STATE OF ARKANSAS

DEPARTMENT OF SHARED ADMINISTRATIVE SERVICES

OFFICE OF STATE PROCUREMENT

501 Woodlane St., Ste. 220

Little Rock, Arkansas 72201-1023

REQUEST FOR PROPOSAL

SOLICITATION DOCUMENT

SOLICITATION INFORMATION

Solicitation Number: S000000555 Solicitation Issued: July 7, 2026

Description: Pharmacy Services for Human Development Centers (HDCs)

Department: Department of Human Services

PROPOSAL DUE DATE AND SUBMISSION OF RESPONSE DOCUMENTS

Proposal Due Date: July 28, 2026 Time: 3:00 pm, Central Time

Proposal submissions for this Request for Proposal must be submitted through ARBuy, the State’s eProcurement system, by the Proposal Due Date and Time. Proposals received after the Proposal Due Date and Time will be rejected as untimely. ARBuy can be accessed at arbuy.arkansas.gov.

LIVE PROPOSAL OPENING INFORMATION

Teams Meeting Link: Join the meeting now

Meeting ID: 222 772 062 036 1

Passcode: bk7B7hj9

Call in (audio only): 501.244.3310 or find a local number

SAS OFFICE OF STATE PROCUREMENT CONTACT INFORMATION

SAS OSP Procurement Specialist:

Kimberly Haywood Procurement Specialist’s Direct Phone Number:

501-683-2222

Email Address: Kimberly.Haywood@arkansas.gov SAS OSP’s Main Number: 501-324-9316

SAS OSP Website: sas.arkansas.gov/procurement/ https://arbuy.arkansas.gov/ https://teams.microsoft.com/l/meetup-join/19%3ameeting_NGFjNDU0YWYtMzU4NC00YjkwLWIzYjEtNTQ2NzczODhhYWVm%40thread.v2/0?context=%7b%22Tid%22%3a%225ec1d8f0-cb62-4000-b327-8e63b0547048%22%2c%22Oid%22%3a%22d9090c76-7a45-4534-8343-2b68ab648322%22%7d https://dialin.teams.microsoft.com/6b6513dc-a034-48d2-8d06-7e711c4ecc0b?id=719036839 mailto:Kimberly.Haywood@arkansas.gov https://sas.arkansas.gov/procurement/

Rev 09/2025

SECTION 1 – GENERAL INFORMATION AND INSTRUCTIONS

1.1 INTRODUCTION

This Request for Proposal (RFP) is issued by the SAS Office of State Procurement (SAS OSP) for the Arkansas Department of Human Services (“DHS” or “Department”) to obtain pricing and a contract for pharmaceutical deliveries and services at the five (5) Human Development Centers (HDCs) located throughout the State of Arkansas.

Contract will be awarded to the Prospective Contractor determined to have submitted the proposal that is the most advantageous to the State. Direct all questions, comments, or concerns regarding this solicitation to the SAS OSP, not the Department.

NOTE: A previous version of this RFP was released under S000000479 for Pharmacy Services for Human Development Centers (HDCs). Prospective Contractors are encouraged to read through the entire RFP to be aware of any changes that have been made to this current version. Further, Attachment A: S000000479 Questions and Answers are included among this solicitation’s attachments.

1.2 TYPE OF CONTRACT

A. As a result of this RFP, SAS OSP intends to award a contract to a single Contractor.

B. The anticipated starting date for any resulting contract is November 1, 2026, except that the actual contract start date may be adjusted unilaterally by the State for up to three (3) calendar months. By submitting a signed proposal in response to the RFP, the Prospective Contractor represents and warrants that it will honor its proposal as being held open as irrevocable for this period.

C. The initial term of any resulting contract will be for four (4) years. Upon mutual agreement by the Contractor and Department, the contract may be renewed by SAS OSP for up to three (3) additional one-year terms or portions thereof, not to exceed a total aggregate contract term of seven (7) consecutive years.

1.3 DEFINITION OF TERMS

A. Unless otherwise defined herein, all terms defined in Arkansas Procurement Law have the same meaning herein.

B. “Prospective Contractor” means a responsible offeror who submits a proposal in response to this Solicitation.

C. The terms “Request for Proposal,” “RFP,” and “Solicitation” are used synonymously in this document.

D. “Requirement” means a term, condition, provision, deliverable, Specification, or a combination thereof, that is obligated under the Solicitation, resulting contract, or both.

E. “Responsive Proposal” means a proposal submitted in response to this Solicitation that conforms in all material respects to this RFP.

F. “Shall” and “must” mean the imperative and are used to identify Requirements.

G. “Specification” means any technical or purchase description or other description of the physical or functional characteristics, or of the nature, of a commodity or service. “Specification” may include a description of any Requirement for inspecting, testing, or preparing a commodity or service for delivery.

H. “State” means the State of Arkansas. When the term “State” is used herein to reference any obligation of the State under a contract that results from this Solicitation, that obligation is limited to the Department using such a contract.

1.4 SOLICITATION SCHEDULE

For informational purposes, SAS OSP is providing a Solicitation Schedule; however, dates listed and noted with an asterisk (*) are anticipated dates only and are subject to change at the discretion of the State. All times are listed in Central Time.

