Attachment VII - MSPV GEN VI STATEMENT OF WORK.pdf

CUI

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Source Selection Information – See FAR 2.101 and 3.104

Controlled by: DLA Troop Support Controlled by: FSEA-MedSurg Prime Vendor CUI Category: Source Selection Distribution/Limited Dissemination Control: FED ONLY POC: Joshua.Tankel@dla.mil

DLA Troop Support-Medical

Medical Surgical Prime Vendor (MSPV)

GEN VI

STATEMENT OF

WORK (SOW)

mailto:Joshua.Tankel@dla.mil

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Table of Contents Section I. General Information

A. Overview:

B. Authorized Customers:

C. Scope:

D. Length of Contract:

E. PV Support:

F. Guaranteed Minimum and Maximum:

G. Payment Terms:

H. Customer Service:

Section II. Basic Requirements A. Contract/Delivery Order Numbers:

B. Establishing Trading Partner Relationships:

C. Usage Data Items:

D. Non-Usage Data Items:

E. Emergency Orders for Usage and Non-usage Data Items:

F. Delayed Delivery Support:

G. Drop Shipments:

H. Fill-Rate:

I. Catalog Requirements:

J. DAPA Products:

K. Basic Support for Materiel Standardization:

L. Shelf Life:

M. Product Non-availability Due to Manufacturer or PV Backorders:

N. Pre-approved Substitute Products:

O. Delivery, Risk of Loss, and Inspection & Acceptance Terms:

P. ROF Basic Distribution Fee Inclusion:

Section III. Master Ordering Facilities (MOFs) A. Master Ordering Facility:

B. Specific MOF process and performance requirements under this contract:

C. Pricing requirements for MOFs:

D. MOF Basic Distribution Fee Inclusion:

Section IV. Quasi-MOFs A. DLA Troop Support - Medical Customer Direct/Direct Vendor Delivery (CD/DVD) Unit:

B. DLA TROOP SUPPORT-MEDICAL Kitting (previously known as DEPMEDs):

C. The following applies to DLA TROOP SUPPORT-MEDICAL CD/ DVD and Kitting:

Section V. Unified Commands A. Ordering:

B. Returned Goods:

C. Hazmat:

D. Delivery: EUCOM, CENTCOM, SOUTHCOM, NORTHCOM, AFRICOM and

INDOPACOM, excluding Hawaii:

E. Diverted Shipments to Defense Distribution Depots for materiel ordered by ROFs in Unified

Commands:

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F. Diverted Shipments to AMCs for materiel, except Cold Chain, ordered by ROFs in Unified Commands:

G. Delivery Requirements for all OCONUS Cold Chain Shipments Section VI. Preservation, Packaging, Packing, Labeling, and Marking (PPPL&M), Wood Packaging Material (WMP) and Cold Chain Management

A. Hazardous material (HAZMAT) and Refrigeration (Reefer) products:

B. Preservation, Packaging, Packing, Labeling, and Marking (PPPL&M) C. Additional requirements applicable to shipments to OCONUS customers via military channels.

D. Additional requirements applicable to shipments to OCONUS customers via commercial passenger aircraft E. Sources of referenced documents and forms

Section VII. Shipping Information for Outside-of-the-US, excluding Hawaii, (except AMC Shipments and Depot Shipments)

A. Package and Offer:

B. Government Carriers:

Section VIII. Cross-Docking Service for Unified Commands (INDOPACOM excludes Hawaii):

A. Description:

B. Authorized Products:

C. Authorized Ordering Offices:

D. Ship-To Address for Product Suppliers:

E. Materiel Receipt by PV:

F. Mark-For Address Label:

G. Instructions for HAZMAT/Refrigerated Product:

H. Frustrated Shipments:

I. Pallets:

J. Shipment Segregation and Consolidation:

K. Presentation for Delivery:

L. Shipping Information:

M. Weights and Cubes:

N. Medical Air Bridge (MAB):

O. DLA Troop Support-Medical MAB POC for Cross-Dock:

Section IX. Post-Shipment Procedures (does not include items that were cross-docked)

A. Shipment/Invoice Discrepancies:

B. Returned Goods Policy:

C. Monthly Credit Reporting Process:

D. Invoice Issues:

E. Product Recall Notification:

F. Price Adjudication Procedures Developed and Implemented:

G. Distribution Fee Discrepancies:

H. Handling Damaged Products at Medical Air Bridge (MAB):

Section X. Electronic System Requirements A. General Information

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B. Establishing Trading Partner Relationships C. Catalog Requirements D. Establishing Usage Data E. Ordering Options:

F. Invoices:

G. Medical Reconciliation Application (MRA):

H. Real-time Access to PV’s DC Inventory:

Section XI. Reporting Requirements A. Standard Report Packages:

B. Usage Data Report – Non-DML-ES Customers Only:

C. Subcontracting Plan:

D. Cross-references:

E. Pricing:

Section XII: Prime Vendor Offered Services A. Low Unit of Measure (LUM) USAMMA only:

B. Inside/Outside Delivery Locations:

C. Stockless Service:

D. Wound Closure Management System:

E. Full-Time, On-Site Customer Service Representative:

F. Centralized, Full-Time, On-Site Customer Service Representative:

G. Radio Frequency Identification:

H. Multiple Ordering Facilities to one Delivery Location:

I. Annual Purchase Commitment Discount:

J. Consignment:

Section XIII: Readiness Support Initiatives (RSIs) A. Prime Vendor War Readiness Materiel (PVWRM) Provision (applies to PVWRM PV and

Secondary PVWRM PV support):

B. PV-Supplied Readiness Support Manager (RSM):

Section XIV. Implementation A. EDI Testing:

B. PVONs for New PVs:

C. Trading Partner Profiles:

D. Distribution Fee Information for ROF Departments Electing Separate Service Levels:

E. New ROF Joining a Global Region during a Commitment Period:

F. Actions required by the Primary PV, ROF/MOF, and/or DLA Troop Support (initially or at the

30 or 60-month anniversary):

G. Actions required by the Back-up PV and/or the ordering facility:

H. Implementation Plan:

Section XV. Testing Requirements A. Prime Vendor Testing Requirements B. GEN VI Test Case Scenarios:

C. DLA Troop Support – Testing Assumptions:

Section XVI. Cybersecurity Requirements

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MEDICAL SURGICAL PRIME VENDOR GENERATION VI

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 VI for a copy of the Program 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 choose 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 Indo-Pacific Command (INDOPACOM) 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.

2. Up to six Indefinite Delivery Indefinite Quantity contracts (IDIQs), one primary prime vendor and one backup prime vendor per Global Region, are contemplated. Each IDIQ will consist of up to a 12-month implementation period. The length will consist of a thirty (30) month base period. Additionally, the government has the option to invoke three additional ordering periods of 30 months each. This timeframe will combine to include ten (10) years of ordering. Selection of the regional MSPV 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

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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.

3. Unless an exception is granted in writing by the Prime Vendor (PV) (email 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.

4. 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 XII) included in the SOW and Price Book (Attachment I), 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 Trading Partner (TP) profile. 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%.

5. 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 twenty-five available as the unit of issue to its DoD customers. If the PV chooses to make each level available, this is acceptable as well.

6. 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 back orders 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.

7. 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 ROF 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

SPE2DV-25-R-0001 MSPV Gen VI - SOW Page 7 of 164 distribution fee. No premium PV service options will be available to the MOF. The 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.

8. 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.

9. The PV shall distribute the Med/Surg products/medical equipment to the ordering facilities within the designated Global Region. There will be a maximum of three (3) indefinite delivery indefinite quantity PV contracts (IDIQs) resulting from this solicitation for Primary PV support and a maximum of three (3) IDIQs for Back-up PV support. However, there will only be one primary PV and one back-up PV per global region.

10. To synchronize pricing in all systems, the following calculation shall be performed by the Vendor's operating system to accomplish accurate pricing: product price multiplied by the distribution fee factor, if applicable, multiplied by the cost recovery rate factor. Rounding shall be applied to the resultant calculation. The delivered unit price will contain a maximum of two decimal places (the third decimal place will be rounded down for “4” and below, and will be rounded up for “5” and above).

B. Authorized Customers:

1. The PV shall distribute the Med/Surg products/medical equipment to the ROF/MOFs specified on the Authorized Customers (Attachment II) listing 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 TP profile 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

SPE2DV-25-R-0001 MSPV Gen VI - SOW Page 8 of 164 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. United States Army Medical Material Agency (USAMMA/AMMA) 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 Electronic Catalog (ECAT) Prime Vendor Web Order (PVWO) using a single contract. As such, Fleet customers will not select any service level elections although trading partner information will be passed to the PVs via the 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. ECAT will be the portal that customers will use to send, and the PVs will use to receive, Fleet 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 PV must create accounts as necessary to support these unique customers. The standard delivery time for non-usage orders of within 5 days will be required.

For North/Atlantic and South Fleet Customers, these shipments will remain the same. These orders should 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.

For West/INDOPACOM Fleet customers, the ships will designate in the Trading Partner Application the Material Processing Center (MPC) address for shipments, such as the MPC San Diego, Yokosuka and Sasebo. The designated location and address will be detailed in the Trading Partner Application for the Prime Vendors to view.

