MED56 Pharmaceutical Prime Vendor Amended RFR 42620232.pdf

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

COMMONWEALTH OF MASSACHUSETTS

OPERATIONAL SERVICES DIVISION

Request for Response (RFR)

Document Title: Pharmaceutical Prime Vendor

Agency Document Number: MED56

COMMBUYS Bid#: BD-23-1080-OSD03-SRC3-84607

Initial Release Date: 4/14/2023

Amended Date: 4/26/2023

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.

https://www.sec.state.ma.us/cis/cishol/holidx.htm https://www.sec.state.ma.us/cis/cishol/holidx.htm

REQUEST FOR RESPONSE MED56 PHARMACEUTICAL PRIME VENDOR

Revision History

Version Number

Date Author Brief Description

1.0 4/14/2023 Jcanela Initial release

1.1 4/26/2023 Jcanela Section 7.5.1.3.1

Table of Contents Page i

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

1 INTRODUCTION AND BID OVERVIEW

1.1 SUMMARY DESCRIPTION OF PROCUREMENT

1.2 ESTIMATED PROCUREMENT CALENDAR

1.2.1 SUBMISSION OF BID QUESTIONS

1.2.2 BID AMENDMENT DEADLINE

1.2.3 LATE BIDS WILL NOT BE CONSIDERED

1.2.4 DEBRIEFING 3

1.3 ADDITIONAL BID INFORMATION

1.3.1 ANTICIPATED CONTRACT DURATION:

1.3.2 ESTIMATED VALUE OF THE CONTRACT

1.3.3 ESTIMATED NUMBER OF AWARDS

1.3.4 ADDING CONTRACTORS AFTER INITIAL CONTRACT AWARD

1.3.5 ACQUISITION METHOD(S):

1.3.6 ENTITIES ELIGIBLE TO USE THE RESULTING CONTRACT

2 BIDDER QUALIFICATIONS

2.1 COMPANY EXPERIENCE

2.1.1 BUSINESS BACKGROUND

2.1.2 YEARS IN THE INDUSTRY OF THE BID

2.2 EMPLOYEE AND/OR BUSINESS TECHNICAL/BUSINESS EXPERIENCE, CERTIFICATIONS, LICENSES

2.3 CONTINUITY OF OPERATIONS PLAN (COOP)

2.4 EMERGENCY RESPONSE CAPABILITIES

2.5 FINANCIAL STABILITY INCLUDING DUNS REPORT, BANKRUPTCY, LITIGATION AND CONTRACT

DEFAULTS

2.5.1 REQUIRED FINANCIAL OR TAX DOCUMENTS

2.5.2 BANKRUPTCY, LITIGATION, AND CONTRACT DEFAULTS

2.6 REFERENCES AND REFERENCE INFORMATION AND/OR REQUIREMENTS

3 COMMODITY, ENVIRONMENTAL, AND COST SPECIFICATIONS

3.1 COMMODITY SPECIFICATIONS

3.1.1 ELIGIBLE BRANDS AND MODELS

3.1.2 DELIVERY TERMS

3.2 RETURNS/DISPOSAL

3.3 WARRANTIES

3.4 GEOGRAPHIC COVERAGE

3.5 ORDERING AND QUOTES

3.5.1 ACCEPTING ORDERS REQUIREMENT

3.5.2 FILL RATES 8

3.5.3 ONLINE ORDERING AND PURCHASE HISTORY TRACKING

3.5.4 IDENTIFICATION AND APPROVAL OF SUBCONTRACTORS & JOINT VENTURES

3.5.5 ADVERTISING PRE-APPROVAL APPROVAL

3.5.6 PRESS RELEASES

3.5.7 RIGHT TO INSPECT PLACE OF BUSINESS

3.6 ENVIRONMENTAL SPECIFICATIONS

3.6.1 ENVIRONMENTAL BENEFIT CLAIMS/LABELING

3.6.2 BIDDER CURRENT ENVIRONMENTAL PRACTICES FORM

Table of Contents Page ii

3.6.3 ENVIRONMENTAL PLAN

3.7 COMPENSATION STRUCTURE/PRICING

3.7.2 COMMODITIES

3.7.3 PROMPT PAY DISCOUNT

4 SUPPLIER DIVERSITY PLAN (SDP)

5 EVAULATION CRITERIA

5.1 ALTERNATIVES

5.2 EVALUATION COMPONENTS

5.2.1 PRICE 14

5.2.2 SUPPLIER DIVERSITY PLAN (MINIMUM OF 25% WEIGHT OF THE TOTAL AVAILABLE 100%

EVALUATION POINTS)