TABLE A: TENTATIVE SOLICITATION SCHEDULE

ACTIVITY DATE

Deadline for Prospective Contractor Questions July 14, 2026

Answers to Questions Posted to ARBuy* July 21, 2026

Proposal Due Date July 28, 2026, at 3 pm

Initial Proposal Evaluation* August 3, 2026

Interviews* August 10 – 11, 2026

Final Proposal Evaluation* August 11, 2026

Discussions Kick Off Meeting* August 18, 2026

Finalize Discussions* September 1, 2026

Post Anticipation to Award* September 11 - 25, 2026

Award Contract* November 1, 2026

1.5 CLARIFICATION OF SOLICITATION

A. Prospective Contractors should submit questions requesting clarification of information contained in this Solicitation via the Solicitation posting in ARBuy by the date and time listed in Table A.

1. For each question submitted, Prospective Contractor should reference the specific Solicitation item number to which the question refers, as applicable.

2. Prospective Contractors’ written questions will be consolidated and responded to by the State as deemed appropriate. The State’s consolidated written response is anticipated to be posted to the Solicitation posting in ARBuy by the close of business on the date provided in Table A. If Prospective Contractor questions are unclear or non-substantive in nature, the State may request clarification of a question(s) or decline to answer.

B. The Prospective Contractor should notify the SAS OSP Procurement Specialist of any Requirements that precludes the Prospective Contractor from submitting a Responsive Proposal.

C. Prospective Contractors may contact the SAS OSP Procurement Specialist with non-substantive questions at any time prior to the proposal opening.

D. An oral statement by SAS OSP will not be part of any contract resulting from this Solicitation and may not reasonably be relied on by any Prospective Contractor as an aid to interpretation unless it is reduced to writing and expressly adopted by SAS OSP.

E. Only an addendum written and authorized by the State will modify the Solicitation.

1.6 RESPONSE DOCUMENTS

A. All proposal responses must be submitted through ARBuy, the State’s eProcurement system. The system can be accessed at arbuy.arkansas.gov.

1. Prospective Contractors must be registered in ARBuy to submit proposals responses.

B. Technical Proposal Packet

1. Prospective Contractors shall utilize the Technical Proposal Packet to submit their responses.

2. The following items are proposal Submission Requirements and must be submitted as part of a Prospective Contractor’s proposal response.

a. Signed Proposal Signature Page; signature may be ink or digital.

b. Technical Proposal response to the Information for Evaluation section included in the Technical Proposal Packet, which must be in the English language.

https://arbuy.arkansas.gov/

c. Completed Official Solicitation Price Sheet attached to the Solicitation (see RFP Section 1.8)

d. Recommended Options Form

i. The Recommended Options form included in the Technical Proposal Packet allows Prospective Contractors to identify any recommended options or optional service ideas that may benefit the State that were not included in the Requirements and the proposed solution.

e. Copy of Prospective Contractor’s Equal Opportunity Policy

i. Pursuant to Arkansas Code Annotated § 19-60-104, OSP requires a Prospective Contractor bidding on a state contract to submit a copy of the Prospective Contractor’s Equal Opportunity (EO) Policy.

ii. Prospective Contractors not required by law to have an EO Policy must submit a written statement to that effect.

f. Proposed Subcontractors Form (see RFP Section 1.7)

g. One (1) redacted (marked Redacted) copy of the Prospective Contractor’s proposal response (see Proprietary Information), if applicable.

3. The following items, which must be submitted prior to a contract award to the Prospective Contractor, may also be included with the Prospective Contractor’s proposal:

a. EO 98-04: Contract and Grant Disclosure Form (see SRV-1, section 11)

b. Voluntary Product Accessibility Template (VPAT), if applicable

4. Prospective Contractors should not include any other documents or ancillary information, such as a cover letter or promotional/marketing information.

C. Prospective Contractors should not alter language in Solicitation document(s) or Official Solicitation Price Sheet provided by the State.

D. Prospective Contractor’s proposals cannot be altered or amended after the proposal opening except as permitted by law or rule.

1.7 SUBCONTRACTORS

A. Prospective Contractors shall complete and submit the Proposed Subcontractors Form included in the Technical Proposal Packet to indicate the Prospective Contractor’s intent to utilize, or to not utilize, subcontractors.

B. Prospective Contractors shall identify the service(s) that will be provided by each subcontractor under the resulting contract during Discussions. Prospective Contractors should not attach any additional information to the Proposed Subcontractors Form.

C. Additional subcontractor information may be required or requested in the following sections of this Solicitation. Prospective Contractors should not attach any additional information to the Proposed Subcontractors Form.

D. The Contractor shall ensure the State’s interest, including any rights granted in the resulting contract, is protected and reserved in any agreement or scope of work between the Contractor and its subcontractor(s).

E. Upon DHS request, Contractor shall provide a copy of the subcontractor’s agreement or scope of work.

F. The utilization of any proposed subcontractor is subject to approval by DHS. DHS reserves the right to request removal of a subcontractor, for any reason, upon written notice to the Contractor.

https://sas.arkansas.gov/procurement/forms-and-reporting/#:~:text=Services%20Contract%20(SRV%2D1)%20Fillable%20Form https://www.section508.gov/sell/vpat/

1.8 PRICING

A. Pricing must include all tasks and activities required to provide all services required by this

Solicitation and under a resulting contract, including without limitation transitional activities.

B. Any cost not identified by the Contractor but subsequently incurred in order to achieve successful operation shall be borne by the Contractor.

