MedImpact Protest eRFP PBM.pdf

A 10181 Scripps Gateway Ct, San Diego, CA 92131 P 800.788.2949

MedImpact.com

Tracey Woods Agency Sourcing Manager State of Georgia, Department of Administrative Services, State Purchasing Division 200 Piedmont Avenue, SE Atlanta, GA 30334-9010 PBA.Procurement@dch.ga.gov

April 11, 2024

Dear Ms. Woods, We are writing to address concerns regarding the eRFP Event 41900-DCH0000136 for Pharmacy Benefit Services. During the question and answer phase of the of this solicitation process, we aimed to highlight issues that might have inadvertently limited competition. Following the guidance provided in the Georgia Procurement Manual, we are submitting this protest in advance of the solicitation due date.

Attachment P (Mandatory Response Worksheet), item 4 requires a ‘Yes’ answer or the submitter would be disqualified. The question reads:

"If the Supplier has selected Pharmacy Drug Rebate Services in Attachment O - Scopes of Work Submission Checklist, the Supplier must have served as the Prime Contractor a minimum of three

(3) years within the last five (5) years in Medicaid Fee-for-Service (FFS) Pharmacy rebate and Medicaid Supplemental Rebate invoicing, processing and management.

The Supplier must acknowledge agreement by indicating ""YES"". If the Supplier has not selected Pharmacy Drug Rebate Services, the Supplier shall respond ""YES"".

We believe this requirement unintentionally provides preference and qualification for only two bidders due to current market conditions (e.g., acquisitions) that have decreased the pool of potential bidders. This demonstrates a lack of reasonableness particularly as it relates to the duration of the awarded contract (up to ten (10) years). This requirement:

1) Is Ambiguous: It is not clear from this requirement (above) if the Purchasing Division meant three (3) years within the last five (5) years from the publishing date of the eRFP Event 41900- DCH0000136, the go-live date, the contract effective date or applies only to the time of proposal submission.

2) Lacks Reasonableness: The duration of the contract is up to ten (10) years. It is not reasonable to assume that a bidder that is qualified (and therefore eligible for other participating entities to select at any given time over the ten years), will remain ‘qualified’ per the requirement above (and vice-versa).

3) Unduly limits competition: In our review, only three (3) vendors are qualified at the time of

A 10181 Scripps Gateway Ct, San Diego, CA 92131 P 800.788.2949

MedImpact.com submission to respond with a ‘YES’ to this requirement, two of which are incumbent vendors for the State of Georgia. In addition, depending on the Purchasing Division’s intent regarding the date reference point (e.g., use of response submission date or contract go-live date or other date) as the qualification evaluation timeframe, one of the three vendors would likely no longer meet the qualification at the time of contract go-live other bidders could be qualified at the time of contract go-live. This means, only two (2) vendors actually qualify to submit a bid which severely limits choice. Due to the ten (10) year contract, any number of these bidders may no longer meet the requirement for state selection by the end of the contract option years (making the requirement impossible to meet as it stands), while others may become qualified.

Due to the overly restrictive requirement, which limits potential bidders, in a volatile competitive landscape, we respectfully request the Purchasing Division allow additional qualified vendors to participate in this solicitation. This may be accomplished through one of two scenarios (for example):

1) Reducing the experience requirement at the time of go-live to one full contract year, as the prime bidder: or

2) A modification to allow an otherwise qualified bidder to fully qualify once the entity achieves the requisite three years of experience.

Scenario two (2) would allow a bidder to qualify once they reach the three years, assuming they meet all other qualifying criteria. This qualified bidder may not be available to contract immediately, however, they could qualify during the term of the solicitation award and become qualified as an option for the State of Georgia or future Participating Entities. The Purchasing Division may also want to consider requiring the qualified bidder to remain ‘qualified’ throughout the ten (10) contracting years.

Due to the solicitation’s patent ambiguity and unreasonableness that unduly limits competition, we are submitting this protest prior to close of the solicitation as instructed in the Georgia Procurement Manual.

Respectfully, Robert Coppola

Senior Director, Sales 339-210-3884 robert.coppola@medimpact.com