PWS 11.12.2024.docx

Performance Work Statement (PWS)

Mail Manifesting Services

PART 1

GENERAL INFORMATION

1. GENERAL: This is a non-personal services Blanket Purchase Agreement (BPA) to provide mail manifesting. The Government shall not exercise any supervision or control over the contract service providers performing the services herein. Such contract services providers shall be accountable solely to the Contractor who, in turn, is responsible to the Government.

1.1 Description of Services/Introduction: The Contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, other items and non-personal services necessary to perform Mail Manifesting as defined in this Performance Work Statement (PWS); except as specified as Government furnished property or services. The Contractor shall perform to the standards in this BPA.

1.2 Background: In 1994, the VA Consolidated Mail Outpatient Pharmacy (CMOP) at Leavenworth, Kansas began the processing of high-volume mail prescription workloads from multiple VA medical facilities using an integrated, automated dispensing system. Since that time the VA has expanded the program nationwide to include a total of seven (7) CMOP facilities located at Leavenworth, KS; Tucson, AZ; Chelmsford (Boston), MA; Lancaster (Dallas), TX; Murfreesboro (Nashville), TN; Hines (Chicago), IL; and Charleston, SC. Initial projected annual prescription workloads for CMOP in the 1992 GAO report was 25 million prescriptions which was well exceeded prior to full national implementation with 50 million prescriptions dispensed in 2000. Current levels of approximately 120 million prescriptions or 85 million parcels per year, which is approximately 80% of all VA dispensed prescriptions. VA CMOP was the first mail order pharmacy to be Joint Commission accredited and recently recognized by JD Powers as a Champion of Customer Service.

It is the objective of the VA to consolidate all seven CMOP mail manifesting facilities’ activities and all Direct to Patient (DTP) facilities with a single mail Contractor to maintain consistency in mail manifesting processes, reporting, billing, achieve cost savings based on the use of economies of scale and quality control throughout the CMOP program.

The VA anticipates a need to combine its CMOP mail manifesting requirements with the mail manifesting requirements of the DTP program. The DTP program provides over the counter medical supplies, dietary supplements and other products for direct delivery to eligible Veteran patients located in the fifty (50) United States, Washington, DC, and Puerto Rico. The DTP Vendor(s) maintain an inventory of CMOP-designated medical supplies and nutritional products that are shipped to patients as ordered by the CMOP. It is estimated that the DTP mail manifesting requirement will represent approximately 1.5% of the total combined CMOP and DTP mail manifesting requirements. DTP information will be in Technical Exhibit 11.

1.3 Objectives: The CMOP program objectives for mail manifesting are:

I) Timely and controlled management of parcels II) Implementation and sustainment of effective internal controls and administrative services to ensure delivery of properly manifested parcels within required timeframes III) Accurate and timely invoicing IV) Collaborative business partnership with CMOP, United States Postal Service (USPS), United Parcel Services (UPS) and Federal Express (FedEx) V) Accurate and timely data enabling comprehensive dynamic tracking, real time notification, reporting of parcels and delivery performance information throughout the manifesting, transport, distribution and delivery process.

1.4 Scope: Services to be provided include parcel pick up from CMOP facilities and DTP Vendor(s), application and pre-payment of postage or shipping charges, insertion of parcels into the United States Postal Service or third-party carrier, delivery performance of parcels, quality control, tracking, reporting, and accurate billing.

1.5 Period of Performance: The period of performance shall be for a Base Period of 12 months and four (4) 12-month option periods. A transition period (see section 1.6.13 – Transition Period) will be needed for transitioning of services from incumbent Contractor to new BPA awardee. This period shall begin upon date of award and conclude no later than 180 days following the date of award. The contractor shall be responsible for performance of the contract beginning on day 181 following the date of award, unless an earlier date is agreed to in writing by the Government and the Contractor. The period of performance reads as follows:

Base Period – Conclusion of Transition Period (no later than Day 181) through 12 months

If exercised, Option Periods 1, 2, 3, and 4 will be:

Option Period 1 - 12 months following option exercise Option Period 2 - 12 months following option exercise Option Period 3 - 12 months following option exercise Option Period 4 - 12 months following option exercise

1.5.1 Period of Performance DTP: The Contractor will have a phase period to incorporate DTP workload.

1.6 General Information

1.6.1 Quality Control: See PWS Section 3.7.

1.6.2 Quality Assurance: See PWS Section 3.7.

1.6.3 Place of Performance: The work to be performed under this BPA will be at the Contractor’s facilities regional to the nearest CMOP and DTP locations.

1.6.4 Recognized Holidays:

Christmas Day

1.6.5 Hours of Operation:

1.6.5.1 The Contractor is responsible for conducting business Monday through Saturday in collaboration of respective CMOP/DTP location, except Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closings, or similar Government directed facility closings. The Contractor must always maintain an adequate workforce to ensure uninterrupted performance of all services as defined within the PWS when the Government facility is not closed for the above reasons. When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce are essential.

1.6.5.2 CMOP facilities may remain open for business outside of normal hours of operation, on weekends, or on a Federal Holiday. The Government will notify the Contractor as soon as possible with a lead time of 72 hours but the Government may provide less than 24 hours’ notice under certain circumstances. The Contractor will be required to provide services under these circumstances.

1.6.6 CMOP pick-up Location and Hours of Operation:

The following table illustrates the current location and hours of operation of each CMOP facility.