7. Other Governmental Agencies: Are agencies not defined above and who DLA Troop Support - Medical has deemed eligible for ordering under the MedSurg Prime Vendor program. An example of such agencies are Department of Veterans Affairs, Department of Health & Human Services, Federal Emergency Management Agency, other State and Local Government customers. During the term of the contract, DLA Troop Support - Medical reserves the right to add or delete any authorized customers of DLA to the contract.

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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 a National Drug Code (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 (DME) 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 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.

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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; Sunscreen; 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 IDIQs 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 ESD provided by the Primary PV, 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 unless approved by the customer.

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

SPE2DV-25-R-0001 MSPV Gen VI - SOW Page 11 of 164 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:

1. The figures below are based on the Government’s good faith estimate. The estimated dollar values per region are based on the Global Region’s Government fiscal year 2024 consumption in dollars, through the PV program, plus a 10% growth factor per year. Maximum dollar values allow for an additional growth. The guaranteed minimum dollar value is the minimum amount the Government commits to order under the contract, and constitutes the legal ordering obligation of the Government, followed by any additional purchases the government chooses to make up to a stated maximum. The Government is not legally obligated to order any amount above the guaranteed minimum dollar value for a Primary or Back-Up PV contract. The guaranteed minimums are required for the entire contract and may be satisfied during the base year alone. All purchase dollar values provided by the Government are compiled from the 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 - $4.9B; Global South - $2.4B; Global West - $3.6B.

2. North:

Region Option Total

Option Projected PV Sales Primary Back-Up Base $ 833,580,345.21 $ 750,222,310.69 $ 83,358,034.52 Opt I $ 1,047,784,300.09 $ 943,005,870.08 $ 104,778,430.01 Opt II $ 1,342,489,481.76 $ 1,208,240,533.58 $ 134,248,948.18 Opt III $ 1,687,467,093.14 $ 1,518,720,383.82 $ 168,746,709.31 $ 4,911,321,220.19 $ 4,420,189,098.17 $ 491,132,122.02

Region Max Value

Year Projected PV Sales Primary Back-Up Base $ 1,667,160,690.42 $ 1,500,444,621.37 $ 166,716,069.04 Opt I $ 2,095,568,600.18 $ 1,886,011,740.16 $ 209,556,860.02 Opt II $ 2,684,978,963.52 $ 2,416,481,067.17 $ 268,497,896.35 Opt III $ 3,374,934,186.27 $ 3,037,440,767.65 $ 337,493,418.63 $ 9,822,642,440.39 $ 8,840,378,196.35 $ 982,264,244.04

Region Guaranteed Minimum Value

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Year Projected PV Sales Primary Back-Up Base $ 2,778,601.15 $ 2,500,741.04 $ 277,860.12 Opt I $ 3,492,614.33 $ 3,143,352.90 $ 349,261.43 Opt II $ 4,474,964.94 $ 4,027,468.45 $ 447,496.49 Opt III $ 5,624,890.31 $ 5,062,401.28 $ 562,489.03 $ 16,371,070.73 $ 14,733,963.66 $ 1,637,107.07

3. South:

Base $ 411,942,642.18 $ 370,748,377.96 $ 41,194,264.22 Opt I $ 517,798,956.62 $ 466,019,060.96 $ 51,779,895.66 Opt II $ 663,437,744.65 $ 597,093,970.19 $ 66,343,774.47 Opt III $ 833,920,397.63 $ 750,528,357.87 $ 83,392,039.76

$ 2,427,099,741.08 $ 2,184,389,766.97 $ 242,709,974.11

Base $ 823,885,284.35 $ 741,496,755.92 $ 82,388,528.44 Opt I $ 1,035,597,913.25 $ 932,038,121.92 $ 103,559,791.32 Opt II $ 1,326,875,489.30 $ 1,194,187,940.37 $ 132,687,548.93 Opt III $ 1,667,840,795.26 $ 1,501,056,715.73 $ 166,784,079.53

$ 4,854,199,482.16 $ 4,368,779,533.94 $ 485,419,948.22

Base $ 1,373,142.14 $ 1,235,827.93 $ 137,314.21 Opt I $ 1,725,996.52 $ 1,553,396.87 $ 172,599.65 Opt II $ 2,211,459.15 $ 1,990,313.23 $ 221,145.91 Opt III $ 2,779,734.66 $ 2,501,761.19 $ 277,973.47

$ 8,090,332.47 $ 7,281,299.22 $ 809,033.25

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4. West:

Base $ 619,796,368.99 $ 557,816,732.09 $ 61,979,636.90 Opt I $ 779,064,559.78 $ 701,158,103.80 $ 77,906,455.98 Opt II $ 998,188,250.22 $ 898,369,425.20 $ 99,818,825.02 Opt III $ 1,254,691,264.16 $ 1,129,222,137.75 $ 125,469,126.42 $ 3,651,740,443.14 $ 3,286,566,398.83 $ 365,174,044.31

