STATEMENT_OF_WORK.docx

DLA Troop Support-Medical

Medical Surgical Prime Vendor GEN V STATEMENT OF WORK (SOW)

Table of Contents

MEDICAL SURGICAL PRIME VENDOR GENERATION V

Section I. General Information

Definitions may be found in Attachment III: Definitions.

A. Overview:

1. The Medical Surgical Prime Vendor (Med/Surg PV) Program has established three Global Regions (North, South, and West) that combine to provide routine ordering capability of medical surgical supplies and contingency and disaster support as required, throughout the world. See Attachment VII for a copy of the Global Map. Each Global Region covers multiple States within the Continental United States (CONUS) and OCONUS (Outside the Continental United States) locations. The Global North Region covers Maine, Maryland, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, Delaware, New Jersey, New York, Pennsylvania, Virginia, West Virginia, Ohio, Kentucky, Michigan, Indiana, Illinois, Wisconsin, North Carolina, US European Command (EUCOM), the US Central Command (CENTCOM), and US Africa Command (AFRICOM) requirements. Please note that the bulk of the Navy Fleet requirements are delivered to Defense Depot Norfolk Virginia (DDNV,) which is located in the Global North Region, the rare exception being when ships are docked in CONUS ports. Ships docked in CONUS ports can chose to do web based orders in which delivery will be direct shipped. The Global South Region covers South Carolina, Tennessee, Georgia, Florida, Alabama, Mississippi, Arkansas, Louisiana, Oklahoma, Texas, US Southern Command (SOUTHCOM); and US Northern Command (NORTHCOM) requirements, excluding requirements within the United States. The Global South includes Mexico, and Canada, which are in NORTCHCOM, however, all CONUS locations in the North are covered by the Global North Region (as specifically detailed herein). The Global West Region includes Alaska, Hawaii, Iowa, Minnesota, Missouri, North Dakota, South Dakota, Nebraska, Kansas, Montana, Wyoming, Colorado, New Mexico, Idaho, Utah, Arizona, Washington, Oregon, California, Nevada and US Pacific Command (PACOM) requirements. The Government will select a Primary Global Prime Vendor and a Back-Up Global Prime Vendor per Global Region. Routine daily customer orders will take place at the Global Region level. The Regional Prime Vendor selections will be made on a lowest priced technically acceptable basis in accordance with the source selection criteria referenced in the solicitation. Due to readiness and industrial base concerns, and in accordance with FAR 6.202, no single vendor will be designated as Primary PV for all three Global Regions. The Government reserves the right to award the role of Primary PV for a region to other than the low offeror if this is necessary in order to establish or maintain an alternate source of supply.

· Up to two Indefinite Quantity Contracts (IQCs), one primary prime vendor and one backup prime vendor per Global Region, are contemplated. Each IQC will consist of a 5 month (approximately) implementation period, which will run concurrently with the thirty (30) month base period. Additionally, the government has the option to invoke three additional ordering periods of 30 months each. This timeframe will include ten (10) years of ordering per customer, less applicable implementation period (estimated at six months). Offers on the options are mandatory. Failure to offer on all options will result in an offer being eliminated from further consideration. Selection of the Global PV for both the Primary and Back-Up PV roles will be made at initial contract award; these will not be changed at option exercise. An offeror submitting a proposal as a Primary PV is not required to offer as a Back-up PV. Offerors may offer as a Primary and a Back-up PV; however an offeror will not be selected as both Primary and Back-up PV within the same Global Region. This is an unrestricted solicitation. However, the Back-up PV role for the Global South is totally set-aside for Small Business participation. In the instance that no responsible small business offers are received, DLA Troop Support reserves the right to solicit pricing from each large business who offered on another region and to make award of the Global South Back-up role to a large business.

2. Unless an exception is granted in writing by the Prime Vendor (PV) (e-mail is acceptable), each Routine Ordering Facility (ROF) must have a minimum of $10,000 in annual purchases to participate in the contract. One exception to this is that a Master Ordering Facility (MOF) will have no minimum dollar requirement. A ROF is a customer performing day to day ordering under the program while a MOF is an entity ordering for other customers due to contingency or other Service HQ designated function. The PV is required to meet the same standard of service for all participating facilities, regardless of ordering volume.