4136 Carolina Commerce Parkway Ladson, SC 29456

1st Shift: 6 AM – 2:30 PM Monday - Friday 2nd Shift: 3:00 PM to 1:30 AM Monday - Thursday

Chelmsford CMOP 10 Industrial Avenue Chelmsford, MA 01824 1st Shift: 5:30 AM – 3 PM Monday - Friday

Dallas CMOP 2962 S. Longhorn Drive Lancaster, TX 75134 1st Shift: 6 AM – 2:30 PM Monday - Friday

Hines CMOP 5th & Roosevelt Road Hines, IL 60141 1st Shift: 6 AM – 3:00 PM 2nd Shift: 3:30 PM to 12 AM Monday - Friday

Existing CMOP facility, full transition not completed to.

Leavenworth CMOP 5000 S. 13th Street Leavenworth, Kansas 66048

New Location starting end of 2019; fully transitioned in 2020 Leavenworth CMOP 23501 W 84th Street Shawnee, KS 66227 Shift: 6 AM – 6 PM Monday - Friday

Existing CMOP facility, full transition not completed to Elam Farms.

Murfreesboro CMOP 5171 Sam Jared Drive Murfreesboro, TN 37130

Remar (Parcel Pickup Location) 6200 E. Division St.

Lebanon, TN 3709

New Location not fully optimized:

Mid-South CMOP 3209 Elam Farms Pkwy Murfreesboro, TN 37127 1st Shift: 6:30 AM – 5 PM

Monday-Friday

Monday-Friday 9:30 AM Pickup and 12:30 PM Monday – Friday

1st Shift: 6:30 AM – 5 PM Monday - Friday

Tucson CMOP 3675 East Britannia Drive Tucson, AZ 85706 1st Shift: 6 AM – 3:30 PM Monday - Friday 2nd Shift: 3:30 PM -11:00 PM

1.6.6.1 DTP Pick-up Location and Hours of Operation: DTP vendors have not been determined, the Government will inform the Contractor of the DTP Vendor(s) and their location(s). The information will be included in the transition period stated in PWS 1.5.1.

1.6.7 Type of Contract: The Government anticipates award of one BPA against an existing GSA Multiple Award Schedule Category 36 contract.

1.6.8 Physical Security – Contractor Facilities: The Contractor shall ensure the physical security of all facilities housing the activities under this PWS including any subcontractor facilities. Physical security controls will include but are not limited to unloading, loading, sorting processes, environmental safeguards, personnel practices and building security. The Contractor shall provide, at a minimum, the following:

a. Background investigation on all employees: See PWS Part 5 (NACI)

b. Closed Circuit Television Camera System

c. Video surveillance - recordable and maintained for 45 days

d. Intrusion Detection System

e. Badge identification (Clearly visible Employee Identification / Badge display)

f. Controlled entry/exit of employees and visitors, including monitoring and alarming of emergency exit doors during operation.

g. Temperature Controlled (59-86 degrees F)

h. Environmental Controls:

1. Dry

2. Clean

3. Well-lit

4. Adequate air circulation 5.Or other environmental controls not identified

i. Transportation Security, use of seals and door locks

j. Maintaining appropriate logs, certifications, testing results and other documentation attesting to the validity of facility security measure

1.6.8.1 Parcel Security –The Contractor shall work with all law enforcement entities to resolve lost or stolen parcels. The Contractor shall allow outside audits or reviews by other agencies; recommendations and implementation will be discussed by the Government first. The Contractor shall allow access to all physical sites and/or records related to this BPA as requested by law enforcement, other regulatory organizations and the Government. The Contractor shall notify NCO 15 Contracting Office, CMOP COR, and Mail Program Office of any investigations and provide support as required. The Contractor shall maintain the chain of custody and security of parcels to delivery to the USPS and third-party vendors. To the extent that the Contractor uses subcontractors to perform any of the tasks in this contract, the Contractor shall ensure that such subcontractors comply with all of the terms of the contract, including, but not limited to this section 1.6.8.1.

1.6.9 Post Award Conference/Periodic Progress Meetings – see PWS section 3.9.

1.6.10 Contracting Officer Representative (COR): The CORs and alternate CORs will be identified by separate letter. The COR monitors all technical aspects of the BPA and assists in BPA administration. The COR is authorized to perform the following functions: Assure the Contractor performs the technical requirements of the BPA; perform inspections necessary in connection with BPA performance; maintain written and oral communications with the Contractor concerning technical aspects of the BPA; issue written interpretations of technical requirements including Government drawings, designs, specifications; monitor Contractor's performance and notify both the Contracting Officer (CO) and Contractor of any deficiencies; coordinate availability of Government furnished property; and provide site entry for Contractor personnel. A copy of the written and signed designation letter by the CO, stating the responsibilities and limitations of the COR, especially about changes in cost or price, estimates or changes in delivery dates will be provided to the Contractor. The COR or the National CMOP Mail Office is not authorized to change any of the terms and conditions of the resulting BPA.

1.6.11 Key Personnel: The Government considers the following Contractor employees to be key personnel but not limited to: BPA Manager, General Manager or designee for each CMOP Facility, National Customer Support Liaison, National IT Manager, National USPS Manager and Transportation Liaison. A list of local points of contact shall be provided and updated monthly by the contractor.

1.6.12 Identification of Contractor Employees: All contract personnel attending meetings and working in other situations where their Contractor status is not obvious to third parties, are required to identify themselves as such to avoid creating an impression in the minds of members of the public that they are Government officials. Contractor personnel are required to obtain and wear badges that are visible in the performance of this service.