C. Quantities stated are estimates only and are not guaranteed. Prospective Contractor shall bid unit price on the estimated quantity and unit of measure specified.

D. The State may order more or less than the estimated quantity on term contracts, and the Contractor shall sell to the Department quantities ordered at no more than the bid price.

E. Prices must be firm offers. Price increases may be considered at the time of contract renewal only if the request for an increase is submitted in writing to DHS and the DHS Office of Procurement (OP) at least six (6) months prior to contract renewal with accompanying justification.

1. The accompanying justification must demonstrate that the increase in price is based on unforeseen circumstances not considered in the initial bid, is based on an increased cost to Contractor, and the proposed pricing is competitive in the marketplace. DHS shall have the right to require additional information pertaining to the requested increase.

2. Increases will not be considered to increase profit or margins.

3. DHS shall have the right to approve or deny the request.

F. Medicaid Enrolled Provider Rates. For any Contractors who are also enrolled Medicaid providers, such rates and any changes thereto are governed by statutory approval protocols. As such, DHS cannot unilaterally increase approved Medicaid rates through a contract amendment. See Ark. Code Ann. §§ 20-76-112 and 20-77-110.

G. If pricing documents do not allow for accurate pricing, Prospective Contractor should notify the SAS OSP Procurement Specialist at least seventy-two (72) hours before the bid opening time.

H. Pricing must be proposed in U.S. dollars and cents.

I. Discount from list bids pricing is not acceptable unless requested elsewhere in the Solicitation.

J. State and local sales taxes should not be included in the bid price. Trade discounts should be deducted from the unit price and the net price should be shown in the bid.

SECTION 2 – REQUIREMENTS

2.1 BACKGROUND AND CURRENT ENVIRONMENT

The HDC’s are Intermediate Care Facilities for individuals with intellectual disabilities (ICF/IID), they operate on a full-time basis, 365 days per year, with total care available 24 hours per day.

There are currently five (5) HDCs:

Human Development Center Location Licensed Bed Capacity Functional Bed Capacity

Arkadelphia Human Development Center 1 Prator Drive Arkadelphia, AR 71923-0070

125 110

Booneville Human Development Center 87 Reed Road Booneville, AR 72927

138 128

Conway Human Development Center 150 E. Siebenmorgan Road Conway, AR 72032

518 450

Jonesboro Human Development Center 4701 Colony Drive Jonesboro, AR 72401

109 106

Southeast Arkansas Human Development Center #1 Center Circle Warren, AR 71671

100 96

The historical data below is a current estimate of our unique members and pharmacy services medication disbursement for the Conway Human Development Center. This data is for informational purposes only.

Conway Human Development Center Historical Data

Category CY 2025 CY 2024 CY 2023

# of Unique Member 464 458 471

# of Medications 39,952 40,962 40,057

# of OTCs 22,483 24,226 23,111

Total Amount 200,690 224,729 205,356

2.2 OBJECTIVE AND GOALS

The Department is seeking to procure a Contractor who will provide the following:

• Services: Provide comprehensive pharmacy services that ensure safe, effective, and individualized medication delivery and management for HDC residents.

• Medication Safety & Accuracy: Implement rigorous systems for ordering, dispensing, delivering, and monitoring medications to minimize errors and adverse drug events in collaboration with each HDC’s on-site medical team.

• Innovation: Incorporate technology such as electronic medication administration records (eMAR), telepharmacy, and data analytics to improve service delivery and oversight that will interface with the State’s current Electronic Health Record (EHR) system used at all HDCs.

2.3 PROSPECTIVE CONTRACTOR MINIMUM QUALIFICATIONS

A. The Prospective Contractor shall have a Pharmaceutical License issued by the Arkansas State

Board of Pharmacy and be authorized to dispense medication in the State of Arkansas. For verification purposes, Prospective Contractor shall provide a copy of the license prior to award.

https://humanservices.arkansas.gov/offices/arkadelphia-hdc/ https://humanservices.arkansas.gov/offices/arkadelphia-hdc/ https://humanservices.arkansas.gov/offices/booneville-hdc/ https://humanservices.arkansas.gov/offices/booneville-hdc/ https://humanservices.arkansas.gov/offices/conway-hdc/ https://humanservices.arkansas.gov/offices/conway-hdc/ https://humanservices.arkansas.gov/offices/jonesboro-hdc/ https://humanservices.arkansas.gov/offices/jonesboro-hdc/ https://humanservices.arkansas.gov/offices/southeast-arkansas-hdc/ https://humanservices.arkansas.gov/offices/southeast-arkansas-hdc/

B. The Prospective Contractor shall have a minimum of five (5) years’ experience in dispensing pharmaceuticals in long-term care facilities.

C. The Prospective Contractor shall be registered to do business in the State of Arkansas and in good standing by the initial start of any resulting contract. Upon DHS request, Contractor shall provide a Certificate of Good Standing, Certificate of Authority, other required Arkansas Secretary of State documentation such as non-filing or nonqualifying statements.

2.4 GENERAL REQUIREMENTS

A. The Contractor shall comply with all requirements of governmental agencies that license, certify, or regulate the HDCs. This must include, but is not limited to, labeling all medications and providing the necessary equipment required to implement a medication administration system that complies with all applicable intermediate care facility statutes and regulations.

