RFP_BPM003308_Solicitation_Requirements_Part_1.pdf

Request for Proposal

ARIZONA DEPT. OF

VETERANS’ SERVICES

3839 N. 3rd Street Phoenix, AZ 85012

Solicitation No. BPM003308

Pharmacy Consultant Services for ASVH-Phoenix, ASVH- Tucson, ASVH-Flagstaff and ASVH-Yuma

Notice of Request for Proposal

Notice: In accordance with A.R.S. §41-2534, competitive sealed proposals for the materials or services specified, will be received by the Arizona Department of Veterans’ Services through the electronic procurement system Arizona Procurement Portal (APP) at https://app.az.gov . Proposals will only be accepted online in the “Arizona Procurement Portal’ system until the “Bid Opening Date” indicated within the Arizona Procurement Portal for the Solicitation No. shown at the top of this page.

Proposals must be in the Arizona Procurement Portal online no later than the specified deadline.

LATE PROPOSALS WILL NOT BE CONSIDERED. No extension or grace period will be given for delays or incomplete proposals caused by internet connectivity problems, file uploading difficulties or misunderstanding of the requirements or procedures for online submission in the Arizona Procurement Portal.

Inquiries: Any question related to this Request for Proposal shall be submitted in the Arizona Procurement Portal. The Offeror shall not contact or ask questions of the department for which the requirement is being procured.

OFFERORS SHOULD READ THE ENTIRE SOLICITATION CAREFULLY.

https://app.az.gov/

SOLICITATION DOCUMENTS Page

Table of Contents 2

Scope of Work 3

Special Terms and Conditions 16

Uniform Terms and Conditions 27

Uniform Instructions to Offerors 37

Special Instructions to Offerors 43

SCOPE OF WORK

1. Introduction:

1.1 Arizona Department of Veterans’ Services (ADVS) is seeking a contract to provide Pharmacy Consultant Services for the Arizona State Veterans’ Homes located in Phoenix (ASVH-P), Arizona State Veterans’ Home located in Tucson (ASVH-T), Arizona State Veterans’ Home located in Flagstaff (ASVH-F), and Arizona State Veterans’ Home located in Yuma (ASVH-Y). The ASVH-F and ASVH-Y will begin operations in the near future and AZDVS will seek to provide Pharmacy Consultant Services for these two additional skilled nursing facilities being built as part of this solicitation.

2. Background:

2.1. The Arizona Department of Veterans’ Services (ADVS) currently operates the Arizona State Veterans’

Home in Phoenix (ASVH-P) and Tucson (ASVH-T), and will operate two (2) additional facilities in Flagstaff

(ASVH-F) and Yuma (ASVH-Yuma); skilled nursing facilities. All Arizona State Veterans’ Homes are state-owned and operated facilities built to serve the long-term needs of the veterans and their spouses in Arizona.

2.2. The services provided by all Arizona State Veterans’ Homes must adapt to meet the ever-changing health care needs of the population served. Care provided is based on the most currently accepted knowledge, practices, and technologies implemented through skilled personnel. In all levels of care, interdisciplinary approaches are planned with the resident and/or family to meet his or her needs. Programs are aimed at meeting long-term health care needs and encouraging wellness though preventive and rehabilitative services offered to assist in attaining and maintaining optimal functioning. Person Centered Care is practiced daily.

2.3. ASVH-P is a skilled nursing facility located at 4141 North S. Herrera Way, Phoenix, AZ 85012. The ASVH-

P operates seven (7) days a week, twenty-four (24) hours a day. This facility has 4 units, with fifty (50) beds in each unit to total two hundred (200) beds. The facility has one hundred-fifty beds (150) beds that are considered skilled/long-term care beds and fifty (50) beds located in a memory care unit. This facility is approved to accept Medicare and Medicaid benefits.

2.4. ASVH-T is a skilled nursing facility located at 555 East Ajo Way, Tucson, AZ 85723. The ASVH-T operates seven (7) days a week, twenty-four (24) hours a day. This facility has 4 units, with thirty (30) beds in each unit to total one hundred twenty (120) beds. The facility has ninety (90) beds that are considered skilled/long-term care beds and thirty (30) beds located in a memory care unit. This facility is approved to accept Medicare and Medicaid benefits.

2.5. ASVH-F is a skilled nursing facility located at 2100 N. Gemini Drive, Flagstaff, AZ 86001. This ASVH-F will operate seven (7) days a week, twenty-four (24) hours a day. This facility will offer 4 units, with twenty

(20) beds in each unit to total eighty (80) beds. The facility has sixty (60) beds that are considered skilled/long-term care beds and twenty (20) beds located in a memory care unit.

2.6. ASVH-Y is a skilled nursing facility located at 6051 E. 34th Street, Yuma, AZ 85365. This ASVH-Y will operate seven (7) days a week, twenty-four (24) hours a day. This facility will offer 4 units, with twenty

(20) beds in each unit to total eighty (80) beds. The facility has sixty (60) beds that are considered skilled/long-term care beds and twenty (20) beds located in a memory care unit.

2.7. Age, disability, or terminal illness should not limit the individual's right to experience life to the fullest extent possible. Despite the complexity of care required and the degree of disability, the Arizona State

Veterans’ Homes strives to provide care that promotes the resident's dignity, self-determination, happiness, and well-being in a home-like environment. Basic to this emphasis is fostering the individual to be a self-determining and independent as possible.

