SAM-NPV GEN IV Draft SOW.docx

SOLICITATION SPE2DX-20-R-0001 Page 69 of 69

DLA TROOP SUPPORT NATIONAL PRIME VENDOR

STATEMENT OF WORK (SOW)

Contract Scope

The National Prime Vender (NPV) supports the Defense Health Agency’s (DHA) TRICARE Pharmacy Program (TPharm) by providing replenishment pharmaceutical and pharmaceutical-related products to the TPharm ordering facilities. This contract works in conjunction with the TPharm5 contract established by DHA to provide pharmaceuticals to Tricare beneficiaries. The TPharm ordering facilities replenished under this contract shall include multiple sites associated with the Tricare Mail Order Pharmacy (TMOP) and the Tricare Specialty Pharmacy Network. Additionally, the NPV will provide readiness support (including War Readiness Material (WRM) Back-Up support) to the CONUS Pharmaceutical Prime Vendor (PPV) contracts.

For purposes of this Statement of Work, the terms “National Prime Vendor” (NPV) and “NPV contractor” refer to each firm selected as a Primary Supplier (PS) or Back-up Supplier (BS).

Section 1. Program Overview

A. Primary Supplier (PS). The PS shall provide the replenishment of pharmaceuticals and other authorized “Program” items as defined in paragraph D below. The PS is required to replenish all Program items dispensed under this program by each of the TPharm Ordering Facilities. The PS is also required, as a Back-Up to the current CONUS Pharmaceutical Prime Vendor (PPV) contracts, to supply WRM requirements in the event the CONUS PPVs aren’t able to fill all required WRM requirements.

B. Backup Supplier (BS). The BS shall provide the replenishment of pharmaceuticals and other authorized “Program” items, as defined in paragraph D below, which the PS cannot fill for the TPharm Ordering Facilities. The TPharm ordering facilities may only choose to utilize the BS after it is confirmed that the PS is unable to fill a line item. The BS is not required to provide support for the PS on the WRM requirements contained in the SOW. However, the BS may provide WRM items (at the same distribution fee as day-to-day items) if the PS is unable to supply them. The following are examples (but not limited to) in which the BS may receive orders under this contract:

· Items out of stock at the PS facility

· Items on manufacturer backorder

· Items for which partial shipments were made by the PS

· Items for which current demand exceeds prior usage

C. Small Business Utilization. If award is made to a large business concern, it must meet a minimum of 2.5% of its estimated contract value for the Overall Small Business Concerns Utilization for their contract. Compliance with this minimum floor percentage will be assessed via the Electronic Subcontracting Reporting System (eSRS) semi-annually and must be maintained throughout the life of the contract. This will be reported on the eSRS Summary Subcontract Report line 1a. Annually, the NPV’s ability to meet this requirement will be included in the Contractor Performance Assessment Reporting System (CPARS) assessment.

D. Programs Items. For purposes of this NPV (GEN-IV) contract, “Program” items include pharmaceutical or pharmaceutical-related products that are in compliance with TRICARE’s Pharmacy (TPharm) Award, DHA regulations, and 32 CFR 199.4. Hereafter, “Program items” and “items” refers to pharmaceutical or pharmaceutical-related products to be administered by the NPV. Pharmaceutical-related products are items such as syringes, bottles, cups, and other items required to administer pharmaceuticals. Program items shall contain prices derived from the following:

· Department of Veterans Affairs (DVA) Federal Supply Schedule (FSS)

· DLA Troop Support Pharmaceutical Distribution and Pricing Agreement (DAPA)

· TRICARE Uniform Formulary (UF)

· DVA National Contract

· DoD Blanket Purchase Agreement (BPA)

· DLA Troop Support Pharmaceutical National Contract

· Incentive Agreements

· Regional DAPA

All program items are brand name specific, specialty, or generic commercial products identified by a manufacturer's commercial item description and conform to the manufacturer's commercial specifications. All program items shall be Trade Agreements Act (TAA) compliant.

Specialty pharmaceuticals are medications which treat chronic, complex or rare diseases, and which have restrictions related to the distribution, care, delivery as well as generally have a higher cost. The Government will provide an initial list of specialty pharmaceuticals (see attachment 1) which shall be replenished by the PS at the TPharm contractor’s specialty pharmacies. This list is subject to change and items can be added or deleted throughout the life of the NPV contract. The PS may offer a separate distribution fee in order to account for the replenishment of specialty pharmaceuticals on the Government provided list. The BS may (but is not mandated to) replenish items from the specialty pharmaceuticals list but is not eligible for a separate distribution fee.

Ordering Facilities. The TRICARE Pharmacy (TPharm) ordering facilities will procure items it dispenses to DoD beneficiaries on a replenishment basis from the NPV contractor. The NPV will be required to support a maximum of 12 Tricare Pharmacies (combination of mail order and/ or specialty retail). TPharm ordering facilities cannot procure items from the NPV that are not represented in the Medical Master Catalog (MMC). Items that are deemed manufacturer discontinued will not be added to the MMC. Once a new item has been added to the MMC, the NPV will be given a 30 day replenishment grace period (for fill rate computations) to allow the NPV to research and establish an account for the item; the same requirement applies to multiple items.

1. Normal Day- to- Day Requirements. The TPharm contractor from either the TMOP or Specialty Pharmacy Network will act as the ordering facility for the normal day-to-day requirements in accordance with the terms and conditions set forth in the contract. The NPV shall work collaboratively with the TPharm contractor to achieve efficiencies with regards to communications, ordering and delivery practices, usage forecasting and necessary reporting to facilitate replenishment.

