MED57 Pharmaceutical GPO RFR 4262023.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 GPO

Agency Document Number: MED57

COMMBUYS Bid#: BD-23-1080-OSD03-SRC3-84619

Initial Start Date: 4/14/2023 Amendment 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 MED57 PHARMACEUTICAL GPO

Revision History

Version Number

Date Author Brief Description

1.0 4/14/2023 JCanela Initial release

1.1 4/26/2023 Jcanela Section 2.1.2

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

1.2.0 SUBMISSION OF BID QUESTIONS

1.2.1 BID AMENDMENT DEADLINE

1.2.2 LATE BIDS WILL NOT BE CONSIDERED

1.2.3 DEBRIEFING

1.3 ADDITIONAL BID INFORMATION

1.3.0 ANTICIPATED CONTRACT DURATION:

1.3.1 PERFORMANCE AND PAYMENT TIME FRAMES WHICH EXCEED 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 ENTITIES ELIGIBLE TO USE THE RESULTING CONTRACT

2 BIDDER QUALIFICATIONS

2.1 COMPANY EXPERIENCE

2.1.0 BUSINESS BACKGROUND

2.1.1 YEARS IN THE INDUSTRY OF THE BID

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

DEFAULTS

2.2.0 MOST CURRENT AUDITED ANNUAL FINANCIAL STATEMENTS

2.2.1 BANKRUPTCY, LITIGATION, AND CONTRACT DEFAULTS

2.3 CONTINUITY OF OPERATIONS PLAN (COOP)

2.4 EMERGENCY RESPONSE CAPABILITIES

2.5 REFERENCES AND REFERENCE INFORMATION AND/OR REQUIREMENTS

2.5.0 DRUG MANUFACTURERS

2.5.1 PHARMACEUTICAL PRIME VENDORS

3 COMMODITY, SERVICE, ENVIRONMENTAL, AND COST SPECIFICATIONS

3.1.0 PGPO RESPONSIBILITIES

3.2 ORDERING AND QUOTES

3.3 ENVIRONMENTAL SPECIFICATIONS

3.3.0 ENVIRONMENTAL BENEFIT CLAIMS/LABELING

3.3.1 BIDDER ENVIRONMENTAL PRACTICES FORM

3.3.2 ENVIRONMENTAL PLAN

3.4 COMPENSATION STRUCTURE/PRICING

3.4.0 NO DIRECT PAYMENTS TO PGPO FOR PHARMACEUTICAL PRIME VENDOR PURCHASES

3.4.1 PAYMENTS MAY BE MADE FOR USE OF PGPO CONTRACTS WITH MEDICARE PART D PDPS

3.4.2 PAYMENTS TO THE PGPO ARE POSSIBLE FOR NEW OR ADDITIONAL SERVICES

3.4.3 SERVICES

3.5 GROUP PURCHASING ORGANIZATION OR COOPERATIVE PROCUREMENT PREVISIONS

3.5.0 GROUP PURCHASING ORGANIZATION

3.5.1 COOPERATIVE/COLLECTIVE PROCUREMENT

3.5.2 PREVAILING WAGE

3.6 PROMPT PAY DISCOUNT

3.6.0 AUTHORIZED PRICE CHANGES

Table of Contents Page ii

4 SUPPLIER DIVERSITY PLAN (SDP)

5 EVALUATION CRITERIA

5.1 MANDATORY REQUIREMENTS

5.2 ALTERNATIVES

5.3 EVALUATION COMPONENTS

5.3.0 PRICE

5.4 BEST VALUE SELECTION AND NEGOTIATION

6 INSTRUCTIONS FOR SUBMISSION OF RESPONSES

6.1 ELECTRONIC SIGNATURES

6.1.0 ACCEPTABLE FORMS OF SIGNATURE

6.2 LIMITS AND RESTRICTIONS

6.2.0 FILE FORMAT RESTRICTIONS

6.2.1 FILE NAMING CONVENTIONS

6.3 GENERAL QUOTE REQUIREMENTS, PROVISIONS, AND PROHIBITIONS

6.3.0 QUOTE CONTENT

6.3.1 NON-COLLUSION

6.3.2 MINIMUM QUOTE DURATION

6.3.3 BIDDER’S CONTACT INFORMATION

6.3.4 OWNERSHIP OF SUBMITTED QUOTES

6.3.5 PROHIBITIONS

6.3.6 PUBLIC RECORDS LAW

6.3.7 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

7.3.0 CHANGES TO CONTRACTOR’S INFORMATION

7.3.1 SINGLE POINT OF CONTACT

7.3.2 REPLACEMENT OF CONTRACTOR STAFF

7.4 REPORTING REQUIREMENTS AND DUE DATES

7.4.0 REPORTING AND PAYMENT DUE DATES

7.4.1 QUARTERLY SALES, SUPPLIER DIVERSITY PROGRAM EXPENDITURE, AND ENVIRONMENTALLY

PREFERABLE PRODUCTS REPORT

7.4.2 STATEWIDE CONTRACT ADMINISTRATION QUARTERLY FEE PAYMENT AND REPORT

7.4.3 AUDIT

7.4.4 OTHER TERMS

7.4.5 AD HOC REPORTS

7.5 PAYMENT RELATED TERMS

7.5.0 BILL PAYMENT

7.5.1 LATE PAYMENT FEES

7.5.2 ELECTRONIC FUNDS TRANSFER (EFT)

7.5.3 CREDITWORTHINESS

7.5.4 TAX EXEMPTION

Table of Contents Page iii

8 RFR APPENDICES

8.1 APPENDIX 1 – REQUIRED TERMS FOR ALL STATEWIDE RFRS

8.1.0 APPLICABLE PROCUREMENT LAW

8.1.1 GENERAL PROCUREMENT INFORMATION

8.1.2 TERMS AND REQUIREMENTS PERTAINING TO AWARDED STATEWIDE CONTRACTS

8.2 APPENDIX 2- INSTRUCTIONS FOR VENDORS RESPONDING TO BIDS ELECTRONICALLY