5.2.3 OTHER DESIRABLES OR OPTIONAL SPECIFICATIONS (15% WEIGHTED)

5.3 BEST VALUE SELECTION AND NEGOTIATION

6 INSTRUCTIONS FOR SUBMISSION OF RESPONSES

6.1 ELECTRONIC SIGNATURES

6.1.1 ACCEPTABLE FORMS OF SIGNATURE

6.2 LIMITS AND RESTRICTIONS

6.2.1 FILE FORMAT RESTRICTIONS

6.2.2 FILE NAMING CONVENTIONS

6.3 GENERAL QUOTE REQUIREMENTS, PROVISIONS, AND PROHIBITIONS

6.3.1 QUOTE CONTENT

6.3.2 NON-COLLUSION

6.3.3 MULTIPLE QUOTES

6.3.4 MINIMUM QUOTE DURATION

6.3.5 BIDDER’S CONTACT INFORMATION

6.3.6 OWNERSHIP OF SUBMITTED QUOTES

6.3.7 PROHIBITIONS

6.3.8 PUBLIC RECORDS LAW

6.3.9 REASONABLE ACCOMMODATION

7 REQUIREMENTS FOR DOING BUSINESS AFTER CONTRACT AWARD

7.1 REQUIRED FORMS

7.2 USE OF COMMBUYS

7.3 STATEWIDE CONTRACT VENDOR COMMUNICATIONS PROTOCOL

7.3.1 CHANGES TO CONTRACTOR’S INFORMATION

7.3.2 CONTRACTOR ACCOUNT TEAM

7.3.3 SINGLE POINT OF CONTACT

7.3.4 REPLACEMENT OF CONTRACTOR STAFF

7.4 REPORTING REQUIREMENTS AND DUE DATES

7.4.1 REPORTING AND PAYMENT DUE DATES

7.4.2 QUARTERLY SALES, SUPPLIER DIVERSITY PROGRAM EXPENDITURE, AND ENVIRONMENTALLY

PREFERABLE PRODUCTS REPORT

7.4.3 STATEWIDE CONTRACT ADMINISTRATION QUARTERLY FEE PAYMENT AND REPORT

7.4.4 AUDIT 18

Table of Contents Page iii

7.4.5 OTHER TERMS

7.4.6 AD HOC REPORTS

7.5 PAYMENT RELATED TERMS

7.5.1 BILL PAYMENT

7.5.2 LATE PAYMENT FEES

7.5.3 ELECTRONIC FUNDS TRANSFER (EFT)

7.5.4 CREDITWORTHINESS

7.5.5 TAX EXEMPTION

8 RFR APPENDICES

8.1 APPENDIX 1 – REQUIRED TERMS FOR ALL STATEWIDE RFRS

8.1.1 APPLICABLE PROCUREMENT LAW

8.1.2 GENERAL PROCUREMENT INFORMATION

8.1.3 TERMS AND REQUIREMENTS PERTAINING TO AWARDED STATEWIDE CONTRACTS

8.2 APPENDIX 2- INSTRUCTIONS FOR VENDORS RESPONDING TO BIDS ELECTRONICALLY

THROUGH COMMBUYS

9 GLOSSARY

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 1

1 INTRODUCTION AND BID OVERVIEW

1.1 Summary Description of Procurement

The Commonwealth of Massachusetts and the Pharmaceutical Prime Vendor Strategic Sourcing Team (SST) are soliciting Bidders for the acquisition of prescription pharmaceuticals, non-prescription pharmaceuticals, and related pharmaceutical supply items and equipment such as pill counters, Med Carts or an MTS system from vendors/manufacturers either commonly owned by the bidder’s parent company or outside companies. The resulting Contract will serve as the primary Statewide Contract used by Executive Agencies of the Commonwealth for the goods and services covered by the Contract. Each Commonwealth Agency and eligible entity is responsible for executing its own purchase orders and paying its own invoices for goods and/or services acquired from this Statewide Contract. The resulting contract will replace SWC MED47. The Contract will also be available for use by other Eligible Entities.