2.8. The Arizona State Veterans’ Homes are committed to quality care. It is important to anticipate trends in care needs and plan services to meet those trends, evaluate the care provided, research new approaches, and update programming. The Arizona State Veterans’ Homes have the responsibility to share findings with others involved in long-term health care services.

2.9. The Arizona State Veterans’ Homes adhere to Centers for Disease Control (CDC) and Prevention guidelines and state and local government orders. Services rendered under this contract shall performed within the guidelines established by the CDC and Prevention and orders of the state and local government.

3. Scope of Work:

The Contractor shall be responsible for providing the following services, but not limited to:

3.1 Review and evaluate pharmaceutical services, by assisting the Arizona State Veterans’ Homes identify, evaluate, and address medication issues that may affect Veterans/Members care, medical care, and quality of life.

3.2 Collaborate with the Arizona State Veterans’ Homes and the Medical Directors to develop, implement, evaluate and revise (as necessary) the procedures for the provision of all aspects of pharmaceutical services.

3.3 Assist as needed with the coordination of pharmaceutical services if and where multiple services providers are used.

3.4 Assist as needed to develop intravenous therapy procedures.

3.5 Determine (in compliance with state laws) the contents of the emergency supply of medications and monitor the use, replacement and disposition of the supply.

3.6 Review medication regimen of all Veterans at least once every thirty (30) days or when there is an acute change identified by facility staff.

3.7 Identify any drug therapy irregularities such as:

3.7.1 Use of medication without supporting diagnosis,

3.7.2 Use of inappropriate medication dose,

3.7.3 Concurrent use of medication that could potentially interact,

3.7.4 Duplicate therapy,

3.7.5 Continual use of medication that is no longer required,

3.7.6 Presence of medication-related adverse reaction,

3.7.7 Use of medication that is not cost-effective, and

3.7.8 As defined by the Medical Director.

3.8 Monitor the outcomes from drug therapy by collecting, evaluating, and interpreting the results of laboratory data, clinical data and other pertinent Veterans/Members information.

3.9 Communicate results of therapeutic drug monitoring activities to appropriate personnel (i.e. Physicians, nurses and Administrators.) If expected provider response is not received, inform the Director of Nursing or designee.

3.10 Maintain, through appropriate documentation in the Veterans/Members record, a record of all clinical activities.

3.11 Provide a monthly report consisting of the activities and services performed at the Arizona State Veterans’

Homes by the Contractor to the Homes Administrator.

3.12 Attend and participate in quality assurance meetings and activities.

3.13 Develop mechanisms for communicating, and resolving issues related to pharmaceutical services.

3.14 Strive to assure that medications are requested, received, and administered in a timely manner as ordered by the authorized prescriber (in accordance with state requirements).

3.15 Provide feedback about performance and practices related to medication administration and medication errors;

3.15.1 Conducting the monthly regimen review (MRR) for each Veteran/Member in the facility, and

3.15.2 Addressing the irregularities.

4. Requirements:

4.1 The Contractor shall remain informed of all other responsibilities required of a consultant as set forth in any Federal or State laws, statues, or regulations as enacted or as may be enacted or amended.

4.2 The Contractor shall be knowledgeable regarding geriatric pharmacotherapy principles. They must apply the principles of pharmacokinetics to determine appropriate medication doses and dosing schedules for the Veterans/Members of the Arizona State Veterans’ Homes.

4.3 The Contractor shall monitor security and temperature control for all medications.

4.4 The Contractor shall identify the signs and symptoms of a wide range of diseases and conditions commonly encountered in nursing facility Veterans.

4.5 The Contractor shall participate in the drug therapy decision-making process. Recommend appropriate drug and non-drug therapies for use by Veterans/Members based upon the disease or condition under treatment, other medical problems, physiological changes related to the aging or disease process and

Veterans/Members beliefs.

4.6 The Contractor shall assist physicians, other prescribes, and Veterans/Members in selecting the appropriate medication, dose, dosage form, formulation, route and method of administration and/or delivery system for medications prescribed for the Arizona State Veterans’ Homes Veterans/Members.

4.7 The Contractor shall assist physicians, other prescribes, and Veterans/Members in establishing therapeutic and/or functional outcomes for each medication prescribed.

4.8 The Contractor shall design, implement, and monitor the pharmaceutical care plan in conjunction with the

Veteran/Member’s overall plan of care, to determine if the therapeutic and/or functional goals are achieved or if drug-related problems occur.

4.9 The Contractor shall identify, assess, and solve problems, and provide a clinical judgment as to the continuing effectiveness of individualized pharmaceutical care plans and intended therapeutic outcomes.

4.10 The Contractor shall report in writing to the attending physician, Director of Nursing and Nurse Practitioner, any irregularities and make recommendations regarding Veteran/Member drug regiments in accordance with CMS guidance on the freedom from unnecessary drug use and the use of medications that are potentially inappropriate for use in the elderly.

4.11 Obtain and evaluate relevant Veterans/Members specific information.

4.12 Review drug orders to prevent food/drug interactions to determine if it will interact with another drug or food that has been prescribed for the Veteran/Member.

