBUYS. The Help Desk is staffed from 8:00 AM to 5:00 PM Monday through Friday Eastern time, as applicable, except on federal and state holidays.

Bidders with disabilities or hardships that seek reasonable accommodation, which may include the receipt of RFR information in an alternative format, must communicate such requests in writing to the contact person. Requests for accommodation will be addressed on a case-by-case basis. A Bidder requesting accommodation must submit a written statement which describes the Bidder’s disability and the requested accommodation to the contact person for the RFR. The SST reserves the right to reject unreasonable requests.

Revision History

RFR HSP44/ BID# BD-22-1080-OSD03-SRC01-71969

Document Sensitivity Level: High during development; Low once published. Template v 3.0.0

RFR HSP44/ BID# BD-23-1080-OSD03-SRC01-76140

Table of Contents Page iv Document Sensitivity Level: High during development; Low once published.

INTRODUCTION AND BID OVERVIEW

Summary Description of Procurement The Commonwealth of Massachusetts and the Medical Commodities Strategic Sourcing Team (SST) are soliciting Bidders for the acquisition of medical commodities used in the provision of healthcare in any setting to include but not limited to surgical, urological, or wound care.

While we are seeking Distributors who can each supply the vast majority of these commodities listed in this RFR, we will consider bids from specialty suppliers who service a niche market where we have historically experienced inadequately met needs. These needs include: respiratory CPAP and BiPAP masks and supplies (which might be supplied on short notice by a specialty home healthcare supplier); and/or necessary protective wear and gear (PPE).

This contract works in conjunction with the HSP43 GPO for Medical Commodities Awarded Vendor to supply the GPO’s customers but also serves as a stand-alone contract that will serve as the primary Statewide Contract used by Executive Agencies of the Commonwealth for the goods and services covered by the Contract. The resulting Contract will replace HSP40 which expires June 30, 2022. The Contract will also be available for use by other Eligible Entities.

Estimated Procurement Calendar

Training for Online Submission – Contractors that have not previously submitted electronic quotes via COMMBUYS are strongly encouraged to attend training

June 8, 10:00 AM -11:30 AM (EST)

Online Webinar:

This interactive webcast provides instructions on several activities: Locating and responding to bids; Using the bid Q&A feature; Creating a quote response; Revising a Quote response. Access the webcast here.

Late bids will not be considered.

*See Appendix 2 "Training for Vendors Responding to Bids On COMMBUYS" for instructions on how to register for live webinar and additional trainings that may be helpful to prospective bidders.

Visit https://www.mass.gov/doc/vendor-training-schedule/download for additional Instructor-Led Training and Webinar dates.

Times are Eastern Time (US), as displayed on the COMMBUYS system clock after logging in. If there is a conflict between the dates in this Procurement Calendar and dates in the Bid’s Header, the dates in the Bid’s Header on COMMBUYS shall prevail. Bidders are responsible for checking the Bid record, including Bid Q & A, on COMMBUYS for Procurement Calendar updates.

Submission of Bid Questions The “Bid Q & A” function in COMMBUYS allows Bidders to ask written questions and receive written answers regarding this Bid. To locate the Bid Q & A, log into COMMBUYS, locate the Bid, acknowledge receipt of the Bid, and scroll down to the bottom of the Bid Header page. The “Bid Q & A” button allows Bidder’s access to the Bid Q & A page.

All questions must be submitted through the Bid Q & A page. Questions must be asked prior to the Deadline stated in the Estimated Procurement Calendar. The Strategic Sourcing Team (SST) reserves the right not to respond to late questions. Bidders are responsible for verifying that their questions are recorded in COMMBUYS and appear on the Bid Q & A page.

Questions submitted to the SST outside of COMMBUYS will not be answered.

Content entered must be suitable for public viewing. Bidders must not include inappropriate content, including but not limited to, information that could be considered personal, security sensitive, inflammatory, incorrect, or collusory. The SST reserves the right to edit or delete any inappropriate content.

All answers are final when posted. Any subsequent revisions to previously provided answers will be dated.

Bid Amendment Deadline The SST reserves the right to make amendments to the Bid after initial publication. It is each Bidder’s responsibility to check COMMBUYS for any amendments, addenda or modifications to this Bid, and any Bid Q & A records related to this Bid. The SST and the Commonwealth accept no responsibility and will provide no accommodation to Bidders who submit a Quote based on an out-of-date Bid or on information received from a source other than COMMBUYS.

At the SST’s discretion, the Bid Amendment Deadline may be extended. Should this occur, the “Deadline for Quotes/Responses” shall be extended as well. As stated above, it is the responsibility of the bidder for checking the Bid record in COMMBUYS for revisions and updates.