1.6.13 Transition Period:

1.6.13.1 A transition period is necessary to convert operations from the incumbent Contractor to the successor Contractor. The transition period is intended to allow the Contractor to become familiar with the performance requirements to commence full performance of services on the BPA start date. The transition period begins at BPA award and shall conclude no later than 180 days following the date of award. The successor Contractor shall be responsible for performance of the contract beginning on day 181 following the date of award, unless an earlier date is agreed to, in writing, by the Government and the successor Contractor. Government shall not be responsible for any set up costs.

1.6.13.1.1 The incumbent Contractor will work with the Government and new contract awardee for a smooth and uninterrupted transition.

1.6.13.2 The Contractor shall complete all transition efforts in accordance with their transition plan and prior to the applicable BPA effective date or start date. Transition efforts include but are not limited to: establishing processing facilities; hiring and training staff; submitting all required forms sufficiently in advance to ensure obtaining clearances for staff; and obtaining data and account information. The Government shall transfer data and account information to the successor Contractor within 30 days of BPA award.

1.6.13.3 The Contractor shall provide a written transition plan to minimize any decreases in productivity and to prevent possible negative impact on service. This plan shall address the transition efforts described in PWS section 1.6.13.2. Transition plan needs to be provided to the Government no later than 45 days from BPA award. Required plan includes but is not limited to: staffing, transportation, USPS communication, third party carriers and parcel routing.

1.6.13.4: The Government shall not be financially responsible for upgrading mail to First Class or Priority Mail due to the Contractor’s delayed parcel routing plan during the implementation transition phase.

1.6.14 Shipping Parameters

1.6.14.1 United States Post Service (USPS)

1.6.14.1.1 The Contractor shall utilize all USPS products and services to provide mail manifesting services. USPS Products and Services are listed but are not limited to:

Express Mail [CMOP Negotiated Service Agreement (NSA) when applicable] First Class (Published or CMOP NSA when applicable) Parcel Select Parcel Select Lightweight Priority Mail (Published or CMOP NSA when applicable) Delivery Confirmation Signature Confirmation (Published or CMOP NSA when applicable) Adult Signature Confirmation (Published or CMOP NSA when applicable) Additional service and Products required by USPS include but are not limited to: CMOP Unique Mailer ID (MIDS), Child Mailer ID number (CRID), Parcel Nesting, Electronic Verification System (eVS), Ancillary Lines (ACS), Intelligent Mail Barcode (IMpB)

Other products and services as they become available from the USPS

1.6.14.1.1.1 The Contractor shall utilize the ship method identified in the unique characteristics of the CMOP barcode except for parcels needing specialized handling. PWS section 3.2

1.6.14.1.1.2 Parcels meeting the USPS volume discount program ensures the most inexpensive ship-method be utilized while not compromising delivery performance. See USPS Publication 401.

1.6.14.1.1.3 If a more expensive ship method is to be used, the Government must approve prior to manifesting.

1.6.14.1.1.4 If the Contractor deviates from the identified ship method, documentation and immediate written and verbal communication must be submitted to the COR and CO.

1.6.14.1.2 Use of CMOP NSA Rates

1.6.14.1.2.1 CMOP and USPS have a Negotiated Service Agreement (NSA) which provides reduced rates on certain products based on CMOP owned mail volume. The Contractor may utilize the CMOP USPS NSA rate schedules to perform mail manifesting services. The Contractor shall use Electronic Verification System (eVS) certification and a USPS CMOP owned Mailer ID Number (MIDs) and CMOP owned Child MIDS.

1.6.14.1.2.2 Multiple schedules are available under the CMOP USPS NSA and its use will require USPS eVS certification and a USPS CMOP owned MIDs and CRIDs.

1.6.14.1.2.2.1 The Contractor shall sign a Non-Disclosure Agreement in accordance with USPS policy to utilize the NSA rates on behalf of CMOP. NDA’s must be signed with any change to rates per USPS requirement.

1.6.14.1.2.2.2 NSA rate schedules are subject to change as new products and service agreements are negotiated by the Government and USPS to reduce overall costs. PWS section 1.6.14.1.1

1.6.14.1.2.3 If the Contractor decides to use the CMOP USPS NSA and subsequently negotiates a rate with the USPS which is lower than the published USPS rate, the Contractor shall notify the Government and agree to share any savings. The Government will also consider the Contractor’s use of rates lower than the published USPS rates if such use is in the Government’s best interest.

1.6.14.1.3 The Contractor shall utilize USPS Commercial Plus Pricing (CPP) for all products offered by the USPS when CMOP qualifies for discounted rates due to the volume of parcels shipped as defined by the USPS published rules and regulations. When CMOP NSA rates exceed USPS CPP pricing, the lower rate prevails and will be used by the Contractor.

1.6.14.1.4 The Contractor shall provide advance written notification to the COR prior to implementing a change in the ship method. Written notification should be documented on invoices. The Contractor’s notification shall include but is not limited to date of change, Medical Center Site Codes impacted, impacted parcel volume, difference in ship method price and 3-digit USPS zip code.

1.6.14.1.5. The Contractor shall pre-pay postage for parcels shipped through the USPS pursuant to their GSA MAS contract. The Contractor shall remit the Industrial Funding Fee (IFF) to GSA on the entire requirement, including postage. CMOP will reimburse the Contractor’s pre-payment of postage in arrears.

1.6.14.1.6. The Contractor shall pass through all Postal Rate Increases and the addition of new products and services and surcharges once approved by the Postal Rate Commission. The Contractor shall provide the CMOP CO with any modifications to their GSA MAS contract. The Contractor shall maintain the agreed pricing discount or ratio as established per the awarded CMOP mail manifesting BPA.

