1. Introduction and General Instructions.doc

1,564 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,564
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

1. Introduction and General Instructions.doc

  1. 1. Minnesota Multistate Contracting Alliance for Pharmacy (MMCAP) State of Minnesota Department of Administration REQUEST FOR PROPOSAL FOR PHARMACEUTICAL PRODUCT PRIME VENDOR DISTRIBUTION SERVICES For all questions about this RFP contact: Almena Dees, Procurement & Contract Officer Mn.mmcap@state.mn.us RELEASED: December 1, 2008 DUE DATE: Monday, December 22, 2008 at 2:00 P.M. Central Time 1
  2. 2. Table of Contents 1. Introduction and General Instructions..........................................................................................................................4 1.1 Purpose of Procurement..........................................................................................................................................4 1.2 Background..............................................................................................................................................................4 1.3 Definitions...............................................................................................................................................................4 1.4 Procurement Process Overview and Timeline........................................................................................................5 1.5 Procurement Timeline of Events ............................................................................................................................5 1.6 Questions.................................................................................................................................................................6 2. Submission Guidelines................................................................................................................................................7 2.1 Submittal Instructions .............................................................................................................................................7 2.2 Proposal Checklist .................................................................................................................................................7 2.3 Proposal Due Date and Time .................................................................................................................................7 2.4 Number of Copies and Submission Requirements..................................................................................................7 3. Proposal Rejection, Addenda and Oral Communication.............................................................................................8 3.1 Rejection of Proposals ......................................................................................................................................8 4. Evaluation....................................................................................................................................................................8 4.1 Evaluation Review Process.....................................................................................................................................8 ......................................................................................................................................................................................9 4.2 Proposal Evaluation Criteria................................................................................................................................10 5. General RFP and Proposal Terms..............................................................................................................................11 6. Supporting Data..........................................................................................................................................................14 7. Statement of Work – Prime Vendor Requirements....................................................................................................15 7.1 Mandatory Requirements. ...................................................................................................................................15 7.2 Definition of Terms. ............................................................................................................................................17 7.3 Service Area..........................................................................................................................................................19 7.4 Customer Service...................................................................................................................................................20 A. Customer Service to MMCAP Office ...............................................................................................................20 B. Customer Service to MMCAP Participating Facility.........................................................................................21 7.5 New Accounts.......................................................................................................................................................22 7.6 Inventory Management..........................................................................................................................................23 E. Manufacturer Backorders...............................................................................................................................27 F. Service Level Calculations ...............................................................................................................27 7.7 Management of MMCAP Contract Products........................................................................................................29 B. Product Additions/Deletions..............................................................................................................................29 7.8 Ordering Equipment..............................................................................................................................................30 B. Hardware, Software, and Devices ....................................................................................................................30 7.9 Order Placement....................................................................................................................................................31 7.10 Delivery...............................................................................................................................................................34 C. Delivery for Special Products................................................................................................................35 7.11 Inventory at an MMCAP Participating Facility .................................................................................................38 7.12 Contract Compliance...........................................................................................................................................38 7.13 Invoicing..............................................................................................................................................................40 A. Order Invoice......................................................................................................................................................40 B. Invoice Rounding ...............................................................................................................................................41 C. Cash Discount.....................................................................................................................................................41 D. Credits ................................................................................................................................................................42 E. Rebills.................................................................................................................................................................43 F. Chargeback Denials. ..........................................................................................................................................43 G. 810 EDI Invoices and Auditing .......................................................................................................................44 H. Goods Returned to the PPV................................................................................................................................44 I. Reverse Distribution Processor (currently Guaranteed Returns)..............................................................44 2