The Commonwealth uses a Pharmaceutical Group Purchasing Organizing (PGPO) to establish the Acquisition Price (see Glossary), and purchases most of its pharmaceuticals from the Prime vending method of distributions.

However, pharmaceuticals that are not obtained through Pharmaceutical Group Purchasing Organization, must be provided by the MED56 Prime Vendor awarded contractor.

State Office of Pharmacy Services (SOPS) services is the primary user of this contract, servicing over 40 Commonwealth facilities. These facilities include state hospitals and correctional facilities: The average combined daily patient census is approximately 14,000. The Pharmacy Distribution Center (PDC) located in Tewksbury Massachusetts dispenses over 20 million solids dosage units a year either as unit doses (UD) in automated dispensing cabinets or bingo cards. The PDC purchases over 75% of the dollar volume of the current contract. The Lemuel Shattuck Hospital a facility under SOPS located in Jamaica Plain Boston MA does its own dispensing and purchases over 15% of the dollar volume.

Historically over 90% of the purchases from the current contract MED47 have been from SOPS facilities.

Bidders must refer to section 3 of the RFR for further pricing information.

1.2 Estimated Procurement Calendar

Action Date

Announcement of Intent to Procure 2/24/2023

Bid Release Date 4/14/2023

Deadline for submission of written questions through COMMBUYS “Bid Q&A”

4/25/2023

Official answers for Bid Q&A published (Estimated)

4/26/2023

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

Dates and Times Available:

Wednesday, April 26th Wednesday, May 3rd

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.

https://www.screencast.com/t/GMJLKkilF12

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 2

Bid Amendment Deadline. Bid documents will not be amended after this date.

4/26/2023

Deadline for Quotes/Bid Responses (“Bid Opening Date/Time” in COMMBUYS)

5/11/2023 3:00 PM

Late bids will not be considered.

Notification of Apparent Successful Bidder(s) (Estimated)

5/18/2023

Estimated Contract Start Date (actual start date will be the contract effective date, which is the date the contract is executed by the parties)

7/1/2023

*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.

1.2.1 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 collusive. 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.

1.2.2 Bid Amendment Deadline

Although Bidders may submit quotes any time after the Bid Release Date and prior to the Bid Opening Date, Bidders should ensure that their quotes are based upon the final versions of the RFR and its attachments. Final versions of RFR and its attachments are available after the Bid Amendment Deadline date.

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. As https://www.mass.gov/doc/vendor-training-schedule/download

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 3 stated above, it is the responsibility of the bidder for checking the Bid record in COMMBUYS for revisions and updates.

1.2.3 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.

1.2.4 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.

1.3 Additional Bid Information

1.3.1 Anticipated Contract Duration:

The initial term of this Contract is six [6] years with one [1] four [4] renewal term for a maximum possible contract duration of ten [10] years.

1.3.2 Estimated Value of the Contract

The estimated value of purchase(s) resulting from this Bid is amount / estimated units Is $162,600,000. 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.

1.3.3 Estimated Number of Awards

The target maximum number of awarded contractors is one [1]. The SST may award more or fewer contracts, if it is in the best interests of the Commonwealth to do so.

Contract renewals will be offered at the sole discretion of OSD. At a minimum, offers to renew will be contingent upon satisfactory contractor performance, compliance with reporting requirements, and adequate sales volume.

1.3.4 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.