1.6.14.1.7 The Contractor shall pay for any postal audit adjustments resulting from inaccurate weighing, missing parcel on a manifest or other related USPS fine. The Contractor shall not submit postal audit adjustments to the Government for payment or reimbursement.

1.6.14.2 Next Generation Delivery Service (NGDS) managed by US TRANSCOM: United Parcel Service (UPS) and Federal Express (FedEx).

1.6.14.2.1 The Contractor shall use the NGDS vendors to ship parcels identified as such. UPS and FedEx are the current domestic vendors for small parcel shipping. The Contractor shall be able to ship parcels to UPS and FedEx through their manifesting system.

1.6.14.2.2. The Contractor shall use the CMOP and/or DTP designated UPS and/or FedEx account number to ship the identified parcels. Each CMOP and/or DTP facility has an assigned UPS and FedEx account number; this will be shared with the Contractor for programming. The Government will pay the shipping costs for these parcels directly to UPS and/or FedEx. The Contractor will be allowed to apply a handling fee only for the manifesting of UPS and/or FedEx parcels.

1.6.14.2.3 NGDS volume will be monitored and managed by the Government. The Contractor is not required to monitor performance for this element of shipping. The Contractor shall be required to manifest and release all NGDS vendor parcels only.

1.6.14.2.4 Pursuant to paragraph (b) of GSAR 552.238-89 - DELIVERIES TO THE U.S. POSTAL SERVICE (MAY 2019), a waiver is granted allowing the Contractor to use other than USPS for any shipment that meets the USPS requirements for mailability (i.e., 70 pounds or less, combined length and girth not more than 108 inches, etc.).

1.6.14.3 Shipping Products: USPS, UPS and FedEx Products

1.6.14.3.1 The products and services provided by USPS, UPS and FedEx are subject to change. Implementation of products and services by the Contractor shall occur within 15 days from the time of Government notification. USPS products were defined by the Government in PWS 1.6.14.1.1.

1.6.14.3.2 UPS Products and Services

UPS Next Day Air Saver, no signature required

UPS 2nd Day Air signature required UPS 2ND Day Air, no signature required

UPS Ground; signature required

UPS Ground; no signature required UPS ProActive Response

1.6.14.3.3 FedEx Products and Services

FedEx Priority Overnight, signature required

FedEx Priority Overnight, no signature required

FedEx Standard Overnight, signature required

FedEx Standard Overnight, no signature required

FedEx Ground, signature required

FedEx Ground, no signature required

FedEx 2nd Day Air, signature required

FedEx 2nd Day Air, no signature required

FedEx Express Saver, signature required

FedEx Express Saver, no signature required

FedEx Priority Overnight Hawaii, no signature required FedEx PeriShip

1.6.15 Liability insurance: The Contractor shall provide liability insurance as described in Section C.13 VAAR 852.237-70 CONTRACTOR RESPONSIBILITIES (APR 1984. The Contractor shall provide a copy of the insurance policy to the Contracting Officer prior to award and prior to each option exercise.

PART 2

DEFINITIONS & ACRONYMS

Barcode - Each parcel is pre-labeled by the CMOP and / or DTP Vendor(s) with a barcode that contains the order number, station number, batch number, split number, parcel id number, service code, mail flag and zip code in linear or 2D configuration.

Business day – refers to Contractor manifesting days of Monday through Saturday. A business day begins with the first parcel release from a CMOP, DTP Vendor(s) or Designated facility and ends 12 hours later. Manifesting of parcels must occur within this 12-hour period.

CMOP Blended Rate – CMOP has standardized the cost of labor and production cost independent of CMOP. This is a nationalized rate.

Consignor - refers to the person or organization originating the shipment. For this solicitation/BPA, the consignor is a CMOP and / or DTP Vendor(s).

Consolidated Mail Outpatient Pharmacy (CMOP) –Division of the United States Department of Veterans Affairs; provides mail order prescriptions to Veterans. The 7 CMOP locations are: Leavenworth, KS; Tucson, AZ; Chelmsford (Boston), MA; Dallas, TX; Murfreesboro (Nashville) (or designated facility); TN; Hines (Chicago), IL; and Charleston, SC.

Contracting Officer (CO) – Government employee with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings.

Contracting Officer’s Representative (COR) - Representative from the requiring activity assigned by the Contracting Officer to perform surveillance and to act as liaison to the Contractor. This individual has no authority to change the terms or conditions of the contract. The Contracting Officer reserves the right to designate representatives to act for him/her in furnishing technical guidance and advice or generally monitor the work to be performed under this BPA.

Contractor – Vendor/Company authorized to receive parcels from the CMOP

Cross Scan – A labeling error caused when the Contractor’s label, generated by the Contractor’s electronic scan, is affixed to the wrong CMOP parcel. This mismatch will cause the parcel to have conflicting patient address information, or delivery label information negatively impacting the deliverability of the parcel.

Defective Service – Service output that does not meet the standard of performance associated with it in the Performance Work Statement and Performance Requirements Summary.

Delivery Confirmation – United States Postal Service (USPS), United Parcel Services (UPS) or Federal Express (FedEx) product that gives the time the article was delivered, if delivery was attempted.

Designated Facility – Murfreesboro CMOP will use a secondary location for the release of parcels. Identified within the context of this PWS as CMOP.

Destination Delivery Unit (DDU) – the local Post Office that delivers the Veteran’s mail.

Direct to Patient – (DTP) – Contractors provide over the counter medical supplies, dietary supplements and other products for direct delivery to eligible Veteran patients located in the fifty (50) United States, Washington, DC, and Puerto Rico.