  3. 3. J. Recalls..................................................................................................................................................................45 7.14 Payment..............................................................................................................................................................45 7.15 Emergency Order, Placement and Delivery. .....................................................................................................45 7.16 Other Value Added Services...............................................................................................................................45 7.17. Mandatory Reports ............................................................................................................................................47 7.18 Implementation Period........................................................................................................................................56 7.19 Business Interruption Plan...................................................................................................................................57 7.20 Fees......................................................................................................................................................................57 8. Check List of Required Documents Making Up the Complete Proposal...................................................................59 9.1 Responder’s Experience........................................................................................................................................60 9.3 Terminations or Contract Cancellations................................................................................................................60 9.5 Business Litigation................................................................................................................................................61 9.6 Financial Statements..............................................................................................................................................61 10. Contract Provisions..................................................................................................................................................62 10.1 Exceptions to Contract Terms and Conditions....................................................................................................62 10.2 Contract Terms and Conditions...........................................................................................................................63 11. Certification Regarding Lobbying............................................................................................................................73 12. Affidavit of Noncollusion.........................................................................................................................................75 13. Affirmative Action Certification..............................................................................................................................76 14. Location of Service and Disclosure Certification....................................................................................................78 15. Immigration Status Certification..............................................................................................................................79 16. Taxpayer Identification............................................................................................................................................80 17. Preference to Targeted Group & Economically Disadvantaged Businesses & Individuals.....................................81 18. Conflicts of Interest Disclosure & Acknowledgment..............................................................................................82 3
  4. 4. 1. Introduction and General Instructions 1.1 Purpose of Procurement The State of Minnesota, Department of Administration on behalf of the Minnesota Multistate Contracting Alliance for Pharmacy (State or MMCAP) is issuing this Request for Proposal (RFP) to establish an MMCAP contract with qualified prime vendors who will provide pharmaceutical distribution services to MMCAP Participating Facilities. Specifically, the selected vendor(s) will distribute all pharmaceutical, OTC, nutritional, and vaccines (other than influenza vaccines). This RFP shall not be construed to obligate or limit MMCAP’s right to award one or more contracts, to reject all proposals, cancel the solicitation or to negotiate with more than one Responder if it is considered to be in its best interest. MMCAP reserves the right to accept or reject any or all responses or parts of responses and to waive informalities therein. 1.2 Background MMCAP is a voluntary group purchasing organization made up of governmental entities which contracts for pharmaceutical products and services. MMCAP’s membership is currently made up of 45 participating states plus the Cities of Chicago and Los Angeles (MMCAP Member) with approximately 2,000 facilities actively participating in the pharmaceutical distribution contracts (MMCAP Participating Facilities). These members purchase approximately $1.2 billion per year in pharmaceuticals. Current MMCAP Members Alabama Alaska Arizona Arkansas Colorado Delaware Florida Georgia Hawaii Idaho Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming City of Chicago MMCAP reserves the right to add and delete other Members during the City of Los life of the contracts. California does not currently participate in the PPV Angeles program. Participation in MMCAP is limited to facilities with statutory authority to purchase goods and services from their home state’s contracts. Types of facilities include, but are not limited to: city, county, and state-operated facilities; such as correctional facilities, regional psychiatric treatment facilities, student health services, public health services, veterans’ nursing homes, and public hospitals. 1.3 Definitions Throughout this RFP, the following terms are used as defined. “MMCAP Member” – Any of the 45 member states plus the Cities of Chicago and Los Angeles and any other members added or deleted during the life of the contracts. “MMCAP Participating Facility” - Any facility listed by the MMCAP Office as an active participant of MMCAP program. A current listing of MMCAP Facilities is provided to all MMCAP vendors monthly. “MMCAP Office” - The administrative staff of the MMCAP Program responsible for initiating and administering all 4
  5. 5. MMCAP contracts. Located at: MMCAP Minnesota Department of Administration Materials Management Division 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 “Pharmaceutical Prime Vendor (PPV)” – The RFP Responder that is interested in providing pharmaceutical distribution services to MMCAP Members as further described in this RFP. 1.4 Procurement Process Overview and Timeline A. RFP Issued. Every five years, the MMCAP Office issues an RFP for pharmaceutical prime vendor services to provide access to the contracted pharmaceuticals (described below). This RFP is made up of three sections: a. RFP Instructions and Supporting Data b. Scope of Work – Prime Vendor Requirements c. Required Documents Making up a Complete Proposal Biennially, the MMCAP Office solicits contracts directly with pharmaceutical manufacturers for their products. The MMCAP Office has two year contracts with generic pharmaceutical manufacturers and four year contracts with branded pharmaceutical manufacturers; therefore there is a contract roll every two years. (Contracted Pharmaceutical Prime Vendors (PPVs) do not participate in the product solicitation or selection process.) Contracted PPVs then deliver the contracted products to MMCAP Participating Facilities. The contracted PPVs must maintain an adequate supply of and distribute all MMCAP-contracted products. B. MMCAP Proposal Evaluation and Short List. Once the MMCAP Office receives proposals from the PPV RFP, an initial compliance screening is performed by the Procurement and Contracts Officer. Proposals that do not meet the submission requirements as set forth in Section 4.1 Evaluation: Phase I are subject to rejection without further evaluation. Next an evaluation panel, made up of representatives from MMCAP Members, evaluate the pre-screened proposals and creates a short list of qualified vendors. The short list is anticipated to be no more than five PPVs. C. MMCAP Member PPV Interviews. Designated contacts within each MMCAP Member create an internal evaluation process to decide which short listed PPVs to interview. Being on the short list does not guarantee an interview by any MMCAP Member. The PPVs must not initiate contact with the MMCAP Members or MMCAP Participating Facilities for meetings and failure to comply may result in the PPVs disqualification and removal from the short list. MMCAP Members will notify selected PPVs of the time and location for these activities, and may supply agendas or topics for discussion. The MMCAP Office and/or MMCAP Members reserve the right to ask additional questions during oral presentations, site visits, and or demonstrations to clarify the scope and content of the written proposal. The PPV’s oral presentation, site visit, and/or demonstration must substantially represent material included in the written proposal, and should not introduce new concepts or offers unless specifically requested by the MMCAP Participating Facility. D. MMCAP Member PPV Selection. Each individual MMCAP Member makes a determination of which short listed PPV will provide service to its MMCAP Participating Facilities. In other words, each member state selects one vendor to provide services to ALL of the participating facilities within that state. The MMCAP Member then notifies the MMCAP Office of its final selection. E. MMCAP Contract Negotiations. Upon written notification of a selected PPV by the individual MMCAP Member, the MMCAP Office will begin contract negotiations. F. Transition. The contracted PPVs begin transition processes with new MMCAP Participating Facilities immediately upon contract execution. 1.5 Procurement Timeline of Events The timeline set out herein represents the MMCAP Office’s best estimate of the schedule that will be followed. However, delays to the procurement process may occur which may necessitate adjustments to the proposed schedule. If a component of this timeline, such as the close date, is delayed, the rest of the schedule may be shifted as appropriate. Any changes to the 5
