RFR HSP40 Rev A 10-30-14.doc

The Commonwealth of Massachusetts

Executive Office For Administration and finance

Operational Services Division

One Ashburton Place, 10th Floor, Room 1017, Boston, Massachusetts 02108-1552

Request for Response (RFR) Document Title: Medical Commodities ASK "RFR Number/Document Number" \* MERGEFORMAT Agency Document Number: HSP40 COMMBUYS Bid#: BD-14-1080-OSD01-OSD10-00000000422 Rev. A Only change is in Section 3.5.1.6 catalog price periods now January 1 to June 30 and July 1 to December 31

10/30/14

RFR Introduction and General Description

11.1 Procurement Scope and Description

11.2 Background information

11.3 Applicable Procurement Law

11.4 Number of awards

21.5 Adding Contractors after initial Statewide Contract award

21.6 Eligible Entities

21.7 Acquisition Method(s)

21.8 Contract Duration

21.9 Performance and payment time frames which exceed Contract duration

21.10 Estimated Value of the Contract

21.10.1 Basis for estimated dollar value for this Statewide Contract (including all options to renew)

Estimated Procurement Calendar

42.1 Written questions via the Bid Q&A on COMMBUYS

42.2 Locating Bid Q&A

52.3 Oral Presentations/Product Demonstrations

52.4 Site Inspection

52.5 Debriefing

Specifications

63.1 Bidder Qualifications

63.1.1 Company experience

63.1.2 Financial stability including bankruptcy, litigation and contract defaults

73.1.3 References and reference information and/or requirements

73.2 Commodity Specifications

73.2.1 Eligible commodities

73.2.2 Performance specifications, durability, disclosures and recalls

83.2.3 Approvals and standards (UL, CE, FCC, FDA, ASTM, IEEE)

8All commodities sold under this contract must be compliant with all: applicable Federal laws and regulations such as FDA 21 CFR at time of sale; and all applicable Commonwealth of Massachusetts Laws and Regulations; and when applicable meet City of Boston Fire Code standards.

8Commodities purchased under this contract will primarily be used in Hospitals and Healthcare Institutions and need to be “hospital grade” and meet all Joint Commission standards and be intended for use in Hospitals and Healthcare Institutions.

83.2.4 Product evaluations and samples

83.2.5 New in the box, most current version and not discontinued by the manufacturer

83.2.6 Open box, remanufactured and refurbished equipment & supplies provisions

83.3 Service Specifications

83.3.1 Capacity plan, resources and infrastructure for this Statewide Contract

93.3.2 Emergency response plans/preparedness

93.3.3 Emergencies Beyond Control of Contractor or Eligible Entity

93.3.4 Training & training materials

103.3.5 Geographic service and delivery areas

10All areas of the Commonwealth of Massachusetts are included in this Bid.