4.13 Should the Contractor discover that an ordered drug, or one that is presently being administered, will interact with food/drugs currently prescribed for the Veterans/Members, the Contractor must contact the

Director of Nursing, Nurse Practitioner or the Charge Nurse and inform him/her of the interaction.

4.14 Provide a listing of the foods or beverages that interact with the drugs.

4.15 Adverse drug reactions shall be reviewed by the Contractor.

4.16 Identify, evaluate and make recommendations to improve the effects of noncompliance in

Veterans/Members.

4.17 Communicate observations and recommendations regarding Veterans/Members medication therapy to the Director of Nursing, Nurse Practitioner or Charge Nurse and, when appropriate, to the Veterans and caregivers. Establish procedures for monitoring the outcome of these recommendations.

4.18 Initiate and modify drug therapy and order and monitor vital signs and laboratory assessments in cooperation with the attending physician, Director of Nursing and Nurse Practitioner in accordance with the ADVS policies and procedures and the State of Arizona’s Pharmacy Practice Act.

4.19 Assess and manage the Veteran/Member’s nutritional needs related to parenteral therapies and the equipment needed to deliver and monitor these therapeutic nutritional modalities.

4.20 Participate in Veteran/Members assessment and care planning as a member of the interdisciplinary team and participate on the following committees, as appropriate:

4.20.1 Pharmaceutical Services;

4.20.2 Infection Control;

4.20.3 Quality Assurance & Performance Improvement (QAPI)

4.20.4 Medicare Utilization Review;

4.21 Assist the nursing staff in the development and implementation of the Arizona State Veterans’ Homes written pharmaceutical policies and procedures.

4.22 Assist the nursing staff in developing and maintaining a drug formulary that meet the unique needs of the

Veteran/Member population and ensures appropriate therapy at the lowest cost, including policies and procedures through therapeutic interchange.

4.23 Assist in developing and implementing protocols for safe and effective use of medications or therapies with high potential for toxicity or adverse effects.

4.24 Assure that drugs and biologicals are approved and dispensed in compliance with federal and state laws as well as the Arizona State Veterans’ Homes established policies and procedures.

4.25 Support the Arizona State Veterans’ Homes in establishing guidelines to ensure that all discontinued or outdated, prescription-only medicines or containers with worn, illegible or missing labels are destroyed or disposed of under the supervision of either the long-term care consultant or provider pharmacist, witnessed by the administrator or his/her designee. All medication destruction shall be done in a timely manner using procedures consistent with State and local requirements or regulations and subject to review by the Board of Pharmacy.

4.26 Assist the Arizona State Veterans’ Homes in establish policies and procedures regarding:

4.26.1 The receipt of controlled drug medications;

4.26.2 The storage of controlled drug medication in the Arizona State Veterans’ Homes, including active patient medications, emergency drug kit medications and expired or discontinued medications;

4.26.3 The administration of controlled drug medications;

4.26.4 The disposition of unwanted controlled medications;

4.26.5 Accountability procedures for all controlled substances including periodic counts by nursing staff and periodic audits by the Contractor;

4.26.6 Documentation of shortages of controlled drugs; and

4.26.7 Reporting of controlled drug shortages to the appropriate authorities.

4.27 Conduct periodic audits of controlled medications to ensure that accountability is maintained.

4.28 Assist the Arizona State Veterans’ Homes in complying with all laws and regulations relating to controlled medications, including the reporting of shortages of controlled medications.

4.29 Develop and monitor specific criteria for the use of psychotropic drugs in accordance with CMS recommendations.

4.30 Provide any psychotropic medication usage such as comparison to Social Services and direct report of any Veterans/Members on this type of medication to the director of nursing.

4.31 Assist with skilled nursing facility medication guidelines for new admits.

4.32 Establish a system of records of receipt and disposition of all controlled drugs in sufficient detail to enable an accurate reconciliation.

4.33 Supervise the labeling of all drugs and biologicals to ensure that labeling is based on currently accepted professional principles and includes the appropriate accessory and cautionary instructions as well as the expiration date when applicable.

4.34 Develop and participate in in-service training programs for Nursing staff and other support personnel relative to pharmacy services. These training classes are held to:

4.34.1 Provide information concerning methods and procedures to follow in implementing pharmaceutical services.

4.34.2 Provide information concerning changes in policies and procedures.

4.34.3 Discuss drug problems.

4.34.4 Inform new personnel of policies and procedures.

4.34.5 Inform staff regarding updates or changes regarding Centers of Medicare and Medicaid compliance.

4.35 Provide counseling on medications to Veterans and/or their caregivers.

4.36 Educate and monitor Veterans/Members who self-administer medications for compliance and proper administration technique.

4.37 Asses the use and application of new medications and drug delivery technology.

4.38 Evaluate medication administration to verify that it conforms to the prescriber’s orders and the Arizona

State Veterans’ Homes policies and procedures and to ensure that is free of significant administration errors.

4.39 Stay informed of drug recalls and notify the appropriate the Arizona State Veterans’ Homes nursing personnel and attending physician.

4.40 Maintain the confidentiality of Veteran information as established by the Arizona State Veterans’ Homes policies and procedures.

4.41 The Contractor shall provide services at the level and frequency indicated by ASVH-P, ASVH-T, ASVH-

F, and ASVH-Y.