3. A Primary PV is required to offer for routine day-to-day ordering and for Prime Vendor War Readiness Materiel (PVWRM) support, to include a PV-Supplied Readiness Support Manager. PVWRM is product which has been designated by the Services as necessary for go to war purposes to which they require constant asset visibility and access. There are a variety of Prime Vendor Offered Services (see Section XIII) included in the SOW and solicitation pricing sheet, some that a Primary PV is required to offer on and some that a Primary PV has the option to offer on. Since Contracting Officers Representatives (CORs) are not required under this contract, the ordering facility will appoint an Authorized Government Representative (AGR). An AGR is an individual at the ROF responsible for the choice of the service level options submitted on a Service Level Election Function (SLEF) form. The AGR will serve as a Point of Contact to the DLA Troop Support – Medical Contracting Officer, to the Military Service Representative and to the PV. The AGR is not authorized to change the contract terms. The PV will work with the Authorized Government Representative as it relates to the service(s) being performed. A Primary PV is required to offer on a variety of service levels, each changing the Basic Service Distribution Fee, with the exceptions specifically identified in the solicitation Pricing Sheet. That is, all lines upon which it is mandatory that the PV offer must contain a response, even if that response is 0%.

4. Usage items and incentive agreement items (IAs) will be provided in a unit of measure one level below the Distribution and Pricing Agreement (DAPA) unit of sale. That is, if an item is normally sold by a case of one hundred each, but includes four interior boxes of twenty five, the PV must make the smaller box of 25 available as the unit of issue to its DoD customers. If the PV chooses to make each level available, this is acceptable as well.

5. Back-up PVs are only eligible to offer on the routine day-to-day ordering and shall offer only a single standard distribution fee. The Back-up PV cannot offer service level options and will not have a fill-rate calculated. Back-up PV will have the capability to hold backorders and offer delayed deliveries under the same terms and conditions as the Primary PV. Although next day delivery is the norm (as with the Primary), a back-up can take up to five days to deliver (unlike the Primary) without needing to consider an order to be back-ordered.

6. Offered distribution fees and Service Level fees cannot be increased during the term of the contract, unless otherwise indicated. Voluntary distribution fee and Service Level fee reductions (to include an increase to a discount) will be accepted at any time. After award, each Routine Ordering Facility will be able to tailor its Service Level Elections to meet its needs. As a result, it is likely that distribution fees will vary not only among ordering facilities within a Region, but even among customers within a facility. A MOF will create a customer profile, per vendor, and per Global Region. The selected services chosen by the MOF will determine its additional fees added onto their base distribution fee. This will give them their total distribution fee. No premium PV service options will be available to the MOF. The SLEF application or TP record will be the vehicle used to communicate this MOF relationship to the vendor. The vendor will offer only one MOF fee per Global Region.

7. Each PV shall provide all Med/Surg products (Medical Items Only) for which it has been authorized as a distributor under a designated contracting instrument as authorized by DLA Troop Support - Medical. A designated contracting instrument includes, but is not limited to, a Distribution and Pricing Agreement (DAPA), Blanket Purchase Agreement (BPA), Incentive Agreements (IAs) or National Contract. Only items available through a designated contracting instrument will be ordered and delivered under the PV contract. All items are brand name specific or generic commercial products that are identified by the manufacturer’s item descriptions and part number and conform to the manufacturer’s commercial specifications.

8. The PV shall distribute the Med/Surg products/medical equipment to the ordering facilities within the designated Global Region. There will be two to three indefinite quantity PV contracts (IQCs) resulting from this solicitation for Primary PV support and up to three IQCs for Back-up PV support. However, there will only be one primary PV and one back-up PV per global region. The basis for awards will be FAR 16.5 – Multiple Award Contract Process using Delivery Orders.

B. Authorized Customers:

1. The PV shall distribute the Med/Surg products/medical equipment to the ROF/MOFs specified on Attachment III in accordance with the terms and conditions set forth in the contract. During the term of the contract, DLA Troop Support - Medical reserves the right to add or delete customers.

2. Master Ordering Facilities: A Master Ordering Facility (MOF) is any Department of Defense (DoD) activity authorized to place orders with a prime vendor for any ROF or external customer. The external customer may be within or outside the same geographic region as the MOF. The customer may be either a Continental United States (CONUS) or Outside Continental United States (OCONUS ) based customer. All customers must use federal funds. A MOF will create a customer profile, per vendor, per Global Region, each with one basic distribution fee. No premium PV service options will be available to the MOF. The SLEF application or TP record will be the vehicle used to communicate this MOF relationship to the vendor. The vendor will offer only one MOF fee per Global Region.