THROUGH COMMBUYS

9 GLOSSARY

RFR MED57COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84619 Page 1

1 INTRODUCTION AND BID OVERVIEW

1.1 Summary Description of Procurement

The Commonwealth of Massachusetts and the Pharmaceutical Group Purchasing Order Strategic Sourcing Team (SST) are soliciting Bidders for the acquisition of Pharmaceutical Group Purchasing Organization (PGPO) services.

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. The resulting contract will replace SWC MED48.

The Contract will also be available for use by other Eligible Entities.

The Commonwealth’s current Pharmaceutical GPO statewide contract (SWC) MED48 ends June 30, 2023.

The Commonwealth will use the PGPO for two purposes: (1) The PGPO will establish acquisition prices for drugs that the Commonwealth buys from a pharmaceutical prime vendor through SWC MED56. (2) The PGPO in addition will provide the Medicare Part D Prescription Drug Plans (PDPs) that are available in Massachusetts that the State Office for Pharmacy Services may use in its role as a Medicare Part D provider.

All commodities and services that the PGPO may be able to provide during the life of any resulting contract will be considered under the scope of the MED57 PGPO contract if they are directly related to pharmacy and will be used in the provision of pharmaceuticals or pharmaceutical services by the Commonwealth. While the Commonwealth does not currently intend to make direct purchases from companies in the PGPO contract portfolio, we may establish a means and do so in the future.

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.

The Commonwealth retains the right to establish its own acquisition pricing or to use acquisition pricing established by entities other than the PGPO and to make pharmaceutical and other purchases from any source if it is in the best interest of the Commonwealth to do so.

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

RFR MED57COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84619 Page 2

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.

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 at 3:00pm 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- Instructions for Vendors Responding to Bids Electronically through COMMBUYS" for instructions on how to register for live webinar and additional trainings that may be helpful to prospective bidders.

Visit 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.

1.2.0 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.

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

RFR MED57COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84619 Page 3

1.2.1 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 stated above, it is the responsibility of the bidder for checking the Bid record in COMMBUYS for revisions and updates.

1.2.2 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.

1.2.3 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

1.3.0 Anticipated Contract Duration:

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

1.3.1 Performance and payment time frames which exceed Contract duration No payments will be made by the Commonwealth or by the Pharmaceutical Prime Vendor to the PGPO for pharmaceuticals or any item or service purchased from the Pharmaceutical Prime Vendor using the PGPO contracts. The Commonwealth will make direct payments to the PGPO when necessary for use of its Medicare Part D contracts for claims submitted under the Medicare Part D Program which would be a fee for use.

1.3.2 Estimated Value of the Contract

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 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.