Disaster - Classified as perils of nature, mechanical or electrical failure, or medical epidemic.

Electronic Verification System (eVS) – Allows parcel mailers to submit documentation and pay postage by transmitting electronic manifest files to the eVS database, which is part of the PostalOne! System. www.usps.com

Facility Recall Coordinator – Person(s) within CMOP operational authority to make related determinations and findings regarding recall processing. The person(s) are Quality Assurance (QA) Pharmacists and / or COR(s) to ensure patient safety.

Federal Express (FedEx) - Shipping Company used to expedite parcels.

First Class – Product, class of mail service that receives quick handling and delivery, weight 0-15.99 ounces.

Health Level 7 (HL7) - HL7 is a health industry standard communications protocol used to exchange data between disparate systems.

Mailer ID Number (MID) - The MID is a 6 to 9-digit number assigned by the Postal Service based primarily on documented historical mail volume.

Mailing Label – CMOP generated label at packaging includes recipient address, return address, and CMOP barcode on parcel.

Manifest (noun) – Refers to a uniquely numbered log on which all parcels are itemized during the specific timeframe and includes postage or freight charges, mail class, and weight. Opening a manifest includes the date and time opened. Closing a manifest includes the date and time closed. When the manifest is closed, USPS is paid immediately and UPS /FEDEX will bill CMOP directly. The Manifest Package Level Detail (PLD) file to all Shipping Vendors must be transmitted promptly. The manifest must be closed prior to release of parcels into the Shipping Vendor.

Manifest or Manifesting (verb) –Refers to the transportation of a parcel from a CMOP, DTP vendor(s) or designated facility to the Contractor’s facility where the Contractor weighs and applies pre-paid postage or freight charges to a parcel.

Mis-label – The shipping label information (zip code and delivery confirmation number) does not agree with the parcel label information.

Move Update - It is designed to reduce the number of mail pieces in a mailing that require forwarding, return, or disposal as waste, thus reducing Postal Service costs. The standard also helps to assure that mail reaches its intended recipients in a timely manner.

Multiple Award Schedules Program (MAS) - The General Services Administration (GSA) is responsible for writing contracts for commercial items that can be used by all federal Government agencies, and, in some cases, local and state Governments

National Agency Check and Inquiry (NACI) – Formal background check methodology required by Federal Agencies.

Negotiated Service Agreement (NSA) - A contract between the United States Postal Service and a customer which provides for rates and classifications that are unique to that customer.

Network Distribution Center (NDC) - strategically located automated facilities that serve as centralized mail processing and transfer points for designated geographic areas.

Non-personal Service Contract - Contract under which the personnel rendering the services are not subject, either by the contract’s terms or by the manner of its administration, to the supervision and control usually prevailing in relationships between the Government and its employees.

Package Level Detail (PLD) – Recipients name, address and other shipping information for a parcel to be transmitted to USPS, UPS or FedEx.

Parcel - A package containing one or more items to be shipped by the CMOP to the patient.

Parcel ID – See Barcode Definition.

Patient Order – Set of prescription(s) combined into a parcel for shipment to a patient.

Parcel Select – Product of the USPS weighing between 1-70 lbs.

Parcel Select Lightweight – Product of the USPS to ship parcels that weigh between 0-15.99 ounces.

Performance Work Statement (PWS) – Statement of work for performance-based acquisitions that describes the required results in clear, specific and objective terms with measurable results.

PMOD – USPS Priority Mail Open and Distribute.

Postal Days – Monday through Saturday, excluding Sunday and Holidays.

Prescription - Unique item dispensed in one or more containers. A prescription is a specific legal order for a product that is for a specific patient.

Priority Mail - Product of the USPS to ship parcels that weigh between 1- 70 lbs. and can be mailed by air/ground.

Protected health information (PHI) - any information about health status, provision of health care, or payment for health care that can be linked to a specific individual. This is interpreted rather broadly and includes any part of a patient's medical record or payment history.

Quality Assurance – Actions taken by the Government to assure services meet the requirements of the Performance Work Statement.

Quality Assurance Surveillance Plan (QASP) – Organized written document specifying the methodology to be used for surveillance of Contractor performance.

Quality Control - Actions taken by a Contractor to control the performance of services so that they meet the requirements of the PWS.

Recalls - Parcels may be manifested or un-manifested and the Contractor shall return the parcels to a CMOP facility prior to entering the delivery network. Recalls will be initiated by a CMOP facility.

Release – Refers to the chain of custody as parcels move from a CMOP, DTP Vendor(s) or designated facility to the Contractor or from the Contractor to the Shipping Vendor to USPS. Release of parcels transfers liability from one party to another.

Returns – Parcels that are un-manifested due to integrity issues, identified by the Contractor, and sent back to a CMOP facility for evaluation and re-packaging.

Security – Refers to controlled movement of parcels, the physical security of the Contractor’s facility holding CMOP parcels.

Sectional Center Facility (SCF) - A postal facility that serves as the processing and distribution center (NDC) for Post Offices in a designated geographic area as defined by the first three digits of the ZIP Codes of those offices. Some SCFs serve more than one 3–digit ZIP Code range.

Shipper Certification - Refers to a statement on a shipping paper, signed by the shipper, saying he/she prepared the shipment properly according to law. The Contractor signs the certification.

Shipper’s Declaration for Dangerous Goods - Refers to a document(s) prepared by a consignor or shipper to certify that the dangerous goods being transported have been packaged, labeled, and declared in accordance with the standard international shipping regulations. The CMOP or designated facility signs the declaration.