Late Bids will not be Considered Bid responses must be received in full by the bid opening date and time shown on COMMBUYS ("Bid Opening Date/Time", i.e., the Deadline for Quotes/Bid Responses). Proposals received after the deadline will be ineligible for consideration and deemed non-responsive. Each bidder/offeror must submit all required bid response forms electronically through COMMBUYS. When submitting a quote electronically through COMMBUYS, please allow sufficient time to complete any online forms and upload documents. If you are in the middle of uploading your proposal when the deadline is reached, the system will stop the process and you will be unable to submit your Quote. It is recommended that Quotes be submitted as far in advance as possible before the deadline to allow time to obtain assistance from the OSD Help Desk if needed.

Debriefing The SST will conduct debriefings for unsuccessful Bidders, if requested within 14 calendar days of notification that your Quote has not been selected for an award. Debriefing guidelines will be provided in advance prior to the debriefing.

Anticipated Contract Duration:

The initial term of this Contract is five (5) years. This Contract has zero options for renewal.

Estimated Value of the Contract The estimated value of purchase(s) resulting from this Bid is $50,000,000.00. The Commonwealth makes no guarantee that any commodities or services will be purchased from any Contract resulting from this Bid. Any estimates or past procurement volumes referenced in this Bid are included only for the convenience of Bidders and are not to be relied upon as any indication of future purchase levels.

This Estimated Value was derived by reviewing Contractor sales reports to Commonwealth of Massachusetts eligible entities for FY2019 through FY2021.

Estimated Number of Awards The target maximum number of Contractors is Eight (8). The SST may award more or fewer contracts, if it is in the best interests of the Commonwealth to do so.

Adding Contractors after initial Contract Award If, over the life of the Contract, the SST determines that additional Contractors should be added to meet the requirements of the Commonwealth, these may first be drawn from qualified companies which responded to this Bid but were not awarded contracts and/or the Bid may be reopened to obtain additional Quotes.

Acquisition Method(s):

Entities Eligible to Use the Resulting Contract Any Contract(s) resulting from this Bid will be open for use by the following entities:

· Cities, towns, districts, counties, and other political subdivisions

· Executive, Legislative and Judicial Branches, including all Departments and elected offices therein

· Independent public authorities, commissions, and quasi-public agencies

· Local public libraries, public school districts and charter schools

· Public hospitals owned by the Commonwealth

· Public institutions of higher education

· Public purchasing cooperatives

· Non-profit organizations that are doing business with the Commonwealth;

· Other states and territories with no prior approval by the State Purchasing Agent; and

· Other entities when designated in writing by the State Purchasing Agent.

Each eligible entity is responsible for executing its own purchase orders and paying its own invoices for goods and/or services acquired from this Contract. Contractors will be responsible for marketing their goods and/or services to Commonwealth Agencies and other eligible entities.

2 ADDITIONAL INFORMATION ON PROCUREMENT SCOPE

2.1 Procurement Exclusions

The intent of this statewide contract will be to allow a means for eligible entities to procure the products and related services as listed above. While some product overlap with existing statewide contracts is allowed (i.e., products bundled as part of a system purchase), items that are offered on Statewide Contracts (and any of the successor statewide contracts) with the primary use as listed below will be excluded unless identified in this RFR and any attachments.

The lists of products and services that are NOT allowed under this contract include, but are not limited to, the following:

Comment by Tavares, Sorraia (OSD): These contracts and their replacement as well.

· Laboratory supplies and equipment, prescription drugs, and medical equipment costing more than $5,000 per unit – available under HSP39 (or replacement contract)

· Laboratory Supplies and Equipment – available under HSP41 (or replacement contract)

· COVID-19 Rapid Test Kits - available under HSP41, Category 10 (or replacement contract)

· Pharmaceuticals/Drug Wholesaler – available under MED47 and MED48 (or replacement contract)

· Influenza Vaccines – available under MED55 (2022-2023 Flu Season) (or replacement contract)

3 Bidder Qualifications

3.1 Company experience

3.1.1 Business background

Bidders must submit a Bidder Profile which describes at a minimum the Company’s experience, company locations, and includes organizational information stating/showing the titles and number of staff who will be providing services under the contract resulting from this RFR.

Bidders must currently sell the majority of the medical commodities as described in the Procurement Summary and Commodity sections (1.1 and 4) to be considered for a contract award, unless bidding as a specialty supplier who serves a niche market. The SST may make awards to Bidders that specialize in a small market segments such as a home health care or emergency equipment and supplies, or medical training aids.