  6. 6. dates up to the closing date of the RFP will be sent out as an official, written addendum prior to the closing date of this RFP. After the close of the RFP, the MMCAP Office reserves the right to adjust the remainder of the proposed dates, including the dates for evaluation, negotiations, contract award and the contract term on an as needed basis with or without notice. PROCUREMENT TIMELINE OF EVENTS Description Date Time Release of RFP 12/1/2008 N/A Deadline for Written 12/12/08 2:00 p.m. Central Time Questions Responses to Written 12/16/08 5:00 p.m. Central Time Questions Posted Proposal Due Date 12/22/08 3:00 p.m. Central Time Shortlist Notification to Prime Vendors and MMCAP 1/20/09 5:00 p.m. Central Time Members Short Listed Distributor Presentations to MMCAP 1/21/09 - 4/3/09 5:00 p.m. Central Time Members Notice of Intent to Award No later than Based on MMCAP Member 5:00 p.m. Central Time 4/10/09 Selections Contract Execution and No later than 5:00 p.m. Central Time Transition Period 5/1/09 Pharmaceutical distribution services to MMCAP Participating Facilities must be Contractor Work Begins 7/1/09 implemented and operational by this date. This includes providing all services as outlined in the RFP. 1.6 Questions All questions regarding this RFP must be submitted in the following format: Company Name Question #1, (include the question along with the citation of relevant section of the RFP) Question #2, (include the question along with the citation of relevant section of the RFP) Responders must notify the MMCAP Office of any ambiguity, conflict, discrepancy, exclusionary specification, omission or other error in the RFP by the deadline for submitting questions and comments. If a Responder fails to notify the MMCAP Office of these issues, it will submit a proposal at its own risk, and if awarded a contract: (1) shall have waived any claim of error or ambiguity in the RFP or resulting contract, (2) shall not contest the MMCAP Office’s interpretation of such provision(s), and (3) shall not be entitled to additional compensation, release or time by reason of the ambiguity, error, or its later correction. Questions must be directed in writing via e-mail to: 6
  7. 7. Almena Dees, Procurement & Contracts Officer mn.mmcap@state.mn.us All questions must be received no later than 2 p.m., December 12, 2008. With the exception of current working arrangements for continuity of service, from the issue date of this RFP until the short list of PPVs is announced, Responder(s) must not have any communications regarding this RFP or its contents for any reason with the MMCAP Office, MMCAP Members, MMCAP Participating Facilities, or any staff of the above, except as provided for in this RFP. The MMCAP Office reserves the right to reject the proposal of any Responder(s) violating this provision. All questions concerning this RFP must be submitted in writing. No response other than written will be binding upon the State. 2. Submission Guidelines 2.1 Submittal Instructions Preparing a Response: Each Responder interested in competing and winning an award must complete and submit a response to this RFP. The Responder is responsible for ensuring all questions have been answered appropriately and that all necessary documents have been submitted. The entire RFP is located on the MMCAP website. To retrieve a copy of the RFP from the website, go to mmcap.org, click on “Vendors and RFPs.” 2.2 Proposal Checklist A complete list of all documents making up a complete proposal can be found in the Check List of Required Documents Making Up the Complete Proposal section of this RFP. 2.3 Proposal Due Date and Time Sealed proposals must be received and time stamped by the Materials Management Division's receptionist no later than 3:00 p.m., Central Time, Monday, December 22, 2008. Fax and e-mail proposals will not be considered. Late proposals will not be considered. All costs incurred in responding to this RFP will be borne by the Responder. 2.4 Number of Copies and Submission Requirements Submit: 1. One complete original proposal; an authorized representative must sign the original proposal in ink for a proposal to be considered by the MMCAP Office. 2. 16 copies of the complete proposal with the Pricing and Fees excluded. 3. Separately sealed package containing 16 copies of the Pricing and Fees: a. All of the Responder’s RFP pricing and fees information inserted in the Pricing and Fee Matrix Information Worksheet (worksheet can be downloaded from the MMCAP website www.mmcap.org, under "Vendors and RFPs” (http://www.mmd.admin.state.mn.us/perlscript/current_rfps.pl) and the MMD website www.mmd.admin.state.ms.us, click on “Solicitation Announcements,” and “Goods and Services Solicitations” ( http://www.mmd.admin.state.mn.us/process/admin/postings.asp). b. Labeled as described in the “Label Instructions” below with the addition that the envelope contain the words "Fees/Price Proposal." 3. One (1) electronic copy of the entire proposal (including the pricing and fees proposal) on portable media, such as a compact disk, compatible with Microsoft Office 2003. Any disparities between the contents of the original printed proposal and the electronic proposal will be interpreted in favor of MMCAP. Label Instructions: The envelope should be labeled with: Proposal Title: MMCAP Pharmaceutical Prime Vendor Product Distribution Services RFP 7
  8. 8. Company Name: __________________ Physical Address for overnight, commercial mail, and hand delivery copies of the proposal to: MMCAP Pharmaceutical Prime Vendor Product Distribution Services RFP State of Minnesota, Department of Administration 50 Sherburne Avenue, Suite 112 St. Paul, MN 55155 Response Requirements: All proposals must be: • clearly legible; • sequentially page-numbered and include the Responder’s name at the top of each page; • organized in the same sequential order as the Statement of Work (“SOW”) section of this RFP, stating the paragraph number, then specification, then the vendor's response. • bound in a notebook or 3 ring binder; • correctly identified with the RFP number and submittal deadline; • responsive to all RFP requirements; and • Arial or Times New Roman font, size 11 or 12 for normal text, no less than size 10 for tables, graphs and appendices • proposals may not include materials or pamphlets not specifically requested in this RFP. 3. Proposal Rejection, Addenda and Oral Communication 3.1 Rejection of Proposals The MMCAP Office reserves the right to reject any or all proposals, to waive any irregularity or informality in a proposal, and to accept or reject any item or combination of items, when to do so would be to the advantage of the MMCAP Program or the State. It is also within the right of the MMCAP Office to reject proposals that do not contain all elements and information requested in the RFP. The MMCAP Office reserves the right to cancel this RFP at any time. The MMCAP Office will not be liable for any cost/losses incurred by the Responder throughout this process. 3.2 Addenda and Oral Communication The MMCAP Office may modify or clarify the RFP by issuing one or more addenda to all parties who have received the RFP. Any such addenda will be posted on the MMCAP website http://www.mmd.admin.state.mn.us/perlscript/current_rfps.pl and/or the MMD website http://www.mmd.admin.state.mn.us/ process/admin/postings.asp. Each Responder must follow the directions on the addendum. Addenda will be numbered consecutively in the order they are issued. Each Responder must have the addenda signed and submitted with the response unless otherwise noted in the addendum. Any oral communication concerning this RFP will neither be binding, nor cause for protesting any language of this procurement, nor in any way excuse the Responder from its obligations. 4. Evaluation 4.1 Evaluation Review Process 8
  9. 9. The MMCAP Office will facilitate the evaluation of all submitted proposals. The evaluation will be completed by a committee of selected representatives from MMCAP Members and MMCAP Participating Facilities. Responders may not communicate with the evaluation committee before or during the evaluation of the proposals, which will begin after the scheduled opening. Failure to comply may mean rejection of the Responder’s proposal. The evaluations will be conducted in six phases: Phase I - Review and Select Responsive, Compliant Proposals (Pass/Fail). The purpose of this phase is to determine if each proposal responds to the mandatory and administrative requirements of this RFP. Evaluation in this phase will be conducted by the MMCAP Office at the time of bid opening. A pass/fail criteria will be used to check for the presence or absence of required information in conformance with the submission requirements of this RFP. Phase II - Evaluate Proposals for Service and Technical Requirements and Price (Scored). Only those proposals found to be responsive under Phase I will be considered in Phase II. The evaluation team, made up of MMCAP Members (“Evaluation Team”), will conduct a detailed evaluation of each proposal and create a short list of qualified vendors – not more than five. Notwithstanding the foregoing, the MMCAP Office reserves the right to limit the number of proposals in the competitive range to the greatest number that will permit an efficient competition among the most highly rated proposals. Evaluation of the cost proposals will be conducted independently and separately from evaluation of the service and technical proposals. The cost proposal evaluations will not be conducted until after the technical proposals have been scored. In addition, the Evaluation Team may contact client references provided by the Responder to determine client satisfaction. Responders will be notified in writing when the short list of vendor award(s) has been made. Again, the MMCAP Office may submit a list of detailed comments, questions, and concerns to one or more Responders. The total scores may be revised as a result of the responses. Phase III - Interviews. MMCAP Members will interview as many or as few short listed vendors as desired and make a final selection of a PPV to provide service to ALL MMCAP Member Facilities within that Member State. The MMCAP Member notifies the MMCAP Office of its final selection. Phase IV – MMCAP Negotiates Contracts with Selected PPVs. The MMCAP Office reserves the right to request a BEST AND FINAL OFFER if it is deemed necessary. Responders will be notified of their selection or non-selection in writing. Phase V - Execute Contracts With Selected PPVs. Phase VI – Transition period with MMCAP Participating Facilities. 9