103.4 Environmental Specifications

103.4.1 Executive Order 515, Establishing an Environmental Purchasing Policy

103.4.2 Environmental plan

113.5 Compensation Structure/Pricing

113.5.1 Cost tables – COMMBUYS Catalogs

133.6 Group Purchasing Organization Provisions

133.7 Supplier Diversity Program (SDP) Plan

143.7.1 Supplier Diversity Program Subcontracting Policies

143.8 Participation in the OSD’s Annual Marketing Event, MASSbuys

153.9 Requirements for Doing Business after a Contract Has Been Awarded

153.9.1 Statewide Contract Administration Fee and Report

173.9.2 Additional Report Requirements Engagement (Sales) and SDP Spend & Due Dates

183.9.3 Minimum amount of business with this Contract

183.9.4 Continued qualification based on performance

183.9.5 Contract Management (Contractor’s interface with Commonwealth’s Contract Manager)

203.9.6 Orders (Contractor’s Interface with Commonwealth Agencies)

Evaluation criteria

214.1 Mandatory requirements

224.2 Desirable specifications

224.2.1 Online Ordering

224.2.2 Consignment Program

224.3 Alternatives

224.4 Evaluation Components

224.4.1 Price & Product Offering

234.4.2 Supplier Diversity Plan (formerly Affirmative Market Plan) (minimum of 10% weight)

234.4.3 Other Evaluation Components

234.4.4 References and reference information and/or requirements

234.4.5 Environmental specifications

234.4.6 Online ordering capability as a punch-out catalog in COMMBUYS

234.4.7 Consignment Program Option to Negotiate

HOW TO SUBMIT A QUOTE / RESPOND TO THIS BID

245.1 Quote Submission Method

245.2 COMMBUYS Quote Submission Training and Instructions

245.3 COMMBUYS Support

255.4 Bid Opening Date/Time

255.5 Quote Contents

255.5.1 RFR Submission Checklist

255.5.2 Additional Quote Terms

265.6 Quote Materials

265.6.1 Electronic Signatures

265.6.2 Ink Signatures

265.7 Limits and Restrictions

265.7.1 Document Pages

265.7.2 File Naming Conventions

275.7.3 File Size Limits

275.7.4 File Format Restrictions

275.8 Withdrawing a Quote

275.8.1 Prior to Bid Opening Date/Time

275.8.2 After Bid Opening Date/Time

APPENDIX 1 – Required Terms for all Statewide RFRs

286.1 General Procurement Information

286.1.1 Alterations

286.1.2 Bidder’s Contact Information

286.1.3 COMMBUYS Market Center

286.1.4 COMMBUYS Subscription

296.1.5 Multiple Quotes

296.1.6 Quote Content

296.1.7 Costs

296.1.8 Electronic Funds Transfer (EFT)

296.1.9 Executive Order 509, Establishing Nutrition Standards for Food Purchased and Served by State Agencies

306.1.10 Minimum Quote Duration

306.1.11 Ownership of Submitted Quotes

306.1.12 Prohibitions

306.1.13 Public Records Law

306.1.14 Reasonable Accommodation

306.2 Evaluation – Best Value Selection and Negotiation

316.3 Terms and Requirements Pertaining to Awarded Statewide Contracts

316.3.1 Commonwealth Tax Exemption

316.3.2 Contractor’s Contact Information

316.3.3 Contractual Status of Orders and Service Contracts

316.3.4 Emergency Standby Commodities and/or Services

316.3.5 HIPAA: Business Associate Contractual Obligations

326.3.6 Pricing: Federal Government Services Administration (GSA) or Veteran’s Administration Supply

326.3.7 Pricing

326.3.8 Publicity

326.3.9 SaveSmart Program ($ave$mart)

326.3.10 Statewide Contractor Marketing Requirements

336.3.11 Subcontracting Policies

336.3.12 Transaction Fee

APPENDIX 2 - Instructions for Execution and Submission of Commonwealth Standard Forms

347.1 Commonwealth Standard Contract Form

347.2 Commonwealth Terms and Conditions

357.3 Request for Taxpayer Identification Number and Certification (Mass. Substitute W9 Form)

357.4 Contractor Authorized Signatory Listing

367.5 Supplier Diversity Program (SDP) Plan Form #2 – Declaration of SDP Partners

367.6 Supplier Diversity Program (SDP) Plan Form #1 – SDP Plan Commitment

367.7 Supplier Diversity Program (SDP) Plan Form #3 – Report Form

367.8 Additional Environmentally Preferable Products / Practices

367.9 Prompt Payment Discount Form

367.10 Business Reference Template

377.11 No Form Provided

APPENDIX 3 - Instructions for Vendors Responding to Bids Electronically through COMMBUYS

GLOSSARY

1 RFR Introduction and General Description

1.1 Procurement Scope and Description

The Commonwealth of Massachusetts and the Medical Commodities Strategic Sourcing Services Team (SSST) are soliciting Bidders for the acquisition of Medical Commodities used in the provision of healthcare in any setting with exception of prescription drugs and major equipment. Medical Commodities include but are not limited to condoms; diapers; disposable equipment; emergency first aid products; germicides; gloves; incontinent care products such as diapers, briefs, under pads; IV stets, solutions, supplies and related products; medical hosiery; medical linen; medical training aids such as manikins; medicated soaps; mouth care products; needles and syringes; nursing charting supplies, nutritional products; enteral feeding products and supplies; ostomy care products; protective wear; respiratory care products; sick room utensils; small equipment such as stethoscopes, blood pressure cuffs, thermometers; surgical products; urological care products; and wound care management products.

While we are seeking Distributors who can each supply the vast majority of these commodities, we will consider bids from specialty suppliers who service a niche market where we have historically experienced inadequately met needs. Historical examples include: respiratory CPAP and BiPAP masks and supplies (which might be supplied on short notice by a specialty home healthcare supplier); medical training products such as training manikins (which might be supplied by a specialty emergency equipment and supply Specialty Supplier).

The resulting Contract will be the primary Statewide Contract used by Executive Agencies of the Commonwealth for the goods and services covered by the Contract. The Statewide Contract will also be available for use by other eligible entities listed below. Each Commonwealth Agency and eligible entity is responsible for executing its own purchase orders and paying its own invoices for goods and/or services acquired from this Statewide Contract. Contractors will be responsible for marketing their goods and/or services to Commonwealth Agencies and other eligible entities.

1.2 Background information

The Commonwealth currently purchases medical commodities from six (6) different Distributors on statewide contract (SWC) HSP33 Medical Commodities, a cost plus contact with maximum percentage markups over acquisition price as low as 7.5%. Each Vendor is allowed to update State Net Price Lists on a six (6) month schedule with fixed pricing for routinely sold items. The vendors who committed to being Group Purchasing Organizations (GPO) Distributors are: Geriatric Medical & Surgical, Independence Medical (formerly Invacare), McKesson Medical-Surgical, and Westnet. They are the only ones able to use the MHA GPO Contracts to establish their maximum acquisition cost in determining their Net Price. To access the MHA catalog go to the MHA Home Page, which is mhainc.com. Accessing the catalog requires an account number and password. When Vendors sell their own house brands, a cost plus percent markup is not used but the Vendor provides a fixed Net Price.

1.3 Applicable Procurement Law

This Bid is issued under MGL c. 7, § 22; c. 30, § 51, § 52; and 801 CMR 21.00 (Goods and Services)

1.4 Number of awards

The target maximum number of Contractors is Ten (10). This is a target number; the SSST may award more or fewer Statewide Contracts if it is in the best interests of the Commonwealth to do so.