Base $ 1,239,592,737.97 $ 1,115,633,464.18 $ 123,959,273.80 Opt I $ 1,558,129,119.55 $ 1,402,316,207.60 $ 155,812,911.96 Opt II $ 1,996,376,500.44 $ 1,796,738,850.39 $ 199,637,650.04 Opt III $ 2,509,382,528.33 $ 2,258,444,275.50 $ 250,938,252.83 $ 7,303,480,886.29 $ 6,573,132,797.66 $ 730,348,088.63

Base $ 2,065,987.90 $ 1,859,389.11 $ 206,598.79 Opt I $ 2,596,881.87 $ 2,337,193.68 $ 259,688.19 Opt II $ 3,327,294.17 $ 2,994,564.75 $ 332,729.42 Opt III $ 4,182,304.21 $ 3,764,073.79 $ 418,230.42 $ 12,172,468.14 $ 10,955,221.33 $ 1,217,246.81

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 IV Quasi-MOFs and Section XIII Readiness Support Initiatives (RSIs), Fleet MILSTRIP orders, for orders not exceeding $35,000. In accordance with DFARS 213.402, 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 either a Full-Time On-Site Customer Service Representative or a Centralized, Full-Time, On-Site Customer Service Representative, based on the customer’s choice. Each vendor must provide a 24-hour hotline for

SPE2DV-25-R-0001 MSPV Gen VI - SOW Page 14 of 164 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 VI 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 that 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 Procurement Instrument Identifier (PIID) numbers. DLA Troop Support will assign a new administrative contract number prior to this event and coordinate the transition to this new number.

2. The customer will assign an individual delivery order number to each order at time of order placement.

Each delivery order number will include the 13-character administrative contract number, e.g., SPE2DV00D6012, plus a 13-character PIID, e.g., SPE2DV00F0001. The 13-character administrative contract number will remain fixed for the entire term of the contract with the exception of occasions where all available PIIDs are expended and DLA Troop Support assigns a new administrative contract number. The PIID number will be unique for each order and must be made up of a combination of the issuing DODAAC, the fiscal year, and serial number. The serial number will be assigned to each administrative contract via Trading Partner data.

3. See Section X – Electronic System Requirements, E. Ordering Options for additional requirements.

B. Establishing Trading Partner Relationships:

1. 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) or Commerce Extensible Mark-up Language (CXML).

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2. 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.

3. 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.

4. 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:

a. Type of Contract (Pharm or Med Surg)

b. Status (New/Change/Expired)

c. Contract Number

d. Contract Effective Date

e. Contract Expiration Date

f. Global Region

g. Distribution Fee

h. Department of Defense Activity Address Code (DoDAAC)

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

j. Customer Account Number

k. Point of Contact (POC)

l. POC Phone Number

m. POC Email Address

n. Delivery Site (s)

o. Delivery Address (s)

p. Order Type (s)

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

r. Department Distribution Fee (s)

s. Department Distribution Fee Effective Date

t. Department Distribution Fee Expiration Date

u. Premium Service (s)

5. 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 ten (10) business days, for newly created profiles, and five (5) business days, for existing profiles, 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.

6. 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:

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1. An item that is available through DAPA, or any other designated pricing 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 - Enterprise Support (DML- ES) Customers: See Section X – Electronic System 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.

2. The PV is required to supply 110% of the monthly item usage quantity noted on the 830 transaction.

3. 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

4. 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.

5. Ordering Options: A ROF/MOF may place orders using Electronic Data Interchange (EDI) and/or

ECAT PVWO, as instructed by DLA Troop Support. An ordering facility that experiences a problem with its electronic order placement (EDI), or web-based ordering system, is authorized to place orders via telephone and/or other methods of rapid communication 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 X – Electronic System Requirements, paragraph E. Ordering Options for additional requirements.

6. 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.

a. 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. 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

SPE2DV-25-R-0001 MSPV Gen VI - SOW Page 17 of 164 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.

b. 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.

c. 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.

d. 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.

7. 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 VII 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:

i. 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.

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ii. 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).

iii. 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:

i. 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:

i. 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 Distribution Center (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 email for each shipment containing a link to the shipper’s website.

ii. 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:

i. See Section II – Basic Requirements, Part F. Delayed Delivery Support for requirements.

8. 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.)

9. Removal of an Item from Usage Data:

a. A DML-ES/TEWLS (Theater Enterprise-Wide Logistics System) 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 April 9, 2025. The Usage Data removal effective date for the PVON 1234 will be close of business April 30, 2025.

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b. A Non-DML-ES/TEWLS 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 April 9, 2025. The Usage Data removal effective date for the PVON 1234 will be close of business April 30, 2025.

10. 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…