B. The Contractor shall be subject matter expert regarding the Medicaid Formulary/Preferred Drug List.

C. The Contractor shall review all medications submitted for applicable generics/most cost-effective routes.

D. The Contractor shall provide routine medications as well as have a system, pre-approved by DHS, in place for floor stock medications, as needed Pro re nata (PRN) medications, and emergency/urgently needed medications.

2.5 PHARMACY SERVICES

A. The Contractor shall provide pharmacy services for HDCs as described in the RFP.

B. The Contractor shall maintain accurate counts of prescriptions and over-the-counter (OTC) pharmaceuticals dispensed and maintained in inventory.

C. The Contractor shall check medication lists for allergies and medication interactions, especially when new medications or medication changes are ordered.

D. The Contractor shall provide a DHS approved system for checking medications in inventory for accuracy of blister packs/bottles.

E. The Contractor shall provide a bar-code system in the pharmacy to reduce medication dispensing errors and improve the accuracy of ordering and receiving medications.

F. The Contractor shall provide a DHS approved medication distribution system utilizing a cycle delivery for all routine oral dosage forms on a full month cycle (i.e. 28, 29, 30, or 31) day cycle that complies with all applicable laws and regulations.

G. The Contractor shall provide a method for medication management for HDC resident home visits.

H. Whenever possible, the Contractor shall have a blister pack system for unit dose medication dispensing that complies with all applicable laws and regulations.

1. While this is the preferred method for both prescription and OTC medications, DHS understands that not all medications will be provided in a blister pack delivery system for a variety of reasons.

2. When blister packs cannot be used, the Contractor shall notify the HDC and shall provide an alternative DHS security-approved packaging system for that medication.

I. The Contractor shall dispense scheduled and OTC medications for treatment of HDC residents as ordered by a Doctor of Medicine or other health care professional, who is duly licensed and qualified under the laws of this jurisdiction to prescribe:

1. OTC medications, which include, without limitation, diabetic test strips and/or any diabetic supplies.

2. Prescription containers (including blister packs), which must be labeled to include the individual’s name, date, prescribing physician, medication name, lot number, strength, dosage, https://www.ark.org/sos/good_standing/index.php https://www.sos.arkansas.gov/business-commercial-services-bcs/forms-fees/corporations/foreign-corporations https://www.sos.arkansas.gov/business-commercial-services-bcs directions for administration, and any applicable warnings or dietary instructions or other information in compliance with federal regulations and the laws of the State of Arkansas.

J. Medication orders must be dispensed on a full month cycle (i.e. 28, 29, 30, or 31) unless a prescription is prescribed for a shorter duration, in a blister packaging system or alternative DHS security-approved packaging system for pill forms.

K. Liquid medications, including vaccines, must be manufactured, and bottled for pharmacy use and must bear the contracting pharmacy’s label.

L. The Contractor shall be able to provide compounded medications or arrange orders with another provider.

M. Except for medication carts, the Contractor shall be responsible for provision of equipment necessary for the provision of pharmacy services.

N. The Contractor shall provide Schedule II Narcotics in accordance with General Regulation 7-04:

Controlled Substances and any successor regulations, as amended.

O. The Contractor shall provide Off Cycle medications including, but not limited to, therapeutic and new admission short cycle medications.

2.6 PRIOR AUTHORIZATIONS (PA)

A. The Contractor shall provide a clear and concise system of documentation to process prior authorizations of medications.

B. The Contractor shall coordinate with the HDC medical staff located at each individual HDC, to gather information needed for prior authorization.

C. The Contractor shall not provide medication that requires a prior authorization from the resident’s primary insurance, except in emergencies, until prior authorization has been obtained or approved by the HDC Superintendent & Medical Director.

2.7 MEDICATION DELIVERY REQUIREMENT

A. The Contractor shall deliver medications up to three (3) times daily, Monday through Saturday as needed.

B. The Contractor shall be available twenty-four (24) hours per day, seven (7) days a week for urgent/emergent medication orders and Schedule II Narcotics, delivered within two (2) hours from the time ordered.

1. These new orders called in by 2:00 p.m. CST must be delivered on the same day.

C. The Contractor shall monitor the ordering and receiving of medications to ensure medications are ordered timely and are delivered accurately and timely.

D. The Contractor shall verify that the intended recipient is not deceased and remains at the HDC before it hands-off of any medications to the HDC.

E. The Contractor shall provide backup plans for urgent/emergent medication deliveries in the event of hazardous road conditions, natural disasters, etc. Urgent/emergent medication deliveries must be completed as quickly as possible in coordination with DHS.

F. The Contractor shall give DHS and the impacted HDC immediate notice of any anticipated delays that will affect the service delivery requirements.

G. The Contractor shall have professional staff available to fulfill the requirements of this RFP which includes nights, weekends, and holidays as requested by each of the five (5) HDCs locations listed in Section 2.1.

H. The Contractor shall maintain reliable transportation, to include insurance, for the beneficial and expeditious provision of pharmacy services and delivery.

2.8 BILLING AND INVOICES

A. The Contractor shall bill the appropriate Medicaid, Medicare Part D, or private insurance(s).

B. The Contractor shall not bill DHS unless:

1. All insurance payments have been exhausted (reconsiderations, appeals, PAs).

2. The Contractor has made three (3) documented attempts to work with the designated staff at the HDCs to correct any billing errors that may occur that result in a denial from the resident's insurance

3. HDC Medical Director has reviewed the case, explored all alternatives, and documented the need to pay for outside of Medicaid (or other insurance/Medicare).

a. For any Rx being billed to the HDC, the invoice must indicate who at the HDC approved it.