  10. 10. 4.2 Proposal Evaluation Criteria The maximum points available are 1000 points. The evaluation is comprised of the following: Areas Criteria Points/Percent Cost/Pricing/Fees 1. Cost of products and services proposed 400 points: 40% Administrative Requirements 2. Administrative Requirements Pass/Fail Mandatory Requirements 3. Mandatory Requirements Pass/Fail Service & Technical Requirements 4. Service & Technical Requirements found in the Scope of 600 points: 60% Work Total 1000 points: 100% * Targeted Group and Economically Disadvantaged Businesses (TG/ED) submitting proposals as Prime Vendors will receive the equivalent of a 6% preference in the evaluation of their proposals (reference Section 5: General RFP and Proposal Terms for a complete definition of TG/ED)* Below are brief descriptions of the evaluation scoring criteria: 1. “Cost /Pricing/ Fees” of Services Proposed Responders’ proposed cost may be scored at the category or subcategory level relative to other proposals. When applicable, the MMCAP Office may utilize lowest cost, lowest total cost or greatest savings to determine the best Responder. The Responder deemed to have the most competitive cost proposal, as determined by the MMCAP Office and the Evaluation Team, will receive the maximum weighted score for the cost criteria. Other proposals will receive a percentage of the weighted score based on the percentage differential between the most competitive cost proposal and the specific proposal in question. All cost proposals will be scored independently from the technical proposals. The MMCAP Office will not disclose the cost proposals or the cost analysis to the Evaluation Team until after the technical proposals have been scored. The price evaluation will be based on the overall cost to the MMCAP Program after considering possible combinations of individual State/region offers and alternate offers for multiple-State/regions proposals. The MMCAP Office recognizes that accepting a multi-State/region offer may entail some State/regions paying higher or lower prices than accepting individual offers for a State/region. The MMCAP Office will determine the overall best value for the MMCAP Program as a whole for price analysis purposes by considering multi-State/region offers versus individual State/region pricing. The overall best price to the MMCAP Program as a whole will be determined irrespective of whether multi-State/regions or individual region(s) are awarded 2. “Administrative Requirements” Responders’ proposals will be screened on a pass/fail basis for the following administrative requirements: 1. All required documents listed in the Check List of Required Documents Making Up the Complete Proposal section of the RFP have been submitted. 2. Service and technical statement of work submissions do not include any pricing from the Cost Proposal. 3. All service & technical requirement questions have been answered. 4. All proposals have been submitted by the RFP deadline. 3. “Mandatory Requirements” Responders’ proposals will be reviewed on a pass/fail basis for all Mandatory Requirements. Only those Responders’ that indicate a “yes” response for all mandatory requirements will receive a passing score. 4. Service and Technical Requirements” 10
  11. 11. The Evaluation Team will evaluate and score the Responder‘s ability to meet or exceed the RFP’s Service and Technical Requirements listed in the Scope of Work (SOW). In addition, the Evaluation Team reserves the right to contact client references provided by the Responder to determine client satisfaction and/or evaluate any other requirements as listed in the Additional Required Documents section of this RFP and score on a pass/fail basis. 5. General RFP and Proposal Terms This RFP does not commit the State to award any contract or to pay any costs incurred by the vendors responding. The State reserves the right to accept or reject any or all responses or parts of responses and to waive informalities therein. 1. PREPARATION OF RESPONSE a. Proposal Submission. By submitting a proposal, Responders agree that the proposal or any part thereof, is an irrevocable offer for 120 days following the submission deadline date unless stated otherwise in the RFP. It is understood and agreed that the response or any part thereof, when accepted by the State in writing, may become part of a legal and binding contract between the undersigned Responder and the MMCAP Office. b. Alterations. Responder must NOT modify the RFP questions, charts, or forms in its proposal. The proposal must strictly follow the RFP order. In the event the MMCAP Office discovers any modifications to the questions, charts, or forms, the proposal may be rejected. In the event a Responder has a question about any part of the RFP, it must submit a request for clarification according to Section 1.6 above. c. Authorized Signature. The response must be in the legal name of the firm or business and must be fully and properly executed and signed by an officer or other authorized representative who shall state his/her title. Proof of authority of the person signing the response shall be furnished upon request. If the Responder is a corporation, a secretarial certificate of an excerpt of the corporate minutes showing that the signing officer has authority to contractually obligate the corporation shall be furnished. Where the corporation has designated an attorney-in-fact, the ordinary power of attorney should be furnished. If the Responder is a partnership, a letter of authorization shall be furnished, signed by one of the general partners. If the Responder is a proprietor, and the person signing the response is other than the owner, a letter of authorization signed by the owner shall be furnished. 2. COMPLETION OF RESPONSES. A response may be rejected if it is conditional or incomplete. Responses that contain conflicting, false, or misleading statements or that provide references that contradict or do not support an attribute or condition stated by the Responder, may be rejected. 3. ACTING IN CASES OF DOUBTFUL RESPONSIBILITY. If the MMCAP Manager, on the basis of available evidence, concludes that a particular Responder appears to be insufficiently responsible to ensure adequate performance, the response may be rejected. 4. NONRESPONSIVE RESPONSES. Responses that do not comply with the provisions in the RFP may be considered nonresponsive and may be rejected. 5. ADDENDA TO THE RFP. Any addendum issued will become a part of the RFP and will be posted on the MMCAP website www.mmcap.org, under "Vendors and RFPs” (http://www.mmd.admin.state.mn.us/perlscript/current_rfps.pl) and the MMD website www.mmd.admin.state.ms.us, click on “Solicitation Announcements,” and “Goods and Services Solicitations” ( http://www.mmd.admin.state.mn.us/process/admin/postings.asp). The State may modify or clarify the RFP by issuing one or more addenda to all parties who have received the RFP. Each Responder must follow the directions on the addendum. Addenda will be numbered consecutively in the order they are issued. 6. PROPOSAL WARRANTY. By submission of a proposal, Responder warrants that the information provided is true, correct and reliable for purposes of evaluation for potential contract award. The submission of inaccurate or misleading 11
  12. 12. information may be grounds for disqualification from an award as well as subject the Responder to suspension or debarment proceedings and other remedies available by law. 7. DISPOSITION OF RESPONSES. All materials submitted in response to this RFP will become property of the State and will become public record after the evaluation process is completed and an award decision made. If the Responder submits information in response to this RFP that it believes to be trade secret materials, as defined by the Minnesota Government Data Practices Act, Minnesota Statutes Section 13.37, the Responder must: a. clearly mark all trade secret materials in its response at the time of the response is submitted, b. include a statement with its response justifying the trade secret designation for each item, and c. defend any action seeking release of the materials it believes to be trade secret, and indemnify and hold harmless the State, its agents and employees, from any judgments awarded against the State in favor of the party requesting the materials, and any and all costs connected with that defense. This indemnification survives the State’s award of a Contract. In submitting a response to the RFP, the Responder agrees that this indemnification survives as long as the trade secret materials are in possession of the State. The State is required to keep all the basic documents related to its Contracts, including responses to RFPs, for a minimum of seven years. The State will not consider the prices submitted by the Responder to be trade secret materials. 8. PROPOSAL REPRODUCTION & PUBLICATION WAIVER. The MMCAP Office reserves the right to use, reproduce and publish proposals in any manner necessary for MMCAP Members to access the responses, including but not limited to photocopying, State Intranet/Internet postings, broadcast faxing, and direct mailing. In the event that the response contains copyrighted or trademarked materials, it is the Responder’s responsibility to obtain permission for the MMCAP Office to reproduce and publish the information, regardless of whether the Responder is the manufacturer, service provider, or reseller of the products listed in the materials. By signing its response, the Responder certifies that it has obtained all necessary approvals for the reproduction and/or distribution of the contents of its response and agrees to indemnify, protect, save and hold the MMCAP Office, its representatives and employees harmless from any and all claims arising from the violation of this section and agrees to pay all fees (including but not limited to legal fees) directly and indirectly incurred by the MMCAP Office in the defense of any such action. 