1.5 Adding Contractors after initial Statewide Contract award

If, over the life of the Contract, the SSST determines that additional Contractors should be added, these may first be drawn from qualified companies which responded to this Bid but were not awarded contracts. If necessary to meet the requirements of the Commonwealth, the Bid may be reopened to obtain additional Quotes.

1.6 Eligible Entities

Any Contract resulting from this Bid will be open for use by the following types of entities:

1. Cities, towns, districts, counties and other political subdivisions;

2. Executive, Legislative and Judicial Branches, including all Departments and elected offices therein;

3. Independent public authorities, commissions and quasi-public agencies;

4. Local public libraries, public school districts and charter schools;

5. Public hospitals owned by the Commonwealth;

6. Public institutions of higher education;

7. Public purchasing cooperatives;

8. Non-profit, UFR-certified organizations that are doing business with the Commonwealth;

9. Other states and territories with no prior approval by the State Purchasing Agent; and

10. Other entities when designated in writing by the State Purchasing Agent.

Each eligible entity is responsible for executing its own purchase orders and paying its own invoices for goods and/or services acquired from this Contract. Contractors will be responsible for marketing their goods and/or services to Commonwealth Agencies and other eligible entities.

1.7 Acquisition Method(s)

The acquisition method to acquire goods and/or services from this Bid is outright purchase.

1.8 Contract Duration

The initial term of this Contract is Five (5) years and three (3) months. In addition, this Contract has two options to renew of up to one (1) year each with a maximum Contract term of Seven (7) years and three (3) months (including the initial term and all possible renewal options).

1.9 Performance and payment time frames which exceed Contract duration Delivery of goods maybe made for a period of up to the earlier of June 30 of the fiscal year of the order or 90 days after the ending date of the Contract provided that the Purchasing Entity places its order prior to the ending date of the Contract.

1.10 Estimated Value of the Contract

The estimated value of purchase(s) resulting from this Bid is $6 million per year, for a total of $42 million over the initial five year term plus the two renewal option years. The Commonwealth makes no guarantee that any commodities or services will be purchased from any Contract resulting from this Bid. Any estimates or past procurement volumes referenced in this Bid are included only for the convenience of Bidders, and are not to be relied upon as any indication of future purchase levels.

1.10.1 Basis for estimated dollar value for this Statewide Contract (including all options to renew) The “Estimated Value (US$)” for this Bid was based on reviewing Contractor sales reports to Commonwealth of Massachusetts eligible entities for FY2013 and FY2014.

2 Estimated Procurement Calendar

Times are Eastern Standard/Daylight Savings (US), as displayed on the COMMBUYS system clock displayed to Bidders after logging in. If there is a conflict between the dates in this Procurement Calendar and dates in the Bid’s Header, the dates in the Bid’s Header on COMMBUYS shall prevail. Bidders are responsible for checking the Bid record, including Bid Q&A, on COMMBUYS for Procurement Calendar updates.

2.1 Written questions via the Bid Q&A on COMMBUYS

The “Bid Q&A” provides the opportunity for Bidders to ask written questions and receive written answers from the SSST regarding this Bid. All Bidders’ questions must be submitted through the Bid Q&A found on COMMBUYS (See “Locating Bid Q&A,” below). Questions may be asked only prior to the Deadline for Submission of Questions stated in the Estimated Procurement Calendar. The issuing department reserves the right not to respond to questions submitted after this date. It is the Bidder’s responsibility to verify that the questions entered into the Bid Q&A are recorded in COMMBUYS and appear on the Bid Q&A page.

Please note that any questions submitted to the SSST using any other medium (including those that are sent by mail, fax, email or voicemail, etc.) will not be answered. To reduce the number of redundant or duplicate questions, Bidders are asked to review all questions previously submitted to determine whether the Bidder’s question has already been posted.

Bidders are responsible for entering content suitable for public viewing, since all of the questions are immediately accessible to the public. Bidders must not include any information that could be considered personal, security sensitive, inflammatory, incorrect, collusory, or otherwise objectionable, including information about the Bidder’s company or other companies. The SSST reserves the right to edit or delete any submitted questions that raise any of these issues or that are not in the best interest of the Commonwealth or this Bid.

All answers are final when posted. Any subsequent revisions to previously provided answers will be dated.

It is the responsibility of the prospective Bidder and awarded Contractor to maintain an active registration in COMMBUYS and to keep current the email address of the Bidder’s contact person and prospective contract manager, if awarded a contract, and to monitor that email inbox for communications from the Purchasing Department, including requests for clarification. The Purchasing Department and the Commonwealth assume no responsibility if a prospective Bidder’s/awarded Contractor’s designated email address is not current, or if technical problems, including those with the prospective Bidder’s/awarded Contractor’s computer, network or internet service provider (ISP) cause email communications sent to/from the prospective Bidder/Awarded contractor and the Purchasing Department to be lost or rejected by any means including email or spam filtering.

2.2 Locating Bid Q&A

Log into COMMBUYS, locate the Bid, acknowledge receipt of the Bid, and scroll down to the bottom of the Bid Header page. The “Bid Q&A” button allows Bidders access to the Bid Q&A page.

2.3 Oral Presentations/Product Demonstrations

Although not usually required in predecessor Bids, if the SSST deems it necessary, selected Bidders who are asked to participate in Oral Presentations / Product Demonstrations will be expected to prioritize this in their schedules. The SSST will make every effort to find a mutually convenient time for the Bidder and the SSST. However, failure to appear at the scheduled time of the presentation/demonstration may result in disqualification, reduction of points or other action that the SSST deems appropriate.