Acquisition Method(s):

RFR MED57COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84619 Page 4

Check All Applicable (“X”):

Category

Fee-For-Service

Outright Purchase

Rental (not to exceed 6 months)

Term Lease

License

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

1.3.5 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 BIDDER QUALIFICATIONS

2.1 Company experience

2.1.0 Business background

Existing Relationships with Drug Wholesalers (Pharmaceutical Prime Vendors) - Bidders must currently have established working relationships with the three largest national drug wholesalers AmerisourceBergen, Cardinal

Health, McKesson Pharmaceuticals. If the Commonwealth selects a drug wholesaler other than the three named above to be the Commonwealth’s pharmaceutical prime vendor, the Bidder must agree to establish a relationship with the selected drug wholesaler.

2.1.1 Years in the industry of the Bid

Bidders must have been in the business of PGPO 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).

Bidder must also show it has the capacity and the experience to meet the needs of the Commonwealth for a

Pharmaceutical Group Purchasing Organization (PGPO). 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 negotiating and managing contracts with the industry on behalf of its clients. The Bidder must also have existing relationships and work routinely with all the major drug wholesalers (Pharmaceutical Prime Vendors)

Regarding Medicare Part D Prescription Drug Plans (PDPs), the Bidder must be able to provide the majority of

Medicare Part D Prescription Drug Plans (PDP) that are available in Massachusetts that the State Office for

Pharmacy Services needs to use in its role as a Medicare Part D provider. See Attachment B for a listing of PDPs https://www.mass.gov/service-details/non-profit-purchasing-programs

RFR MED57COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84619 Page 5 in Massachusetts. Bidders should refer to Medicare.gov for more information on Massachusetts Medicare Part D

Plans.

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

2.2.0 Most current audited annual financial statements

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.

2.2.1 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.

2.2.1.0 Gross annual revenue for most recently completed fiscal year The Bidders PGPO contracts with pharmaceutical manufacturers must have resulted in at least $2 billion dollars in revenue during its most recently completed fiscal year.

2.2.1.1 Source of PGPO Contract Revenue

Bidders must have at least 80% of its PGPO contracts on a direct basis with pharmaceutical manufacturers.

The Commonwealth will not award a contract to a PGPO that primarily piggybacks off-of another PGPO’s contracts.

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.

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 References and reference information and/or requirements

2.5.0 Drug Manufacturers

Bidders must upload with their bid a minimum of three (3) and a maximum of five (5) letters of reference on the references’ letterhead signed by an officer of the reference organization.

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

These references are to be from your most recent year largest dollar Drug Manufacturers.

Please note that the SST reserves the right to speak to Drug Manufacturers not submitting references as well as those who did submit them.

2.5.1 Pharmaceutical Prime Vendors

Bidders must upload with their bid a minimum of two (2) and a maximum of three (3) letters of reference from among the three largest national drug wholesalers AmerisourceBergen, Cardinal Health, McKesson Pharmaceuticals on the references’ letterhead signed by an officer 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.

Please note that the SST reserves the right to speak to Prime Vendors not submitting references as well as those who did submit them.

http://www.mass.gov/

RFR MED57COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84619 Page 6

3 COMMODITY, SERVICE, ENVIRONMENTAL, AND COST

SPECIFICATIONS

3.1.0 PGPO Responsibilities

The PGPO will be responsible for establishing and maintaining contracts with various pharmaceutical entities (i.e.

drug manufacturers, re-sellers) which will establish the acquisition price a prime vendor will pay a manufacturer for a drug sold to eligible Commonwealth agencies through the prime vendor. The PGPO will work closely and in unison with the prime vendors to assure the Commonwealth receives the correct acquisition pricing.

A Bidder awarded a contract must have an account person assigned to the Commonwealth; conduct a business review at least twice per year; assist the Commonwealth to maximize the PGPO usage; assist the Commonwealth with contract compliance including increasing the recognition of State Government as an acute care class of trade; update an online list of available contracts at least weekly; send electronic price updates at least weekly;

and allow unrestricted access to all their contracts.

The Commonwealth’s contracted Pharmaceutical Prime Vendor must be able to use the Bidder’s PGPO contacts to establish their acquisition cost for pharmaceuticals and have the PGPO manufacturers honor the charge backs when goods are sold to Commonwealth Eligible Entities listed in the Issuer tab on COMMBUYS for this Solicitation. (See Attachment D Historical Purchasing Entities).