9. RIGHTS RESERVED. Notwithstanding anything to the contrary, the State reserves the right to: a. reject any and all responses received; b. select, for contracts or for negotiations, responses other than that with the lowest cost; c. waive or modify any informalities, irregularities, or inconsistencies in the responses received; d. negotiate any aspect of the proposal with any Responder and negotiate with more than one Responder; e. request a BEST and FINAL OFFER, if the State deems it necessary and desirable; and f. terminate negotiations and select the next response providing the best value for the State, prepare and release a new RFP, or take such other action as the State deems appropriate if negotiations fail to result in a successful Contract. 10. CONFLICT OF TERMS. In the event of any conflict between the general RFP Terms and Conditions and the Statement of Work – Prime Vendor Responsibilities” the “Statement of Work – Prime Vendor Responsibilities” shall govern. 11. DISPUTE RESOLUTION PROCEDURES. Any issue a Responder has with the RFP document must be submitted in writing to the MMCAP prior to the proposal due date and time. Any issue a Responder has with the Contract award must be submitted in writing to MMCAP within five working days from the time the Contract award is made public. The State will respond to any protest received that follows the above procedure. 12. TG/ED PREFERENCE. In accordance with Minnesota Statutes Section 16C.16, subdivisions 6 and 7, eligible certified targeted group (TG) businesses and certified economically disadvantaged (ED) businesses will receive a six percent preference on the basis of award for this RFP. The preference is applied only to the first $500,000 of the response to the RFP. Eligible TG businesses must be currently certified by the State of Minnesota, Department of Administration’s Materials Management Division prior to the proposal opening date and time. To verify TG/ED certification, refer to the Materials Management Division’s web site at www.mmd.admin.state.mn.us under “Vendor Information, Directory of Certified TG/ED Vendors.” 12
  13. 13. To verify TG eligibility for preference, refer to the Materials Management Division’s web site under “Vendor Information, Targeted Groups Eligible for Preference in State Purchasing” or call the Division’s Help Line at 651.296.2600. 13. ORGANIZATIONAL CONFLICTS OF INTEREST. The Responder warrants that, to the best of its knowledge and belief, and except as otherwise disclosed, there are no relevant facts or circumstances which could give rise to organizational conflicts of interest. An organizational conflict of interest exists when, because of existing or planned activities or because of relationships with other persons:  A Responder is unable or potentially unable to render impartial assistance or advice to the State;  The Responder ‘s objectivity in performing the work is or might be otherwise impaired; or  The Responder has an unfair competitive advantage. The Responder agrees that if an organizational conflict of interest is discovered after award, an immediate and full disclosure in writing shall be made to the MMCAP Manager that shall include a description of the action the Responder has taken or proposes to take to avoid or mitigate such conflicts. If an organizational conflict of interest is determined to exist, the State may, at its discretion, cancel the Contract. In the event the Responder was aware of an organizational conflict of interest prior to the award of the Contract and did not disclose the conflict to MMCAP, the State may terminate the Contract for default. 14. CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBLITY, AND VOLUNTARY EXCLUSION A. Certification regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion and Lower Tier Covered Transactions. Instructions for certification: 1. By signing and submitting this RFP proposal, the prospective lower tier participant /Responder is providing the certification set out below. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant/Responder knowingly rendered an erroneous certification, in addition to other remedies available to the federal government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. 3. The prospective lower tier participant/Responder will provide immediate written notice to the person to whom this RFP proposal response is submitted if at any time the prospective lower tier participant/Responder learns that its certification was erroneous when submitted or had become erroneous by reason of changed circumstances. 4. The terms covered transaction, debarred, suspended, ineligible lower tier covered transaction, participant, person, primary covered transaction, principal, proposal, and voluntarily excluded, as used in this clause, have the meaning set out in the Definitions and Coverages section of rules implementing Executive Order 12549. You may contact the MMCAP AMS to which this RFP proposal is submitted for assistance in obtaining a copy of those regulations. 5. The prospective lower tier participant/Responder agrees by submitting this response that, should the proposed covered transaction be entered into, it must not knowingly enter into any lower tier covered transaction subcontract equal to or exceeding $25,000 with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by MMCAP with which this transaction originated. 6. The prospective lower tier participant/Responder further agrees by submitting this RFP proposal that it will include this clause titled, Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion Lower Tier Covered Transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions.(This only applies if you/Responder have been debarred, etc.) 7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from covered transactions, unless it knows that the certification is erroneous. A participant may 13
  14. 14. decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the list of parties excluded from federal procurement and non-procurement programs. 8. Nothing contained in the foregoing will be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant/Responder is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Department of Administration/MMCAP with which this transaction originated may pursue available remedies, including suspension and/or debarment. B. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transactions. 1. The prospective lower tier participant/Responder certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. 2. Where the prospective lower tier participant/Responder is unable to certify to any of the statements in this certification, such prospective participant/Responder must attach an explanation to this RFP proposal. 6. Supporting Data Estimated Spend and Usage The following reports are available as supporting data for this RFP. Reports may be downloaded from the website located at: http://www.mmd.admin.state.mn.us/process/admin/postings.asp or http://www.mmd.admin.state.mn.us/perlscript/current_rfps.pl. • MMCAP Pharmaceutical purchases by state and month for state fiscal year 2008 (7/1/07 – 6/30/08) • MMCAP Pharmaceutical purchases by facility and month for state fiscal year 2008 (7/1/07 – 6/30/08) • MMCAP Pharmaceutical sales by GCN_SEQ number for state fiscal year 2008 (7/1/07 – 6/30/08) • MMCAP Pharmaceutical units sold by generic name for state fiscal year 2008 (7/1/07 – 6/30/08) • MMCAP Pharmaceutical sales by generic name for state fiscal year 2008 (7/1/07 – 6/30/08) • MMCAP membership listing dated 11/05/2008 • MMCAP contracted item portfolio as of 11/05/08 • MMCAP current contract vendors as of 11/05/08 • MMCAP State Contract list 11/05/08 14
  15. 15. 7. Statement of Work – Prime Vendor Requirements Instructions: Responder must NOT modify the RFP questions, charts, or forms in its proposal. The proposal must strictly follow the RFP order. In the event the MMCAP Office discovers any modifications to the questions, charts, or forms, the proposal may be rejected. In the event a Responder has a question about any part of the RFP, it must submit a request for clarification according to Section 1.6 above. 7.1 Mandatory Requirements. By checking Yes, Vendor acknowledges that it will comply with the following requirements. Reference Mandatory Requirements Yes No RFP Number & Section Search Word Reference 1 Inventory Vendor must have agreements with all MMCAP- SOW Management contracted vendors necessary to provide all MMCAP 7.6 A. contract products. 2 Inventory Vendor will not remove any MMCAP contract products SOW Management from its database without prior written approval from 7.7 B. the MMCAP Office. 3 Licenses, Prior to the start and during the life of the contract, Sample Permits, and Vendor must have and maintain all necessary licenses, Contract Registration permits and registrations required by state, local and Section 36 Requirements federal agencies. Vendors must make such documentation available upon request. 4 Customer At a minimum, Vendor will provide a representative for SOW Service the MMCAP Office, facility representatives for the 7.4 MMCAP Participating Facilities, and a Customer Service Department that will serve all MMCAP members. 5 DEA The Vendor must not require an MMCAP Participating Sample License/HIN Facility to have a DEA number in order to obtain Contract products unless the facility places orders for controlled Section 37 substances. MMCAP Participating Facilities will have HIN numbers assigned by the MMCAP Office. 6 New Accounts All new MMCAP accounts must be established and SOW ready to receive deliveries within a maximum of thirty 7.5 (30) days of receiving all required documentation from the MMCAP Participating Facility. 7 Inventory Vendor must stock all MMCAP contract products. SOW Management 7.6 8 Product At a minimum, expiration dating of all products Sample Expiration Dating delivered under this contract must have a minimum Contract shelf life of six (6) months expiration dating remaining Section 38 upon delivery to the MMCAP Participating Facilities. Shipment of product with expiration dating of less than 6 months requires the prior approval of the MMCAP Participating Facility before release and delivery of the order. 9 810 EDI Vendor must have the ability to provide 810 EDI SOW Invoices invoices to the MMCAP Office, MMCAP Participating 7.13 G. Facilities, and any other entities designated by the MMCAP Office. 10 Financial Vendor must provide financial statements for the three Required Statements most recent fiscal years. Documents 11 Delivery Vendor must be willing to provide free delivery for all SOW MMCAP Participating Facilities when individual orders 7.10 15