2.4 Site Inspection

Although not usually required in predecessor Bids, if the SSST deems it necessary, selected Bidders who are asked to arrange Site Inspections will be expected to prioritize this in their schedules. The SSST will make every effort to find a mutually convenient time for the Bidder and the SSST. However, failure to timely schedule a requested Site Inspection may result in disqualification, reduction of points or other action that the SSST deems appropriate.

2.5 Debriefing

The SSST will conduct debriefings for unsuccessful Bidders, if requested within 14 calendar days of the resulting Master Blanket Purchase Order being posted on COMMBUYS. The SSST will provide debriefing guidelines in advance of each debriefing.

3 Specifications

Additional required terms appear in the Appendices to this RFR.

3.1 Bidder Qualifications

3.1.1 Company experience

3.1.1.1 Business background

In order to be considered for an award each Bidder must be able to demonstrate it has the capacity and the experience to meet the needs of the Commonwealth as a distributor or specialty supplier distributer. The SSST has the right anytime during the evaluation process to require a Bidder to provide additional proof of its qualifications and capacity to meet the needs of the Commonwealth.

Bidders must currently sell the majority of the medical commodities as described in the Procurement Scope to be considered for a contract award, unless bidding as a specialty supplier who serves a niche market. The SSST may make awards to Bidders that specialize in a small market segments such as a home health care or emergency equipment and supplies, or medical training aids.

Bidder must routinely participate in Medicare Part B and can either direct bill Mass Health or provide Medicare Part B pricing on products when the Medicare Part B price is lower than the State Net Price List when clients of a Purchasing Entity are eligible for Medicare Part B. Details would have to be worked out with the Purchasing Entity before transactions occurred.

3.1.1.2 Years in the industry of the Bid

Bidder must have been in the business of selling medical commodities for at least three years at the time of submitting a Bid.

3.1.2 Financial stability including bankruptcy, litigation and contract defaults

3.1.2.1 Financial information

Bidders must have sufficient sales and financial stability as described in this section to demonstrate their capacity to meet the needs of the Commonwealth as a distributor or specialty supplier distributer. Mandatory questions about this section posted in COMMBUYS must be answered for a Quote to be considered. The SSST reserves the right to disqualify bidders as not meeting capacity requirements based on sales volume, or bankruptcy/litigation information, or days past terms to pay.

3.1.2.1.1 Gross annual revenue for most recently completed fiscal year

During their most recently completed Fiscal Year, Bidders must have had at least $750,000 in medical commodity sales, unless bidding as a specialty supplier distributer where the SSST may accept Bidders who had at least $250,000 in sales.

3.1.2.1.2 Last bankruptcy and current/pending litigation

Bidders must indicate the date if any of their last bankruptcy filing, and status of the filing. Bidders must also list the creditor and amount of any current litigation over unpaid bills.

3.1.2.1.3 Current days to pay <supplier invoices>

Bidders must certify that during the previous 12 months, they did not exceed 120 days past terms to pay.

3.1.3 References and reference information and/or requirements

Bidders must upload with their bid a minimum of three (3) and a maximum of five (5) letters of reference on the references’ letterhead signed by a principal of the reference organization, using the template with instructions provided with this Bid. Download this template and have it completed; then include the signed references with your online submission. References from MA state government are desirable, but not required. These references are to be from your most recent year largest dollars billed customers. Please note that the SSST reserves the right to speak to Bidders customers not submitting references as well as those who did submit them. The SSST reserves the right to disqualify bidders whose average reference rating is less than Good (3 points).

The following list of SSST Members/Advisors cannot be utilized as references:

3.2 Commodity Specifications

3.2.1 Eligible commodities

All medical commodities that are used in the provision of healthcare in any setting may be sold under this Contract, with the exception of drugs requiring a prescription and major medical equipment. Currently major medical equipment is defined as costing more than $5,000 (Five Thousand Dollars) per unit, but the Commonwealth may change that limit at any time during the Contract. Also at any time during the Contract the Commonwealth may restrict or prohibit the sale of certain commodities by a Vendor through the Contract.

3.2.2 Performance specifications, durability, disclosures and recalls In the event of a manufacturer’s recall of a product the Vendor will notify Purchasing Entities who purchased the product of the recall and work with the Purchasing Entity in returning product and receiving credit or replacement goods.

3.2.3 Approvals and standards (UL, CE, FCC, FDA, ASTM, IEEE)

All commodities sold under this contract must be compliant with all: applicable Federal laws and regulations such as FDA 21 CFR at time of sale; and all applicable Commonwealth of Massachusetts Laws and Regulations; and when applicable meet City of Boston Fire Code standards.

Commodities purchased under this contract will primarily be used in Hospitals and Healthcare Institutions and need to be “hospital grade” and meet all Joint Commission standards and be intended for use in Hospitals and Healthcare Institutions.

3.2.4 Product evaluations and samples

Vendor must work with a Purchasing Entity at the Purchasing Entities request to obtain an provide free sample products to be used by the Purchasing Entity when the Purchasing Entity is conducting product review or evaluation trials prior to purchase and use of a product.