C. The Contractor shall make recommendations to the prescriber if prescriptions are not currently covered by Medicaid or primary insurance.

D. The Contractor shall set pricing for prescription items not covered by insurance at the National Average Drug Acquisition Cost (NADAC) rate or lower.

E. The Contractor shall continue to seek Medicaid reimbursement up to the 365-day limit throughout the entirety of the contract.

F. Invoices must be split to indicate OTCs and prescriptions separately.

2.9 STAFFING REQUIREMENTS

A. The Prospective Contractor shall provide a Staffing Plan during the Discussions Phase. The Staffing

Plan must, at minimum, meet all Requirements set forth in this section of the RFP.

B. The Contractor shall add specialized personnel, such as a pharmacoeconomist, to provide expertise in drug coverage and cost effectiveness of pharmacy programs upon DHS request.

C. The Contractor shall designate a pharmacy liaison to assist DHS with assessing resident needs and providing product information.

1. The pharmacy liaison shall be subject to DHS approval and must be removed upon DHS request.

2. The pharmacy liaison shall conduct monthly visits to each HDC and shall provide training and education.

D. The Contractor shall assist DHS in resolving order and delivery issues.

E. The Contractor shall have a plan to address the vacancies of the Project Manager or other key personnel.

F. In the event of the vacancy of a key person, the Contractor shall provide replacement candidates to DHS for review within fifteen (15) calendar days of the Contractor learning of the vacancy.

G. DHS shall have the right to approve or reject proposed replacements if they do not meet the minimum requirements set forth in the RFP.

H. The Contractor shall replace staff members upon request by DHS for justified reasons including, but not limited to, performance, behavior, and security.

2.10 BACKGROUND CHECKS

A. The Contractor shall comply with Ark. Code Ann. § 21-15-101 et seq., and any amendments thereto, which requires all employees of state agencies in designated positions (including those providing care, supervision, treatment, or any other services to the elderly, intellectually or developmentally disabled persons, individuals with mental illnesses, or children who reside in any state-operated facility) or a position in which the applicant or employee will have direct contact with a child, to submit to specified background and registry checks.

B. An applicant or employee found to have been convicted of a crime listed in Ark. Code Ann. § 21-15- 101 et seq., shall be prohibited from providing services in a designated position as defined by Arkansas law or being present at the facility.

C. An applicant or employee found to have been named as an offender or perpetrator in a true, substantiated, or founded report from the Child Maltreatment Central Registry, the Adult Abuse Central Registry, or the Certified Nursing Assistant/ Employment Clearance Registry, shall be immediately disqualified.

2.11 REPORTING

A. The Contractor shall develop and produce reports in the frequency and format designated by DHS.

B. The Contractor shall produce a monthly report for DHS detailing spend for each HDC by, at minimum, the following:

1. Member

2. Prescription and OTC

3. Billing Method

4. Cost

5. Prescriber

6. If a prior authorization was required/obtained

7. Any insurance denials

2.12 SYSTEM APPLICATION REQUIREMENTS

A. Within six (6) months of the contract start date, the Contractor shall have a computer system in place that must interface with each HDCs’ electronic health records (EHR), that is readily available and capable of providing and maintaining medication profiles on every individual resident for medical staff. HDCs currently use MatrixCare hosted software as their EHR system.

B. The system must be responsive to medical staff needs while adhering to the regulations for the protection of patient privacy including, without limitation, the Health Insurance Portability and Accountability Act (HIPAA) and Health Information Technology for Economic and Clinical Health

(HITECH).

C. The system must adhere to federal and state pharmacy interface and interoperability regulations.

D. The system must maintain data profiles for each resident.

E. The system must provide error detection, logging, and alert mechanisms to monitor failed transactions or discrepancies. The Contractor shall identify & communicate the root cause and plans to remediate to DHS within twenty-four (24) hours of the incident.

F. The State prefers the proposed system to be hosted on a private cloud or a virtual private cloud. For the purposes of this RFP, a private cloud is either a single-tenant environment where the hardware, storage, and network are dedicated to the State, or a virtual private cloud, a multi-tenant environment with network isolation and private subnets. Contractors may propose other types of cloud in their proposal.

G. The servers and data associated with the resulting contract must reside in the continental United States.

H. The Contractor shall perform all work on the system from within the continental United States of America. The system must not be accessed from outside of the U.S.

2.13 SYSTEM INTERFACE REQUIREMENTS

A. The Contractor shall ensure the interface complies with data privacy regulations, including but not limited to HIPAA and HITECH, and provides secure transmission and storage of resident information.

B. The Contractor shall provide interfaces that secure and protect (encrypt) data and associated infrastructure from a confidentiality, integrity, and availability perspective while complying with HIPPA and National Council for Prescription Drug Programs (NCPDP) requirements.

C. The Contractor shall maintain a detailed audit trail of all transactions between the pharmacy system and EHR, including prescription changes, refills, and communications. Audit trail can be accessed by authorized user.

D. The Contractor shall ensure the interface adheres to national e-prescribing standards including, but not limited to, NCPDP in the U.S., for secure, standardized prescription transmission.