  16. 16. net $750 or more. 12 Audits Vendor must agree that the MMCAP Office and any Sample MMCAP Participating Facility it serves have the right to Contract audit Vendor to determine the validity of invoice Section 7.2 pricing. Audits may be conducted by representatives of the State of Minnesota in collaboration with other state and federal authorities. 13 Reports Vendor must agree to supply the data reports listed in SOW the Scope of Work, Section XV, Mandatory Reports. 7.17 All electronic files supplied to the MMCAP Office must be in a row and column format so they can be integrated into the MMCAP Office’s software system. 14 New Accounts Vendor must supply a copy of all forms that an SOW MMCAP Participating Facility must sign in order to set 7.5 A. 6. up an account. 15 Shareback Vendor must agree to manage, at no additional cost to Sample obligation the MMCAP Office or the MMCAP Participating Contract Facilities, the MMCAP annual shareback obligation Section 39 (“credit”). The MMCAP Office will provide the Vendor with a list of MMCAP Participating Facilities receiving a shareback credit, the shareback credit amount for each facility, and a check or EFT for the total amount of all shareback credits to be provided. Vendor must apply the shareback credit to all listed MMCAP Participating Facilities within 15 business days of the receipt of the funds. Within 30 business days of the receipt of the funds, Vendor must provide the MMCAP Office with a listing of the invoice or credit memo numbers for each MMCAP Participating Facility for which the credit was applied. 16 Fees Vendor must agree that all changes to the MMCAP Sample Service Fee Matrix will be communicated to the Contract MMCAP Office in writing with a minimum of five Section 40 business days notice. Vendor service fees may only change on a quarterly or less frequent basis. 17 Additional Fees Vendor must agree to not add any fee, percentage, or Sample other cost to the products purchased under the MMCAP Contract contract unless the fee, percentage, or cost is defined Section 41 and approved in writing by MMCAP in the contract or by amendment to the contract. 18 Stand-Alone Vendor must agree that all piggyback or stand-alone Sample Agreements agreements with MMCAP Members or MMCAP Contract Participating Facilities that relate to the services Section 26 provided under any resulting contract must be negotiated and approved by the MMCAP Office. Any such authorized agreements will be executed as an amendment to the MMCAP contract. 16
  17. 17. 7.2 Definition of Terms. For the purpose of this solicitation, and any resultant contract(s), the following words or terms are used as defined. 340B Drug Pricing Program (340B) - The 340B Drug Pricing Program resulted from enactment of Public Law 102-585, the Veterans Health Care Act of 1992, which is codified as Section 340B of the Public Health Service Act. Section 340B limits the cost of covered outpatient drugs to certain federal grantees, federally-qualified health center look-alikes and qualified disproportionate share hospitals. Several MMCAP participating facilities are eligible and participate in the 340B Drug Pricing Program. Adequate Supply- A supply of items made available to the MMCAP Participating Facilities that allow conformity with the delivery requirements set forth in the solicitation, “Delivery,” within the parameters of the fill rate and historical purchase patterns. Closed Distribution Products (CDP) - Closed distribution is either required by the manufacturer or by the FDA. Reasons for the closed distribution of a product include patient safety, product stability, or the product is new to the market. Most orders for closed distribution products are passed through the Vendor for delivery directly by the product supplier. Confirmation Printback/Order Confirmation - An electronic confirmation report generated from the Vendor’s ordering system and sent electronically back to the ordering facility indicating that the requested items are available, on manufacturer back order, out of stock, or deleted, etc. Also referred to as the Confirmation Printback Report. Controlled Substance Ordering System (CSOS) - Allows for secure electronic transmission of Schedule I-V controlled substance orders without the supporting paper DEA Form 222. Drop Shipments - Products ordered by the MMCAP Participating Facilities through the Vendor and shipped directly to the MMCAP Participating Facilities from the manufacturer/product supplier. The manufacturer/product supplier notifies and bills the Vendor, who then invoices and receives payment from the MMCAP Participating Facility. EDI - Electronic Data Interchange. Inter-process (computer to computer application) communication of business information in a standardized electronic form. Implementation Period - A sixty (60) day calendar period from the date of contract award. This implementation period will be used as a phase-out, phase-in transition period of the old contract to the new contract. Transition period may be referred to synonymously with Implementation Period. Manufacturer Back Order (MBO) - A physical order placed by the Vendor to a pharmaceutical manufacturer and which is not shipped to the Vendor from the pharmaceutical manufacturer within seven (7) calendar days. MMCAP Member(s) – Any of the, currently, 45 MMCAP member states plus the Cities of Chicago and Los Angeles and any other members added or deleted during the life of the contracts. MMCAP Participating Facility - Any facility listed by the MMCAP Office as an active participant of MMCAP program. A current listing of MMCAP Facilities is provided to all MMCAP vendors monthly. MMCAP Office – The administrative staff of the MMCAP Program responsible for initiating and administering all MMCAP contracts. Located at: MMCAP Minnesota Department of Administration Materials Management Division 17
  18. 18. 112 Administration Building 50 Sherburne Avenue St. Paul, MN 55155 MMCAP State Contacts – purchasing and pharmacy professionals are designated by MMCAP Member States to serve as liaisons between MMCAP and the MMCAP Participating Facilities in each State. A list of MMCAP State Contacts is available at http://www.mmd.admin.state.mn.us/mmcap/background_current_states.htm. National Drug Code (NDC) – a unique 11-digit number which is a universal product identifier for human drugs. The NDC identifies the labeler code, product code (strength, dosage form, and formulation), and package code (package size and type). All NDCs reported to the MMCAP Office must be in the 5-4-2 configuration. Next Day Delivery - Orders placed Sunday through Thursday by MMCAP Participating Facilities by the designated time as proposed by the Vendor which will be delivered the next business day. Orders placed on Friday or Saturday must be delivered on the following Monday. Next Scheduled Delivery Day - Based on the terms outlined in the solicitation and any resultant contracts, the next scheduled delivery day is the day agreed upon by the PPV and the MMCAP Participating Facility for delivery of products. For some MMCAP Participating Facilities, the next scheduled delivery day may not necessarily denote that the delivery will be made within 24 hours. Non-Contract Item - Any product not under a current MMCAP contract or the 340B contract. Pedigree - Is a record containing information regarding each transaction resulting in a change of ownership of a given medication, from sale by a manufacturer, through acquisition and sale by one or more wholesalers, manufacturers, or pharmacies, until final sale to a pharmacy or other person furnishing, administering, or dispensing the medication. Pharmaceutical Prime Vendor (PPV) - Also referred to as Vendor or Prime Vendor, is a business that functions as a purchaser’s source of distribution for a wide array of pharmaceutical and related products as identified by the customer. A PPV is responsible to maintain an adequate supply of and distribute pharmaceuticals and related items and any other items contracted for that are dispensed through the MMCAP Participating Facilities’ pharmacy service. Products - Synonymously used to denote the merchandise requested by the MMCAP Participating Facilities to be delivered through the Vendor. Stock Outage - An occurrence wherein the Vendor cannot make available an adequate supply of the customers requested products. As opposed to a MBO situation, the Vendor will be held responsible for stock outages. 18