Bidder must routinely participate in Medicare Part B and can either direct bill Mass Health or provide Medicare Part B pricing on products when the Medicare Part B price is lower than the State Net Price List when clients of a Purchasing Entity are eligible for Medicare Part B. Details would have to be worked out with the Purchasing Entity before transactions occurred.

3.1.2 Years in the industry of the Bid

Bidders must have been in the business of selling Medical Commodities and Equipment for at least three years prior to the RFR submission deadline (See RFR Section 1.2, Estimated Procurement Calendar).

In the case of companies formed fewer than three years prior to this date via merger, acquisition or some other means, the SST may consider the experience of all companies involved in the merger or acquisition.

3.2 Emergency Response Capabilities

In a declared state of emergency where the safety and wellbeing of Commonwealth citizens are at risk, contractors may be asked to supply the Commonwealth with the commodities and/or services under the Statewide Contract on a priority basis. The Bidder’s Response should include the following:

· Indicate whether there is a written Continuity of Operations Plan (COOP) that describes how the company will continue to do business in case of an emergency.

· A list of emergency contact information including name, position/title, phone, email, and cell phone.

· A list of the Bidder’s building location(s) that would be available to serve the Commonwealth during an emergency (if applicable).

3.3 Financial Stability Including DUNS Report, Bankruptcy, Litigation and Contract Defaults

3.3.1 Financial Statement for Most Recently Completed Fiscal Year No contracts will be awarded without a Statement of Financial Stability.

3.3.2 Bankruptcy, Litigation, and Contract Defaults

Bidder must state if there are any past pending legal actions including contract defaults, litigation, and bankruptcy, and/or any purposeful business name change due to contract defaults, litigation, or bankruptcy. The past is defined as the three (3) years prior to the opening of this solicitation.

3.4 References and Reference Information and/or Requirements

Bidder must include at minimum, three (3) references from Commodity Distributors and Medical Equipment Manufacturers or Suppliers they do business with on an annual basis. Also, at minimum, three (3) references from customers having received medical products, commodities and/or equipment within the twelve months preceding the Bid Release Date of this RFR that are the most relevant and comparable to those being proposed. Bidder must use associated Bidder References tab on the Bidder Response Form.

The SST reserves the right to verify references included in the Response and to conduct other reference checks as deemed appropriate.

4 COMMODITY, SERVICE, ENVIRONMENTAL, AND COST SPECIFICATIONS

4.1 Commodity Specifications

The medical commodities and equipment available through this contract must be compliant with all applicable Federal laws and regulations such as Code of Federal Regulations (CFR) Title 21 at the time of sale.

Items purchased using this contract will primarily be used in the provision of healthcare in any setting with the exception of drugs requiring a prescription and major medical equipment. Currently “major medical equipment” is defined as costing more than $5,000 (Five Thousand Dollars) per unit (refer to RFR Section 2.1), but the Commonwealth may change that limit at any time during the Contract. Also, at any time during the Contract the Commonwealth may restrict or prohibit the sale of certain commodities by a Vendor through the Contract.

Examples of the products and services available through this contract include but are not limited to:

· disposable equipment

· exam supplies and instruments: blood pressure cuffs, stethoscopes, thermometers, first aid products

· germicides, gloves, medical hosiery, protective wear

· IV sets, solutions, supplies and related products

· medical training aids such as manikins

· needles and syringes

· nursing charting and other supplies

· nutritional products including enteral feeding products and supplies

· medical linen, medicated soaps

· patient items: condoms, diapers, incontinence diapers/ briefs/under pads, mouth care products, sick room utensils, ostomy care products

4.2 Service Specifications

The medical commodities and equipment purchased through this contract must meet the following service requirements:

4.2.1 Product Quality Control

Awarded Vendor must have a written plan or policy that outlines the Supply Chain Integrity steps the Bidder takes to ensure it is not obtaining medical commodities that are counterfeit, fake, adulterated, damaged, secured from a “fire sale”, improperly stored, shopworn, outdated or have other problems from the medical commodities supply chain and then selling them to its customers.

In the event that refurbished or remanufactured equipment is being requested and sold, “remanufactured” or “reconditioned” is defined as products or equipment partially or fully manufactured from existing product materials where such materials are cleaned and repaired to the extent possible and reused in the new product or equipment in accordance with the original manufacturer’s specifications. All unusable parts are to be removed and replaced with new or remanufactured parts, which meet original equipment manufacturers (OEM) standards and any governing standards and/or regulations.