3. Quasi-MOFs: A quasi-MOF is DLA Troop Support - Medical acting as a Master Ordering Facility for customers participating and not participating on the contract. The same terms and conditions apply to quasi-MOFs as apply to the other defined MOFs except for any differences detailed in this document.

4. US State Department and US Embassies: The US State Department generally orders and receives delivery in Washington, DC. US Embassies may place orders via two different methods. In the first method, US Embassies will generally place orders from outside-of-the-US for delivery by a PV-supplied carrier to an interim (“Ship-To”) US address. A US Embassy-supplied carrier will pick up the materiel at the Ship-To address for transport to the outside-of-the-US (usually its “Mark-For”) address. The US Embassy’s geographic location will govern its PV selection. (For example, the US Embassy in Mexico City will place an order through its NORTHCOM PV with a Ship-To address of Brownsville, TX. The US Embassy’s-supplied carrier will pick up the materiel in Brownsville, TX [the Ship-To] and deliver it to Mexico City [the Mark-For]). US Embassies generally use Ship-To addresses of Newark, NJ, New York City, NY; Seattle, WA; Miami, FL; and Brownsville, TX (also called State Department Dispatch Agencies). In the second method, the US Embassy will be designated an OCONUS customer on the contract and all conditions applicable to OCONUS customers will be in effect.

5. USAMMA Support: This MOF has the ability to separately select a low unit of measure “LUM,” option unique to this customer (see Section XII, Prime Vendor Offered Services.) Standard support of USAMMA shall routinely include the provision of a delivery log of the lines being delivered and the lines which are backordered one or two days prior to the delivery.

6. Fleet: All Fleet customer orders will be non-usage and will be executed through ECAT using a single contract. The Fleet ECAT contract is set up to catch MILSTRIP orders sent by the customer through EMALL, which allows it to flow to the Prime Vendors for order fulfillment. As such, Fleet customers will not select any service level elections although trading partner information will be passed to the PVs via the SLEF or TP program. Fleet ordering while at sea will be conducted primarily via single line MILSTRIP orders. These will be delivered by the PV to DDNV (Defense Depot Norfolk Virginia,) for entry by this facility into the CRF (Cargo Routing Function,) for secure delivery to the customer while at sea. Under Gen IV, a small portion of Fleet orders are placed while in port via the PV’s website for delivery to a local port. The PV must create accounts as necessary to support these unique customers (approximately 267 vessels). Prior to the implementation of Gen V, it is expected that E-CAT (DLA Troop Support’s electronic catalogs,) will be the portal that the customers will use to send, and the PVs will use to receive, Fleet customer orders for delivery while in port. Orders will be fill or kill. Fleet customers cannot send a Julian date within their orders, which precludes these orders from specifying a required delivery date. The standard delivery time for non-usage orders of within 5 days will be required.

C. Scope:

1. This SOW provides for the purchase of medical and surgical supplies and some small medical equipment. The following major medical supply classes may be included (but not necessarily limited to): 6505 (Drugs, biologicals) - these are primarily items without an NDC or heavy items such as IV solutions; 6510 (Surgical dressing materials); 6515 (Medical & Surgical instruments, equipment); 6545 (Medical sets, kits, and equipment – not including military configured kits); 6670 (Scales and Balances); 6532 (Hospital and Surgical Clothing and Related Special Purpose Items); 8520 (Toilet Soap, Shaving Preparations, and Dentifrices); 4240 (Safety and Rescue Equipment).

2. Medical supplies are those that are involved in the diagnosis and treatment of disease and the maintenance of health (usually through nonsurgical means). They are characterized as one or more of the following: 1) primarily and customarily used to serve a medical purpose; 2) generally are not useful to a person in the absence of illness or injury; 3) usually ordered and/or prescribed by a physician and/ or a health care professional. Medical supplies utilized in conjunction with durable medical equipment are included if the supplies are necessary for the function of the equipment.

3. Surgical items are those involved with the branch of medicine which generally treats disease or injury by operative intervention (physical means rather than drugs); i.e. operations requiring access to the inside of the body as well as manipulation from outside the body. Surgical procedures include those that involve relieving mechanical malfunction or obstruction of an organ and/or repairing or removing (if irreparable) a diseased or injured organ, which cannot be otherwise healed or salvaged by medical treatment. All supplies related to these types of manual procedures used in the management of injuries and disease, including pre and postoperative care would be covered by this contract.