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 plus a certain % markup. (Please see the definition of acquisition price in the Glossary.)

3.2 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.

3.3 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.

3.3.0 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.

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 MED57COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84619 Page 7

3.3.1 Bidder Environmental Practices Form

Bidders must complete this form, MED57 Bidder Environmental Practices Form, part of Bidder 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.

3.3.2 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.

3.4 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.

Commonwealth receives the correct acquisition pricing. The PGPO will work with the SST to aid the Commonwealth in receiving best value in its pharmaceutical procurements.

3.4.0 No Direct Payments to PGPO for Pharmaceutical Prime Vendor purchases No payments will be made to the PGPO by the Commonwealth, other eligible purchasing entities or by the Prime Vendor for pharmaceuticals or any item or service purchased from the Pharmaceutical Prime Vendor.

3.4.1 Payments may be made for use of PGPO contracts with Medicare Part D PDPs The Commonwealth will make direct payments to the PGPO when necessary for use of it Medicare Part D contracts with Pharmaceutical Drug Plans (PDPs) for claims submitted under the Medicare Part D Program. This would be a fee for use. SOPS is a Medicare Part D pharmacy provider to a limited number of patients. Most PDPs when they pay SOPS for a claim deduct the fee to be paid to the PGPO directly from the payment the PDP makes to SOPS. A few PDPs do not deduct the PGPO fee which SOPS than must pay directly to the PGPO.

SOPS currently pays MHA 5 cents per claim.

3.4.2 Payments to the PGPO are possible for new or additional services Direct payment may be made to the PGPO by the Commonwealth for new or additional services throughout the life of the contract providing it is the best interest of the Commonwealth to do so. Before this can occur a memorandum of understanding detailing the use and the payment structure will be established between the purchasing entities and approved by the OSD Contract Manager.

3.4.3 Services

It is desirable that the Bidder be able to offer us additional value-added services beyond what is specified in the solicitation. Any such services that the Bidder offers as part of its bid or after Contract award may be incorporated into the Contract at any time during the life of the Contract.

3.5 Group Purchasing Organization or Cooperative Procurement Previsions

3.5.0 Group Purchasing Organization

The Commonwealth of Massachusetts and the Pharmaceutical GPO Strategic Sourcing Team (SST) are soliciting Bidders for the acquisition of Pharmaceutical Group Purchasing Organization (PGPO) services. Section 1.1 for additional details. This shall not preclude the SST or OSD from adding another State that did not take part in the original procurement to the list of Eligible Entities.

3.5.1 Cooperative/Collective Procurement

The Bidder must agree to the use of any resulting contract by additional States or Governmental Entities within those States. Each State or Governmental Entity will be responsible for establishing their own contracts with their own pharmaceutical prime vendor(s). The Additional States and Governmental entities within those States must

RFR MED57COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84619 Page 8 be able to purchase pharmaceuticals from their prime vending contract using acquisition prices established by the PGPO under the concept of multistate collective purchasing.

For this use to occur the Commonwealth of Massachusetts, the Contractor and additional States or Governmental entities within those States must agree to the use of the Contract. The RFR and the resulting Contract will be the lead documents. As there are variations in the laws and rules governing procurements in other States, specific supplemental agreements between the Contractor and additional States or Governmental entities within those States may be required. These supplemental agreements or use of the Contract will in no way obligate or make the Commonwealth responsible for any actions arising from the use of the Contract by Additional States or Governmental entities within those States.

The Bidder must market and respond to other States questions about using the Massachusetts MED48 PGPO contract through MASPB. It is desirable that the Bidder recreate, update and maintain the MASPB web site www.MASPB.com at no charge to the Commonwealth. The MASPB web site will remain the property of the Commonwealth at the end of the Contract.

3.5.2 Prevailing Wage

Bidders must comply with the Prevailing Wage Law, as administered by the Commissioner of Labor and Workforce Development/Division of Occupational Safety (DOS). All employees of Contractors engaged in activities covered by the Prevailing Wage Law must be paid at least these rates for any work performed under a Contract resulting from this RFR when working in a public building or on a public work.

3.6 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 minimal acceptable PPD discount would be 1.0% - 10 days. If a discount greater than 1.0% is offered at any specified PPD period, it must be in decimal increments, such as the following examples for illustration only: 1.1%, 2.0%, 2.22%, 2.75%, 3.3%.