4.2.2 Customer Service and Support

Awarded Vendor must have a dedicated account representative assigned to the Commonwealth; ready to service buyers’ needs and maximize the contract’s usage.

Bidders must have a physical location and a warehouse able to deliver products to any location within the Commonwealth within the required timeframes described later in this RFR. So called “virtual” Vendors are not acceptable as Bidders.

4.3 Eligible Brands and Models

When appropriate, the SST may specify brand name items or equals for the specific products for this contract. All eligible commodities and equipment must be in new condition and meet the standards set forth under Section 4.1 and other credible guidelines issued both Federally and by the Commonwealth of Massachusetts. In the case of refurbished equipment allowed under the Law, all standards and expectations set forth Federally and by the Commonwealth of Massachusetts must be followed.

4.4 Delivery Terms

No charge for delivery within seven (7) calendar days of orders of $50.00 or more in the same day to the same delivery address either from the Vendor or for drop shipping directly from a manufacturer or other source. A purchaser has the option of agreeing to special charges such as: a delivery charge of up to $20.00 for orders under $50.00, expedited (express or overnight) delivery, hazmat fees, or other special handling. Special handling fees (not agreed ahead of time with the buyer), added delivery fees, or fuel charges or fuel surcharges are prohibited under this Contract.

A Vendor must normally deliver items within seven (7) calendars days of receipt of an order. If a Vendor cannot deliver within seven (7) calendar days, the Vendor must notify the Purchasing Entity of the projected delivery date at time of order or during the next business day. Should that date later change the Vendor must notify the Purchasing Entity of a new delivery date.

4.5 Returns/Disposal

The Buyer may return any item in original packaging and in saleable condition within seven (7) calendar days of receipt of order unless at time of the order the Vendor clearly stated in writing that an item was not returnable. A wrongly shipped item received in error for which the purchaser notifies the Vendor within sixty (60) calendar days of receipt must be replaced, credited, or repaid by check at the option of the Purchaser. The Vendor is responsible for the shipping costs of all returns (within the sixty [60] day window) and restocking charges are not allowed under HSP44.

4.6 Warranties

If merited, vendors will provide warranty information on any products sold under the guise of this contract. It is understood that not all products may have a warranty and warranty coverage may differ based on product and availability.

Recalls, Notices of Defects and/or Failure to Supply: The purchaser is to receive timely Vendor notice [regarding recalls, notices of defects and/or Failure to Supply] and adequate opportunity to work together with the vendor to maintain operations and resolve product availability issues. The purchaser is not responsible for the cost to replace the item and has the option of receiving a credit instead.

4.6.1 Warranty types

Based on the products and warranty coverage, there may be multiple warranty types offered by vendors.

4.6.2 Warranty process and coverage

In the event of product failure or defect, it is the responsibility of the Buyer to notify the Vendor or seller per Section 4.5 of this RFR.

4.7 Geographic coverage

Awarded vendors must be able to service all counties within the Commonwealth of Massachusetts. Bidders must have a physical location and a warehouse able to deliver products to any location within the Commonwealth within the required timeframes described later in this RFR. So called “virtual” Vendors are not acceptable as Bidders.

4.8 Ordering and Quotes

Responding to Buyer’s quote requests is a requirement of this contract. Contractors choosing not to bid must respond to COMMBUYS quote requests with a “no bid” by selecting the “Is No Bid” checkbox on the General tab of the quote. Similarly, Contractors choosing not to bid on quote requests received outside of COMMBUYS must respond with a “no bid”.

Contractors must provide a quote that clearly identifies all commodities, materials, services and/or requirements which may incur costs for the Eligible Entity. All quotes must be for only products and/or services that Contractor is awarded to sell under this Statewide Contract. Furthermore, Contractors may not bill Eligible Entities for costs not identified in the quote, accepted by the SST, and agreed to by the Eligible Entity unless otherwise specified.

4.9 Environmental Specifications

In 2009, Executive Order 515, establishing an Environmental Purchasing Policy for Executive Departments, was signed. View the Environmentally Preferable Products (EPPs) Procurement Program General Information, Requirements and Guidance for detailed information about the program at https://www.mass.gov/doc/epp-general-information-requirements-and-guidance/download.