2. Readiness/WRM Requirements (back-up). The ordering activities for the WRM requirements cited in the contract shall be as follows: DLA Troop Support Medical—DLA Troop Support may place orders for its own account or for any military service.

NOTE: See Section 11, [pages 60-69] for additional WRM requirements

3. Addition/ Deletion of Facilities. The Government reserves the right to add and/or delete TPharm Ordering Facilities during the term of this NPV (GEN-IV) contract and for any subsequent option periods at the discretion of the Government. The total number of TPharm ordering sites under the NPV GEN IV contract shall not exceed 12. WRM/Readiness ordering sites are separate and excluded from the 12 site maximum. Due to possible changes in the TPharm contract and/or categories of eligible beneficiaries under the TRICARE program, the dollar value of pharmaceuticals and other authorized supplies purchased under this NPV (GEN-IV) contract may also increase or decrease.

E. Ordering Methods. Ordering will be accomplished as described in Sections 2, 3, and 9 of the SOW. Ordering is anticipated to commence 90 to 120 days after date of award.

F. Prompt Payment. Invoice payment is conditioned upon Government receipt of a customer purchase order or requisition, a confirmed proper invoice for the items covered in the purchase order or requisition, and a receiving report demonstrating delivery and acceptance of the items covered in the purchase order or requisition. The Government will pay the contractor 30 calendar days after receipt of a valid invoice if all applicable conditions for payment are satisfied. An invoice is only considered valid when the TPharm contractor has provided a Receipt Confirmation (527) and acceptance of the order/supplies to DLA Troop Support. Acceptance is when the TPharm contractor confirms with a receipt confirmation of the items covered in the purchase order or requisition. It is the NPV’s responsibility to use MRA (see Section 9(I) below) to ensure that the TPharm contractor has receipted and accepted the order/supplies of the delivered product(s). Payment will be made via electronic funds transfer (EFT) to the NPV’s financial institution.

G. Implementation Plan. The contractor shall submit a plan to the DLA Troop Support Contracting Officer outlining how it intends to implement the SOW requirements at each of the TPharm ordering facilities within 15 days after receipt of award notification. The Contracting Officer will approve, conditionally approve, or disapprove the plan within 10 days. The Government reserves the right to require additional plans if the initial submissions are not approved.

H. Transition Period.

1. The Government intends to:

i. make the award approximately 90 to 120 days prior to the expiration date (December 17, 2022) of the incumbent NPV (GEN-III) contract.

ii. establish a time phased transition schedule during the incumbent contract's final 90 to 120 days to provide for transition from the incumbent to the new contractor resulting from this solicitation.

2. Effective Date of Contract. The effective date of the NPV (GEN-IV) contract is the award date.

3. Transition Costs. All contract costs associated with the transition period shall be borne by the contractor.

Section 2. Basic Requirements

A. Contract/ Delivery Order Numbers

1. DLA Troop Support - Medical will assign each specified TPharm ordering facility a separate and unique individual administrative contract number that will be used for order placement and related actions (to ensure enough delivery order numbers will be available). The NPV will use the administrative contract number for all operational interactions with the specified customer facility, including reporting. Each specified customer facility will have different administrative contract numbers for its Primary and Back-up NPVs. The NPV shall identify a specified TPharm ordering facility account using the administrative contract number as one of the key fields.

2. The customer/customer’s system will assign an individual contract/ Procurement Instrument Identifier (PIID) each order at time of order placement. Each contract/PIID will include 26 characters consisting of the 13 character contract number, e.g., SPE2DX22D1500, plus a 13 character PIID, e.g., SPE2DX22FB007. The 13 character contract number will remain fixed for the entire term of the contract. The supplementary PIID will be unique to each ordering site and will change with each order placed. Positions 1-6 of the PIID will contain the Activity Address Code (ACC) –SPE2DX. Positions 7-8 will contain the last two characters of the fiscal year which starts over for each new fiscal year. Position 9 will be the letter “F” and positions 10-13 will Agency assigned number. The Letter “I” and “O” will not be used in any part of the PIID. See Section 9 – Electronic Systems Requirements for additional requirements.

B. Catalog Requirements

1. Purpose of Catalog Requirements. Prime Vendor Master catalog data are required to assist customers in product selection, ensure MMC Extract catalog item and pricing information are loaded accurately and are synchronized with levels of packaging available through the NPV and to gain visibility of the NPV’s entire product catalog it offers to its commercial customers.

2. DLA Troop Support-Medical Catalog Data Transmission to the NPV: DLA Troop Support-Medical will communicate the items available to the NPV through the MMC Extract file. The MMC Extract file will be generated Monday through Friday and will be available for pick-up on a DLA Troop Support server. Once the NPV (GEN-IV) contract is awarded, the NPV will be provided with instructions for obtaining the MMC Extract file. The contractor is required to process this data and maintain a current catalog.

If the NPV finds any potential problems or discrepancies with the MMC Extract, it shall report them to the Contracting Officer immediately.

In addition to the MMC Extract being provided daily (Monday through Friday), DLA Troop Support may send individual price changes to the NPV if necessary. Price changes will be kept to a minimum. The NPV shall implement price changes and load the new prices into its price and product catalog within two hours if received during regular business hours and within two hours of the start of the next business day for all other situations. Individual price changes will be communicated to the NPV contractor either by phone and/or email.

The NPV shall not make any changes to its copy of the MMC Extract without first obtaining permission from the Contracting Officer or other member of the DLA Troop Support National Prime Vendor (GEN-IV) team.