1.3.5 Acquisition Method(s):

Check All Applicable (“X”):

Category x Fee-For-Service

Outright Purchase

Rental (not to exceed 6 months)

Term Lease

License

Other: [specify other, e.g., Tax Exempt Lease-Purchase (TELP)]

1.3.6 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

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 4

• 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 BIDDER QUALIFICATIONS

2.1 Company experience

Bidders may, in their response, provide additional statements and proofs of their qualifications and capacity to meet the needs of the Commonwealth as a Pharmaceutical Prime Vendor. The Commonwealth may at any time during the evaluation process request the additional information from a Bidder. The Commonwealth will consider bids from drug wholesalers that can show they have the qualifications and capacity to be evaluated as the Commonwealth’s Pharmaceutical Prime Vendor.

2.1.1 Business background

A Bidder must be a Drug Wholesaler and show it has the capacity and the experience to meet the needs of the Commonwealth for a Pharmaceutical Prime Vendor. The Bidder must be knowledgeable and experienced in all the major aspects of pharmacy, contracting, distribution, Prime Vending, charge backs, computer data (information technology) as it relates to this RFR. The Bidder must have an excellent reputation and proven track record in managing contracts with the industry. The Bidder must also have existing relationships and work routinely with most drug manufacturers and pharmaceutical group purchasing organizations.

The SST reserves the right to disqualify bidders with references averaging below a level of “Good” as not meeting existing relationships requirements (see reference Templates posted on COMMBUYS with this Bid). Please note that the SST reserves the right to speak to Bidders manufacturer suppliers and Group Purchasing Organizations not submitting references as well as those who did submit them. Such additional references independently contacted by the SST will be asked the same questions as the Reference Template and averaged into the overall referencing rating of a bidder.

2.1.2 Years in the industry of the Bid

Bidders must have been in the business of providing prescription pharmaceuticals, non-prescription pharmaceuticals, and related pharmaceutical supply items and equipment such as pill counters, Med Carts or an MTS system from vendors/manufacturers either commonly owned by the bidder’s parent company or outside companies for at least the five [5] most recent consecutive years (2018-2023) prior to the RFR submission deadline) (See RFR Section 1.2, Estimated Procurement Calendar).

2.2 Employee and/or business technical/business experience, certifications, licenses

Bidder must hold pharmacy and DEA licenses for all legal controlled substances, both Federal and MA.

2.3 Continuity of Operations Plan (COOP)

Bidder must 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.

This information will not be considered in the evaluation of the Quote.

2.4 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.

https://www.mass.gov/service-details/non-profit-purchasing-programs

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 5

The Bidder’s Quote should include a list of the Bidder’s building location(s) that would be available to serve the Commonwealth during an emergency and a description of the areas of Massachusetts that the Bidder could supply in the event of an emergency (e.g., Entire State, Specific City or Region).

This information will not be considered in the evaluation of the Quote.

2.5 Financial stability including DUNS report, bankruptcy, litigation and contract defaults

2.5.1 Required financial or tax documents

Document of Tax Compliance (Certificate of Good Standing from the Department of Revenue.) This is to certify compliance with all Commonwealth tax laws, including MGL c62C, §49A. More information regarding these DOR documents is posted at http://www.mass.gov.

2.5.2 Bankruptcy, litigation, and contract defaults

Bidders must provide a list of any outstanding contingencies, such as lawsuits or other claims or charges, against the Bidder related to performance of the services sought under this RFR.

Bidders must indicate the date if any of their last bankruptcy filing, and status of the filing. Bidders must also list the creditor and amount of any current litigation over unpaid bills.

2.6 References and reference information and/or requirements

Bidders must upload with their bid a minimum of three (3) and a maximum of five (5) letters of reference from their most recent year largest dollars billed customers and/or manufacturers. The reference letters must be on the references’ letterhead signed by a principal of the reference organization, using the template with instructions provided on COMMBUYS.

Download this template and have it completed; then include the signed references with your online submission.

References from MA state government are desirable, but not required. Please note that the SST reserves the right to speak to Bidders manufacturer suppliers and Group Purchasing Organizations not submitting references as well as those who did submit them.