3.2.5 New in the box, most current version and not discontinued by the manufacturer

Vendor must have a written plan or policy that outlines the Supply Chain Integrity steps the Bidder takes to ensure it is not obtaining medical commodities that are counterfeit, fake, adulterated, damaged, secured from a “fire sale”, improperly stored, shopworn, outdated or have other problems from the medical commodities supply chain and then selling them to its customers.

3.2.6 Open box, remanufactured and refurbished equipment & supplies provisions

Remanufactured or Reconditioned is defined as products or equipment partially or fully manufactured from existing product materials where such materials are cleaned and repaired to the extent possible and reused in the new product or equipment in accordance with the original manufacturer’s specifications. All unusable parts are to be removed and replaced with new or remanufactured parts, which meet OEM standards and any governing standards/regulations.

3.3 Service Specifications

3.3.1 Capacity plan, resources and infrastructure for this Statewide Contract

3.3.1.1 Capacity plan for meeting the contractual requirements for delivery A Vendor awarded a contract must provide a telephone customer service number for use by Purchasing Entities during normal business hours and those Vendors located outside of Massachusetts must provide a toll free customer service number. A Vendor awarded a contract must provide a field service representative to interact and respond to Purchasing Entities, to provide information, and answer questions to resolve problems at the Purchasing Entity.

3.3.1.2 Local warehouse, stocking levels and order lead times Bidders must have a physical location and a warehouse able to deliver products to any location within the Commonwealth within the required timeframes described later in this RFR. So called “virtual” Vendors are not acceptable as Bidders.

A Vendor must normally deliver items within seven (7) calendars days of receipt of an order. If a Vendor cannot deliver within seven (7) calendar days the Vendor must notify the Purchasing Entity of the projected delivery date at time of order or during the next business day. Should that date later change the Vendor must notify the Purchasing Entity of a new delivery date.

3.3.1.3 Site inspection requirements

A Vendor will allow and provide reasonable accommodations to the SSST or the OSD Contract Manager to visit and inspect its facilities used in servicing the Contract if requested to do so by the OSD Contract Manager.

3.3.2 Emergency response plans/preparedness

In a declared state of emergency where the safety and wellbeing of Commonwealth citizens are at risk, contractors may be asked to supply the Commonwealth with the commodities and/or services under the Statewide Contract on a priority basis. The Bidder’s Quote should include the following:

· Indicate whether there is a written Continuity of Operations Plan (COOP) that describes how the company will continue to do business in case of an emergency.

· A list of emergency contact information including name, position/title, phone, email and cell phone.

· A list of the Bidder’s building location (s) that would be available to serve the Commonwealth during an emergency.

· A description of the areas of Massachusetts that the Bidder could supply in the event of an emergency (e.g., Entire State, Specific City or Region).

This information will not be considered in the evaluation of the Quote.

3.3.3 Emergencies Beyond Control of Contractor or Eligible Entity

As specified in item 4 of the Commonwealth Terms & Conditions: “Upon immediate notification to the other party, neither the Department nor the Contractor shall be deemed to be in breach for failure or delay in performance due to Acts of God or other causes factually beyond their control and without their fault or negligence. Subcontractor failure to perform or price increases due to market fluctuations or product availability will not be deemed factually beyond the Contractor's control.”

3.3.4 Training & training materials

Vendors must arrange for training on products when requested by a Purchasing Entity. Vendors must respond to a request for training within 10 Calendar days of the request. When Continuing Education Units (CEUs) are available for the training the Vendor must make them available.

3.3.5 Geographic service and delivery areas

All areas of the Commonwealth of Massachusetts are included in this Bid.

3.4 Environmental Specifications

3.4.1 Executive Order 515, Establishing an Environmental Purchasing Policy

Products and services purchased by state agencies must be in compliance with Executive Order 515, issued October 27, 2009. Under this Executive Order, Executive Departments are required to reduce their impact on the environment and enhance public health by procuring environmentally preferable products and services (EPPs) whenever such products and services perform to satisfactory standards and represent best value, consistent with 801 CMR 21.00. In line with this directive, all contracts, whether departmental or statewide, must comply with the specifications and guidelines established by OSD and the EPP Program. EPPs are considered to be products and services that help to conserve natural resources, reduce waste, protect public health and the environment, and promote the use of clean technologies, recycled materials, and less toxic products. Questions concerning the EO or the appropriate specifications may be directed to OSD’s EPP Procurement Program, www.mass.gov/epp. The Order can be seen at http://www.mass.gov/governor/docs/executive-orders/executive-order-515.pdf.

3.4.2 Environmental plan

Beginning the first year of the Statewide Contract and throughout the life of the Statewide Contract, awarded Bidders must agree to work with OSD and the SSST to examine the feasibility of implementing an environmental plan. The objective of this requirement is to actively encourage suppliers to incorporate sustainable practices throughout their business operations and further market such practices to Contract users. Such a plan may include, but not be limited to, the following:

· Implementing energy efficiency initiatives at the corporate level in line with Executive Order 484, such as lighting retrofits, purchase of energy from renewable sources, use of bio-heat fuel, and other energy reduction technologies.