3. NPV Transmission of Master Catalog and Pricing Data to DLA Troop Support- Medical. The NPV shall provide catalog and pricing data to DLA Troop Support- Medical. The NPV will also submit its Commercial Catalog items to DLA Troop Support- Medical. The NPV will use a series of flat files to communicate all catalog/pricing data to DLA Troop Support- Medical.

The following is a list of the flat files and their required contents as describe in paragraphs (3)(i-viii):

i. NPV Master Catalog Item File (daily “delta” for MMC Extract items, monthly “delta” for commercial items)

ii. NPV Catalog FSS/DAPA Cross Reference File (daily “delta”)

iii. NPV FSS/DAPA Pricing File (daily “delta”)

iv. Customer Agreement File (daily “delta”)

v. Regional DAPA Pricing File (daily “delta”)

vi. Distribution Center File (monthly)

vii. Distribution Center Customer File (daily “delta”)

viii. Pricing Agreement Relationship File

NPV Master Catalog Item File [(3)(i)]: The bulleted items contained in this paragraph are mandatory Item Catalog data elements that the NPV shall submit for all items it makes available commercially. When any of these mandatory Master Catalog Item data elements change for contracted items (i.e. on FSS/DAPA Uniform Formulary, etc), the NPV shall submit a daily “delta” (adds, changes and deletes) update via a flat file to DLA Troop Support- Medical. For commercial items, the NPV shall submit a “delta” (adds, changes and deletes) update via a flat file to DLA Troop Support- Medical as frequently as required but no less than monthly.

· Transaction code (“A” – add, “D” – delete, “C” – change)

· Date of Data Pull

· National Drug Code (NDC)

· Prime Vendor’s Part Number (if NPV uses alt identity for NDC)

· Supplier Name

· NPV’s Supplier Catalog Stock Keeping Unit (SKU) Number – non-NDC items

· Manufacturer Catalog Stock Keeping Unit Number (if different than supplier) (Non-NDC items)

· Manufacturer Name (non-NDC items)

· NPV’s Item Description

· Replaced NDC (if applicable)

· Base Unit of Measure (BUOM) (for example, Each {EA}, Ounce {OZ})

· Base Unit of Measure Qualifier (“A” = ANSI, “D” = DoD, “O” = other)

· Base UOM Factor (number of EAs in Base UOM, always one if using EA)

· Base Unit Pack (BUP) – The first tie, wrap or container applied to a single item or a quantity thereof, or to a group of items of a single part number, preserved or unpreserved, which constitutes a complete or identifiable package:

· Example: Base UOM is “EA”; Base Unit Pack may be package {PK}).

· Example: Base UOM is “OZ”; Base Unit Pack may be bottle {BT}).Quantity Base Unit of Measure in Base Unit Pack (Qty BUOM in BUP)

· If BUOM is each, BUP is package; number of “EA” in a package.

· If BUOM is ounce, BUP is bottle; number of “OZ” in a bottle.

· NPV’s Saleable Unit of Packaging (UOP) 1 (for example, CA)

· NPV’s Saleable Unit of Packaging 1 Qualifier (“A” = ANSI, “D” = DoD, “O” = other)

· NPV’s Saleable Unit of Packaging 1 Conversion Factor from Base Unit Pack (BUP)

· If BUMP = “PK”, number of packages in a case.

· If BUMP = “BT”, number of bottles in a case.

· Hazardous Material Indicator (indicate “Yes” or “No”)

· Refrigeration Required (indicate “N” for “none”, “R” for “refrigerated”, “F” for “frozen”)

· DEA Schedule Number (indicate I, II, III, IV, V or VI)

· Drop Shipment (indicate Yes or No)

· Drop Shipment Fees (indicate Yes or No)

EX 1: Case of 10 boxes containing 12 packages of 20 each

EX 2: Case of 4 packages containing 6 bottles of 12 ounces.

The following Item Catalog data elements are required only if the NPV stores the data in their Master Catalog Record. When any of these Item Catalog data elements change, the NPV shall submit a monthly “delta” (adds, changes and deletes) update via a flat file for those items available for purchase through the NPV Program to DLA TROOP SUPPORT-MEDICAL

· AHFS Code (If Available)

· Generic Sequence Number (If Available)

· Height for NPV’s Saleable Unit of Packaging (UOP) 1

· Height UOM for NPV’s Saleable Unit of Packing (UOP) 1 (Ex: “IN” for inch)

· Width for NPV’s Saleable Unit of Packaging (UOP) 1

· Width UOM for NPV’s Saleable Unit of Packaging (UOP) 1

· Depth for NPV’s Saleable Unit of Packaging (UOP) 1

· Depth UOM for NPV’s Saleable Unit of Packaging (UOP) 1

· Gross Weight for NPV’s Saleable Unit of Packaging (UOP) 1

· Gross Weight UOM for NPV’s Saleable Unit of Packaging (UOP) 1

· Cube for NPV’s Saleable Unit of Packaging (UOP) 1

Cube UOM for NPV’s Saleable Unit of Packaging (UOP) 1*** Packaging Information for all Unit of Packaging (UOP) s and Conversion Factors. The NPV shall submit all Unit of Packaging (UOP) s and conversion Factors that DoD customers can use to order individual items through the NPV. If the Base Unit of Packaging (UOP) is a saleable Unit of Packaging (UOP), then it should be included in the pricing file.

*** Each time a new item is added to the MMC Extract, the NPV shall update their system with the new item within seven business days. The NPV shall include the new item information in the daily “delta” Catalog, Price and Cross Reference updates.