4. Some items that are categorized as durable medical equipment (DME) are permitted under this contract if they assist with the above medical and surgical goals as defined above. DME is considered equipment that can withstand repeated use. This equipment is primarily and customarily used to serve a medical purpose. This equipment is generally not useful to a client in the absence of illness, injury, or disability, and it is appropriate for use in the home or community setting. DME includes, but is not limited to, the following: hospital beds, crutches, canes, wheelchairs, walkers, peripheral circulatory aids, cervical collars, traction equipment, physiotherapy equipment, oxygen equipment, and ostomy supplies as well as knee braces, prostheses, feeding pumps, and apnea monitors.

5. By contrast, this contract is not intended to include "large hospital equipment". There is no definition for this excluded category. However, the intent is to exclude most (if not all) high dollar value equipment and/or machinery. Such items frequently require site preparation and installation. Examples of these are: diagnostic equipment (Ultrasound, PET and CT scanners, MRI, X-ray machine); life support equipment (medical ventilators, heart-lung machines and dialysis machines); medical laboratory equipment; radiation oncology equipment and advanced lasers. These items may have to be moved on wheels or trolleys. They may have vibration and/or slab deflection (i.e. slump of concrete pad required for installation) requirements. They may have to be maintained by biomedical equipment technicians. This list is not all inclusive - it is intended to demonstrate the category of medical equipment and machinery that must be procured on other contracting vehicles due to their cost, complexity, features, and characterization for which this SOW is not intended.

6. This language is not generated to inhibit the customer from ordering items already on DAPAs or other agreements. DLA Troop Support - Medical will ensure that items are placed on appropriate catalogs from which the customer may order. It is however, incumbent on the vendor to honor the parameters of the contract scope of work. Where apparent conflicts arise, the Contracting officer (KO) will make the final determination as to whether an item is or is not within scope. The vendor must consult with the KO prior to shipping any products which do not clearly fall within the parameters of the above defined scope of work for Med Surg. PV.

7. The PV must not ship any items for which the price has not been preapproved. If the PV ships any items for which the pricing has not been preapproved, the PV will not be paid by or through DLA Troop Support.

8. Some examples of additional items supported by MSPV that don’t fall neatly into an expected category include: Bulk IV solutions; Chap Stick; Sun Screen; Disinfectant Surface Wipes; Optical Surgical Instruments (Surgical instruments are not supported through ECAT Optical,); Nutritionals (Including baby formula,); Physiotherapy Equipment (unless already covered by GSA Advantage.) This is not an exhaustive list.

D. Length of Contract:

The IQCs will be structured to include one 30-month base period, plus three 30-month option periods. This equates to a maximum contract length of 10 years.

E. PV Support:

The PV can participate in the Med/Surg PV Program as a Primary PV, a Back-up PV, or both. A Primary or Back-up PV offer shall include support for an entire Global Region. All customers will have access to a Primary PV with backorder support. If at least one back-up PV has received an award, the customer will have access to a Back-up PV with backorder support. Orders must always first be placed with the Primary PV, with the exception of instances where the PV has not assigned a Prime Vendor Order Number (PVON) in the Medical Master Catalog (MMC,) or whenever the item is not executable via the MMC. If the Primary PV has not assigned a PVON within the MMC, the customer can go straight to the back-up PV with an order.

1. Primary PV with Backorder support: The Primary PV must support all required electronic transactions. The customer places its order with the Primary PV. Any items not initially filled (next day delivery) shall be held on backorder with an Estimated Shipped Date (ESD) provided to the customer in the order confirmation for each item that is backordered. If the customer requires materiel before the Primary PV can supply it, the customer can initiate a cancellation request of the backorder, and utilize a back-up PV. The ESD may never exceed 90 days from date of order placement.

2. Back-up PV with Backorder Support: The Back-up must support all required electronic transactions with the exception of the EDI 830 (usage items). When the customer places a usage or non-usage data item order with the Primary PV and it is killed (in whole or in part) or the customer requires the item prior to the ESD, the customer may place the order (or balance of the order) as an order with the Back-up PV. All orders placed with the Backup PV will be considered non-usage. The Back-up PV must provide an electronic order confirmation by close of next business day. The Back-up PV may put the item on backorder and shall supply an ESD in the order confirmation for each item that is backordered to the customer. If the customer requires materiel prior to the ESD, the customer can initiate a cancellation request of the requirement. The ESD may never exceed 90 days from date of order placement. If the customer declines the 90 day back-order status from the back-up, the next option is to send in an expedited Direct Vendor Delivery (DVD) order request.