E. The Contractor shall be financially responsible for implementing and maintaining interface connections.

F. The pharmacy must have a direct connection installed with MatrixCare (or DHS contracted EHR/EMR) within six (6) months that meets all state of Arkansas, federal, and MatrixCare interface requirements for Admission, Discharge and Transfer (ADT), e-prescribe and prescription fulfillment.

G. The interface design must support continuance operation despite failure or unavailability of one or more individual technology solution components (downtime solution).

H. The interface must be scalable to accommodate changes in scale including changes in user population, transaction volume, throughput and geographical distribution. The interface must be capable of making any changes to the interface data elements and testing those changes.

I. The interface must be real-time and/or batch with the applications and data sources.

J. The interface must be bidirectional between pharmacy system and EHR system.

K. The interface must allow real-time exchange of patient/resident demographics, allergies, contact information, and insurance details.

L. The interface must allow the seamless transmission of prescription orders from the EHR to the pharmacy system, including drug name, dosage, quantity, class, and instructions.

M. The interface must transmit HDC resident medication history within the pharmacy system.

2.14 PRIVACY AND SECURITY

A. The Contractor shall ensure and maintain compliance with the most current version of HIPAA, HITECH, The Privacy Act of 1974, Arkansas Personal Information Protection Act (A.C.A. § 4-110- 104), and other Federal and State privacy and security standards.

B. The State of Arkansas Security and Privacy policies (Policies: 1001 -1003, 1053, 1074, 1095, 4001 - 4013, and 5000 - 5011) can be found at: https://humanservices.arkansas.gov/dhs-policies/.

C. Prior to award, the Contractor shall complete and sign a Business Associate Agreement (BAA), if applicable. (See Attachment B – Business Associate Agreement (BAA))

D. The Contractor shall disclose any breaches of privacy or security by contacting the DHS Information Technology Security Office within one (1) business day of the discovery of the breach (unless otherwise approved by DHS) at dhsspa@dhs.arkansas.gov.

E. The Contractor shall use protected health information (PHI) and other Confidential Information only in a manner that is necessary to provide the services required in this Solicitation and under any resulting contract.

1. For purposes of any resulting contract, any information furnished or made available to the Contractor relating to DHS clients, the financial condition, results of operation, business, customers, properties, assets, liabilities or information relating to recipients and providers https://humanservices.arkansas.gov/dhs-policies/ mailto:DHSITSecurity@dhs.arkansas.gov including, but not limited to, PHI as defined by the Privacy Rule pursuant to the HIPAA of 1996, is collectively referred to as "Confidential Information."

F. The Contractor shall safeguard the use and disclosure of, and restrict access to, PHI, and other Confidential Information.

G. The Contractor and DHS acknowledge that the disclosure of Confidential Information in contravention of the provisions hereof would damage the party to whom the information disclosed relates and such party has the right to seek all remedies at law or equity to minimize such damage and to obtain compensation, therefore.

H. The Contractor shall retain all PHI, as defined by HIPAA, for ten (10) years.

I. The Contractor shall safeguard the use and disclosure of information concerning applicants for or recipients of Title XIX services in accordance with 42 CFR Part 431, Subpart F, and shall comply with 45 CFR Parts 160 and 164 and shall restrict access to and disclosure of such information in compliance with federal and state laws and regulations.

2.15 INSURANCE REQUIREMENTS

A. Prior to contract awarding, the Contractor shall furnish an approved “Certificate of Insurance” and shall maintain the insurance requirements throughout the contract and any/all extensions.

B. The Contractor shall maintain insurance for the contract period and any resultant renewals in the minimum amount:

1. One million dollars ($1,000,000) per occurrence, general liability.

2. Three million dollars ($3,000,000) aggregate, for professional liability, negligence, errors and omissions and public liability.

C. The insurance must have limits sufficient to cover losses resulting from or arising out of the Contractor’s action or inaction in the performance of the contract by the Contractor’s agents, servants, employees, or subcontractors.

D. The insurance must cover and continue to cover all occurrences during the term of this contract and any extensions thereof.

E. All insurance policies must be with a company licensed by the State of Arkansas to do business and to provide such policies.

F. The insurance must not be modified without DHS approval.

G. The Contractor shall notify DHS, not less than forty-five (45) calendar days in advance of any non-renewal, cancellation, or expiration of their insurance policy. In the event DHS receives a notice of non-renewal, the Contractor shall provide DHS with an insurance policy from another carrier at least thirty (30) calendar days prior to the expiration of the insurance policy then in effect.

H. DHS shall have the right to inspect the original insurance policies held by the Contractor.

2.16 PROPERTY AND SOFTWARE

A. All documents and deliverables prepared by Contractor and accepted by DHS shall become the property of DHS and shall not be used for any other purpose by Contractor without DHS's specific written consent.

B. Any specifications, drawings, technical information, dies, cuts, negatives, positives, data, or any other commodity furnished to Contractor hereunder or in contemplation hereof or developed by Contractor for use hereunder shall remain property of the State, shall be kept confidential, shall be used only as expressly authorized, and shall be returned at Contractor's expense to the F.O.B. point provided by DHS or OSP.

C. The Contractor shall properly identify items being returned.

D. Property, including intellectual property, acquired or created by Contractor as a Contract deliverable or as a result of its performance of contract services, is the property of DHS that shall be used only as expressly authorized and kept confidential as permitted or required by law.

E. The Contractor shall be responsible for the proper custody and care of all DHS owned property, including DHS owned property used in connection with the performance of this contract, and Contractor agrees to reimburse DHS for its loss or damage due to negligence, theft, vandalism, or Acts of God.