· Encouraging environmental initiatives at a corporate and/or manufacturing level for the purpose of reducing the impact of manufacturing on the environment; such as clearly identifying recycled content of packaging on the packaging, providing product life cycle assessments, working toward the elimination of ozone depleting chemical usage in the manufacturing or refining process (where applicable), and conducting internal environmental auditing related to pollution control.

· Adopting standards and/or obtain certifications, where applicable, for product development and manufacturing processes such as but not limited to LEED, ISO 14001, Cradle to Cradle (C2C) Protocol, Green Seal, Environmental Choice and others.

· Using alternative fuel vehicles for delivery or transportation purposes and/or vehicles equipped with diesel emission control devices and operating such vehicles with guidance on anti-idling initiatives.

· Working with the SSST to develop and distribute information and/or materials to Commonwealth customers on the Awarded Bidder’s environmental practices and initiatives throughout the term of the Contract.

· Developing a plan to implement the recycling of materials used or produced in normal business operations.

· The SSST may award points to Bidders who provide evidence that measures and initiatives such as these are already in place within their operations, and/or for written proposals submitted with their Quote detailing a commitment to action contingent upon receipt of a Contract award. (See the Additional Environmentally Preferable Products / Practices form on COMMBUYS).

3.5 Compensation Structure/Pricing

The Commonwealth has the right to know the Vendors Acquisition Cost for any product sold under this Contract when the Acquisition Cost is used to calculate the Net Price.

A Vendor when requested by the OSD Contract Manager must provide copies of invoices, contracts and price lists between manufacturers or suppliers and the Vendor that establishes the Vendor’s Acquisition Cost for products sold to the Commonwealth under this Contract. We will not publish this information without the Vendors permission but may have to disclose it if requested to do so.

3.5.1 Cost tables – COMMBUYS Catalogs

Compensation will be based on the Net Price COMMBUYS catalog or punch-out catalog supplied by the Bidder and accepted by the SSST. Net Price for most products will be Vendor’s Acquisition Cost plus the Vendor’s Percentage Markup Quoted in response to this Bid. Individual facilities negotiated Market Share Discounts may further reduce the Net Price. It is expected that as in prior contracts, some vendors will opt to use the Commonwealth’s Group Purchasing Organization (GPO) to establish their acquisition cost. Vendors offering their own House Brand of a product must supply the Net Price of the House Brand product and must not use the acquisition cost plus percentage markup methodology. When an item is not on a Vendor’s HSP40 MA State Net Price List a Purchasing Entity may contact Vendors on the contract for a quote on the Net Price of the item. The final line of a Vendors Catalog is structured for these quoted items.

3.5.1.1 Market Share Discounts

It is expected that as in prior contracts, some vendors will opt to negotiate market share price discounts on an individual facility basis. in the form of an additional percentage discount from the Net Price to Purchasing Entities agreeing to purchase at least (n) % of their medical commodities from the Vendor or has a monthly dollar sales volume of at least (n) $ with the Vendor. The availability of such discounts will be used by the SSST in conducting its bid evaluation.

3.5.1.2 Prompt Payment Discounts (PPD)

All Bidders must agree to offer discounts through participation in the Commonwealth Prompt Payment Discount (PPD) initiative for receiving early and/or on-time payments, unless the Bidder can provide compelling proof that it would be unduly burdensome.

Bidders must submit agreeable terms for Prompt Payment Discount unless otherwise specified by the SSST. The SSST will review, negotiate or reject the offering as deemed in the best interest of the Commonwealth.

The requirement to offer a PPD may be waived by the SSST on a case-by-case basis if participation in the program would be unduly burdensome on the Bidder. If a Bidder is claiming that this requirement is a hardship or unduly burdensome, the specific reason must be documented in the Bidder’s Quote. . The minimal acceptable PPD discount would be 1.0% - 10 days. If a discount greater than 1.0% is offered at any specified PPD period, it must be in decimal increments, such as the following examples for illustration only: 1.1%, 2.0%, 2.22%, 2.75%, 3.3%.

3.5.1.3 Statewide Contract Administration Fee

This Statewide Contract is subject to a 1% Contract Administration Fee, which is created pursuant to MGL c. 7, § 3B, 801 CMR 4.02. For information on the Statewide Contract Administration Fee, please see the “Statewide Contract Administration Fee and Report” section in the “Requirements for Doing Business After a Contract Has Been Awarded” section below.

3.5.1.4 Cost Plus – Acquisition Cost plus % Markup

Vendors must state in the COMMBUYS required questions the maximum Percentage Markup the Vendor will use in calculating the Net Price using Acquisition Cost plus the Vendors Percentage Markup. Acquisition Price is the price a distributor will pay a manufacturer for a commodity under this contract. The acquisition price may be established with the manufacturer by the GPO, by the Commonwealth, or by the distributor. In no case will the acquisition price be higher than a manufacturer’s current published price for a distributor. In case of dispute or audit the distributor may be required to produce invoices or other documentation supporting an acquisition price. The Vendor may always use a percentage markup that is less than its stated maximum percentage markup in calculating acquisition cost.

Vendors offering their own House Brand of a product must supply the Net Price of the House Brand product and must not use the acquisition cost plus percentage markup methodology.