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.

3.6.0 Authorized Price Changes

3.6.0.0 PGPO Interface with Commonwealth’s Pharmaceutical Prime Vendor and Manufacturers

Both the Pharmaceutical Group Purchasing Organization and the Pharmacy Prime Vendor must establish and maintain a good working relationship with each other. Both must have and maintain good working relationships with drug manufactures as it is essential that data flows between the PGPO, Prime Vendor and the manufacturers of drugs. This is essential for the prime vendor prime vending method of distribution to work which is highly dependent on a complex system of chargebacks. The Prime Vendor will be the primary point of purchasing warehousing, data collection, reporting and the distribution of pharmaceuticals and related supplies.

3.6.0.1 Commonwealth’s Selection of a Pharmaceutical Prime Vendor The Commonwealth has the right to award a contract to a drug wholesaler of its choice following a competitive bid to be the Commonwealth’s Prime Vendor. The Commonwealth has the right to change prime vendors during the life of the PGPO contract. The PGPO must work with whatever Prime Vendor the Commonwealth chooses.

3.6.0.2 PGPO Notifications to Pharmaceutical Prime Vendor

The PGPO must 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 eligible purchasing entities to the PGPO contract. The PGPO and Prime Vendor must collaborate to make sure the account data in their systems match.

https://www.mass.gov/prevailing-wage-program

RFR MED57COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84619 Page 9

3.6.0.3 Pharmaceutical Prime Vendor Notifications to PGPO

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

3.6.0.4 PGPO Notifications to Manufacturers

It is the responsibility of the PGPO to timely notify all its manufacturers of all Eligible Purchasing Entities such as historical Purchasing Entities listed on Attachment D that procure pharmaceuticals in order that the Prime Vendors charge backs be honored by the manufacturer.

3.6.0.5 PGPO analysis of Pharmacy Prime Vendors Sales Report

The GPO will receive monthly sales reports from the Pharmacy Prime Vendor of all sales under Pharmacy Prime Vending Contract MED48 or its successor.

3.6.0.6 Price Discrepancy report

The PGPO will analyze the sales data reported to it by the Prime Vendor to verify that the Prime Vendor was using the correct PGPO contract price as its acquisition cost. All discrepancies must be reported to the Purchasing Entity which in most cases is SOPS. This report is particularly important because the Commonwealth realizes that errors can occur in loading pricing correctly for a particular account and this report quickly identifies pricing irregularities that can be quickly fixed, and credits obtained from the Prime Vendor.

3.6.0.7 Rebates

When drug manufacturers have rebate programs based on sales volumes of its products that are part the GPO contract portfolio the GPO will analyze the Prime Vendors sales data to identify rebates that purchasing entities are eligible to receive. The PGPO will apply for and obtain eligible rebates from drug manufacturers on the behalf of the purchasing entity. Currently the PGPO MHA gathers and aggregates the manufactures rebates and sends a check to SOPS with an advisory of the funds source. The Commonwealth wants to receive these rebates in the same or an equivalent manner through the PGPO.

3.6.0.8 Better Buying

If the PGPO in analyzing the sales data from the Prime Vendor determines that a purchasing entity would achieve a significant savings from selecting another generic or product within the PGPO’s contract portfolio the PGPO will notify the purchasing entity which in most cases will be SOPS. Prices fluctuate at lot in the pharmaceutical marketplace and this information will better enable purchasing entities to monitor its purchasing and respond to pricing changes.

3.6.0.9 PGPO Reports for Purchasing Entities

The PGPO may be required to prepare and supply similar reports as above based on Prime Vendor monthly sales data for individual purchasing entities if the purchasing entity requests it. These requests have not been made in the past and the OSD Contract Manager does not foresee this changing.

3.6.0.10 Special Reports

PGPO may be required to respond within its reporting capability to requests for other ad hoc or ongoing reports for SOPS or the Contract Manager

3.6.0.11 Alternatives

Contractors may propose alternatives for equivalent, better or more cost-effective performance than specified under the Contractor’s original Response at any time during the life of the Statewide Contract.

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).

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 MED57COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84619 Page 10

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

RFR MED57COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84619 Page 11

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.

• 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 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 MED57COMMBUYS BID NUMBER BD-23-1080-OSD03-SRC3-84619 Page 12 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, semi-annual and/or annual 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.

5 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.

5.1 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…