Shipping Label – Label applied by the Contractor. Label manifests the parcel, pays postage and routes package to sort locations.

Shipping Vendor - The Contractor can either subcontract or serve as the mail carrier(s) used to transport parcels to USPS. The Contractor may use multiple Shipping Vendors based on product, delivery area, or cost considerations.

Signature Confirmation - Capturing the signature from the recipient at the final delivery destination.

Site Code – Veteran Affairs Medical Center account number, either 3 or 5 digits, assigned by the CMOP.

Split Number – Number assigned by CMOP that identifies specific items from a patient order contained in a parcel.

Third Party Carrier – UPS and FedEx are the current expedited parcel shipper for the Department of Veterans Affairs. Department of Veterans Affairs uses UPS and FedEx services under NGDS. Contract Numbers; UPS: HTC711-17-D003 and FedEx: HTC711-17-D001.

Tracking Number – The unique shipping number created at manifesting identifying the parcel for tracking and delivery.

Trucking Manifest - Document which identifies and itemizes all bulk mail containers, skids, pallets, and gaylords containing parcels being transferred from a CMOP facility to the Contractor’s facility. The seal number for each transportation

United Parcel Service (UPS) – Shipping Company used to expedite parcels.

United States Postal Service (USPS) - Post Office or U.S. Mail is an independent agency of the United States Government responsible for delivering mail to homes.

Veteran Affairs Medical Center (VAMC) - Provides health care services to Veterans.

Veteran Integrated Service Network (VISN) – VA’s Veterans Health Administration is divided into 23 areas called VISNs.

Web-Portal – Links page, presents information from diverse sources in a unified way.

PART 3

SPECIFIC TASKS

3.0 Basic Services. The Contractor shall provide services for mail manifesting, application and pre-payment of postage, insertion and management parcels into the USPS stream. Additional duties include but are not limited to manifesting, labeling, insertion and management of USPS parcels into an identified third-party carrier, delivery performance of parcels, tracking, quality control, reporting, data visibility and accurately billed services.

3.1. Management of Parcels and Parcel Pick-up

3.1.1 Management of Parcels

3.1.1.1 An estimated 5,000 to 80,000 addressed parcels per CMOP facility will be released to the Contractor for manifesting each business day. Parcels will vary in size from 6” x 9” to 24” x 24” x 16” and parcel material; mylar, bubble mailer, cardboard and styrofoam. Parcel shape and weight will vary from 0.01 oz. to 70 lbs. See Technical Exhibit 3.

3.1.1.1.1 DTP Workload type. See Technical Exhibit 11.

3.1.1.2 The CMOP facility will apply a mailing label to each parcel. Each mailing label will contain a unique barcode which contains the order number, split number, parcel ID number, mail service code and zip code. The Contractor shall have the ability to adapt to all CMOP barcode changes in length and in type of barcode provided.

3.1.1.3 The Contractor shall provide all equipment and supplies necessary to securely transport parcels to the manifesting location to include but not limited to: trailers, trucks, seals to secure transport vehicles, bulk mail containers (BMC), gaylords, pallets, pallet jack, skids, and trucking manifests.

3.1.1.4 The Contractor shall have the ability to adapt to CMOP workload redistributions. CMOP redirects workload within the network due to a variety of reasons. Workload redistributions may occur within two or three weeks’ notice but in emergency situations the Contractor may be required to redistribute and accept workload within 24 hours.

3.1.1.5 Explanation of VA Requirement

3.1.1.5.1 The VA’s requirement is to provide medications to the patient as quickly as possible not to exceed 7 calendar days from start to finish of the whole process. See PWS Section 7.6 for the process model. The process begins when a provider writes a prescription and sends it to a Medical Center. The Medical Center verifies the prescription and transmits it to a CMOP facility. The CMOP facility processes the prescription and releases the prescription(s) as a parcel to the Contractor. The Contractor picks up and manifests the parcel, then releases the parcel to a Shipping Vendor to transport the parcel to USPS, UPS or FedEx. The delivery network carriers deliver the parcel to the patient, completing the process. The process model allows 2-3 days for the provider, the Medical Center, and CMOP to fulfill the order; 24 hours for the Contractor for parcel entry into USPS and same day release to UPS and FedEx; and final delivery by USPS, UPS or FedEx prior to day 7. See PWS section 3.1.1.6.2.2 for the USPS mail delivery rates by product.

3.1.1.5.2 The Contractor performs two different functions within the process. One function is the pickup, manifesting, release and transport of parcels to arrive at USPS and allow same day pickup by UPS and FedEx. The second function is to proactively review and analyze USPS delivery performance and consistently communicate with USPS to identify and resolve issues.

3.1.1.6 Contractor Tasks and Performance Metrics

3.1.1.6.1 Task One - Pick Up, Manifesting, Release, and Transport of Parcels to USPS

3.1.1.6.1.1 Monday through Saturday, the Contractor has a total performance period of 36 hours. The Contractor has 12 hours to pick up, manifest, release, and transport parcels to arrive at USPS within 24 hours. The See PWS sections 3.2.6 (Manifesting Parcels) and 3.5 (Sort and Prepare for Distribution) for detailed information.

3.1.1.6.1.2 The Contractor’s 36-hour total performance period is the result of multiple VA requirements identified below.

3.1.1.6.1.2.1 The VA needs to ensure parcels are delivered to the patient within the 2 to 5 calendar days identified in the USPS metric shown at PWS section 3.1.1.6.2.2. Thus, it is necessary for the Contractor to release parcels to USPS as quickly as possible, allowing the maximum time for USPS delivery performance. Delayed parcels compromise patient care.