4.42 The Contractor shall meet the requirements of this contract and demonstrate experience, knowledge, and competency specified in the contract. The Arizona State Veterans’ Homes shall have the right, if necessary, to interview all prospective personnel and to accept or reject any or all, based upon skills required and the background and experience of each individual.

4.43 The Contractor shall provide continuous services to the Arizona State Veterans’ Homes during the term of this contract and arrange to provide services during any absence, vacation, period of illness, or limited period when the Contractor’s personnel is not available. Prior to assigning Contractor’s personnel, the

Contractor shall assure that the individual being assigned has, at a minimum, the qualifications for the required assignment and is able to perform the duties specified in the contract. The Arizona State

Veterans’ Homes shall have the right, if necessary, to interview all prospective personnel and to accept or reject any or all, based upon skills required and the background and experience of each individual.

4.44 The Contractor shall ensure that prior to commencing services at the Arizona State Veterans’ Homes have a T.B. screening and yearly thereafter, TB screening results to be provided to the Arizona State Veterans’

Homes.

4.45 All personnel assigned must attend the Arizona State Veterans’ Homes employee orientation.

4.46 Work policies, standards and procedures established by the Arizona State Veterans’ Homes shall be followed at all times. The Contractor and his/her employee(s) shall conform in all respects with regard to physical, fire and security regulations while on the premises of the Arizona State Veterans’ Homes.

4.47 The Contractor shall be responsible for ensuring that services are provided to the Arizona State Veterans’

Homes in accordance with all Federal and State requirements.

4.48 Credentialing and Privileging: Credentialing is the process of obtaining, verifying, and assessing the qualifications of a health care practitioner, which may include physicians, podiatrists, dentists, psychologists, physician assistants, nurse practitioners, licensed nurses to provide patient care services in or for a health care organization. Privileging is the process whereby a specific scope and content of patient care services are authorized for health care practitioner by the Contractor, based on evaluation of the individual’s credentials and performance.

4.49 The Contractor must uniformly apply credentialing criteria to licensed practitioners applying to provide

Veteran/Member care or treatment under the facility’s care.

4.50 The Contractor must verify and uniformly apply the following core criteria: current licensure; current certification, if applicable, relevant education, training, and experience; current competence; and a statement that the individual is able to perform the services he or she is applying to provide.

4.51 The Contractor must decide whether to authorize the independent practitioner to provide Veteran/Member care or treatment, and each credentials file must indicate that these criteria are uniformly and individually applied.

4.52 The Contractor must maintain documentation of current credentials for each licensed independent practitioner providing services to Veterans/Members residing at ADVS.

4.53 When reappointing a licensed independent practitioner, the Contractor must review the individual’s record of experience.

4.54 The Contractor systematically must assess whether individuals with clinical privileges act within the scope of work.

4.55 The Contractor shall provide copies of credential records and applications to the Arizona State Veterans’

Homes administrators for each practicing practitioner providing services at the Arizona State Veterans’

Homes.

5. Licensing and Educational Requirements:

5.1 The Contractor shall have and maintain the appropriate license for operations in the State of Arizona. The

Contractor shall present licenses and/ or certification before commencing work and yearly thereafter.

Pharmacist Consultant who has a probationary or suspended license may be cause for contract termination.

5.1.1 Pharmacy Consultant: The Pharmacy Consultant shall have the following licenses/certificates;

knowledge and understanding that include but are not limited to the following:

5.1.2 Shall hold a current license in good standing privilege to practice pharmacy services in the

State of Arizona.

5.1.3 Shall comply with the Arizona Revised Statutes, Rules and Regulations governing Pharmacy

Services.

5.1.4 Shall comply with the Arizona Administrative Code, Arizona State Board of Pharmacy Statutes, Rules and Regulations.

5.1.5 Shall comply with the Occupational Safety Health Association (OSHA) regulations.

5.1.6 Be responsible for the following Reporting policies and procedures:

5.1.6.1 Review at least once a month the drug regimen of each Veteran. Information collecting, (ex. drug administration records, physician orders, laboratory reports) is analyzed to determine whether there are any potential problems with the patient’s drug therapy and whether such drug therapy is achieving the stated objectives established by the physician for the Veteran. The purpose of this review is to:

5.1.6.2 Study the medications taken by the Veteran to determine if a potential hazard exists from an interaction between two (2) drugs or between food and drugs.

5.1.6.3 Determine if the Veteran/Member is receiving the right medications as ordered by the attending physician.

5.1.6.4 Determine if medications are given at the right time.

5.1.6.5 Determine if medications are given in the right dosage and dosage form.

5.1.6.6 Keep up with signs and symptoms of adverse drug reactions as well as interactions.

5.1.6.7 Identify medication and charting errors.

5.1.7 Notations of the findings are recorded on the monthly drug regimen review report and are dated and signed by the Pharmacy Consultant. (The absence of notations by the Pharmacy

Consultant indicates that no irregularities were found.) Should irregularities be found, the

Pharmacy Consultant shall:

5.1.7.1 By the tenth (10th) day of the month, prepare a drug regimen review report listing the irregularities found and recommendations for their solutions, and

5.1.7.2 Make the report available to the administrator, medical director and the director of nursing.

5.1.7.3 Submit monthly reports of activities, findings, and recommendations to the administrator and clinical staff. A copy of this report must be provided to the director of nursing and to the medical director. The Contractor shall provide examples of report formats to be utilized for all reports required.