Bidders should also be aware that in 2021, Senate Bill 9 - An Act Creating a Next Generation Roadmap for Massachusetts Climate Policy was signed to achieve Net Zero emissions in 2050 and furthers the Commonwealth’s efforts to combat climate change and protect vulnerable communities. The full Act may be viewed at https://malegislature.gov/Bills/192/S9. In 2021, Executive Order 594, Leading By Example: Decarbonizing and Minimizing Environmental Impacts of State Government, was signed. EO594 requires all eligible state agencies to assess and implement strategies to mitigate greenhouse gas emissions and other environmental impacts when planning for and executing projects related to the design, construction, operations, and maintenance of state facilities, and the procurement of goods and services, including vehicles. View EO594: Leading By Example requirements at https://www.mass.gov/executive-orders/no-594-leading-by-example-decarbonizing-and-minimizing-environmental-impacts-of-state-government.

4.9.1 Environmental Benefit Claims/Labeling

Environmental benefit claims concerning products or services must be consistent with the Federal Trade Commissions’ Guides for the Use of Environmental Marketing Terms. Product environmental claims are to include the industry standard the product meets and certifier. Vendors must agree to offer and clearly label products with sustainability certifications and attributes, when available, within specific product categories. Documentation of the certification claimed by the vendor must be supplied upon request if it is not publicly available for verification (on either the vendor’s or certifier’s website). Vendors claiming environmental benefits of their products shall list the appropriate benefits or industry standard it meets in the quarterly sales reports, if applicable, or on separate annual reports.

4.9.2 Required Environmental Specifications

A number of environmental product or service specifications have been designated as either mandatory or desirable for the Product/Service category by the EPP Program through EO 515 and can be viewed in the Minimum Environmentally Preferable Products and Services Specifications Guide at https://www.mass.gov/guides/epp-program-environmentally-preferable-products-and-services-on-statewide-contracts. It is desirable to include products that meet the Green Health Approved certification Greenhealth Approved Products | Greenhealth Approved as they become available.

In addition, it is desirable to include products that meet the Health Care Without Harm’s Safer Medical Products for Safer Medical Products as listed on their website Safer medical products | Health Care Without Harm (noharm-uscanada.org). Bidders are asked to list any products that meet this criteria.

All statewide and executive department contracts are required to use these standards, unless otherwise noted in the RFR.

4.9.3 Bidder Current Environmental Practices Form

All RFRs are required to include the Bidder’s Current Environmental Practices Form which may be found in the Bidder Response Form Attachment A. Bidders must complete the associated EPP tab located in the Bidder Response Form of this RFR, and submit it with their Quote.

The form allows Bidders to communicate existing business practices that foster a sustainable approach to conducting their operations and reduce environment or public health impacts. Bidders may receive additional points in the evaluation phase of the RFR for the environmental initiatives they identify, however, bidders must substantiate all answers to receive additional points.

4.9.4 Environmental plan

Awarded Bidders must agree to work with OSD and the SST to examine the feasibility of implementing an environmental plan throughout the life of the contract. Such a plan may include, but not be limited to, implementing energy initiatives, adopting, and implementing sustainability policies or third-party standards and/or certifications, or publicizing their environmental initiatives. The objective of this requirement is to actively encourage suppliers to incorporate sustainable practices throughout their business operations and further market such practices to Contract users. Bidders may include written proposals submitted as an attachment to the Bidder Response Form detailing a commitment to action contingent upon receipt of a Contract award.

4.10 Compensation Structure/Pricing

Compensation will be based solely on the pricing submitted by the Bidder and accepted by the SST. Pricing must be submitted for all goods and services to be provided on this Statewide Contract. Pricing will be published on COMMBUYS. Prices will be listed in Bidder’s Price Catalog and will be based on “per unit” or other measurable manner to include, “bulk pricing” or “quantity” determined by packaging or units within a package.

The Commonwealth has the right to know the Vendors Acquisition Cost for any product sold under this Contract when the Acquisition Cost is used to calculate the Net Price.

A Vendor when requested by the SST must provide copies of invoices, contracts and price lists between manufacturers or suppliers and the Vendor that establishes the Vendor’s Acquisition Cost for products sold to the Commonwealth under this Contract. We will not publish this information without the Vendor’s permission but may be disclosed in response to a Public Record Request, if required by law. Comment by St. Pierre, Nicole (OSD): Would this only be disclosed via a Public Record Request? If that is the case, we may want to specify that. - "but may be disclosed in response to a Public Record Request, if required by law."

4.10.1 Cost tables – COMMBUYS Catalogs

Compensation will be based on the Net Price COMMBUYS catalog or punch-out catalog supplied by the Bidder and accepted by the SST. Net Price for most products will be Vendor’s Acquisition Cost plus the Vendor’s Percentage Markup Quoted in response to this Bid. Individual facilities negotiated Market Share Discounts may further reduce the Net Price. It is expected that as in prior contracts, some vendors will opt to use the Commonwealth’s Group Purchasing Organization (GPO under HSP43) to establish their acquisition cost. Vendors offering their own “House Brand” of a product must supply the Net Price of the “House Brand” product and must not use the acquisition cost plus percentage markup methodology. When an item is not on a Vendor’s HSP44 Price Catalog, a Purchasing Entity may contact Vendors on the contract for a quote on the Net Price of the item. The final line of a Vendors Catalog is structured for these quoted items.