3.5.1.5 Unscheduled updates to commodities/services/pricing process and approvals A Purchasing Entity must contact a Vendor or Vendors on the Contract when a product is not on the Vendor’s MA State Net Price List for a Quote. The Quote the Vendor provides to the Purchasing Entity must be in the form of a Net Price as defined in this Bid (section 3.5.1.4). Once a Purchasing Entity has accepted the Vendor’s quote by placing an order with the Vendor the quote will remain in effect to the next update of the MA State Net Price List and will apply to other Purchasing Entities using the Contract; unless the Vendor clearly restricts its quote to be of limited duration or scope. Vendors must add products with accepted non-restricted quotes to their next updated MA State Net Price List.

3.5.1.6 Scheduled or automatic price adjustments

Bidder’s awarded a contract must supply an updated State Net Price List COMMBUYS catalog during its term for each January 1 to June 30 and for each July 1 to December 31 with all Net Prices listed on the updates will remain in effect to at least the term of the updated State Net Price List. This six month cycle will repeat until the end of the Contract.

3.5.1.7 Fuel surcharge provisions

All fuel charges or fuel surcharges are prohibited under this Contract and Vendors must not bill such charges to Purchasing Entities.

3.5.1.8 Shipping FOB Destination

Unless otherwise stated in the solicitation all items will be FOB destination. The term FOB destination shall mean items will be delivered and unloaded at no charge to the Purchasing Entity and that the Vendor shall retain ownership until received and accepted by the Purchasing Entity.

3.6 Group Purchasing Organization Provisions

The Commonwealth of Massachusetts will continue to contract with and use a GPO to establish Acquisition Costs for Medical Commodities. Vendors must state YES on the required Question in their electronic Quote if they commit to participating with the Commonwealth’s GPO for the term of the contract or NO they choose not to commit to participating with the Commonwealth’s GPO. The SSST will not use the Vendor’s decision when conducting its Bid Evaluations.

NOTE! Vendors committing to GPO participation must never use an Acquisition Cost higher that the Acquisition Cost available through a GPO contract with a manufacturer in calculating the Net Price to charge a Purchasing Entity for a product. This applies in all cases even if a Vendor must pay incoming freight charges or cannot purchase the product for whatever reason from the manufacturer (other than the manufacturer cannot supply the product) and it costs the Vendor more money to acquire the product than the Acquisition Cost available through the GPO.

Vendors committing to GPO participation must comply with the businesses practices established by the GPO for distributors. The GPO has committed to work with the Vendors the Commonwealth selects and the OSD Contract Manager will assist with any issues that may arise between the GPO and a Vendor. Vendors are only required to report sales to the GPO when the GPO’s contract has been used.

3.7 Supplier Diversity Program (SDP) Plan

Massachusetts Executive Order 524 established the Supplier Diversity Program within the Supplier Diversity Office of the Operational Services Division in order to promote the award of State Contracts in a manner that develops and strengthens Minority and/or Women Business Enterprises (M/WBEs). More recently, Executive Order No. 546 established the Service-Disabled Veteran Owned Business Enterprise Program (“SDVOBE Program”), which is designed to promote access and equity of opportunity to Commonwealth business opportunities to SDVOBE qualifying businesses. As a result, M/WBEs and SDVOBEs are strongly encouraged to submit Quotes in response to this Bid, either as prime vendors, joint venture partners or subcontractors. All Bidders, regardless of their certification status, are required to submit a completed SDP Plan Form #1 – SDP Plan Commitment as part of their Quote for evaluation. It is required that Supplier Diversity Program participation accounts for no less than 10% of the total points in the evaluation.

The SSST requires Bidders to make a significant commitment to partner with certified Minority-, Women-, and Service-Disabled Veteran-Owned Businesses in order to be awarded a Contract. Bidders must identify a commitment in the form of a specific percentage of sales made under the resulting contract that will be spent with a Certified Partner(s), using SDP Plan Form #1 – SDP Plan Commitment. This percentage commitment will extend for the life of any resulting contract. Please note that no Bidder will be awarded a Contract unless and until they submit a completed SDP Plan Form #1.

After contract execution, if any, Contractors must submit a completed SDP Plan Form #2 – Declaration of SDP Partners, identifying a Certified Partner(s) no later than 30 days after contract execution. Contractors may defer identification of their SDP Partner(s) by checking the box in Part II, thereby acknowledging their SDP Plan commitment. Failure to submit a completed SDP Plan Form #2 by the deadline may result in penalties including contract suspension, termination, and/or award to the next apparent successful bidder.

An SDO-certified (formerly SOMWBA-certified) Bidder may not list itself or an affiliate as being a Supplier Diversity Partner to its own company.

Once an SDP Plan is submitted, negotiated and approved, the SSST will then monitor the Contractor’s performance.

Resources available to assist Prime Bidders in finding potential Minority Business Enterprises (MBE) and Women Business Enterprises (WBE) partners can be found at: Supplier Diversity Plan Resources available to assist Prime Bidders in finding potential Service-Disabled Veteran-Owned Business Enterprise (SDVOBE) partners can be found: on the SDO webpage www.mass.gov/sdo or the Veterans Affairs webpage https://www.vip.vetbiz.gov/ (search only for SDVOSB).

The Supplier Diversity Program offers training on the SDP Plan requirements. The dates of upcoming trainings can be found at: http://www.mass.gov/anf/budget-taxes-and-procurement/procurement-info-and-res/osd-events-and-training/osd-training-and-outreach.html In addition, the SDP Webinar can be located on the SDP website at www.mass.gov/SDP.