5.1.8 Submit quarterly reports of pharmaceutical activities to the administrator and medical director, which shall include:

5.1.8.1 The status of the Arizona State Veterans’ Homes pharmaceutical services;

5.1.8.2 Staff performance;

5.1.8.3 Problem areas noted (i.e., charting errors, medication and rug errors, etc.);

5.1.8.4 Recommended solutions to problem areas;

5.1.8.5 Drug regimen reviews; and

5.1.8.6 Other information that may become necessary.

5.1.9 Provide written, dated and signed reports of each consultation visit to the Director of Nursing and Administrator. Such reports will contain at least the consultants:

5.1.9.1 Findings;

5.1.9.2 Recommendations;

5.1.9.3 Plans for implementation; and

5.1.9.4 Plans for continued assessments.

6. Deliverables:

The Contractor shall submit:

6.1.1 Monthly drug regimen review report:

6.1.2 Should irregularities be found, the Pharmacy Consultant shall:

6.1.2.1 By the tenth (10th) day of the month, prepare a drug regimen review report listing the irregularities found and recommendations for their solutions, and

6.1.2.2 Submit monthly reports of activities, findings, and recommendations to the administrator and clinical staff. A copy of this report must be provided to the director of nursing and to the medical director.

6.1.3 Submit quarterly reports of pharmaceutical activities to the administrator and medical director,

6.1.4 Provide written, dated and signed reports of each consultation visit to the Director of Nursing and Administrator. Such reports will contain at least the consultants:

7. ADVS Responsibilities:

ADVS Shall:

7.1 Provide all information necessary for the Contractor to provide services.

7.2 Provide all applicable internal policies and procedures to the Contractor upon award of the resultant contract.

7.3 Provide a computer, desk and phone for Contractor use. All Information Technology and A.R.S. statutes and policies shall apply.

7.4 The management of the ADVS assumes responsibility for:

7.4.1 Obtaining services that meet professional standards and principles that apply to professionals providing services in such a facility; and

7.4.2 The timeliness of the service.

SPECIAL TERMS & CONDITIONS

1. Authority to Contract: This contract is issued under the authority of ADVS. No alteration of any portion of the contract, any items or services awarded, or any other agreement that is based upon this contract may be made without express written approval of ADVS Purchasing Department’s Chief Procurement Officer or authorized designee in the form of an official contract amendment. Any attempt to alter any documents on the part of

ADVS or the contractor is a violation of the contract and the Arizona Procurement Code. Any such action is subject to the legal and contractual remedies available to the State inclusive of, but not limited to, contract cancellation, suspension and/or debarment of the contractor.

2. Eligible Agencies: Arizona Department of Veterans’ Services. Additional Agencies may be added if required.

3. Contract Type: Firm Fixed Price Term Contract.

4. Award: In order to ensure adequate coverage, multiple awards may be made.

5. New Services for Additional Facilities: ADVS shall have the option to add services to additional Veterans’ Home facilities in Arizona. ADVS shall negotiate pricing with the Contractor prior to implementation of services.

6. Contract Term: The contract shall commence upon award or as specified in the award documents and shall remain in full force and effect for one (1) year unless terminated, canceled, or extended as otherwise provided herein.

7. Contract Extension: The initial contract term is subject to additional successive one (1) year periods or portions thereof with a maximum aggregate contract term including all extensions not to exceed five (5) years.

8. Amendments: Any change in the Contract, including but not limited to the Statement of Work described herein, whether by modification or supplementation, must be accomplished by a formal contract amendment or change order approved by and between the duly authorized representatives of the Contractor and ADVS.

The Contractor expressly and explicitly understands and agrees that no other method and/or no other document, including correspondence, acts, and oral communications by or from any person, shall be used or construed as an amendment to the contract.

9. Estimated Quantities: The State makes no guarantee or commitment of any kind concerning the quantity or monetary value of activity actually initiated and completed.

10. FOB Destination: Contract pricing shall be F.O.B. Destination.

11. Taxes Not Included in Price: Contract prices shall not include applicable state and local taxes. The state shall pay all applicable taxes if required. Taxes must be listed as a separate item on all invoices.

12. Removal of Equipment: Should the State terminate the requirements of this contract in accordance with terms and conditions, the Contractor shall retain all rights to rental equipment provided and shall remove such equipment within fifteen (15) days of notice of termination. If the Contractor fails to remove the rental equipment in a timely manner, the State shall dispose of the equipment in accordance with established Surplus Procedures.

13. Ordering Process: ADVS may purchase the specific materials contractually covered through contract direct release purchase orders issued by ADVS to the Contractor. No work shall be performed without a duly authorized/issued purchase order(s). Any attempt to represent any material and/or service not specifically awarded under the contract is a violation of the contract and the Arizona Procurement Code. Any such action shall be subject to all legal and contractual remedies available to the state inclusive of, but not limited to, contract termination, cancellation, suspension and/or debarment of the Contractor.