NPV Catalog FSS/DAPA Cross Reference File [(3)(ii)]: This file will only be used for the NPV Program if non-NDC items are made available through the MMC Extract. Until that time this file would always be empty or blank but is still required with the full set of files. When the NPV receives the MMC Extract pricing feed from DLA Troop Support- Medical, the NPV shall associate the pricing in the MMC Extract to those items where no NDC exists and a Prime Vendor part number has been assigned for ordering. To provide a link between MMC Extract pricing information and NPV FSS/DAPA pricing information that has been loaded in the NPV Pricing File, the NPV shall submit a cross reference of the information provided in the FSS/DAPA pricing feed to Prime Vendor part number by which the item is known to the NPV. The following are mandatory cross reference data elements that the NPV shall submit in response to the FSS/DAPA pricing feed via the NPV Catalog FSS/DAPA Cross Reference flat file. When any of these data elements change, the NPV shall submit a daily “delta” (adds, changes and deletes) update via a flat file to DLA Troop Support- Medical.

· Transaction code (“A” – add, “D” – delete, “C” – change)

· Date of Data Pull

· Manufacturer Part Number (As it appears in FSS/DAPA Catalog File)

· Manufacturer Name as it appears in FSS/DAPA Catalog (Manufacturer_name)

· FSS/DAPA Contract Number (DAPA_NUMBER)

· Prime Vendor’s Part Number

· Note: If the PVON field is NULL, it indicates that the DAPA item is not cataloged by the Prime Vendor.

NPV FSS/DAPA Pricing File [(3)(iii)]: After the NPV receives the MMC Extract from DLA Troop Support- Medical, the NPV shall incorporate the data into its Pricing File(s) to ensure the TPharm ordering facility receives the appropriate prices for items under the NPV Program. To ensure the data is loaded properly, the NPV shall submit a copy of their updated FSS/DAPA pricing files to DLA Troop Support- Medical for those items available for purchase under the National Prime Vendor Program. The following are mandatory pricing data elements that the NPV shall submit in response to the FSS/DAPA price feed via the NPV FSS/DAPA Pricing flat file. When any of these mandatory pricing data elements change, the NPV shall submit a daily “delta” (adds, changes and deletes) update via a flat file for those items available for purchase through the NPV Program to DLA Troop Support- Medical.

· Transaction code (“A” – add, “D” – delete, “C” – change)

· Date of Data Pull

· National Drug Code (NDC)

· Prime Vendor Part Number (if NPV uses alt identity for NDC)

· FSS/DAPA/Uniform Formulary/DVA National Contract/DoD BPA/DLA TS National Contract/Incentive Agreements (DAPA_NUMBER)

· Price Effective Date

· Price Expiration Date (null if no expiration date established)

· Indicator if Price being offered is lower than FSS/DAPA price

· NPV’s Saleable Unit of Packaging (UOP) 1 (for example, CA)

· NPV’s Saleable Unit of Packaging (UOP) 1 Qualifier (“A” = ANSI, “D” = DoD, “O” = other)

· NPV’s Saleable Unit of Packaging (UOP) 1 Price

Customer Agreement File [(3)(iv)]: After the NPV receives the MMC Extract feed from DLA TROOP SUPPORT-MEDICAL, the NPV shall incorporate the data into its Pricing File(s) to ensure all customers receive the appropriate prices for items under the NPV Program. To ensure the data is loaded properly, the NPV shall submit a copy of their updated Customer assignment file to DLA TROOP SUPPORT-MEDICAL for those Contract Numbers (FSS/DAPA/UF/National Contracts, etc) where a Customer assignment has been modified. The following are mandatory customer pricing data elements that the NPV shall submit in response to the FSS/DAPA price feed via the NPV Customer Agreement file. When any of these mandatory data elements change, the NPV shall submit a daily “delta” (adds, changes and deletes) update via a flat file for those FSS/DAPA Contract Numbers affected.

· Transaction code (“A” – add, “D” – delete, “C” – change)

· Date of Data Pull

· FSS/DAPA Contract Number/ (DAPA_NUMBER)

· DoDAAC

Regional DAPA Pricing File [(3)(v)]: The NPV must also provide pricing data for all items it makes available under a Regional DAPA. The NPV shall submit a “delta” (adds, changes and deletes) update by flat file of those prices it makes available to DoD customers to DLA Troop Support- Medical on a monthly basis when any data element identified below has changed. The NPV shall send updates more frequently if required. The following are mandatory Pricing data elements that the NPV shall submit in their Regional DAPA Pricing file:

· Transaction code (“A” – add, “D” – delete, “C” – change)

· Date of Data Pull

· National Drug Code (NDC)

· Prime Vendor Part Number (if NPV uses alt identity for NDC)

· NPV’s Saleable Unit of Packaging (UOP) 1 (for example, CA)

· NPV’s Saleable Unit of Packaging (UOP) 1 Qualifier (“A” = ANSI “D” = DoD, “O” = other)

· NPV’s Saleable Unit of Packaging (UOP) 1 Price

· NPV’s Saleable Unit of Packaging (UOP) 1 Average Wholesale Price

· NPV’s Saleable Unit of Packaging (UOP) 1 Regional DAPA Price

Distribution Center File [(3)(vi)]: The NPV shall submit the following information monthly unless an NDC has been added, changed or deleted for each item in each NPV Distribution Center (DC). If an NDC has been affected by a change the NPV shall submit the DC information as soon as the change is in effect:

· Transaction code (“A” – add, “D” – delete, “C” – change)

· Date of Data Pull

· Distribution Center ID

· National Drug Code (NDC)

· Prime Vendor Part Number (if NPV uses alt identity for NDC)