The Bidder(s) awarded contracts pursuant to this RFR must provide Quarterly reports of all their purchases from their Supplier Diversity Partner(s) made under this contract using SDP form #3 or the SDP tab of the Combined Sales and SDP Spend report form – both forms are posted with this bid. This is in addition to the 1% Administration Fee Report. The Contract Manager and SSST may request the Contractor to provide special customized reports during other times than the Quarterly due date.

3.7.1 Supplier Diversity Program Subcontracting Policies

In addition to the Subcontracting Policies (See Subcontracting Policies section below and see Section 9, Subcontracting By Contractor, in the Commonwealth Terms and Conditions) that apply to all subcontracted services, agencies may define specific required deliverables for a contractor’s SDP Plan, including, but not limited to, documentation necessary to verify subcontractor commitments and expenditures with Minority- or Women-Owned Business Enterprises (M/WBEs) and Service-Disabled Veteran-Owned Business Enterprises (SDVOBE) for the purpose of monitoring and enforcing commitments made in a contractor’s Supplier Diversity Program (SDP) Plan.

3.8 Participation in the OSD’s Annual Marketing Event, MASSbuys

OSD hosts an annual marketing and training trade show, usually in late April or early May, to educate public purchasers and contract end-users on the commodities and services available on statewide contracts, highlight innovative environmentally preferable (green) products and provide marketing and networking opportunities to the business community. The event, recently renamed MASSbuys, represents the blending of two highly successful long running OSD trade shows, the Statewide Training And Resource (STAR) Exposition and the Environmentally Preferable Products (EPP) Vendor Fair and Conference.

The attendees at these events have included public purchasers and contract end users representing all Commonwealth agencies, cities and towns across the state, independent authorities, higher education and eligible not for profit human and social service organizations. The venue for MASSbuys has significant marketing value and is extremely cost effective as it provides exceptional opportunities for statewide contractors to market directly to thousands of attendees.

The MASSbuys Exposition is scheduled each year at either the Boston Convention & Exhibition Center (BCEC) or the DCU Center in Worcester and is 100% supported by statewide contractors as exhibitors. The cost to exhibit is approximately $1100. OSD believes that the show is important because it provides public purchasers and end users with an opportunity to meet over 300 statewide contractors and receive important information on new products, particularly those that save energy, conserve water or other resources, reduce waste as well as the use of toxic substances and may also contain recycled materials. It provides statewide contractors with the unparalleled opportunity to establish and renew business relationships with existing customers and to market their business to approximately 2,000 attendees, many of whom represent potential new customers.

Please note that exhibiting at the MASSbuys Exposition is not required and no points will be awarded to those Bidders who commit to participate. However, Bidders who indicate their willingness to exhibit at MASSbuys in their Quotes will be required to honor their commitment for the duration of their contract, if awarded a contract.

3.9 Requirements for Doing Business after a Contract Has Been Awarded The requirements below are specific to the Statewide Contract, if any, awarded as a result of this Bid. Awarded Bidders (Contractors) must also comply with the requirements stated in Terms and Requirements Pertaining to Awarded Statewide Contracts.

3.9.1 Statewide Contract Administration Fee and Report

This Statewide Contract is subject to a 1% Contract Administration Fee, which is created pursuant to MGL c. 7, § 3B, 801 CMR 4.02 and the Transaction Fee section in this Bid and/or incorporated by reference into Statewide Contracts with the Operational Services Division (OSD). The price stated in any Bidder’s Quote price and any Contractor’s Statewide Contract shall be inclusive of this fee and Contractors shall not reflect this fee as a separate line item on customer invoices.

This fee will be based on 1% of the total dollar amounts, adjusted for credits or refunds, paid by Eligible Entities to the Statewide Contractor based on your statewide contract. All ”Statewide Contracts” awarded and all purchase orders and purchases made pursuant to this RFR are subject to this fee regardless of whether the contract was awarded for statewide or regional coverage. Eligible entities include, but are not limited to: a) Cities, towns, districts, counties and other political subdivisions; b) Executive, Legislative and Judicial Branches, including all departments and elected offices therein; c) Independent public authorities, commissions, and quasi-public agencies; d) Local public libraries, public school districts, and charter schools; e) Public hospitals owned by the Commonwealth; f) Public institutions of higher education; g) Public purchasing cooperatives; h) Non-profit, UFR-certified organizations that are doing business with the Commonwealth; i) Other states and territories with no prior approval by the State Purchasing Agent required; and j) Other entities when designated in writing by the State Purchasing Agent. For a list of other entities that are eligible to use your specific Statewide Contract see Section 1 of this RFR.

Note that if the 1% Administration Fee is deductible as a business expense for federal income tax purposes, it is also deductible as an expense for Massachusetts tax purposes.

3.9.1.1 Quarterly Fee Payment:

For each Payment Period, Statewide Contractor shall pay to OSD a fee equal to one percent (1%) of the total payments (adjusted for credits or refunds) received from all Eligible Entities that have purchased from the Statewide Contractor pursuant to this Agreement. All payments will be based on full calendar quarters (Payment Periods) and must be received by OSD on or before 45 days after the last day of the Payment Period (as specified below) or a Contractor will be considered in breach of contract: