S-10700-00003426-31632_Addendum1_WhlslrsDistofMedSupp.pdf

MMCAP Infuse Request for Proposals (RFP) Addendum

Addendum #1

Addendum No.: 1 Date of Addendum: June 13, 2022

Due Date, Time:

MMCAP Infuse RFP

July 11, 2022 at 2:00 pm Central Time

Revised Date Time: N/A

Department of Administration/MMCAP

Coordinator Nalee Xiong Agency:

OSP Web Reference No.: 31632

Infuse

Title: Wholesalers/Distributors of Medical Supplies

Scope of Addendum

The following information is an UPDATE on MMCAP Infuse RFP:

Revision 1:

1. Bullet point 3 of Paragraph 3 of Section 2 – RFP Project Information, will be revised as follows:

“Responder will need to show they are able to facilitate chargebacks with some manufactures in the product categories highlighted in this RFP (Interest/Capability Section)”

2. Line item 3 of the Pass/Fail Criteria will be revised as follows:

“Responder can facilitate chargebacks with some manufactures in the product categories highlighted in the Responder’s Interest/Capability Section.”

3. In Section 2 - RFP Project Information, the following phrase above the signature block will be removed:

“…(including the sample contract)…”

The following are answers to questions submitted to MMCAP Infuse:

1. Question: Should we go ahead and propose a service solution in this RFP?

Answer: If you believe that you can provide services that meet or supplement the scope of this RFP, you should respond accordingly. However, you will be held to the standards outlined in the RFP.

2. Question: Is this a “all or nothing” opportunity in which we would need to provide all the requested products? Would our proposals grade be affected if we were to not offer the full list of requested products?

Answer: Partial opportunities will be considered, but the Responder will be evaluated as outlined in the RFP.

3. Question: Does a responder need to provide pricing for all core items and PPE on the provided pricing analysis workbook to be considered for award for this contract? For example, if the responder is only able to provide medical equipment but not disposables/supply items and PPE, is that acceptable? If so, does not providing all requested items negatively impact the responder’s score for offer evaluation purposes?

Answer: No, a responder does not need to provide pricing for all core items and PPE to be considered for an award. However, your score may be impacted by the scope of the submission, but you may offer similar or equivalent replacement products by following the directions on the “Instructions” tab.

4. Question: The language provided for the admin fee is “up to 3%”. How is the actual percentage for the fee determined/calculated? Is the administrative fee set at 3% for all product or is the fee proposed by the responder as part of the RFP proposal?

Answer: It is expected that most items will be at 3% of the gross dollar value of the products and services sold to the Membership, however MMCAP Infuse understands 3% isn’t realistic on all items (i.e. a product that costs $100,000). MMCAP Infuse will negotiate specifics with the awarded Responders. If an agreement cannot be reached, the negotiations would end.

5. Question: Can you describe what you mean by a charge back?

Answer: The Responder has arrangements with manufactures to be made whole when the Responder sells products at MMCAP Infuse’s negotiated price with the manufacturer. If a Responder wants to sell products in the categories highlighted in the “Interest/Capability” section to our Membership, the Responder will either need to (1) have a chargeback arrangement; or (2) willing to sell the applicable products at a potential loss.

6. Question: What do you require as evidence to prove the average of $400,000 in monthly sales?

Answer: It can vary; examples include: accounting statements; notarized letter from an accountant (with contact information); handful of invoices showing an excess of $400,000 for a month or $4.8 million for the year; publicly available documents (i.e. 10K statements); government contracts;

referrals and certifications form customers (with contact information).

7. Question: Is all shipping FOB Destination?

Answer: Generally, that is the baseline requirement for government entities.

8. Question: The RFP shows product categories of: Pharmaceuticals (Over-the-Counter and

Prescription), Vaccines, Diabetic Products, Drug Testing, Condoms, Dental, Incontinence, Nutritional's, and Waste Disposal. Will these products/categories be included in the MMCAP Infuse Products Pricing?

Answer: MMCAP Infuse plans to require awarded Responders to load its manufacturer negotiated pricing if Responder desire to carry these product categories.

9. Question: Regarding Suppliers/Commodities included on the MMCAP Infuse Pricing Analysis, has MMCAP Infuse negotiated an acquisition cost for awarded distributors to extend these products to members? What is that GPM and does that include freight?

Answer: Responders will be scored on the competitiveness of their proposed pricing. A finalized pricing and product listing will be negotiated with the awarded vendors.

10. Question: Can a distributor charge freight on equipment purchases?

Answer: You can make your proposal under Paragraph 4(F) of the Technical Proposal; it will be evaluated and scored accordingly.

11. Question: Can a distributor charge a member for white glove service and additional items that are attractive?

Answer: You can proposal details and pricing under “Additional Value Offerings” for consideration.

12. Question: What qualifies a distributor at a national or regional level?

Answer: It will vary based on responses to Paragraph 1(C) of the Technical Proposal.

13. Question: Can a distributor exclude HI and AK from the contract?

Answer: Responders will be evaluated and scored based on their ability to serve the Membership.

14. Question: Can a supplier provide a different FOB Destination pricing for HI and AK versus the lower 48 states and District of Columbia?

Answer: Responders will be evaluated and scored based on their ability to serve the Membership.

15. Question: Can a distributor add a fuel surcharge fee in the event that suppliers start charging this fee to the distributor?

Answer: You can make your proposal under Paragraph 4(F) of the Technical Proposal; it will be evaluated and scored accordingly.

16. Question: Can items be removed from the CORE list at any time?

Answer: MMCAP Infuse expects pricing and products will remain firm for a year.

17. Question: If items become backordered and unavailable, can items be removed from the CORE list so they are no longer showing as available to members?

Answer: Specific parameters will be negotiated with the awarded vendors.

18. Question: How many years back does MMCAP Infuse require for contract audit purposes?

Answer: In accordance with Minn. Stat. § 16C.05, subd.

19. Question: Would MMCAP Infuse accept a cost-plus pricing model versus a discount from list price model for non-CORE items?

Answer: All qualifying proposals will be considered and evaluated.

20. Question: If state agencies are existing customers accessing through another GPO, does MMCAP require that member to be converted to MMCAP?

Answer: If the Member wants to access the benefits and pricing of MMCAP Infuse, yes.

21. Question: How is the 3% administration fee assessed for state agencies that solicit supply opportunities outside of the MMCAP Infuse program (unrestricted bids for the acquisition of supplies)?

Answer: If the MMCAP Infuse program, pricing, and/or master agreement are used to solidify the award for the vendor, it would be considered part of the MMCAP Infuse program and an administration fee would be paid to MMCAP Infuse.

22. Question: Page 8 section D iii – Can you please provide clarification of what an order status report is and what information MMCAP Infuse requires on this report?

Answer: We are asking if vendors can provide tracking for Members (think of the tracking provided by Amazon or Target for retail orders).

23. Question: Is an official contract with each MFG noting the ability to provide chargebacks required, or will proof of past chargebacks suffice as evidence regarding our ability to provide chargebacks?

Answer: Either would be sufficient.

24. Question: Are the insurance requirement negotiable?

Answer: It will depend on numerous factors such as (but not limited to): types of commodities and services offered by the Responder; how much direct contact they will have with the Membership; if they manufacturer products or are selling private labels; previous litigation; length of operational history; and other factors.

25. Question: Can you provide current pricing or Products?

Answer: No

26. Question: On the pricing tabs, what is the difference between the Price per SUOM column and the

Proposed SUOM Pricing? What responses are expected in those columns?

Answer: For “Proposed SUOM,” you can provide alternative pricing structures (or additional discounts). It is not required though.

27. Question: Please elaborate on the capabilities/interest inquiry relating to “waste disposal,” i.e., does

MMCAP seek information relating products, services or both?