F. Guaranteed Minimum and Maximum:

· The figures below are based on the Government’s annual good faith estimate. Each contract option period shall reflect the same guaranteed minimum and the same maximum as below. The estimated dollar values per region are based on the Global Region’s Government fiscal year 2016 consumption in dollars, through the PV program, plus a 10% growth factor per year. Maximum dollar values allow for an additional 50% growth factor. Minimums for the Primary PV are based on the event that the Primary PV awardee should fail to perform and need to be replaced by the Back-up PV. Minimums for the Back-up PV are based on the historic percentage of utilization of Back-up support. All purchase dollar values provided by the Government are compiled from the PV-supplied DAPA consumption data and all are based on total delivered prices inclusive of PV Distribution Fees. The Government’s 10 year good faith estimates for the Global Regions under this contract are: Global North- $3.9B ($1.3B per 30 month period); Global South - $1.6B ($533,333,333 per 30 month period); Global West - $3.5B ($1.16B per 30 month period.)

1. For Primary PVs:

a. The guaranteed minimums for the 10 year/30 month periods for the Primary Regional Prime Vendor are:

Global North Est. Minimum= $13.6M/$3.4M per period Global West Est. Minimum= $12.2M/$3.1M per period Global South Est. Minimum= $5.6M/$2M per period

b. The 10 year maximum per Primary PV contract for the total of the base period and for the three 30 month option periods will be $5.4B for the Global North Region, $2.4B for the Global South Region and $5B for the Global West Region.

2. For Back-up PVs:

a. The guaranteed minimums for the 10 year/30 month periods for the Back-up Global Prime Vendor are:

Global North Est. Minimum= $1M/$250,000 per period Global West Est. Minimum= $918,750/$229,688 per period Global South Est. Minimum= $428,400/$107,100 per period

b. The 10 year maximum per Back-Up Primary PV contract for the total of the base period and for the three 30 month option periods will be $292.5M for the Global North Region, $122.4M for the Global South Region and $262.5M for the Global West Region.

G. Payment Terms:

· Payment terms are 15 days from receipt of invoice or receipt of goods by customer, whichever is later. Fast payment procedures as outlined in FAR 13.402 will apply to: orders placed, through DLA Troop Support in accordance with SOW Section V. Quasi-MOFs and Section XIV. Readiness Support Initiatives (RSIs), Fleet MILSTRIP orders, for orders not exceeding $35,000. In accordance with DFARS subpart 213.4, Fast Payment Procedure; individual orders may exceed the simplified acquisition threshold for medical supplies for direct shipment overseas.

H. Customer Service:

· Visits to the customer by the vendor are provided for via the customer service election. This election establishes the basic customer service levels as; telephonic, monthly, quarterly, or the use of a full time on site representative, based on the customer’s choice. Each vendor must provide a 24 hour hotline for emergency support. The contractor shall not conduct any visits or meetings beyond this established schedule without DLA Troop Support - Medical’s Contracting Officers written approval, for both CONUS and OCONUS sites. The contractor shall coordinate any requested visit or meeting with the DLA Troop Support - Medical Contracting Officer prior to scheduling such a visit with the ordering facility. DLA Troop Support - Medical shall then determine if they shall attend the meeting or grant the contractor permission to attend the meeting without DLA Troop Support's attendance. Any instances of non-compliance will be documented during GEN V and taken into consideration as part of the vendor’s past performance evaluation in the future.

Section II. Basic Requirements

A. Contract/Delivery Order Numbers:

1. DLA Troop Support - Medical will assign each customer a separate "administrative" contract number that will be used for order placement and related actions (to ensure enough delivery order numbers will be available). These administrative contracts are used as a means of executing electronic order, delivery and payment transactions but do not represent additional contractual agreements or vehicles under the contract. All modifications to the contract will be issued against the basic contracts and signed by the vendor and the Government. The PV will use the administrative contract number for all operational interactions with the customer, including reporting. Each customer will have a different administrative contract number for its Primary and Back-up PVs and MOF contracts (if applicable). The PV must be able to use the MOF unique contract number assigned to determine the appropriate ordering account. In certain instances, a customer may run out of available call numbers. DLA Troop Support will assign a new administrative contract number prior to this event and coordinate the transition to this new number. PVs shall track these call numbers and shall provide notice of this impending occurrence at least one month prior to the anticipated event.