  19. 19. 7.3 Service Area Vendor will provide either national (ALL MMCAP Members) or regional distribution services to MMCAP Members and will provide the full range of contracted services to all requesting MMCAP Participating Facilities within the contracted service area. A Vendor proposing service in a regional area must identify whole (not partial) states it proposes to service and must be able to provide service to a minimum of two (2) complete states in a geographical area. Proposals offering partial coverage to any state will NOT be considered for that state. The MMCAP Office reserves the right to add or delete states at any time during the life of the resulting contracts. 1. Indicate whether Vendor is proposing national or regional distribution. a. _____ National b. _____ Regional (Indicate which states Vendor proposes to service on the table below.) 2. For the proposed service area(s), include the primary distribution center(s) that will provide service to that MMCAP Member (the primary distribution center identified must meet all regulatory requirements to service that MMCAP Member). Proposed Distribution Yes No Center(s) 1. National Distribution 2. Regional Distribution Alabama Alaska Arizona Arkansas Colorado Delaware Florida Georgia Hawaii Idaho Indiana Kansas Kentucky Louisiana Maine Maryland Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Mexico New York North Carolina North Dakota 19
  20. 20. Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming City of Chicago City of Los Angeles 7.4 Customer Service A. Customer Service to MMCAP Office 1. Primary Account Representative. Describe Vendor’s designated Account Representative for the MMCAP Office. Provide: a. The name(s) and title(s) of the specific individual(s) b. A description of his/her principal responsibilities, including all other accounts serviced c. The individual’s credentials, education, and experience, in curriculum vitae format d. The number of years of wholesale distribution experience, including any government and GPO experience e. The location of this individual’s position within the corporate structure, including an organizational chart (include names, titles, areas of responsibilities, contact details). f. A schedule and agenda of proposed Vendor-initiated meetings with the MMCAP Office g. A description of the process for measuring this individual’s customer service levels h. A description of how he/she will be empowered to provide the required responsibilities i. An alternate Account Representative (include individual’s title) who is designated to act on behalf of the Account Representative while that person is absent or otherwise unavailable j. Describe an escalation procedure for the MMCAP Office if MMCAP determines the Primary Account Representative to be non-responsive 2. Business Review. Provide a description of Vendor’s business review to MMCAP Office. a. How often will the reviews occur? b. Where will they take place? c. What will they cover? 3. Additional Contacts. Provide functional contacts from Vendor’s company for the following, including names and contact information: 20
  21. 21. a. Contract issues/discrepancies (product stocking, product loading, pricing) b. Class of trade issues (contract eligibility, denials, etc.) c. Issues concerning MMCAP’s invoice auditing service d. Vendor distribution service fees e. Data/reporting issues f. Electronic invoice auditing dispute resolution B. Customer Service to MMCAP Participating Facility 1. Customer Service Department. Describe the customer service department available to MMCAP Participating Facilities, including the following: a. Overall operation. Is the department a centralized call center or is it housed at individual distribution centers? b. Principal responsibilities of the customer service representatives c. Minimum education required for the customer service representatives d. Minimum job qualifications. Include the average number of years of customer service experience for the customer service department(s) (experience is limited to the years serving in wholesale distribution). e. Training provided, including continuing education opportunities f. Hours of operation, include time zones g. Average call length h. Average wait time to reach a representative i. Average response time to problem resolution j. Detailed breakdown of the types of calls that are received (e.g., stocking issues, billing inquiries, etc.). k. Schedule coverage (e.g., average number of people working during the hours of operation, peak coverage, etc.) l. MMCAP Participating Facilities’ points of access (e.g., telephone, e-mail, etc.) m. Technical support and hours n. After hours emergency options o. Organizational chart of the Customer Service Department (name titles, areas of responsibilities, contact details). p. A description of the process for measuring customer service levels 2. MMCAP Participating Facility Customer Account Representative. Describe the Customer Account Representative contact available to MMCAP Participating Facilities and MMCAP State Contacts, including the following: q. Principal responsibilities r. Minimum education required s. Minimum job qualifications. Include the average number of years of wholesale distribution account representative experience t. Training provided, including continuing education u. Organizational chart of Customer Account Representatives (name titles, areas of responsibilities, contact details) v. Types of customer contact, telephone calls or on-site visits w. Complete the Customer Account Representative Visit table below: 21
  22. 22. Monthly Purchasing Volume Frequency of Contact (in days) Type of Contact (telephone, on-site visit, etc.) $0 - $5,000 $5,001 - $10,000 $10,001 - $15,000 $15,001 – $20,000 $20,001 - $25,000 $25,001 – $30,000 $30,001 - $35,000 $35,001 - $40,000 $40,001 - $45,000 $45,001 - $50,000 $50,001 - $55,000 $55,001 - $60,000 $60,001 and Up x. Propose a schedule of Vendor-initiated meetings to discuss the following with the MMCAP Office and representatives from each Member State: i. Customer satisfaction ii. Vendor performance iii. Other pertinent topics 7.5 New Accounts Describe, in detail, the entire process for setting up new accounts from the point a new facility joins MMCAP to the point of first order through Vendor. Include: 1. A detailed, numbered list describing the entire process for setting up a new MMCAP Participating Facility account, include an average time for completion of each step 2. Clearly indicate if there are any differences between new accounts being set up during the transition period (May-June 2009) from those set up after transition but during the contract term 3. Levels of automation for the account set-up process (electronic/online versus manual) 4. Vendor’s new account representative, include names and contact information, as well as an alternate contact 5. A description of how Vendor ensures MMCAP Participating Facilities are attached to and receive the proper contract pricing 6. Provide a complete set of any and all documents an MMCAP Participating Facility will be required to execute in order to obtain Vendor’s services (e.g., credit application, software license, returned goods certification, etc.) 22
  23. 23. 7.6 Inventory Management A. MMCAP-Contracted Vendors. Vendor must have agreements with all MMCAP- contracted vendors necessary to provide all MMCAP contract products. 1. Indicate on the table below with which of the current MMCAP-contracted vendors you have agreements. Note: MMCAP’s generic pharmaceutical contracts will be subject to change in the next contract cycle effective July 1, 2009. 2. If Vendor does not currently have an agreement with an MMCAP-contracted vendor, when will an agreement be put into place? MMCAP-Contracted Vendors Yes No Abbott Laboratories, PPD-HPD Abbott Labs, Diagnostics Abbott Nutrition Actavis Akorn, Inc. American Health Packaging American Regent Amgen Amneal Pharmaceuticals Amphastar Pharmaceuticals Apotex Corp Apothecus Pharm Applied Nutrition Corporation APP Pharmaceuticals (formerly Abraxis) Astra/Zeneca Pharmaceuticals Aurobindo Pharma Axcan Pharma US, Inc. Azur Pharma B. Braun Medical Inc. Barr Labs/Pliva Bausch & Lomb Pharmaceuticals Baxter Healthcare Baxter Global Pharmaceutical Injectables Baxter Global Anesthesia & Critical Care Bedford Labs Berna Products Corp Beutlich, Lp Birchwood Labs Boca Pharmacal Boehringer Ingelheim Bradley Pharm Braintree Laboratories 23
  24. 24. Breckenridge Pharm Bristol-Myers Squibb Caraco Pharmaceutical Labs Carolina Medical Products CB Fleet & Co Cetylite Industries Combe, Inc. Core Pharma Cura Pharm Cypress Pharm DAVA Pharm Dermarite Dey Laboratories Duramed Dr. Reddys Labs EBEWE Parenta Pharm Eisai, Inc. Eli Lilly & Co Ethex Corporation Falcon Pharmaceuticals Ferndale Pharm Forest Pharmaceuticals (Inwood) Fougera & Co. G & W Laboratories Geri-Care Geritrex Corp. Glades Pharmaceuticals Glenmark Pharm Graceway Pharm Greenstone GSK (Glaxo Smith Kline) Hi-Tech Pharmacal Home Diagnostics Hospira Worldwide Humco Johnson & Johnson HCS JHP Pharmaceuticals Kerr Group Konsyl Pharmaceuticals KVK-Tech Lannett Major Pharmaceuticals Mallinckrodt Inc. 24
  25. 25. McKesson Packaging Services (Sky) Mead Johnson Medicure Pharma Medique Products MedPointe Pharmaceuticals (Meda Pharmaceuticals) Merck & Co. Merck Vaccine Division Monarch Pharmaceuticals (King) Morton Grove Pharmaceuticals, Inc. MSP Distribution Services Mylan Pharmaceuticals Nephron Pharm Nestle HealthCare Nutrition Nestle Nutrition, A Division of Nestle USA Novartis Consumer Novartis Pharmaceuticals Corp Novartis Vaccines & Diagnostics Novo Nordisk Paddock Labs Par Pharm Perrigo Pharm. Pfizer U.S. Pharmaceutical Associates, Inc. PharmaDerm Plus Pharma Prasco LLC Precision Dose Procter & Gamble Purdue Pharma, LP Qualitest Pharmaceuticals, Inc. Ranbaxy Pharmaceuticals Inc. Richmond Pharm Rising Pharm Roche Diagnostics Roche Labs Roxane Labs Inc. Sandoz Pharmaceuticals Sanofi Aventis Sanofi Pasteur Santarus Inc. Savage Labs Schering Corp 25