14. Price (Payments to ADVS) Adjustment . Contractor payments to ADVS accepted and subsequently awarded by a Contract shall remain in effect for a minimum of one (1) year. The Contractor shall submit and adjust pricing yearly, in accordance with the “Centers for Medicare and Medicaid Services published pricing, as identified in the Federal Register, a government publication. Contractor payments to ADVS shall not be reduced.

14.1. ADVS will review the yearly CMS price adjustment submitted by the contractor to determine acceptability in accordance with the Centers for Medicare and Medicaid Services published price index, published in the Federal Register in accordance with 42 CFR 418.306.

14.1.1. Price changes shall only be effective after a contract amendment has been completed and will be effective the first of each year.

15. Defects: All defective products shall be replaced and exchanged by the contractor. The cost of transportation, unpacking, inspection, re-shipping or other like expenses shall be paid by the vendor. All replacement products must be received by the ADVS within thirty (30) days of initial notification.

16. Invoicing and Payment: INVOICES GO TO BUYING ENTITY. Contractor shall submit all billing notices or invoices to the ordering Eligible Entity/Customer (e.g. Eligible Agency or Co-Op Buyer) at the address indicated on the applicable Order document or by utilizing the Buying Entity’s purchasing tool/process.

16.1. Every invoice must include the following information:

Item Required

Bill-to name and address ˜

Contractor name and contact information ˜

Remit-to address ˜

State contract number ˜

Order number (typically the The State’s e-Procurement System

PO #)

Invoice number and date ˜

Date the items shipped or services performed ˜

Applicable payment terms ˜

Contract line item number ˜

Contract line item description ˜

Quantity delivered or performed ˜

Line item unit of measure ˜

Item price ˜

Extended pricing ˜

Discount off list or catalog ˜

Taxes (as a separate invoice line item) ˜

Upcharge shipping/freight, etc. (as a separate invoice line item) Materials only

Total invoice amount due ˜

16.2. NO INVOICE WITHOUT AUTHORIZATION. Contractor shall not seek payment for any:

16.2.1. Materials or Services that have not been authorized on an acknowledged Order;

16.2.2. Expediting, overtime, premiums, or upcharges absent State’s express prior approval; or

16.2.3. Materials or Services that are the subject of a Contract Amendment that has not been fully signed.

16.3. PRE-INVOICE REVIEW. Shortly before Contractor is scheduled to submit each invoice, the parties’ representatives shall meet informally to review any issues relevant to that upcoming invoice so that the formal invoice process is thereby facilitated and made more efficient.

16.4. SUBMITTING INVOICES. Contractor shall submit an invoice to the ordering Eligible Agency or Co-Op Buyer using the form and/or process provided or required by the ordering Eligible Entity/Customer (Eligible Agency or Co-Op Buyer). Every invoice must be signed by Contractor’s authorized representative and accompanied by all supporting information and documentation required by the Contract and applicable laws.

16.5. DEFECTIVE INVOICES. Without prejudice to its other rights under the Contract or further obligation to

Contractor, the ordering Eligible Entity/Customer (Eligible Agency or Co-Op Buyer) may, at its discretion, reject any materially defective invoice.

16.5.1. The ordering Authorize Entity/Customer (Eligible Agency or Co-Op Buyer) shall notify

Contractor within 5 (five) business days after receipt if it determines an invoice to be materially defective.

16.5.2. Invoices will be deemed automatically rejected upon delivery if they:

16.5.2.1. are sent to an incorrect address;

16.5.2.2. do not reference the correct State contract number; or

16.5.2.3. are payable to any Person other than the Contractor.

16.5.3. The ordering Eligible Entity/Customer (Eligible Agency or Co-Op Buyer) will have no obligation to pay against a defective invoice unless and until Contractor has re-submitted it free of defects.

16.6. Invoices not sent to the proper address, or not containing the necessary and required information may delay payment. A Contractor whose payments are delayed due to improper invoicing shall make no claim against the Department or the State for late or finance charges.

16.7. Invoices shall be paid by ADVS within thirty (30) days following receipt of the invoice. In the case of any dispute regarding part of any invoice, ADVS shall pay the undisputed part according to the payment terms described.

16.8. Payment due dates, including discount periods, will be computed from the date of acceptance or date of correct invoice (whichever is later) to the date off the Department’s warrant is mailed.

16.9. The contractor shall submit invoices to the address identified below:

AZ Dept. of Veterans’ Services Attn: Financial Services Unit 3839 North 3rd Street Suite 209

16.9.1. Or by e-mail to: accountspayable@azdvs.gov

17. Payment: Payments shall be made in accordance with A.R.S. Titles 35 and 41.

18. Fees: The Department of Veterans’ Services will bill Contractor for Services rendered as per the agreed upon fee specified in this Solicitation.

19. Licensing: Contractor(s) performing work within the State of Arizona shall, as applicable be properly licensed for the Scope of Work in which they are contracting.

20. Contract Staff Credentialing Assurance: Contractor’s Human Resources Department shall maintain an updated list of all staff credentials, thus ensuring that the staff has updated licensure through the Arizona

Department of Health Services.

mailto:accountspayable@azdvs.gov

21. Safety Standards: All items and/or services supplied on this contract must comply with the current applicable occupational safety and health standards of the State of Arizona Industrial Commission, The National Electric

Code, and The National Fire Protection Association Standards.