· Velocity Code (will differ for each NPV. Represents the frequency of product requests, usually coded as "A through C" or "1 through 9," or both)

· Available Quantity (for all Government and non-Government NPV Customers)

· 30-Day Demand Forecast (an alternate period may be considered at the request of the NPV)

· 60- Day Demand Forecast (an alternate period may be considered at the request of the NPV)Class Code – based on sales dollar volume of the item

· DC’s Saleable Unit of Packaging (UOP) 1

· DC’s Saleable Unit of Packaging (UOP) 1 Qualifier (“A” = ASCII, “D” = DoD, “O” = other) Distribution Center Customer File [(3)(vii)]: The NPV shall submit the following information whenever a change is made for the Distribution Center to Customer relationship. The NPV shall submit a daily “delta” (adds, changes and deletes) update via a flat file to DLA Troop Support- Medical.

· Transaction code (“A” – add, “D” – delete, “C” – change)

· Date of Data Pull

· Distribution Center ID

· Distribution Center Name

· DUNS Number

· Customer IF (i.e. DoDAAC)

· Customer Account Number for “JIT” (NPV assigned)

· Customer Account Number for “Drop Ship” (NPV assigned) Pricing Agreement Relationship File [(3)(viii)]:

· FSS/DAPA Contract Number (PRICING AGREEMENT NUMBER)

· FSS/DAPA Holder Name

· Reason Code:

· CA - No customer demand for this DAPA holders items to date

· PA - Currently in discussions with this vendor

· NA - Irreconcilable differences in DAPA holders and NPV's business terms

C. Pricing. The prices cited in both the Vendor’s Electronic Order Entry system and any Electronic Order confirmations shall represent the "delivered" price to the TPharm for each product.

1. All orders for items with an established Federal Supply Schedule (FSS), DLA Troop Support Medical DAPA, TRICARE Uniform Formulary (UF), DVA National Contract, DoD Blanket Purchase Agreement (BPA), DLA Troop Support Pharmaceutical National Contract or Incentive Agreements- the delivered price shall consist of the following:

i. the price of the product itself, as negotiated and published on a Federal Supply Schedule (FSS), DLA Troop Support Medical DAPA, TRICARE Uniform Formulary (UF), DVA National Contract, DoD Blanket Purchase Agreement (BPA), DLA Troop Support Pharmaceutical National Contract or Incentive Agreements plus

ii. the contractor’s distribution fee, plus

iii. the DLA Troop Support-Medical Cost Recovery Rate (CRR)

2. Contractor’s “Regional” DAPA All orders for items on the contractor’s Regional DAPA will be priced as follows:

i. The contractor may establish a Regional DAPA for any pharmaceutical product covered under this program but not covered under a FSS, DAPA, TRICARE Uniform Formulary, DVA National Contract, DoD BPA, DLA Troop Support Pharmaceutical National Contract, or Incentive Agreement. A Regional DAPA item is a pharmaceutical product that has an NDC and a published Average Wholesale Price (AWP). DLA Troop Support will be using the commercially published Average Wholesale Price (AWP) listed in the Medispan database as part of the Regional DAPA fair and reasonable determination.

ii. Additionally, items on a Regional DAPA will be periodically reviewed by the Pharmaceutical Prime Vendor Pricing Team to ensure validity and compliance. The goal is to convert any Regional DAPAs to DAPAs or FSSs as soon as possible. Regional DAPA items must be TAA compliant.

iii. The selling price for such items shall be the product price, as described below, plus the DLA Troop Support-Medical Cost Recovery Rate. The contractor’s distribution fee will not be applied to the Regional DAPA items. Hence, the customer’s final price will not be discounted by the distribution fee for Regional DAPA items.

iv. If the contractor has a published Price & Product Catalog, the product price shall not exceed the lower of either:

a. the Average Wholesale Price (AWP) less 15%; or

b. a price that is determined fair and reasonable based on a comparison of the same items sold under the same or similar contract terms and conditions to similar commercial customers.

c. The delivered price (the total price to be charged ordering facilities) for Regional DAPA items is the product price, determined in accordance with a) above, plus the DLA Troop Support-Medical Cost Recovery Rate (CRR).

3. Cost Recovery Rate (CRR). At the time of award, DLA Troop Support will provide the contractor with the current DLA Troop Support-Medical CRR. The CRR is subject to change annually at the beginning of the Government’s fiscal year (October 1st). The contractor will be informed at least one business day prior to any changes to the DLA Troop Support CRR over the term of the NPV (GEN-IV) contract. The NPV shall display all Government prices provided on the MMC Extract and shall include prices based on the Regional DAPA, on its automated price and product catalog.

D. Establishing Trading Partner Relationships

1. DLA Troop Support sends Trading Partner Profile Data to the PS and BS on an as-required basis. The mode of communication for this data is Electronic Data Interchange (EDI) 838, Trading Partner Profile Transaction Set; however, DLA Troop Support reserves the right to use an alternate method of sharing this information, such as Extensible Markup Language (XML).

Trading partner profile data refers to data required to establish a contract-customer relationship, including but not limited to distribution fees, delivery locations, points of contact and contract options in the prime vendor systems. Trading partner profile data is provided for customers that have the PPV as either the Primary Supplier or Back-up Supplier. The data will be provided to establish a new customer or to convey changes in customer data.

The National Prime Vendor is required to establish the required records in the NPV system, so as to enable the customer to do business electronically with the NPV as of the effective date in the data.