3 COMMODITY, ENVIRONMENTAL, AND COST SPECIFICATIONS

3.1 Commodity Specifications

MED56 is to procure commodities of prescription pharmaceuticals, non-prescription pharmaceuticals, and related pharmaceutical supply items and equipment such as pill counters, Med Carts or an MTS system from vendors/manufacturers either commonly owned by the bidder’s parent company or outside companies.

All products must be provided at the same Acquisition Price minus the Prime Vendor’s discount percentage (also called a negative markup). All Pharmaceuticals and related items that are commonly sold by drug wholesalers are on contract and may be purchased from the Prime Vendor. If no Acquisition Price is established for an item, then the Acquisition Price used will never exceed the published Wholesale Acquisition Cost (WAC). In some cases, the Prime Vendor may be able to provide the Commonwealth a lower price than is available through a PGPO contract.

If the Prime Vendor can offer special lower pricing the Commonwealth may take advantage of it.

The Commonwealth, in certain cases can obtain an Acquisition Price lower than the PGPO can. Drug manufacturers on certain products offer significantly lower prices to State governments than they will offer through a PGPO. In other cases, the Commonwealth has achieved a lower Acquisition Price because we have been able to provide high market share on certain drugs.

3.1.1 Eligible brands and models

A Bidder must only sell pharmaceuticals that are FDA approved or exempt from FDA approval.

3.1.2 Delivery Terms

All deliveries containing prescription drugs must be made directly to the Pharmacy.

3.1.2.1 Minimum Order Delivery

The Prime Vendor will be required to deliver orders of Two Hundred and Fifty dollars and zero cents [$250.00] or more, free of delivery charge. For orders under $250.00, the Prime Vendor may assess a delivery charge up to $50 http://www.mass.gov/

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 6 providing the Prime Vendor has contacted the Purchaser and received approval for the delivery charge before shipping the order.

3.1.2.2 Expiration Dates.

The Prime Vendor must not deliver pharmaceuticals with an expiration date of less than six (6) months without permission of the chief pharmacist or designee at a Purchaser.

3.1.2.3 Routine Drop Ships

When a Purchaser orders a drug that the Prime Vendor routinely carries or is on the Prime Vendor online catalog and the Prime Vendor has it dropped shipped directly from the manufacture to the Purchaser the Prime Vendor will use the standard % markup for the Purchaser. The Purchaser must give permission for routine drop ships.

3.1.2.4 Drop Ship Delivery for DPH TB Control Program

The Prime Vendor must provide Department of Public Health’s TB Control Program with drop ships to their TB clinics and depots when requested. The Commonwealth provides free tuberculosis drugs to people who are seen at the clinics.

3.1.2.5 Emergency Delivery

The Prime Vendor must provide emergency delivery. The Prime Vendor may add the actual cost of the emergency delivery service to the Net Price providing the Prime Vendor notified the Purchaser prior to shipping the order.

3.1.2.6 Delivery to PDC

The PDC at Tewksbury location has specific delivery requirements that are different from other locations purchasing from the Contract; for the sake of clarity, we have stated them separately. The PDC must receive same day delivery of orders placed by 11AM with delivery made before 2:00 PM the same day. The PDC must receive next day delivery before between 7 and 8 AM for orders placed before 8:00 PM the previous day. All deliveries will be Monday through Friday at the PDC except for major holidays when the Prime Vendor is closed.

3.1.2.7 Delivery to Other Sites

The Prime Vendor must provide next day delivery Monday through Friday for orders placed before 8 PM except for major holidays when the Prime Vendor is closed, in which case delivery must be made on the next business day.

All deliveries must be made before 10 AM.

3.2 Returns/Disposal

The Prime Vendor must provide full repayment by credit or check on saleable products incorrectly delivered or ordered and the pickup of these pharmaceuticals within three (3) days of the request. The ordering Purchaser will notify the Prime Vendor of the error within seven (7) days of delivery. The Purchaser must approve repayment for returns by credit to the account or by check. The Vendor is responsible for the shipping costs of all returns.

3.3 Warranties

A Bidder must only buy pharmaceuticals directly from the drug’s manufacturer and/or have an effective program in place that tracks the pedigree of the drug from time of manufacture to sale.