3.1.1.6.1.2.2 The Contractor needs to ensure parcel contents are not physically affected by the manifesting and delivery process. The U.S. Pharmacopeia Convention (USP) recommends most pharmaceutical products be stored at a controlled temperature between 46 to 86 degrees F. Parcels held in tractor trailers or staged in warehouses for long periods of time and exposed to excessive cold or heat risk decreased drug efficacy. Decreased drug efficacy compromises patient care. See PWS 1.6.8.2.

3.1.1.6.1.2.3 The Contractor needs to minimize parcel loss due to theft or damage when the parcel is in their control. When parcels are held in tractor trailers or staged in warehouses the opportunity and risk for theft or damage significantly increases. While the Contractor is required to have insurance to cover theft or damage, the patient does not receive the parcel containing prescriptions on time. As a result, a significant number of steps are required by the Medical Center and the CMOP facility to replace the stolen or damaged parcels so the patient has the required medication. Delayed parcels due to theft or damage compromise patient care.

3.1.1.6.1.2.4 The VA needs to maximize security of the parcels released to the Contractor. The 7 CMOP facilities release to the Contractor over 330,000 parcels daily valued at $8M. If a Contractor holds parcels overnight to build freight, in 2 days the VA has $16M worth of undelivered parcels. In addition, the VA self-insures. If the VA must replace the product, it has now cost the tax payer twice what was appropriated to provide the patient’ medication. Undelivered parcels may require replacements compromising patient care (delay) and increase taxpayer cost (replacement).

3.1.1.6.1.3 The Contractor’s performance on this task will be assessed using the Performance Requirements Summary shown as PWS section 7.1

3.1.1.6.2 Task Two - Review and Analyze USPS Delivery Performance and Communicate with USPS to Identify and Resolve Issues.

3.1.1.6.2.1 Monday through Saturday, the Contractor shall proactively review and analyze USPS delivery performance and consistently communicate with USPS to identify and resolve issues. This includes but is not limited to;

3.1.1.6.2.1.1 Validating daily parcel and PMOD acceptance into the USPS distribution facilities by utilizing the USPS network scan data.

3.1.1.6.2.1.2 Proactively reviewing USPS enroute scanning on postal equipment to validate USPS are processing parcels and PMODs timely.

3.1.1.6.2.1.3 Working with the USPS Business Service Network (BSN) to distribute delivery reports to USPS management.

3.1.1.6.2.1.4 Working with the BSN or USPS District Areas to provide up to date disaster communication (for example, weather, fires, flood or unnamed disaster) that may impact delivery service to the patients.

3.1.1.6.2.1.5 Investigating parcels exceeding four (4) postal days for delivery and notifying the CMOP Program Manager (PM) of the Contractor or USPS findings and action(s) taken.

3.1.1.6.2.1.6 Working with USPS Senior Management to resolve delivery issue delays by providing USPS weekly, monthly and quarterly detail reports which review service by mail class.

3.1.1.6.2.1.7 Working with the USPS to improve overall delivery performance to meet or exceed mail delivery rates in PWS section 3.1.1.6.2.2

3.1.1.6.2.1.8 Participating in USPS delivery performance meetings pursuant to PWS section 3.9.

3.1.1.6.2.2 The Contractor’s approach to USPS coordination shall result in achieving the following USPS mail delivery rates by product:

3.1.1.6.2.2.1 First Class – 99 percent of parcels delivered to the home within 3 postal days; 99.5 percent delivered within 5 postal days, and 99.9 percent delivered within 6 postal days.

3.1.1.6.2.2.2 Parcel Select Lightweight – 99 percent of parcels delivered to the home within 2-4 postal days, 99.5 percent delivered in 5 postal days and 99.9 percent delivered within 6 postal days.

3.1.1.6.2.2.3 Priority Mail – 99 percent of parcels delivered to the home within 3 postal days 99.5 percent delivered within 5 postal days, and 99.9 percent delivered within 6 postal days.

3.1.1.6.2.2.4 Parcel Select - 95 percent of parcels delivered to the home within 2-5 postal days; 99.5 percent of parcels delivered in 6 postal days and 99.9 percent delivered within 6 postal days.

3.1.1.6.2.2.5 PMOD Scanning and Delivery performance- 99.9 percent scanned and delivered within 3 postal days.

3.1.1.6.2.2.6 Delivery Confirmation – 99 percent scan rate.

3.1.1.6.2.2.7 Signature Confirmation – 99 percent scan rate.

3.1.1.6.2.3 The USPS mail delivery rates described in PWS section 3.1.1.6.2.2 are in addition to the Contractor’s 24-hour performance period. The USPS performance period begins when USPS accepts the parcel from the Contractor. The USPS performance period ends when USPS delivers a parcel to a patient’s address.

3.1.1.6.2.4 The Contractor’s performance on this task will be assessed using the Performance Requirements Summary shown as PWS section 7.1

3.1.2 Parcel Pick Up

3.1.2.1 The Contractor shall pick up all available parcels from a CMOP, DTP Contractors or designated location multiple times daily, Monday through Friday (Saturday when applicable) based on the current workload. The intention of the Government is for all available CMOP and DTP parcels are to be transferred to the Contractor for processing. Because CMOP and DTP Contractors operating, and processing times vary per facility, the Contractor shall work with the CMOP facility COR and DTP Contractors to ensure pickup occurrences and times meet the respective requirements.