The customer will assign an individual delivery order number to each order at time of order placement. Each delivery order number will include 17 characters consisting of the 13 character administrative contract number, e.g., SPE2DV10D6012, plus a 4 character supplementary identification number, e.g., B007. The 13 character administrative contract number will remain fixed for the entire term of the contract with the exception of occasions where all available call numbers are expended and DLA Troop Support assigns a new administrative contract number. It is the responsibility of the customer to notify DLA Troop Support if it appears that they will run out of call numbers. The supplementary delivery order number will be unique for each order and must be made up of a combination of one Alpha and three numbers or two Alphas and two numbers. The letters “A,” and “P,” shall not be used in the beginning of the call number and the letters “I” and “O” shall never be used.

2. See Section XI – Electronic Systems Requirements, E. Ordering Options for additional requirements.

B. Establishing Trading Partner Relationships:

· DLA Troop Support - Medical will send Trading Partner Profile Data to each of the PVs on an as-required basis. The preferred mode of communication for this data is Electronic Data Interchange (EDI ) 838, Trading Partner Profile Transaction Set; however, DLA Troop Support - Medical reserves the right to use an alternate method of sharing this information, such as Extensive Mark-up 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 PVs systems. Trading partner profile data is provided for customers that have the PV as either the primary PV or back-up PV. The data will be provided to establish a new customer or to convey changes in the contract options selected by the customer.

· The PV is required to establish the required records in the PV system, so as to enable the customer to do business electronically with the PV as of the effective date in the data.

· 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:

1. Type of Contract (Pharm or Med Surg)

2. Status (New/Change/Expired)

3. Contract Number

4. Contract Effective Date

5. Contract Expiration Date

6. Global Region

7. Distribution Fee

8. Department of Defense Activity Address Code (DoDAAC)

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

10. Customer Account Number

11. Point of Contact (POC)

12. POC Phone Number

13. POC Email Address

14. Delivery Site (s)

15. Delivery Address (s)

16. Order Type (s)

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

18. Department Distribution Fee (s)

19. Department Distribution Fee Effective Date

20. Department Distribution Fee Expiration Date

21. Premium Service (s)

· The PV shall notify DLA Troop Support - Medical that the trading partner data has been established or updated in their system for a specified contract and DoDAAC within five business days of the transmission of the data by DLA Troop Support - Medical. The method of notification will be by EDI 824. The EDI 824 shall be sent to DLA Troop Support - Medical after the PV has established or updated their system. The EDI 824 shall serve as confirmation that the account is ready to accept orders from the ordering site.

· Initial Trading Partner Data must be loaded in the PV’s system and confirmed to DLA Troop Support Medical no later than 60 days prior to the first customer implementation date. See Section X Electronic System Requirements for implementation.

C. Usage Data Items:

· An item that is available through DAPA, or any other designated contracting instrument(s) can be identified as a usage data item if it is ordered by the ordering facility a minimum of once per month for a minimum quantity of one. The ordering facility is responsible for providing the PV both accurate initial usage data and monthly updates (when changes occur). Defense Medical Logistics Standard Support (DML-ES Customers): See Section XI – Electronic Systems Requirements, paragraph D. Establishing Usage Data for information on usage data item submission. Non-DML-ES Customers: The ordering facility should submit usage data electronically when possible, providing the following information: Prime Vendor ordering Number (PVON) (mandatory if available), DAPA ID Number, DAPA Holder, Manufacturer Part Number, Manufacturer Name, UPN/NDC, and Unit of Sale.

· The PV shall supply 110% of the monthly item usage quantity provided to them by the customer via the 830 transaction.

· For Example: Usage data identifies 25 boxes. Therefore, 110% of the usage data equals 27.5 boxes and the PV’s required monthly usage quantity is 28. If an order is received for 30 boxes, the PV is expected to fill 28 boxes since this quantity satisfies the PV’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 highly desirable, for the PV to ship the additional quantity if possible.

1. Required PV Operating Hours: The PV must accept orders between the hours of 0800 and 1300, local time of the ROF/MOF, Monday through Friday, excluding federal holidays, unless otherwise agreed by the PV and the ordering facility under contract within the region. The PV must supply a toll-free access number and email address for the facility to use when contacting the PV’s customer service representative, if outside the local calling area. A phone number for 24 hour service must be provided in order to support emergency orders.

2. Ordering Options: A ROF/MOF may place orders using Electronic Data Interchange (EDI) and/or the PV’s Web-Based Ordering System. An ordering facility that experiences a problem with its electronic order placement (EDI), or web-based ordering system, is authorized to place telephone and/or facsimile orders until its electronic ordering system is functional. Specific Services may impose additional ordering restrictions. Currently, no DML-ES customer is allowed to place orders via the PV’s website. See Section XI – Electronic Systems Requirements, paragraph E. Ordering Options for additional requirements.