4.10.3 Cost Plus – Acquisition Cost plus % Markup

Vendors must state on the Bidder Response Form Attachment A_Pricing Information tab and then add Attachment C per the pricing section instructions, the maximum Percentage Markup the Vendor will use in calculating the Net Price using Acquisition Cost plus the Vendors Percentage Markup. Acquisition Price is the price a distributor will pay a manufacturer for a commodity under this contract. The acquisition price may be established with the manufacturer by the GPO, by the Commonwealth, or by the distributor. In no case will the acquisition price be higher than a manufacturer’s current published price for a distributor. In case of dispute or audit, the distributor may be required to produce invoices or other documentation supporting an acquisition price. The Vendor may always use a percentage markup that is less than its stated maximum percentage markup in calculating acquisition cost.

Vendors offering their own “House Brand” of a product must supply the Net Price of the “House Brand” product and must not use the acquisition cost plus percentage markup methodology.

4.10.4 Volume purchase discounts (VPD)

Any VPD offered by the vendor must be approved by the SST and/or SSM prior to implementation.

4.11 Unscheduled Updates to Commodities/Services/Pricing Process and Approvals A Purchasing Entity, when seeking a quote, must contact Vendor(s) on the Contract when a product is not on the Vendor’s MA State Price Catalog. The Quote the Vendor provides to the Purchasing Entity must be in the form of a Net Price as defined in this Bid (section 4.10.3). Once a Purchasing Entity has accepted the Vendor’s quote by placing an order with the Vendor, the quote will remain in effect to the next update of the MA State Price Catalog and will apply to other Purchasing Entities using the Contract; unless the Vendor clearly restricts its quote to be of limited duration or scope. Vendors must add products with accepted non-restricted quotes to their next updated MA State Price Catalog.

4.12 Authorized Price Adjustments and Changes

All price changes must be presented in writing to the Strategic Sourcing Manager (SSM) for review prior to implementation. All price increases must be approved.

4.13 COMMBUYS PunchOut Catalog Setup

Per the SST, use of this service requires consultation with OSD’s PunchOut and COMMBUYS Operations Departments to ensure anticipated setup will match system capabilities.

4.14 Prompt Pay Discount

All Bidders must agree to offer discounts through participation in the Commonwealth Prompt Payment Discount (PPD) initiative for receiving early and/or on-time payments, unless the Bidder can provide compelling proof that it would be unduly burdensome.

Bidders must submit agreeable terms on the Prompt Payment Discount Form_Attachment_D, included on the Bid, unless otherwise specified by the SST. The SST will review, negotiate, or reject the offering as deemed in the best interest of the Commonwealth.

The requirement to offer a PPD may be waived by the SST on a case-by-case basis if participation in the program would be unduly burdensome on the Bidder. If a Bidder is claiming that this requirement is a hardship or unduly burdensome, the specific reason must be documented in the Bidder’s Quote.

5 SUPPLIER DIVERSITY PLAN (SDP)

Program Background Pursuant to Executive Order 565, the Commonwealth’s Supplier Diversity Program (SDP) promotes business-to-business relationships between awarded Contractors and diverse businesses and non-profit organizations (“SDP Partners”) certified or recognized by the Supplier Diversity Office (SDO).

Financial Commitment Requirements All Bidders responding to this solicitation are required to make a meaningful financial commitment (“SDP Commitment”) to partnering with one or more SDO-certified or recognized diverse business enterprise or non-profit organization. This SDP Commitment must be expressed as a percentage of any contract sales resulting from this solicitation that would be spent with the SDP Partner(s).

After contract award (if any), the Total SDP Commitment shall become a contractual requirement to be met annually on a Massachusetts fiscal year basis (July 1 – June 30) for the duration of the contract.

The minimum total SDP Commitment acceptable in responses to this solicitation shall be 1%. Bidders shall be awarded additional evaluation points for higher SDP Commitments.

No contract shall be awarded to a Bidder without an SDP Commitment that meets the requirements stated herein. This requirement extends to all Bidders regardless of their own supplier diversity certification.