(See Definition of Pedigree in the Glossary)

3.4 Geographic coverage

A Bidder must be able to meet delivery requirements listed elsewhere in this RFR for any location in Massachusetts.

Bidders must have the ability to services all cities and towns within the country map (located below).

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 7

3.4.1.1 Emergencies Beyond Control of Contractor or Eligible Entity

As specified in item 4 of the Commonwealth Terms & Conditions: “Upon immediate notification to the other party, neither the Department nor the Contractor shall be deemed to be in breach for failure or delay in performance due to Acts of God or other causes factually beyond their control and without their fault or negligence. Subcontractor failure to perform or price increases due to market fluctuations or product availability will not be deemed factually beyond the Contractor's control.”

3.5 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.

3.5.1 Accepting Orders Requirement

Contractor must accept orders both through COMMBUYS and not through COMMBUYS. Upon notice of tentative contract award, Contractor must work with PGPO Managed Health Care Associates to load correct pricing and must set up accounts for all Commonwealth Eligible Entities currently purchasing from the current contractor Cardinal Health. Many accounts are authorized for all prescription and OTC pharmaceuticals, some only for OTC’s.

The Prime Vendor must provide a toll free (800) number for Purchaser inquiries. If a Purchaser calls in an order, the Prime Vendor must notify the Purchaser within 2 hours of receiving an order of any unavailable item on that order.

The Prime Vendor must not fill backorders unless specifically requested by a Purchaser.

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 8

The Prime Vendor must provide adhesive shelf barcode labels that have the SKU and description of the drug with each order, or when requested by Purchaser.

3.5.1.1 Ordering and Workflow

Contractor must accept orders both through COMMBUYS and not through COMMBUYS. Upon notice of tentative contract award, Contractor must work with awarded PGPO to load correct pricing and must set up accounts for all Commonwealth Eligible Entities currently purchasing from the current contractor Cardinal Health. Many accounts are authorized for all prescription and OTC pharmaceuticals, some only for OTC’s.

The Prime Vendor must provide a toll free (800) number for Purchaser inquiries. If a Purchaser calls in an order, the Prime Vendor must notify the Purchaser within 2 hours of receiving an order of any unavailable item on that order.

The Prime Vendor must not fill backorders unless specifically requested by a Purchaser.

The Prime Vendor must provide adhesive shelf barcode labels that have the SKU and description of the drug with each order, or when requested by Purchaser.

3.5.2 Fill Rates

The Commonwealth anticipates that the Prime Vendor will provide a very high fill rate for all the drugs and that there will be very few stock outs or incomplete orders. A Prime Vendor with a monthly fill rate that falls below 95% would be providing poor service and the Commonwealth reserves the right to replace the Prime Vendor.

SOPS may require the Prime Vendor to ship drugs from another distribution center to the PDC if its primary distribution center is out of stock.

3.5.3 Online Ordering and Purchase History Tracking

The Bidder must have an online ordering system that provides the ordering account with online catalog of drugs and actual net prices the account will pay on the day of order; furthermore, the system must indicate the amount of product in stock to the ordering account. The system must track and maintain purchasing history that can be displayed.

3.5.4 Identification and Approval of Subcontractors & Joint Ventures (See Subcontracting Policies and the Commonwealth Terms and Conditions)

3.5.5 Advertising Pre-Approval Approval

Advertising about contracts resulting from this Bid must be pre-approved through the Commonwealth’s Contract Manager.

3.5.6 Press Releases

Press releases about contracts resulting from this Bid must be pre-approved through the Commonwealth Contract Manager.

3.5.7 Right to inspect place of business

Selected Bidders or Contractors who are asked to allow an inspection of their primary distribution site will be expected to prioritize this in their schedules. The SST will make every effort to find a mutually convenient time for the Bidder or Contractor and the SST. However, failure to provide a time convenient to the SST and hold a requested Site Inspection may result in disqualification, reduction of points or other action that the SST deems appropriate.