22. Independent Contractor. The Contractor shall represent him/her self as an independent contractor and shall not represent him/her self as an employee of the State. The Contractor shall be responsible for all taxes, FICA, employee fringe benefits, workers compensation and employee insurance.

23. Subcontractors. The Contractor shall not enter into any Subcontract under this Contract for the performance of this contract without the advance written approval of the Procurement Officer. The Contractor shall clearly list any proposed subcontractors and the subcontractor’s proposed responsibilities. The Subcontract shall incorporate by reference the terms and conditions of this Contract.

24. Non-Exclusive Contract. Any contract resulting from this solicitation shall be awarded with the understanding and agreement that it is for the sole convenience of ADVS. ADVS reserves the right to obtain like goods or services from another source when necessary, or when determined to be in the best interest of the State.

25. Cancellation. The State reserves the right to cancel the whole or any part of the contract due to failure of the Contractor to carry out any term, promise, or condition of the contract including but not limited to:

25.1. Providing personnel that do not meet the requirements of the contract or attempting to impose on the State personnel of unacceptable quality.

25.2. Failure to perform adequately the services required in the contract.

25.3. Any action or inaction that is in violation of any applicable Federal, State or Local regulation.

26. Vendor Performance Reports. ADVS management shall document vendor performance, both exemplary and needing improvements where corrective action is needed or desired. Copies of corrective action reports will be forwarded to the ADVS Procurement Office for review and any necessary follow-up. The Procurement Office may contact the Contractor upon receipt of the report and may request corrective action. The Procurement Office shall discuss the Contractor’s suggested corrective action plan with the Contract Manager for the Agency’s approval of the plan.

27. Travel Expenses. Travel and living expenses incurred by the Contractor and Contractor’s subcontractors, if any, shall be the responsibility of the Contractor and will not be reimbursed by the ADVS.

28. Americans With Disabilities Act of 1990: The Contractor shall comply with the Americans with Disabilities Act of 1990 (Public Law 101-336) and the Arizona Disability Act of 1992 (A.R.S § 41-1492 et. seq.), which prohibits discrimination of the basis of physical or mental disabilities in delivering contract services or in the employment, or advancement in employment of qualified individuals.

Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contracting the Contract Manager for the solicitation. Request should be made as early as possible to allow time to arrange the accommodation.

29. Appropriation of Funds. Every payment obligation of the Agency under this Contract is conditioned upon the availability of funds appropriated or allocated for the payment of such obligation. If funds are not allocated and available for the continuance of this Contract, this Contract may be terminated by the Agency at the end of the period for which funds are available. No liability shall accrue to the Agency or the State of Arizona in the event this provision is exercised, and neither the Agency nor the State shall be obligated or liable for any future payments or for any damages as a result of termination under this paragraph.

30. Services for Additional Facilities: ADVS shall have the option to add services to additional Veterans’ Home facilities in Arizona. ADVS shall negotiate pricing with the Contractor prior to implementation of services.

31. Indemnification Clause:

To the fullest extent permitted by law, Contractor shall defend, indemnify, and hold harmless the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees (hereinafter referred to as “Indemnitee”) from and against any and all claims, actions, liabilities, damages, losses, or expenses (including court costs, attorneys’ fees, and costs of claim processing, investigation and litigation) (hereinafter referred to as “Claims”) for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property caused, or alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of Contractor or any of its owners, officers, directors, agents, employees or subcontractors. This indemnity includes any claim or amount arising out of, or recovered under, the Workers’ Compensation Law or arising out of the failure of such Contractor to conform to any federal, state, or local law, statute, ordinance, rule, regulation, or court decree. It is the specific intention of the parties that the Indemnitee shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the Indemnitee, be indemnified by Contractor from and against any and all claims. It is agreed that Contractor will be responsible for primary loss investigation, defense, and judgment costs where this indemnification is applicable. In consideration of the award of this contract, the Contractor agrees to waive all rights of subrogation against the State of Arizona, its officers, officials, agents, and employees for losses arising from the work performed by the Contractor for the State of Arizona.

This indemnity shall not apply if the contractor or sub-contractor(s) is/are an agency, board, commission or university of the State of Arizona.

32. Insurance Requirements:

32.1 Contractor and subcontractors shall procure and maintain, until all of their obligations have been discharged, including any warranty periods under this Contract, insurance against claims for injury to persons or damage to property arising from, or in connection with, the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.

32.2 The Insurance Requirements herein are minimum requirements for this Contract and in no way limit the indemnity covenants contained in this Contract. The State of Arizona in no way warrants that the minimum limits contained herein are sufficient to protect the Contractor from liabilities that arise out of the performance of the work under this Contract by the Contractor, its agents, representatives, employees or subcontractors, and the Contractor is free to purchase additional insurance. Certificate(s) shall be received within five (5) calendar days of notification of a tentative award by the Procurement Officer and prior to contract execution.

32.3 Minimum Scope and Limits of Insurance

Contractor shall provide coverage with limits of liability not less than those stated below.

32.3.1 Commercial General Liability (CGL) – Occurrence Form

Policy shall include bodily injury, property damage, and broad form contractual liability coverage.