Answer: MMCAP Infuse has direct disposal agreements; we are seeking to see if Responders have the capability to load our pricing.

28. Question: Please clarify the types of products/services included in MMCAP’s inquiry around capabilities/interest relating to responders as a “specialty distributor,” especially with respect to medical products/supplies.

Answer: Some Respondents may specialize in a specific product, service, and/or class of trade.

For an example, selling only to EMS would be considered a specialty focus. More information can be found within the “Description of Project.”

29. Question: Upon review, if there are bid terms and conditions that Responder would seek to negotiate, will MMCAP Infuse allow the Responder to include clarifications or exceptions as part of its bid submission?

Answer: The insurance clause (only to an extent) is the only negotiable term in in Exhibit A.

30. Question: Is DocuSign a valid signature?

Answer: Yes

31. Question: Please clarify what MMCAP Infuse defines as “Pedigree” per page 9, section 7, E.

Answer: Items sought in Environmental, Sustainability, and Governance (ESG) Reports; specifically relating to the Products sold by the Responder.

32. Question: What products are included in the category of Diabetic Products?

Answer: Diabetic syringes, needles, testing strips, monitors, and related data management systems are some examples.

33. Question: What is your definition of Over-The-Counter products?

Answer: Non-prescription pharmaceuticals and ointments.

34. Question: Would Responder be permitted to sell private brand products that are in an Excluded Product Category to the MMCAP Infuse Membership?

Answer: That would be negotiated with the awarded Responders.

35. Question: The RFP document states that "If a Responder desires to offer "excluded products" under an award, Responder must load MMCAP Infuse pricing and show evidence of a contractual arrangement with the manufacturer". For example, in the Pharmaceutical category, if MMCAP Infuse has an agreement with a supplier and Responder has a contractual relationship with that supplier, can Responder sell all of that supplier's products even if some of them are not on the contract?

Answer: That would be negotiated with the awarded Responders.

36. Question: According to the RFP document, "Responders cannot sell Excluded Products/Services to its Membership without prior approval of MMCAP Infuse". Is this a one-time approval by product, category, and or customer or would the approval be an overall approval for that category?

Answer: It would vary based on the circumstances. MMCAP Infuse’s objective is to ensure our Membership is obtaining the best pricing possible when MMCAP Infuse has negotiated arrangements with applicable manufacturers.

37. Question: Would MMCAP Infuse entertain alternate fee structures?

Answer: Yes

38. Question: What products are included in Drug Testing?

Answer: Panels, collection cups, collection and testing services are some examples.

39. Question: How does the distribution process work with Capital Equipment? Is the product Drop Shipped?

Answer: MMCAP Infuse is open to proposals

40. Question: Can a Vendor be a Supplier and sell through an Authorized Distributor? Or, is the Vendor responsible for the delivery of the product to the members

Answer: All Responders must have the capability to delivery products or services directly to a Member. However, if they are both a Supplier (aka Manufacturer) and Authorized Distributor (aka Authorized Distributor), that would be okay.

41. Question: This is a firm fixed RFP. Will there be an Escalation Clause in the agreement?

Answer: For Core and MMCAP Infuse Products, no; for Non-Core yes.

42. Question: Does an MBE and Veteran Owned company outside of Minnesota receive points equal to 6%?

Answer: No

43. Question: Is pricing on the Core items firm for one year from the date of the RFP or award of the contract

Answer: 1 year from the “effective date” of the contract.

44. Question: Can you please advise as to the rough date/time frame of when the contract may be awarded to the vendor, and when the initial 1-year term is estimated to officially begin?

Answer: Calendar Q1 of 2023

45. Question: Will you provide a listing of the MMCAP members?

Answer: Yes, once an agreement is executed.

46. Question: Is it possible to obtain a historical purchase volume summary?

Answer: When MMCAP Infuse is seeking a “best and final offer” to finalize the “Core List” with the awarded Responders, MMCAP Infuse can provide some of that information.