F. In accordance with Ark. Code Ann. § 19-60-106, any data received or stored by a Contractor for storage services, software services, or any other Contract service is the property of DHS.

1. For the purposes of this section, “Data” means recorded information, regardless of form or characteristic.

G. DHS reserves the right to request that Contractor provide a detailed data transition plan and/or return its data at any time, for any purpose.

H. The Contractor will have access to all applications software required by DHS for use in the performance of the services covered in the resulting contract, subject to customary confidentiality and other license terms and conditions.

1. No changes in the applications software may be made without the written consent of DHS if the change would cause DHS to incur additional costs for either hardware or software upgrades or both.

I. DHS shall retain ownership of any code, algorithm, or methodology created by Contractor and used in the development of a deliverable under a resulting contract.

J. Any applications software developed by Contractor in the performance of the services under the resulting contract must become the property of the State of Arkansas at no additional cost.

K. Any existing software applications owned by Contractor and used in the performance of the services under the resulting contract must be granted to the State of Arkansas at no additional cost, subject to customary confidentiality and other license terms and conditions.

L. The Contractor shall, as applicable, due to resulting contract funding source(s), provide DHS ownership of any software that is designed, developed, installed, or enhanced with Federal funding per Federal Financial Participation (FFP) (45 CFR 95.617).

M. The Contractor shall, as applicable, due to resulting contract funding source(s), provide DHS with a royalty-free, nonexclusive, and irrevocable license to reproduce, publish, or otherwise use and authorize others to use for federal and state government purposes software, modifications to software, and documentation that is designed, developed, installed, or enhanced with Federal funding per FFP (42 CFR 433.112).

N. Any products or applications produced by the Contractor and subject to 2 CFR § 200.315 may be licensed, reused, or reproduced by the federal government to the extent permitted by law. The Department will notify the Contractor within a reasonable timeframe of the federal government's request to reuse or reproduce any applicable product or application to share with other states in accordance with the applicable federal regulation.

2.17 CONFLICT OF INTEREST MITIGATION

A. The Contractor shall comply with the terms of the DHS Organizational or Personal Conflict of Interest provisions and disclose all actual, apparent, or potential conflicts of interest to DHS within five (5) business days of having knowledge of them, unless otherwise approved by DHS.

B. The Contractor shall develop a mitigation plan as requested which must be approved and accepted by DHS prior to implementation. Changes to the approved mitigation plan must be approved in advance by DHS.

2.18 MANDATED REPORTING

A. Pursuant to Ark. Code Ann. §§ 12-18-402(b)(10) and 12-12-1708(a)(1)(AA), Contractor and all of its employees, agents, and all Subcontractors and Subcontractor’s employees and agents shall immediately make a report to the Child Abuse Hotline or the Adult Maltreatment Hotline (based on type of maltreatment) if Contractor or any of its employees, agents, or Subcontractors’ employees and agents, while performing duties under this contract, have reasonable cause to suspect that:

1. A child has been subjected to child maltreatment.

2. A child died as a result of child maltreatment.

3. A child died suddenly and unexpectedly.

4. Observe a child being subjected to conditions or circumstances that would reasonably result in child maltreatment.

5. An endangered person or an impaired person has been subjected to conditions or circumstances that constitute adult maltreatment or long-term care facility resident maltreatment.

2.19 AUDIT REQUIREMENTS

A. The Contractor shall comply with DHS audit requirements as outlined in “Arkansas Department of

Human Services Audit Guidelines.”

B. Copies may be obtained from:

Arkansas Department of Human Services Office of Payment Integrity Audit Coordination P.O. Box 1437 – Slot S270 Little Rock, Arkansas 72203-1437

2.20 CONTRACT REMEDIES

A. The Contractor shall be liable to the State for all actual and direct damages caused by Contractor’s default.

1. The State may self-perform or buy substitute deliverables from a third party for those that were to be provided by Contractor.

2. The State may recover the costs associated with self-performance or acquiring substitute deliverables, less any expenses or costs avoided by Contractor’s default.

3. If actual and direct damages are uncertain or difficult to determine, or are otherwise not addressed in the resulting contract, the State may recover liquidated damages.

B. Unless otherwise specified, liquidated damages will be in the amount of 1% of the value of the order, deliverable, or milestone that are the subject of the default, for every day that the default is not cured by Contractor.

1. Any liquidated damages agreed upon in the Performance Standards attachment shall apply and the State will not invoke duplicative damages.

C. The State may withhold payment or set off the amount of any liquidated damages, other damages, or any other obligation of Contractor or its subsidiaries to the State, including any amounts Contractor owes to the State under the resulting contract, against any payments due to Contractor under the resulting contract.

2.21 EXPIRATION OR TERMINATION PROCEDURE REQUIREMENTS

A. Upon delivery by electronic mail or certified mail of a Notice of Termination specifying the nature of the termination and the date upon which such termination becomes effective, Contractor shall complete the following unless otherwise directed by DHS:

1. Stop work under the resulting contract on the date and to the extent specified in the Notice of Termination which may or may not be the same date as contract termination.

2. Place no further orders or enter into any additional subcontracts for services.

3. Terminate all orders and subcontracts to the extent that they relate to the performance of work terminated by the Notice of Termination.