The NPV shall notify DLA Troop Support via an EDI 824 application advice transaction that the trading partner data has been established or updated in their system for a specified contract and DoDAAC within two business days of the transmission of the data by DLA Troop Support and within 24 hours upon receipt of a priority request. Initial Trading Partner Data must be loaded in the NPV’s system and confirmed to DLA Troop Support Medical NLT 60 days prior to the first customer implementation date. See Section 9- Electronic System Requirements for implementation.

2. The following fields have been identified for inclusion in trading partner profile data; however, DLA Troop Support Medical reserves the right to change the list of fields:

· Type of Contract (Pharm)

· Status (Add/Delete/Replace)

· Contract Number

· Contract Effective Date

· Contract Expiration Date

· Profile Type

· Region

· TRICARE Region

· Department of Defense Activity Address Code (DoDAAC)

· Data Universal Numbering System (DUNS) Number and Global Locator Number (GLN)

· Vendor CAGE Code

· Partner/Customer Name

· Point of Contact (POC)

· POC Phone Number

· POC Fax Number

· POC E-mail Address

· Delivery Site (s)

· Delivery Address (s)

· Order Type (s)

· Ordering Capability (e.g. Non-DoD EDI)

· Order Sites/Department (s) (also known as Customer ID, or Cust ID)

· Distribution Fee

· Distribution Fee Effective Date

· Distribution Fee Expiration Date

· Drug Enforcement Agency (DEA)/Health Industry Number (HIN)

· Alternate Ship-To for Controlled Substances

E. Usage Data

1. Usage data is information provided by the TPharm ordering facility to the NPV which will establish the NPV’s inventory levels on individual products for that facility. A program item as identified in Section 1(D) can be identified as a usage data item if it is ordered by the TPharm ordering facility a minimum of once per month for a minimum quantity of one and is in the Medical Master Catalog (MMC). The TPharm ordering facilities shall provide the PS usage information as soon as possible during the implementation period. After the start of contract period of performance, the PS is responsible for tracking usage and for adjusting its inventories to assure the contractual 98% fill rate. Usage data shall be reviewed by the TPharm ordering facility and the NPV at least quarterly. The TPharm ordering facility should submit usage data electronically, when possible, providing the following information: National Drug Code (mandatory if available), quantity per month, FSS/DAPA/Contract ID Number, Pricing Agreement Holder, Manufacturer Name and Unit of Sale. For Program items listed in the DLA Troop Support Daily Pricing File identified by a single NDC number, but available from more than one offeror, the NPV shall recognize the contracting pricing number as denoting the customer preference.

For newly marketed items of supply, the TPharm contractor shall notify the NPV at least 30 days before changes in its usage patterns. Newly marketed items of supply are items approved by the FDA within the past six months. If requested, the NPV shall assist the TPharm contractor in conducting semi-annual reviews of usage data.

2. For go-live and new items of supply (i.e. additions to the MMC extract), the NPV shall have 30 days from the time of notification to make the item available and support the full customer requirements at the fill-rate established with this contract.

3. The NPV required monthly usage quantity will be a whole number (Unit of Sale) calculated by multiplying the customer’s usage quantity by 1.5 and rounding to the closest whole number; the first decimal place will be rounded down for four and below, and will be rounded up for five and above. For Example: Usage data identifies 25 boxes. Therefore, 150% of the usage data equals 37.5 boxes and the NPV’s required monthly usage quantity is 38. If an order is received for 40 boxes, the NPV is required to fill 38 boxes since this quantity satisfies the PPV’s required monthly usage quantity. Although there is no penalty to the fill rate if the vendor cannot supply the additional two cases, since they represent a greater quantity than the required usage quantity, it is always permissible, and preferred, for the NPV to ship the additional quantity if possible.

4. Removal of an Item from Usage Data. The TPharm contractor must notify the NPV in writing (e-mail is acceptable) if they are removing an item from their Usage Data. The Usage Data removal effective date for the item will be the last day of that calendar month. For example, a TPharm ordering facility cancels usage for Lisinopril / HCTZ 20-25 mg., 100s, 00591-0862-01 on September 28, 2023. The Usage Data removal effective date for 00591-0862-01 will be close of business September 30, 2023.

5. Usage Data Items NOT Ordered. For standard commercial items, the Primary PPV is expected to maintain usage data items in stock for a minimum of 90 days (30 days for non-commercial items), even if no interim orders are placed by the ordering facility.

After 90 days (30 days for non-commercial items) the NPV may remove the usage data if no orders are received for that particular item.

The NPV is required to notify the TPharm ordering facility 14 calendar days before usage data items are deleted from stock because of the TPharm ordering facility’s failure to order item(s).

F. Order Placement/ Delivery

1. Orders/Invoices for Program Items. The NPV shall only accept and invoice for delivery orders covering “Program” products in the MMC. Any order (or portion of an order) that is killed by the PS can be immediately ordered directly from the BS by the TPharm contractor. A killed order must be received before directing an order to the BS.

2. Receipt of Routine Orders. The NPV shall accept electronic orders 24/7 and receipt of routine manual orders Monday through Friday (normal business days) between the hours of 8:00 a.m. and 5:00 p.m., local TPharm ordering facility time. Orders must be received prior to 5:00 p.m. local distribution center time to be considered for next business day delivery. Orders received after 5:00 p.m. will be shipped two business days after the date of the order. The NPV’s distribution centers servicing this contract shall be located in the continental United States.