Eligible SDP Partner Certification Categories SDP Partners must be business enterprises and/or non-profit organizations certified or recognized by the SDO in one or more of the following certification categories:

· Minority-Owned Business Enterprise (MBE)

· Minority Non-Profit Organization (M/NPO)

· Women-Owned Business Enterprise (WBE)

· Women Non-Profit Organization (W/NPO)

· Veteran-Owned Business Enterprise (VBE)

· Service-Disabled Veteran-Owned Business Enterprise (SDVOBE)

· Disability-Owned Business Enterprise (DOBE)

· Lesbian, Gay, Bisexual, and Transgender Business Enterprise (LBGTBE)

Eligible Types of Business-to-Business Relationships Bidders and Contractors may engage SDP Partners in the following two ways:

· Subcontracting, defined as a partnership in which the SDP partner is involved in the provision of products and/or services to the Commonwealth.

· Ancillary Products and Services, defined as a business relationship in which the SDP partner provides products or services that are not directly related to the Contractor’s contract with the Commonwealth but may be related to the Contractor’s own operational needs.

Other types of business-to-business relationships are not acceptable under this contract. All provisions of this RFR applicable to subcontracting shall apply equally to the engagement of SDP Partners as subcontractors.

Program Flexibility The SDP encompasses the following provisions to support Bidders in establishing and maintaining sustainable business-to-business relationships meeting their needs:

· SDP Partners are not required to be subcontractors.

· SDP Partners are not required to be Massachusetts-based businesses.

· SDP Partners may be changed or added during the term of the contract if the Contractor continues to meet its SDP Commitment.

SDP Plan Form Requirements All Bidders must complete the SDP Plan Form included on the Bidder Response Form - Supplier Diversity Plan_Attachment_E, and submit with their bid response. In addition to proposing an SDP Commitment, each Bidder must propose one or more SDP Partner(s) to utilize to meet its SDP Commitment. Certified diverse Bidders may not list their own companies, or their subsidiaries or affiliates, as SDP Partners and may not meet their SDP Commitment by spending funds internally or with their own subsidiaries or affiliates.

Bidders may propose SDP Partners that are:

· Already certified or recognized by the SDO: Such partners appear in the SDO Directory of Certified Businesses or in the U.S. Dept of Veterans Affairs VetBiz Vendor Information Pages directory. After contract award (if any), spending with such partners will contribute to meeting the Contractor’s SDP Commitment.

· Not yet certified or recognized by the SDO: Such partners must be certified in eligible categories by a third-party certification body, such as another city or state supplier diversity certification office, the National Minority Supplier Development Council, the Women Business Enterprise National Council, Disability: IN, or the National LGBT Chamber of Commerce (NGLCC), but not listed in the above-mentioned directories. Self-certification is not acceptable. While Bidders may list such proposed SDP Partners on their SDP Plans, spending with such partners will not contribute to meeting the Contractor’s SDP Commitment unless they apply for and are granted SDO supplier diversity certification or recognition. If proposed SDP Partners do not receive SDO supplier diversity certification or recognition, then the Contractor must find alternative SDP Partners to meet their SDP Commitment.

It is the responsibility of the Contractor to ensure that their proposed SDP Partners obtain such certification or recognition by the SDO after contract award (if any). The issuing department and the SDO will not conduct outreach to proposed SDP Partners to ensure their certification. Furthermore, no guarantee can be made that a proposed SDP Partner will be certified, or regarding the time it may take to process a proposed SDP Partner certification. Contractors may direct partners to the SDO’s homepage, www.mass.gov/sdo and the Certification Self-Assessment Tool for guidance on applying for certification.

It is desirable that Bidders provide an SDP Focus Statement that describe the bidder’s overall approach to increasing the participation of diverse businesses in the provision of products and services under this proposal/contract (subcontracting) and in the bidder’s general business operations (ancillary products and services). Such a description may include but not be limited to:

· A clearly stated purpose or goal.

· Specific types of diverse and small businesses targeted.

· Which departments/units within the business are responsible for implementing supplier diversity.

· Types of opportunities for which diverse and small businesses are considered.

· Specific measures/methods of engagement of diverse and small businesses.

It is also desirable that Bidders use the SDP Plan Form to describe additional creative initiatives (if any) related to engaging, buying from and/or collaborating with diverse businesses. Such initiatives are separate and distinct from subcontracting and ancillary relationships included in the Bidder’s SDP financial commitment and may include but not be limited to:

· Serving as a mentor in a mentor-protégé relationship.

· Technical and financial assistance provided to diverse businesses.

· Participation in joint ventures between nondiverse and diverse businesses.

· Voluntary assistance programs by which nondiverse business employees are loaned to diverse businesses or by which diverse business employees are taken into viable business ventures to acquire training and experience in managing business affairs.