3.5.7.1 Audit requirements

The Bidder(s) awarded contracts pursuant to this RFR Bid must agree to allow State and Federal auditors, and state agency staff access to all the records related to the contract awarded under this solicitation, and the right to copy those records, for audit, inspection and monitoring of services. Such access will be during normal business hours, or by appointment.

https://outlook.office365.com/owa/wopi/files/6f6ef67a-95a0-451b-baad-18dc5dc7a7a7@mass.gov/AAMkADZmNmVmNjdhLTk1YTAtNDUxYi1iYWFkLTE4ZGM1ZGM3YTdhNwBGAAAAAAA68nukTNGlRIY3SWMoNS9ABwDrYxH-EHqJSrfaw5toeMufAAAAAAEMAADrYxH-EHqJSrfaw5toeMufAAA9Oe3iAAABEgAQAK-0PQGg.HBMvwlgcTxVhCo=_AADbmXo.MQkAAAAAAAA=/WOPIServiceId_FP_EXCHANGE_ORGID/WOPIUserId_1c0b6000-6a35-4d4b-b376-9d652d3a3887/RFR%20MED47%20RxPrime%2010-6-15Rev1.doc#_Subcontracting_Policies

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 9

3.6 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.

3.6.1 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.

3.6.2 Bidder Current Environmental Practices Form

Bidders must complete this form, MED56 Bidder Environmental Practice Form, included as a tab in the Bidders Response Form, 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.

3.6.3 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 [Company Name_EPPplan.xls] to their Quote detailing a commitment to action contingent upon receipt of a Contract award.

3.7 Compensation Structure/Pricing

Pricing is the Acquisition Price (see Glossary) of a drug minus the Prime Vendor’s discount percentage (also called a negative markup). If no Acquisition Price is established, then the item’s Acquisition Price will never exceed the drug’s manufacturer published Wholesale Acquisition Cost (WAC). When a Purchaser requests that the vendor order a product, it does not carry or list on its online catalog to be dropped shipped directly from a manufacturer to the Purchaser, the Prime Vendor’s discount percentage (also called a negative markup) will be zero percent (0%) in determining the Net Price (the Purchaser pays the vendor the same price the manufacturer charged the vendor).

3.7.1.1 Use of PGPO Contract Pricing

The PGPO contract price in many cases establishes the Acquisition Price of a drug used in a pricing formula to determine what the Commonwealth pays a Pharmaceutical Prime Vendor. The Commonwealth pays the Acquisition Price minus the Prime Vendor’s discount percentage (also called a negative markup) (see Glossary).

The PGPO will notify the Prime Vendor in a timely manner about its contracts and changes to contracts so the contracts can be loaded and maintained in the Prime Vendors ordering system. The PGPO will assist the Prime Vendor in receiving notifications of eligible Purchasing Entities so the Prime Vendor can link the account of the https://www.mass.gov/executive-orders/no-515-establishing-an-environmental-purchasing-policy https://www.mass.gov/doc/epp-general-information-requirements-and-guidance/download https://www.mass.gov/doc/epp-general-information-requirements-and-guidance/download https://malegislature.gov/Bills/192/S9 https://www.mass.gov/executive-orders/no-594-leading-by-example-decarbonizing-and-minimizing-environmental-impacts-of-state-government https://www.mass.gov/executive-orders/no-594-leading-by-example-decarbonizing-and-minimizing-environmental-impacts-of-state-government https://www.ftc.gov/news-events/media-resources/truth-advertising/green-guides https://www.ftc.gov/news-events/media-resources/truth-advertising/green-guides

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 10 eligible Purchasing Entities to the PGPO contract. The PGPO and Prime Vendor must collaborate to make sure the account data in their systems match.

It is the responsibility of the PGPO to notify all its manufacturers of Eligible Purchasing Entities that procure pharmaceuticals in order that the Prime Vendors charge backs be honored by the manufacturer.

The Commonwealth’s PGPO will not charge the Prime Vendor any type of fee or charge for use of the PGPO’s contracts for purchases made through this Contract.

In instances where a specific drug NDC is part of the PGPO the Prime Vendor must have the ability to ‘block’ the higher cost and allow the Commonwealth to procure the drug at the best price. All contract prices must be available to view in the Prime Vendor online catalog/ordering platform.