3. Receipt of Orders for Schedule II Controlled Substances: The NPV shall accept orders for scheduled drugs requiring a DEA certificate utilizing the Controlled Substance Ordering System (CSOS). CSOS is an electronic ordering system approved by the Drug Enforcement Agency (DEA) for CONUS customers. It uses digital certificates and allows customers to process orders for narcotics electronically. Implementation of CSOS shall follow the DMLSS EDI implementation (See section 9(B) – EDI Implementation).

i. Awarded NPVs are required to have a CSOS.

ii. Awarded NPVs are required to have a license certification to dispense C-II Controlled Substances and if required by the NPV Contracting Officer, shall provide copies of the license certifications to the PPV Contracting Officer.

iii. At the time of award the Government will utilize CSOS to the fullest extent. The TPharm ordering facilities will use CSOS to place orders for Schedule Drugs requiring a DEA 222 form. When the NPV’s Order Entry System is utilized, the TPharm ordering facilities will also use the NPV’s provided CSOS.

iv. Orders for TPharm ordering facilities that have a DEA number assigned will contain the delivery point’s DEA number and approval will be performed by the holder of the DEA certificate or its designees.

4. Receipt of Emergency Orders. The NPV shall accept receipt of emergency orders for all customers, 24 hours a day, 7 days per week.

5. Time Frame for Order Placement. The NPV shall accept orders placed up to and including the last day of the contract at 5:00 p.m. local customer time.

6. Order Receipt Point. An Order Receipt Point is the distribution center where the orders will be received by the NPV. The NPV shall identify to each ordering facility a single NPV contractor order receipt point, so the facilities do not have to distinguish between the NPV's divisions when placing an order.

7. Order Confirmation. When the TPharm ordering facility places an order using the NPV’s propriety Electronic Order Entry System (EOES), the NPV shall return an electronic order confirmation via its EOES to the TPharm ordering facility within one hour after receipt. When the TPharm ordering facility places an EDI ANSI X12 850 Purchase Order, the NPV will return an 855 Purchase Order Acknowledgment within one hour. At a minimum, the EOES confirmation shall include item identification, quantity to be delivered, unit of issue, delivered price, and delivery order number. The 855 confirmation shall be as specified in the implementation guidelines described in Section 9(B). Additionally, if a pre-approved substitute item is to be delivered, it shall be noted on the confirmation. Furthermore, all unfilled or partially filled items shall be listed. Upon receipt of the order confirmation, DLA Troop Support’s Real Time Price Verification (RTPV) system will perform price verification to ensure the customer is receiving the contract price of the item at the time of confirmation. DLA Troop Support will update the price on the order confirmation if there is a conflict between the PPV’s price and DLA Troop Support’s price. For implementation of this process, see Section 9- Electronic Systems Requirements.

8. Delivery of Routine Orders. The NPV (both PS & BS) shall deliver all routine orders to the TPharm ordering facility’s receiving location on the next business day (Monday through Friday) following receipt of the order. The TPharm ordering facility shall provide the NPV their preferred delivery time. The NPV shall make every effort to ensure consistent delivery at the preferred delivery time. To the maximum extent possible, the NPV shall fill the NDC quantity from only one lot number. If the NDC cannot be filled from one lot number, the NPV shall fill the NDC quantity from the fewest lot numbers possible. The Government retains the right to unilaterally waive this requirement if it is determined that it is in the best interest of the Government.

9. Delivery of Emergency Orders. The contractor shall deliver all emergency orders to the TPharm ordering facility’s receiving location within 6 hours following receipt of the order.

10. “No Charge” Emergency Orders. The contractor shall provide a maximum of two emergency shipments per month to each of the TPharm ordering facilities at no additional transportation/handling charges to the TPharm ordering facility. Any additional emergency shipments requested by the TPharm ordering facility more than two per month can be charged to the TPharm ordering facility, including all applicable transportation and handling costs, as agreed to between the TPharm ordering facility and the contractor. During the implementation period, the NPV shall provide each TPharm ordering facility with the telephone number of their representative responsible for providing the emergency service.

G. Fill- Rates

1. “Fill-Or-Kill.” Supplies will be furnished on a "fill-or-kill" basis. If an order for an item cannot be filled by the NPV when ordered, the request for that particular item will be automatically "killed", i.e., canceled, unless the facility has previously approved delivery of a substitute. However, if the NPV can partially fill an order for an item, it shall do so and in such a situation, and the remaining quantity will be "killed." The TPharm ordering facility shall submit electronic orders to the BS for orders the PS has either killed in full or for quantities the PS has partially killed.

2. PS – The PS shall maintain, at a minimum, a 98% fill rate for all NPV orders. Fill rates must be calculated as described in paragraph 4. In addition to the Government fill rate calculation, the PS shall furnish fill rate reports monthly to DLA Troop Support PPV Contracting Officer(s). See section 8(C), Detailed Monthly Fill-Rate.

3. BS – The BS shall not be subject to a minimum fill rate level.

4. Fill- Rate Calculation (PS Only). DLA Troop Support will independently calculate the fill rate on a monthly basis for each TPharm facility, based only on those products, ordered by a facility, for which the PS has been authorized as a distributor. The fill-rate calculated by the Government will be used to measure the performance of the awardee of this contract. The fill-rate requirement is predicated upon ordering activities providing the PS with usage data as set forth in Section 2(E). Since the TPharm ordering facility usage will be tracked and maintained by the PS, the Government intends to independently calculate the fill rate based on a comparison of estimated usage to quantities filled. The Government will utilize the following process to estimate usage:

i. The system shall calculate a CREST based on 150% of the estimated usage.

ii. The quantities shall be rounded to the nearest whole number when calculating the estimated usage and the CREST.

iii. Estimated usage shall be calculated based on the order quantity on confirmed orders (Ack Code = IA, IP, IQ) which have not been rejected.