Evaluation of SDP Forms To encourage substantial Bidder supplier diversity initiatives and commitments as measures valuable to the Commonwealth, at least 25% of the total available evaluation points for this bid solicitation shall be allocated to the evaluation of the SDP Plan submissions. Because the purpose of the SDP is to promote business-to-business partnerships, the Bidders’ workforce diversity initiatives will not be considered in the evaluation.

SDP Spending Reports and Compliance After contract award, Contractors shall be required to provide quarterly reports demonstrating compliance with the agreed-upon SDP Commitment.

Only spending with SDP Partners that appear in the SDO Directory of Certified Businesses or in the U.S. Dept of Veterans Affairs VetBiz Vendor Information Pages directory shall be counted toward a Contractor's compliance with their SDP Commitment. Spending with SDP Partners that do not appear in the directories above shall not be counted towards meeting a Contractor’s SDP Commitment.

It is always the responsibility of the Contractor to ensure they meet their SDP Commitment, and the SDO, and the issuing department, assume no responsibility for any Contractor’s failure to meet its SDP Commitment.

SDP Spending Verification The SDO and the contracting department reserve the right to contact SDP Partners at any time to request that they attest to the amounts reported to have been paid to them by the Contractor.

Program Resources and Assistance Contractors seeking assistance in the development of their SDP Plans or identification of potential SDP Partners may visit the SDP webpage, www.mass.gov/sdp, or contact the SDP Help Desk at sdp@mass.gov.

6 EVALUATION CRITERIA

Contractors must submit responses that meet all the submission requirements of the RFR. Only responsive proposals that meet the submission requirements will be evaluated, scored, and ranked by the evaluation team according to the evaluation criteria. Additional information may be requested for evaluation purposes.

Any submission which fails to meet the submission requirements of the RFR will be found non-responsive without further evaluation unless the evaluation team, at its discretion, determines that the non-compliance is insubstantial and can be corrected. In these cases, the evaluation team may allow the contractor to make minor corrections to the submission.

Bidder scores will be used to rank Bidders and will determine which Bidders will proceed to subsequent stages of the evaluation and/or enter negotiations with the Commonwealth to receive a Contract award.

6.1 Mandatory Requirements

Bidders who do not meet all mandatory requirements may be disqualified. The SST may determine if non-compliance with a mandatory requirement is insignificant or can be corrected or clarified.

Bid terms that include language such as: “must”, “shall”, “will” and “required” are “mandatory.”

6.2 Desirable Specifications

6.2.1 Online Ordering

It is highly desirable that a Bidder has a fully functional online ordering site that it would make available as a PunchOut catalog in COMMBUYS.

6.3 Evaluation Components

The following components will be some of the criteria considered by the team when evaluating each Quote:

6.3.1 Price and Product Offering

Please note that price and the number of products offered will carry a significant weight in the evaluation process. The following components totaling up to 50% of evaluation points will be evaluated:

· Cost plus markup percentage

· Market Share Volume purchase option

· Comprehensiveness of Product Offering – number of products offered

· Prompt Payment Discounts (PPD)

6.3.2 Supplier Diversity Plan (SDP)

SDP makes up 25% of the total available 100 evaluation points.

6.3.3 Other Evaluation Components

The following components total up to 25% of the available evaluation points:

· References and/or other requirements

· EPP Specifications

· Online Ordering Capabilities with a PunchOut Catalog in COMMBUYS

6.4 Best Value Selection and Negotiation

The SST may select the Quotes which demonstrate the best value overall, including proposed alternatives, that will achieve the goals of the procurement. The SST and a selected Bidder may negotiate a change in any element of Contract performance or cost identified in the original RFR or the selected Bidder’s Quote which results in lower costs or a more cost effective or better value than was presented in the selected Bidder’s original Quote.

7 INSTRUCTIONS FOR SUBMISSION OF RESPONSES

The Commonwealth will not be responsible for any costs or expenses incurred by Bidders responding to this RFR. Responses must be sent via the “Create Quote” functionality contained in COMMBUYS. For instructions concerning how to submit a Quote, please see Appendix 2.

7.1 Electronic Signatures

Quotes submitted via COMMBUYS must be signed electronically by the Bidder or the Bidder’s Agent by accepting the terms and conditions of the bid on the “Terms & Conditions” tab of the Bid in COMMBUYS. By selecting “Save & Continue” on the “Terms and Conditions” tab after accepting the terms and conditions of the bid, the submitter attests that s/he is an agent of the Bidder with authority to sign on the Bidder’s behalf,…