A06_-_Justification_Wolters_Kluwer(signed).pdf

LIMITED SOURCE JUSTIFICATION

Far Part 8.4 - Federal Supply Schedule

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING ACTIVITY

Contracting Activity Customer Agency U.S. Department of Labor Office of Procurement Services (OPS) 200 Constitution Avenue, NW Room S4307 Washington, DC 20210

U.S. Department of Labor Office of Workers Compensation Programs

(OWCP)

200 Constitution Avenue, NW Room S3501 Washington, DC 20210

2. NATURE AND DESRIPTION OF THE ACTION BEING APPROVED:

The Office of Workers’ Compensation Programs (OWCP) requires licenses to access PriceRX Pro, Lexi-comp Online, and Medi-Span Med-File V2 from Wolters Kluwer for a base period of one (1) year and four (4) option years.

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET

THE AGENCY’S NEEDS (Including the Estimated Value):

a. Description: The purchase of the following subscription:

The OWCP requires access to Wolters Kluwer’s Lexi-comp Online, Medi-Span Med-File V2, and PriceRX Pro.

Lexi-comp Online is a drug information compendia that provides clear, concise, point-of-care drug information, including dosing, administration, warnings and precautions, drug interactions, and off-label uses through drug monographs in an easily assessable format. Lexi-comp Online’s Lexi-drugs database has been recognized as an authoritative compendia by the Centers for Medicare and Medicaid Services.

Medi-Span Med-File V2 is the foundational drug file that provides a codified drug dictionary, drug vocabulary, and drug pricing for prescriptions drugs and over-the-counter drugs in the United States. Medi-Span Med-File V2 contains detailed active and inactive ingredient level data and provides unit and package pricing for multiple drug price types, including; Average Wholesale Price (AWP), Wholesale Acquisition Price (WAC), Direct Price (DP), Centers for Medicare and Medicaid Services Federal Upper Limit (CMS FUL), Average Average wholesale Price (AAWP), and the Generic Equivalent Average Price

(GEAP).

PriceRX Pro is a web-based drug pricing reference and analytical application intended to provide market intelligence on drug products, costs, and therapeutic alternatives. PriceRX Pro has search, alerts, and reporting capabilities, including;

searching by manufacturer, NDC, UPC, HRI, trade and generic name, and by GPI. Reports can be customized to accurately and effectively analyze drug cost information, and it can create email alerts to inform users of recent price and drug data changes. PriceRX Pro contains more than 400,000 products with active and inactive data.

b. Estimated Order Value: The estimated price for the base period is $37,845.00.

The total estimated contract value is $202,919.43.

4. IDENTIFICATION OF THE AUTHORITY AND RATIONALE:

The statutory authority permitting limited sources is 8.405-6(a)(B): Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

The OWCP/DAO requires a subscription to three (3) Wolters Kluwer products including: Lexi-Comp Online, Medi-Span Med-File V2, and PriceRX Pro. The purpose of these subscriptions is to obtain drug information, data analysis, and drug-pricing extracts so that OWCP can analyze pharmaceutical claims processed through the newly awarded OWCP Pharmacy Benefits Management (PBM) contract. OWCP’s contracted PBM uses these specific subscription resources for billing processing purposes, including drug pricing. Currently, OWCP’s PBM vendor cannot share details of its processing with OWCP because the agency has no license with Wolters Kluwer to receive proprietary information. OWCP must have their own Wolters Kluwer subscription in order to receive this data and effectively manage the PBM vendor’s activities.

No other available license will cover the proprietary data needed. The data extracts requested from OWCP’s PBM contain data proprietary to Wolters Kluwer, thus OWCP must obtain a Wolters Kluwer license. The only source for this license is Wolters Kluwer. Without this license, OWCP will be unable to obtain the bill processing data extracts, and drug information from its PBM – which would affect the DFEC program’s ability to support all Federal agencies that have injury compensation claims, as well as affect OWCP’s ability to manage the PBM vendor.

5. DETERMINATION BY THE ORDERING ACTIVITY THAT THE ORDER

REPRESENTS THE BEST VALUE FAR 8.404(d):

The subscriptions required are commercially available on the open market, which OWCP has researched (see attached quote). By purchasing the subscription through Federal Supply Schedule, the government is utilizing prices previously negotiated to be better than open market value. The required subscriptions are the only resources that meet OWCP’s current needs, representing the best value and lowest overall cost alternative. The government may negotiate still lower pricing terms with Wolters Kluwer during solicitation.

6. A DESCRIPTION OF MARKET RESEARCH CONDUCTED AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS

NOT CONDUCTED:

The subscription services required provide OWCP with a means to obtain proprietary data from its PBM vendor. These are the same subscriptions used by OWCP’s PBM vendor, so no other source is available to provide the required service. No other vendor can authorize OWCP to access information that is proprietary to Wolters Kluwer.

7. ANY OTHER FACTS SUPPORTING THE JUSTIFICATION:

Wolters Kluwer is the sole access provider of their proprietary Lexi-Comp Online, Medi-Span Med- File V2, and PriceRX Pro products.

8. A STATEMENT OF ACTIONS, IF ANY, THE AGENCY MAY TAKE TO

REMOVE OR OVERCOME ANY BARRIERS TO COMPETITION BEFORE

ANY SUBSEQUENT ACQUISITION FOR THE SUPPLIES OR SERVICES IS

MADE:

OWCP will continue to observe the market to determine if other alternatives become available.

9. TECHNICAL CERTIFICATION:

The program/technical official further certifies that no conflict of interest exists in awarding a sole source contract to the contractor identified herein.

I hereby certify that the supporting data, which are the responsibility of the technical personnel, and which forms a basis for this justification, is complete and accurate.

Roxanna Perry, COR Date

Contracting Officer's Certification:

I certify this justification is accurate and complete to the best of my knowledge and belief.

Myla Bundy, CO Date