iv. During the first month, the estimate shall be based on the sum of confirmed order quantities during the month leading up to the start date.

v. If no confirmed orders (up to the 15th of the month), the system shall use the quantity from the last order (EDI 850) as the CREST calculation for the first month.

vi. During the second month, the estimate shall be based on a two month average of the sum of monthly confirmed order quantities over the first 2 months. The system shall expire the initial stocked item record and establish a new row with the new CREST value.

vii. During the third month, the estimated usage shall be generated based on a 3 month average of the sum of monthly confirmed order quantities over the previous 3 months. The system shall expire the 2nd stocked item record and establish a new row with the new CREST value

viii. After a stocked item record has been established for more than 3 months, then the forecast shall be calculated based on the rolling 3 month average

ix. The estimated usage shall be in effect for a period of 1 month until the next forecast is calculated.

The fill-rate will be calculated to the first decimal place. The quantity identified on the initial ANSI X12 527 (customer receipt) transaction set received by the Government will be considered to be the total quantity “filled”. In calculating the fill rate, the following electronic data shall be reviewed:

i. Usage data item identification

ii. Acknowledgement codes from the ANSI X12 855 “Purchase Order Acknowledgement” transaction set, and

iii. Quantities shown on the ANSI X12 527 “Customer Receipt” transaction set received.

iv. Quantities shown on the ANSI X12 856 “Advanced Shipment Notification” transaction set received.

The PS provided fill-rate shall include only those products for which the ordering facility has provided monthly usage data to the PS and shall exclude any calendar month ordered quantities that exceed 150% of the monthly usage data item quantity provided to the PS. Both the Government and PS fill-rate calculations will exclude all customer-caused rejections from the “Usage Data Item Lines Ordered” (see paragraph 5 below for customer-caused rejections). The fill-rate percentage will be calculated as follows:

*PPV will receive half credit for partially filled lines **Lines Totally Filled: Includes any line item for which all materiel ordered was delivered and any partially filled line resulting from an order for which the PPV is not contractually required to fill (refer to the Contractual Exceptions below);

***Lines Partially Filled: Includes any line item where the quantity delivered is less than the quantity ordered, except where partial shipment results from an order for which the PPV is not contractually required to fill.

LINES UNFILLED DUE CONTRACTUAL EXCEPTIONS = 60

5. Contractual Fill Rate Exceptions. Lines meeting one of the below exceptions will not be counted either “for” or “against” the NPV in the fill rate calculation. For additional details, please see SOW Section 9 Electronic System Requirements, paragraph 9(B)(5)(vi).

i. Lines ordered that are on manufacturer allocation; Code AR – “Item Rejected, QTY Exceeds Manufacturer Allocation.” This quantity ordered exceeded the amount allocated for the ordering facility. Code AR shall only be used when the line item on an order or a portion of the line item on an order cannot be filled because that quantity exceeds Manufacturer Allocation. This code should not be used if the NPV intends to fill the entire quantity ordered. If the Manufacturer Allocation quantity has been filled prior to placement of the order and the NPV does not fill any part of the order, then the order will be considered to be an “invalid” order and will be excluded from the fill-rate calculation. If the NPV fills all or part of this order, the NPV will be credited with a “fill.”

ii. Lines for which the quantity ordered during the current month exceeds the prior 30 days usage by more than 150%, unless increased usage data on the item was submitted to the NPV by the TPharm ordering facility; Code AA – “Item Rejected – Quantity Exceeds Usage Level.” The TPharm ordering facility exceeded 150% of the forecasted monthly (calendar month) usage quantity. Code AA shall only be used when the line item on an order or a portion of the line item on an order exceeds the monthly usage data item quantity requirement and the NPV does not intend to fill all or a partial quantity. If the total (150%) forecasted monthly usage quantity has been filled prior to placement of the order and the NPV does not fill any part of the order, then the order will be considered to be an “invalid” order and will be excluded from the fill-rate calculation. If the NPV fills all or part of this order, the NPV will be credited with a “fill.” The NPV is required to notify the TPharm ordering facility within one day of any recalled usage data item, so that TPharm ordering facility will not repeatedly order a recalled item. Monthly ordered quantities exceeding current committed monthly usage projections by more than 50% may be excluded from the fill-rate calculation. For example, if usage data is 20 bottles and the order is for 40 bottles, the NPV shall provide 30 bottles (150% of 20 bottles) and the balance of ten may be killed without adversely affecting the fill-rate. The NPV is encouraged to provide all 40 bottles if available.

iii. Lines ordered that have an invalid product number. Code R2 – “Invalid Item Product Number.” The ordering facility ordered an item using an INVALID Order Number, National Drug Code (NDC), or Part Number.

iv. Lines ordered that have an invalid unit of issue. Code R3 – “Invalid Unit of Issue.” The ordering facility ordered an item using an INVALID Unit of Issue.

v. Lines not shipped due to manufacturer’s backorder; Code R4 – Manufacturer’s Backorder, manufacturer’s recall, or manufacturers discontinued items;

vi. Lines ordered for items for which usage data was not supplied by the ordering facility; Code R6 – “Item is not on the Customer’s Usage List.” The ordering facility ordered an item NOT previously identified to the NPV at least 30 days prior as a Usage Data Item and/ or is not identified in the Government’s usage estimate. If the NPV fills all or part of a line containing a non-usage item, then the NPV will be credited with a “fill.” If the NPV is unable to fill any part of a line containing a non-usage item, then that line will be excluded from the fill-rate calculation.

vii. Lines ordered as usage…