3.1.2.2 Upon arrival at the CMOP facility, the Contractor shall drop off empty BMCs, gaylords or any other USPS equipment. The Government shall load BMCs, skids, or pallets containing parcels into the trailer and affix a numbered seal. The Contractor shall adhere to all CMOP facility access requirements.

3.1.2.3 The Contractor shall complete the trucking manifest including counting and annotating the number of BMCs, skids, and pallets for pick up. The Government shall affix the seal to the trailer and the Contractor will notate the seal number on the trucking manifest when the trailer is secured for transport to the Contractor’s processing facility. Both the Contractor and the Government will sign the trucking manifest. The Contractor shall leave a copy of the trucking manifest at the CMOP facility’s dock after each load is secured in the Contractor’s vehicle.

3.1.2.4 The Contractor shall deliver the trailer to the mail manifesting facility and unload the BMC, skids, gaylords and pallets. The seal must be intact when the truck reaches the Contractor’s facility as validated by the signed trucking manifest via two-party inspection. The Contractor shall investigate any broken seal and immediately notify the CMOP facility COR.

3.1.2.5 CMOP parcels shall remain in a locked or in a secured area in the Contractor’s facility when a COR authorized commitment to hold product overnight is granted.

3.2 Manifesting Parcels

3.2.1 The Contractor shall manifest all parcels released by a CMOP or designated facility within the same business day.

3.2.2 The Contractor shall weigh, scan, apply Shipping Vendor label(s) and apply postage to a single parcel. CMOP will have a default mail service code; the Contractor shall work with the National Mail Program Office on this shipping matrix.

3.2.3 CMOP will provide the Contractor with an electronic parcel file every 15 minutes. The Contractor shall utilize this electronic parcel file to manifest CMOP parcels.

3.2.4 The Contractor shall scan the CMOP unique parcel ID in conjunction with the electronic file to produce the appropriate shipping label.

3.2.4.1 The Contractor shall notify CMOP COR within 30 minutes of identifying a processing error when an excessive number of parcels cannot be processed.

3.2.4.2: Any parcels located after closing the manifest, the CMOP COR must be notified by phone and/or email of the total number of parcels impacted. Parcels must be kept in a locked or in a secure location until direction by the CMOP COR.

3.2.5 The Contractor shall affix the shipping label to the parcel in accordance with the current shipping regulations. The shipping label shall comply with regulations for mailing including but not limited to:

3.2.5.1 USPS payment of postage, USPS CMOP specific Master Mailer Identification Number (MID), Electronic Verification System (eVS), Intelligent Mail Parcel Barcode (IMpB), Move Update, ACS and USPS endorsement line.

3.2.5.2 UPS – See UPS current Shipping guide.

3.2.5.3 FedEx - See FedEx current Shipping guide.

3.2.6. If the Contractor identifies a cross scan, incorrect label applied or a patient safety issue, the Contractor shall immediately contact the CMOP facility COR. If the CMOP facility COR identifies a cross scan, incorrect label applied or a patient safety issue, the Contractor shall immediately be contacted for inquiry and resolution of said issue.

3.2.7 The Contractor shall prepare a Performance Issue Resolution Report and submit to the CMOP facility COR. See Technical Exhibits 2 and Technical Exhibits 7. Any issue(s) that impacts patient safety and/or patient privacy the Contractor shall prepare and provide a Performance Issue Resolution Report (PIRR) within 5 calendar days when notified by the CMOP facility COR.

3.3 Returns and Recalls

3.3.1 Returns: The Contractor shall inspect each parcel and label to ensure the parcel meets shipping requirements. Parcels unable to be manifested, (non-scannable barcode, damaged or duplicate parcel) shall be transported to the CMOP facility as described in PWS section 3.4. If the Contractor has questions about a damaged parcel, the Contractor shall contact the CMOP facility COR for guidance.

3.3.2 Recalls: Any parcel CMOP identifies as a risk to patient safety shall be transported back to the CMOP facility as soon as possible. The CMOP facility COR or the designated Facility Recall Coordinator will notify the Contractor by phone, fax, e-mail or file transfer when a recall is identified. At a minimum, the Government will provide a parcel ID to the Contractor. The Contractor shall acknowledge the recall notification and continually update the CMOP facility COR or Facility Recall Coordinator of progress while the recall is current. The CMOP facility COR will notify the Contractor when all recalled parcels have been identified, captured and cleared.

3.4 Transport Process

3.4.1 The Contractor shall void from the daily manifest all returned or recalled parcels prior to transporting parcels back to the CMOP facility. The Contractor shall be responsible for a correct parcel manifest to USPS or Third-Party Vendor. The Government shall not be financially responsible for multiple postage costs for non-void, returned or recalled parcels.

3.4.2 The Contractor shall segregate leaking parcels from other returned or recalled parcels. If the Contractor has questions about a leaking parcel, the Contractor shall contact the CMOP facility COR. The Contractor shall explain the situation and the CMOP facility COR will provide specific guidance regarding how to resolve the situation.

3.4.3 The Contractor shall segregate specialized parcels from other returned or recalled parcels (Attachment 8).

3.4.4 The Contractor shall prioritize recalled parcels for next available return to CMOP.

3.4.5 The Contractor shall transport all returned, recalled or specialized parcels to the CMOP facility on the next available truck.

3.4.6 If returned, recalled or specialized parcels cannot be transported on the Contractor’s next available truck and must be held overnight. The Contractor shall store all parcels in a limited access, locked location at the Contractor’s facility and immediately notify the facility COR. The Contractor shall be able to provide the parcel ID’s for all returned, recalled or specialized parcels being held overnight.

3.4.7 The Government and…