3. Order Confirmations: The date of the order confirmation governs the delivered unit price in effect (e.g., If on the date of order the delivered unit price is $5.05, but on the date of order confirmation the delivered unit price is $5.00, the correct billing amount is $5.00.). Usage-data orders must be confirmed within two hours of order placement (this includes Emergency orders and Readiness orders but excludes Delayed Delivery orders). At a minimum, the EDI order confirmation will include product number ordered, quantity expected to be delivered, unit of issue, delivered unit price, delivery order number, and the ANSI Reject/Status Codes applicable to the ordered line item. The PV shall have a means to screen and reject duplicate calls.

· When a usage item is ordered, confirmation must be provided in two hours, and normal delivery terms are by close of next business day within required operating hours. If the item is a back-order, the PV will provide an estimated ship date (ESD.) The customer will consider whether or not that date is acceptable. The customer has the option of accepting or rejecting the ESD. If it is acceptable, the customer will do nothing and the item will be delivered by the ESD. If the customer requires the items prior to the ESD, the customer will initiate a cancellation. DLA Troop Support - Medical will track PV adherence to ESDs. The rate at which PVs honor their ESDs will be part of the PV’s performance reviews throughout the life of the contract.

· The order confirmation must be in identical sequence to the delivery order placed by the ordering facility. Furthermore, all unfilled or partially filled items shall be listed on the cancellation request. The confirmation shall be capable of being printed at the ordering facility. For the delivered unit price of each item, the packing list price must be identical to the confirmation price.

· For Delayed Delivery orders (DDOs.), the customer will provide a required delivery date (RDD) which the vendor must confirm within 72 hours. The RDD should not exceed 6 months from the date of order placement. For DDO’s, pricing will not be limited to the date of the order confirmation. A one -time price change per line may be requested. Since only one accepted request can be made, the vendor should ensure that they wait until they are sure of the actual price before submitting a price change. Only if DLA Troop Support - Medical rejects the request for price change can a second request be submitted. The date for price change requests shall be no later than 3 business days prior to the RDD of the order. A request for a price change should only be submitted for lines with a price change, not all of the lines on the order.

· The customer can initiate a cancellation request at any time up to delivery. The PV can also refuse a cancellation request if they have already stocked the item, or placed an order for the item which they cannot cancel without paying a re-stocking fee and for which they do not have another customer they can sell the item to. The PV can initiate a cancellation request to a DDO for limited reasons such as due to a manufacturer back-order or manufacturer discontinuation of product. However, communication with the customer must take place prior to a cancellation to allow for instances where the customer would prefer to permit a later RDD.

4. Delivery: The PV shall package each order separately for delivery to the ROF/MOF delivery point(s) as required by the ROF/MOF(s). With the exception of delayed delivery orders, the PV can ship up to the original order quantity for a given line item. An ANSI X12 Advance Shipment Notice shall be generated when the order is picked and packed; prior to being offered for delivery. The PV is required to segregate the ROF/MOF’s pallets by delivery order/call number, by ordering site within the ROF/MOF. Multiple delivery orders/calls can be placed on a single pallet as long as the delivery orders/calls remain segregated. The PV shall comply with the carrier’s requirements involving shipment via air. See Section VIII Shipping Information for Outside-of-the-US, excluding Hawaii.

a. Routine Delivery for ROFs located in the Global Region, within the US, plus Hawaii and Alaska if the Primary PV has a distribution center (DC) located in the Region:

(1) Deliver all usage data item orders for non-emergency, non-delayed delivery supplies by close of next business day. Deliveries will be made between the hours of 0700 to 1530 local time of the ROF, Monday through Friday, excluding federal holidays, unless otherwise agreed by the ROF and the PV.

(2) All orders received by 1300, local time of the ordering facility, must be delivered by close of next business day except as noted above (i.e., federal holidays and weekends).

(3) In the event of disaster interfering with the routine ROF delivery point, the PV and ROF will determine a mutually acceptable alternate delivery point.

b. Delayed-Delivery for ROFs located in the Global Region, within the US, plus Hawaii and Alaska if the Primary PV has a distribution center located in the Region:

(1) See Section II – Basic Requirements, Part F. Delayed Delivery Support.

c. Routine Delivery for ROFs located in the Global Region but outside-of-the-US, excluding Hawaii and Alaska if the Primary PV has a distribution center located in the Region:

(1) Deliver all usage data item orders for non-emergency, non-delayed delivery supplies by close of next business day. Delivery, as identified by the Government, will be to the PV’s DC dock for pick-up by a Government-supplied carrier, or to an Air Mobility Command (AMC), depending on destination. (See Section VI – Unified Command, for specific delivery information.) The PV shall provide OCONUS customers with tracking information via an e-mail for each shipment containing a link to the shipper’s website.