• General Aggregate $2,000,000

• Products – Completed Operations Aggregate $1,000,000

• Personal and Advertising Injury $1,000,000

• Damage to Rented Premises $ 50,000

• Each Occurrence $1,000,000

a. The policy shall include coverage for Sexual Abuse and Molestation (SAM). This coverage may be sub-limited to no less than $500,000. The limits may be included within the General Liability limit or provided by separate endorsement with its own limits. If you are unable to obtain SAM coverage under your General Liability because the insurance market will not support it, it should it be included with the Professional Liability.

b. Contractor must provide the following statement on their Certificate(s) of Insurance:

“Sexual Abuse and Molestation coverage is included” or “Sexual Abuse and Molestation coverage is not excluded.”

c. The policy shall be endorsed, as required by this written agreement, to include the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as additional insureds with respect to liability arising out of the activities performed by or on behalf of the Contractor.

d. Policy shall contain a waiver of subrogation endorsement, as required by this written agreement, in favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees for losses arising from work performed by or on behalf of the Contractor.

32.3.2 Business Automobile Liability

Bodily Injury and Property Damage for any owned, hired, and/or non-owned automobiles used in the performance of this Contract.

Combined Single Limit (CSL) $1,000,000

a. Policy shall be endorsed, as required by this written agreement, to include the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as additional insureds with respect to liability arising out of the activities performed by, or on behalf of, the Contractor involving automobiles owned, hired and/or non-owned by the Contractor.

b. Policy shall contain a waiver of subrogation endorsement as required by this written agreement in favor of the State of Arizona, and its departments, agencies, boards,

32.3.3 Workers’ Compensation and Employers' Liability

• Workers' Compensation Statutory

• Employers' Liability o Each Accident $1,000,000 o Disease – Each Employee $1,000,000 o Disease – Policy Limit $1,000,000

a. Policy shall contain a waiver of subrogation endorsement, as required by this written agreement, in favor of the State of Arizona, and its departments, agencies, boards,

b. This requirement shall not apply to each Contractor or subcontractor that is exempt under A.R.S. § 23-901, and when such Contractor or subcontractor executes the appropriate waiver form (Sole Proprietor or Independent Contractor).

32.3.4 Professional Liability (Errors and Omissions Liability)

• Each Claim $ 2,000,000

• Annual Aggregate $ 2,000,000

a. If SAM coverage is being provided under this policy then Contractor must provide the following statement on their Certificate(s) of Insurance: “Sexual Abuse and Molestation coverage is included” or “Sexual Abuse and Molestation coverage is not excluded.” This coverage may be sub-limited to no less than $500,000.

b. In the event that the professional liability insurance required by this Contract is written on a claims-made basis, Contractor warrants that any retroactive date under the policy shall precede the effective date of this Contract; and that either continuous coverage will be maintained or an extended discovery period will be exercised for a period of two (2) years beginning at the time work under this Contract is completed.

c. Policy shall cover professional misconduct or wrongful acts for those positions defined in the Scope of Work of this contract.

32.4 Additional Insurance Requirements

The policies shall include, or be endorsed to include, as required by this written agreement, the following provisions:

32.4.1 The Contractor's policies, as applicable, shall stipulate that the insurance afforded the Contractor shall be primary and that any insurance carried by the Department, its agents, officials, employees or the State of Arizona shall be excess and not contributory insurance, as provided by A.R.S. § 41-621 (E).

32.4.2 Insurance provided by the Contractor shall not limit the Contractor’s liability assumed under the indemnification provisions of this Contract.

32.5 Notice of Cancellation

Applicable to all insurance policies required within the Insurance Requirements of this Contract, Contractor’s insurance shall not be permitted to expire, be suspended, be canceled, or be materially changed for any reason without thirty (30) days prior written notice to the State of Arizona. Within two (2) business days of receipt, Contractor must provide notice to the State of Arizona if they receive notice of a policy that has been or will be suspended, canceled, materially changed for any reason, has expired, or will be expiring. Such notice shall be sent directly to the Department and shall be mailed, emailed, hand delivered or sent by facsimile transmission to the following address:

Arizona Department of Veterans’ Services

Attn: Procurement.

3839 North 3rd Street

Suite 209

32.6 Acceptability of Insurers

Contractor’s insurance shall be placed with companies licensed in the State of Arizona or hold approved non-admitted status on the Arizona Department of Insurance List of Qualified Unauthorized Insurers.

Insurers shall have an “A.M. Best” rating of not less than A- VII. The State of Arizona in no way warrants that the above-required minimum insurer rating is sufficient to protect the Contractor from potential insurer insolvency.

32.7 Verification of Coverage

Contractor shall furnish the State of Arizona with certificates of insurance (valid ACORD form or equivalent approved by the State of Arizona) evidencing that Contractor has the insurance as required by this Contract. An authorized representative of the insurer shall sign the certificates.

32.7.1 All such certificates of insurance and policy endorsements must be received by the State before work commences. The State’s receipt of any certificates of insurance or policy endorsements that do not comply with this written agreement shall not waive or otherwise affect the requirements of this agreement.

32.7.2 Each insurance policy required by this Contract must be in effect at, or prior to, commencement of work under this Contract. Failure to maintain the insurance policies as required by this Contract, or to provide evidence of renewal, is a material breach of contract.

32.7.3 All certificates required by this Contract shall be sent directly to the Department. The State of

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