Contract 116149 Amendment to add funding and extend

The Utah Department of Health and Human Services, Division of Integrated Healthcare, is extending a contract for drug rebate management services through December 31, 2026, under a non-competitive award notice (Contract 116149) with a September 25, 2026 objection deadline. The extension is justified under the impracticality provision due to unanticipated delays in the new point-of-sale system implementation and the need to ensure seamless transition of rebate management services during the interim period.

The scope covers reconciliation of state invoices, accounting for overdue payments, calculating interest on late payments, generating and delivering quarterly invoices, completing quarterly Centers for Medicare and Medicaid Services 64.9R forms, and managing dispute resolution with drug manufacturers regarding rebate discrepancies. The Drug Rebate Management System is specialized information technology software tracking approximately 40,000 National Drug Codes and is critical to the Medicaid program's revenue recovery.

The estimated contract value for this three-month extension is $68,841. The incumbent vendor, Change Healthcare Pharmacy Solutions, Inc. (also known as OptumRx), has held the contract since December 31, 2020, under original contract number 166149. The original contract total was $1,005,000. The current contract total stands at $2,446,729.44, and the proposed total with this extension will be $2,515,571.30, representing a 250.3 percent increase from the original contract amount.

Vendors may submit documentation challenging the sole-source determination by demonstrating alternative competing sources or comparable products by the September 25 deadline. All responding vendors must certify compliance with Utah Code 63G-27 et seq., confirming non-engagement in economic boycotts or boycotts of the State of Israel and commitment to maintain such compliance throughout the contract term.