(2) During the term of the contract, the Government reserves the right to change the Government-supplied carriers. The DLA Troop Support - Medical Contracting Officer will notify the PV at least 10 days prior to a carrier change. In the rare event (exp. natural disaster, war, etc.) that the PV cannot use the Government-supplied carrier, the PV shall notify the DLA Troop Support - Medical Contracting Officer promptly so alternate arrangements can be made.

d. Delayed Delivery for ROFs located in the Global Region but outside-of-the-US, excluding Hawaii and Alaska if the Primary PV has a distribution center located in the Region:

(1) See Section II – Basic Requirements, Part F. Delayed Delivery Support for requirements.

5. Fill-Rate: Fill-rates will be calculated for all usage data items. (See Section II – Basic Requirements, paragraph H. Fill Rate below for additional requirements.)

6. Removal of an Item from Usage Data:

a. A DML-ES ordering facility removing an item from its Usage Data (through its DML-ES Master Catalog) automatically creates an 830 transaction to be sent to the Primary PV. The Usage Data removal effective date for the item will be the last day of that calendar month. For example, an ordering facility cancels usage for blue gloves - PVON 1234 on September 28, 2017. The Usage Data removal effective date for the PVON 1234 will be close of business September 30, 2017.

b. A Non-DML-ES ordering facility removing an item from its Usage Data must notify the Primary PV in writing. The Usage Data removal effective date for the item will be the last day of that calendar month. For example, an ordering facility cancels usage for blue gloves - PVON 1234 on September 28, 2017. The Usage Data removal effective date for the PVON 1234 will be close of business September 30, 2017.

7. Usage Data Items NOT Ordered:

a. The Primary PV is expected to maintain usage data items in stock for a minimum of 90 days, even if no interim orders are placed by the ordering facility.

b. The Primary PV is required to notify the AGR at the ordering facility 14 calendar days before usage data items are deleted from stock because of ordering facility’s failure to draw down.

c. If the ordering facility fails to order the usage data item within the 90 days, and the Primary PV cannot return it to the DAPA holder or redistribute it for sale elsewhere within its distribution system, the ordering facility agrees to purchase a maximum of 30 days- worth of supply for that usage data item, at the current delivered unit price.

d. The customer must also purchase at least a 30 day supply of usage items upon deletion by the DAPA holder. This may be paid for by using customer credits or Government purchase card if sufficient notice is not received to order prior to deletion from the catalog.

e. The PV is expected to consolidate usage for DoD sites ordering from the same distribution center such that, if any single or combination of DoD customers' orders the usage quantity, the item should be retained on the PVs catalog and continue to be stocked in the specific DC. The determination of whether an item remains as usage should take into consideration all DoD sites buying the item whether as usage or non-usage orders. In other words, if a large site has added an item as usage and it has accordingly been brought into a particular PV DC, should that specific customer site fail to order the usage quantity, but several smaller DoD sites order the product instead, the item should not be deleted from usage by the PV.\

f. For items submitted as a “special order” by the ordering facility, after 90 days without sale, the ordering facility agrees to purchase the entire special order quantity at the current DAPA delivered unit price. The PV and the customer shall agree at placement of order when the term “special order” is assigned to an order. A “special order” would be any item that the customer specifically requests that the PV provide through means other than its normal business practice. For example, if the customer requests that the PV stock a non-usage item for them, or specifically requests that the PV arrange a drop shipment for an item which is not normally drop-shipped. The Contracting Officer must be notified in writing by the PV (e-mail is acceptable) that an item has been designated a “special order” in order for this special purchase agreement to be enforced on the vendor’s behalf.

D. Non-Usage Data Items:

· A non- usage data item is an item that is available through DAPA or any other designated contracting instrument(s) but which has not specifically been identified by a customer as a usage item. Vendors are required to use best commercial practices to track customer order history in order to support items which are typically ordered by a customer even below the required frequency to allow them to be designated as traditional usage items. Non-usage items on average constitute 60% of the order volume under Gen IV. Vendor tracking of actual customer ordering patterns must be used to estimate customer usage velocity for non-usage items to include seasonal ordering trends. This data is expected to be highly tentative in nature during implementation through the first six months of performance.