4. Assign to DHS in the manner and to the extent directed by the DHS representative all of the rights, title, and interest of Contractor in the orders or subcontracts so terminated.

a. DHS shall have the right, in its discretion, to settle or pay any and all claims arising out of the termination of such orders and subcontracts.

5. With approval or ratification of the DHS representative, settle all outstanding liabilities and claims arising out of terminated orders and subcontracts, the cost of which would be reimbursable, in whole or part, under the contract.

6. Transfer title to DHS and deliver in the manner at the time and extent directed by the DHS representative, all files, data, information, manuals, or other documentation or property, in any form whatsoever, that relate to the work terminated by the Notice of Termination.

7. Complete the performance of such part of the work as shall not have been terminated by the Notice of Termination or stop work order.

8. Take such action as may be necessary, or as the DHS representative may direct, for the protection and preservation of the property related to the contract in the Contractor’s possession and in which DHS has or may acquire an interest.

B. The Contractor shall proceed immediately with the performance of the above obligations notwithstanding any delay in determining or adjusting the amount of any item or reimbursable price under this subsection.

C. After receipt of a Notice of Termination, Contractor shall submit to DHS all outstanding claims within sixty (60) calendar days.

D. The Contractor and DHS may agree upon the amounts to be paid to Contractor by reason of the total or partial termination of work as described in this subsection.

E. In the event of Contractor and DHS’s failure to agree, in whole or in part, on the amount to be paid to Contractor in connection with the total or partial termination of work as described in this section, DHS will determine, on the basis of information available, the amount, if any, due to Contractor by reason of termination and shall pay to the Contractor the amount so determined.

2.22 TRANSITION PLAN PROCEDURES

A. DHS reserves the right to request submission of a transition plan and/or the timely delivery of any

DHS data, contract deliverables, at any time, for any reason, during the contract term.

B. Within thirty (30) calendar days of DHS request, Contractor shall submit for approval a detailed plan for transitioning all contracted services to DHS, or to another Contractor selected by DHS to provide the contracted services.

1. The Contractor shall not implement the plan until it has received DHS’s written approval of the plan, including pre-approval of the format and delivery method of all proprietary data, and all contract deliverables.

2. The Contractor shall take all reasonable action to provide a minimally disruptive turnover.

C. The plan must include the following, without limitation:

1. The Contractor’s proposed approach to the transition;

2. List of the Contractor’s tasks, subtasks, and schedule for all transition activities;

3. The Contractor’s organizational chart and staffing matrix for all staff responsible for transition activities including title, telephone number, and email address;

4. Operational tasks and procedures necessary to support ongoing operations during transition;

5. A detailed description of the services required by the new Contractor to complete the transition;

6. A detailed description of the transfer of proprietary data. DHS shall pre-approve the format and delivery method of all proprietary data, and the plan must include, at minimum, the following:

a. Provisions for the delivery of all proprietary data collected and/or created during the life of the contract to DHS thirty (30) calendar days prior to the contract end date.

b. Provisions for the delivery of all proprietary data collected and/or created during the final thirty (30) business days of the contract, or any proprietary data not captured in the initial delivery no more than fifteen (15) business days following the contract end date.

7. DHS reserves the right to request re-submission of any proprietary information deemed unacceptable after Contractor’s initial transfer.

D. The Contractor shall work in good faith and cooperate with any new vendor and the State during the transition period and shall participate in any transitional meetings as required.

1. Upon DHS request, transition coordination activities shall include “shoulder to shoulder” observation, training, and support by the incumbent Contractor for DHS and the new vendor.

2. Ten (10) business days after the completed transition, Contractor shall provide DHS with a Transition Results Report documenting the results of each transition plan step.

E. The transition shall not be considered complete until this document is approved by DHS.

2.23 PERFORMANCE STANDARDS

A. State law requires that contracts for services include Performance Standards for measuring the overall quality of services that a Contractor shall provide.

B. The State may be open to negotiations of Performance Standards prior to contract award, prior to the commencement of services, or at times throughout the contract duration.

C. Failure to meet the minimum Performance Standards as specified will result in the assessment of damages, as indicated in the Performance Standards. In the event a Performance Standard is not met, Contractor will have the opportunity to defend or respond to the insufficiency. The State has the right to waive damages if it determines there were extenuating factors beyond Contractor’s control that hindered the performance of services. In these instances, the State has final determination of the performance acceptability.

D. Should any compensation be owed to the Department due to the assessment of damages, Contractor shall follow the Department’s direction regarding the required compensation process.

E. Contractor’s failure to comply with obligations of a resulting contract, any applicable State and federal laws, regulations, and policies in performance of the services shall be deemed insufficient and unacceptable performance.

F. During the term of the resulting contract, the State will complete sufficient performance evaluation(s) to determine if Contractor’s performance is acceptable. The State’s determination of “Acceptable Performance” as defined herein shall be final and controlling. In the event a Performance Standard is not met, Contractor will have the opportunity to defend, respond to, or cure the insufficiency to the State’s satisfaction.

G. The State shall have the right to modify, add, or delete Performance Standards throughout the term of the resulting contract, should the State determine it is in its best interest to do so. Any changes or additions to Performance Standards will be made in good faith following acceptable industry standards and may include Contractor input so as to establish standards that are reasonably achievable. All changes to Performance Standards shall be in writing as agreed to by the parties.

H. Acceptable performance is defined as one hundred percent (100%) compliance with all…