3.7.1.2 Prime Vendor Sales Reports to PGPO

The Prime Vendor will be required to report monthly all contract sales resulting from the Pharmaceutical Prime Vending Contract to the PGPO including those sales that didn’t derive from use the PGPO’s contracts.

The PGPO using this sales data prepares a series of reports for the Commonwealth: Price Discrepancy Report, OSD Contract Managers Monthly Sales Report, and Better Buying Report. In addition, the PGPO seeks rebate dollars from the manufacturers on behalf of the Commonwealth.

The PGPO uses its expertise in monitoring Net Prices being charged and identifies opportunities for better buying for the Commonwealth.

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.

3.7.2 Commodities

3.7.2.1 Tiered discounts

The Prime Vendor shall not offer different tiered discount based on drug class or cost of medicine. The Prime Vendor will offer tiered discount if the requested product is listed in their online catalog regardless of if the product does not ship from the wholesaler’s primary distribution center for the Commonwealth.

The Commonwealth’s Standard Payment Term is 45 days from receipt of invoice. In addition to pricing for the 45-day payment period, a Bidder is expected to offer lower prices (larger negative percentage markup) for volume used as well as payments within 30 days, 20 days, 15 days, 10 days from receipt of invoice, as well as seven [7] days from receipt of a weekly statement. The 7-day payment period will begin on the date of receipt of a weekly statement.

Please review section 3.7.3 Prompt Pay Discount for further information

Currently, SOPS and Shattuck Hospital are committed to payments within 7 days of receipt of a weekly statement.

The Bidder must recognize and agree that at the start of a Commonwealth Fiscal Year when Purchasers may not be able to meet their commitments to their usual payment schedule; that for July, August and September of the current fiscal year, the Bidder will not increase the price to that of a longer payment period. Once a Purchaser receives its budgeted funds, it will quickly bring payments up to date and return to its usual payment schedule.

In the event a Purchaser consistently fails to meet its commitment, after notification to the OSD Contract Manager and SOPS, the Prime Vendor may move that Purchaser to the markup percentage (%) for the payment schedule required to be met. State Law prohibits the Commonwealth from making payments for Goods and/or Services it has not yet received. Therefore, we cannot take advantage of any lower percentage markups the Bidder might be able to offer for common in the industry pre-paying. Payments received from the Commonwealth of Massachusetts must be applied in a timely manner and no longer than 5 business days upon receipt.

Regarding generic drugs, the awarded Bidder is expected to offer tiered discounts in addition to the negative markup for purchase of different percentages of a Purchaser’s generic drug needs from the Contractors own generic source program

The awarded Bidder must, at no charge, receive checks from the Massachusetts Department of Public Health’s HIV Drug Assistance Program (HDAP) that is administered by the Community Research Initiative (CRI) on behalf of SOPS facilities eligible for these funds, and issue a credit to SOPS to be used by the PDC to purchase drugs from the Prime Vendor.

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 11

3.7.3 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, 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.

4 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:

https://www.mass.gov/executive-orders/no-565-reaffirming-and-expanding-the-massachusetts-supplier-diversity-program https://www.mass.gov/info-details/learn-about-the-supplier-diversity-program-sdp https://www.mass.gov/supplier-diversity-office

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 12

• 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 in this solicitation and attach it to 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.

https://www.sdo.osd.state.ma.us/BusinessDirectory/BusinessDirectory.aspx https://www.vetbiz.va.gov/basic-search/ https://nmsdc.org/mbes/mbe-certification/ https://nmsdc.org/mbes/mbe-certification/ https://www.wbenc.org/certification/ https://disabilityin.org/what-we-do/supplier-diversity/get-certified/ https://www.nglcc.org/get-certified https://www.nglcc.org/get-certified file:///C:/Users/bborchrote/AppData/Local/Microsoft/Windows/Temporary%20Internet%20Files/Content.Outlook/002B2JQ1/www.mass.gov/sdo https://www.mass.gov/forms/take-the-certification-self-assessment

RFR MED56 COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84607 Page 13

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

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

• Specific…