  26. 26. Schwarz Pharma, Inc. Sepracor Sigma-Tau Pharmaceuticals Silarx Pharm Solvay Pharmaceuticals Stanbio Lab Stratus Pharm Takeda Pharmaceuticals Talecris Biotherapeutics Inc. TAP Pharmaceuticals Taro Pharmaceuticals TEVA Pharm USA TEVA Specialty Ther-Rx Corporation Three Rivers Pharm UCB Pharma, Inc. UDL Laboratories Ulmer Pharmacal United Research Labs-Mutual Pharm. Upsher Smith Labs Versapharm Inc. Vista Pharmaceuticals Watson Pharmaceuticals West-ward Pharmaceuticals Wockhardt USA Wyeth Pharmaceuticals X-Gen B. Vendor’s Business Requirements. Describe the requirements a pharmaceutical manufacturer must meet in order to do business (have products stocked) with the Vendor. C. MMCAP Contract Products. Describe how Vendor will maintain an inventory of MMCAP-contract items sufficient to meet the needs of the MMCAP Participating Facilities. MMCAP has provided usage information in the Excel File entitled “PPV RFP Data 112508.xls” available for download at: http://www.mmd.admin.state.mn.us/solicitations.htm or http://www.mmd.admin.state.mn.us/perlscript/current_rfps.pl. Please note, past contracts and purchasing patterns are subject to change and are therefore not an absolute indication of future performance. Describe the following in detail: 1. The method used by the Vendor to monitor usage after the start of the MMCAP contract period. How are the MMCAP usage data and the Vendor’s own usage data used to assure that sufficient inventories are available to supply the average monthly usage of the MMCAP Participating Facilities? 2. The method for addressing a special request from an MMCAP Participating Facility, such as large quantities of identical lot numbers, etc. 26
  27. 27. 3. How are unanticipated increases in orders managed (e.g., orders that exceed the prior 30-day usage by 150%), such as governmental entities placing large orders at the end of their fiscal years. 4. Vendor’s policy for discontinuing MMCAP contract products from distribution center inventories for non-movement. What is the minimum number of units sold per month that would cause Vendor to consider the product for non- movement? What does the Vendor do to ensure that these items are truly non- movement items and that MMCAP Participating Facilities are not purchasing equivalent non-contract alternatives? 5. Vendor’s policy for adding an MMCAP contract product to inventory at each distribution center. Provide the average number of days this process takes, including both new-to-market products and previously existing products. 6. Describe the process, including timeframes, for adding to inventory any previously non-stocked MMCAP-contract item requested by any MMCAP Participating Facility. D. Stock Outs. Describe Vendor’s process for securing and providing MMCAP contract products in the event a distribution facility is out of inventory of a product that is not on manufacturer backorder. State the expected time frame for the described process(es) (e.g., average number of days, etc.). Would the MMCAP Participating Facility be subject to any Vendor-assessed fees (e.g., minimum order, additional delivery fee, etc.) for inventory transfers in a stock out situation that is not due to a manufacturer backorder? If so, fees associated with transferring products between Vendor distribution centers must be included in the service fee structure. E. Manufacturer Backorders Describe how and when (e.g., during ordering, on the order confirmation report, etc.) MMCAP Participating Facilities are notified of any ordered item that is on backorder. How can an MMCAP Participating Facility or the MMCAP Office tell the difference between an MBO caused the Vendor and an MBO caused by the manufacturer? F. Service Level Calculations Raw and Adjusted Fill Rates will be individually calculated on a monthly basis for each MMCAP Participating Facility’s account(s) (including 340B accounts) serviced by the Vendor. The Vendor must submit a Raw and Adjusted Fill Rate Report using the calculations defined below (Service Level Definitions) by distribution center to the MMCAP Office on a monthly basis. See Reporting Section for more information regarding this report. Vendor stock outages due to cancellations/backorders/non-movement by the Vendor will be considered a failure to perform by the Vendor and may be considered grounds for termination of the contract. In the event the awarded Vendor fails to maintain its committed fill rates for two consecutive months, the Vendor will credit the affected MMCAP Participating Facilities in an amount equal to one fifteenth of one percent (0.15%) of the aggregate net purchases by such facility for the two months of reduced service. So long as the awarded Vendor is current in the crediting of such amounts, such failure will not in itself constitute a default. Failure to meet Raw and Adjusted Fill Rates for any MMCAP Participating Facility will be officially recorded as part of the Vendor’s contract performance, which is available for public review and may be used as past performance in any future MMCAP awards. 27
  28. 28. If the Vendor fails to make prompt shipment of MMCAP contract products due to Vendor-related stock outages, cancellations, backorders, or non-movement, the ordering MMCAP Participating Facility may buy an alternate equivalent (generic) substitute product on the open market for the period in which the Vendor is unable to provide the product. The Vendor will be liable to the MMCAP Participating Facility for any excess cost over the MMCAP contracted price and the alternate price of the non-contract product. This will be in effect for 90 days from the date the Vendor is first unable to supply the product to an MMCAP Participating Facility. Vendor must provide the information necessary to make this type of claim and the Vendor contact to which claims should be submitted. Credits due to an MMCAP Participating Facility based on excess product procurement costs caused by a Vendor stock outage or cancellation/backorder, other than MBOs, will be routed from the Vendor, back to the participating MMCAP Participating Facility. The MMCAP Office retains the right to investigate the backorder situation to determine the cause and responsibility of the backorder and to assist the Vendor and the MMCAP Participating Facilities during the MBO period. 1. Using the Adjusted and Raw Fill Rate Calculations as defined below, provide: a. Monthly Raw and Adjusted Fill Rates for each distribution center for the period of May 2008 through October 2008. b. The Vendor’s committed monthly Raw and Adjusted Fill Rates for the term of the contract. 2. Service Level Definitions Raw Fill Rates will be calculated by dividing the number of units delivered by the number of units ordered. Raw Fill Rate = Number of Units Delivered Number of Units Ordered Adjusted Fill Rates will be calculated by dividing the number of units delivered by the number of units ordered minus the number of manufacturer backorder (MBO) units. Adjusted Fill Rate = Number of Units Delivered Number of Units Ordered - MBO Units a. In order for the Vendor to include a MBO Unit in the above Adjusted Fill Rate Calculation, an MBO Unit must be equal to or greater than the number of units ordered on the MMCAP Participating Facility’s order. If requested, the Vendor must provide documentation to the MMCAP Office that it has attempted to maintain product availability from the manufacturer. Examples of supporting documentation could include, but is not limited to, documentation that supports the existence of an outstanding purchase order between the Vendor and the product manufacturer/supplier for the requested products. In order for the Vendor to include an MBO Unit in the above Adjusted Fill Rate Calculation, the outstanding purchase order between the Vendor and the product supplier must have been in existence for no less than three calendar days prior to the MMCAP Participating Facility’s request. b. Product quantities of the most recent month in question that exceed the prior 30-day usage by 150% will be exempt from the calculation. c. Partially filled lines (greater than 50% of the quantity ordered) which are reordered and completely filled within two days will be excluded from the service level calculations. d. Vendor stock outages due to cancellations, backorders, or non-movement by the Vendor on products that have met the prerequisites of the formula will be included in both the Raw and Adjusted Fill Rate calculations. 28
  29. 29. 7.7 Management of MMCAP Contract Products A. Price Loading. The Vendor will be responsible for monitoring MMCAP’s Contract Updates, which will be sent at a minimum on a weekly basis, to obtain product/pricing updates. In the event that the Vendor makes any product/price changes without prior written notification to the MMCAP Office, the Vendor will be responsible to the MMCAP Participating Facilities for the difference in cost between what the MMCAP Participating Facilities were invoiced and the actual MMCAP contract price. Describe the following: 1. Given an effective date of five business days out from receiving the contract update, propose both an expected timeframe and a maximum amount of time in which Vendor will have MMCAP contract changes (e.g., price changes, product additions/deletions, contract extensions, contract expirations, NDC changes, etc.) loaded in its system. 2. Provide all assumptions in calculating the timeframes above. 3. Describe any barriers that would prevent the product/pricing updates from being loaded by the timeframes proposed above. 4. Provide the Vendor’s committed time for loading contract updates for the term of the contract. All exceptions to the committed time for price loading must be approved in writing by the MMCAP Office. B. Product Additions/Deletions 1. MMCAP Contract Database. Vendor may not remove any MMCAP contract products from its database without prior written approval from the MMCAP Office. Any notice received from a manufacturer or MMCAP Participating Facility of price changes for products on MMCAP contracts will be forwarded to the MMCAP Office for validation. Vendor will provide the MMCAP Office with a weekly report of all MMCAP contract activity which lists any changes made to the MMCAP contract. See Scope of Work, Section XV., Mandatory Reports, for more information regarding this report. Provide detailed responses for the following: a. How will Vendor ensure that contract products are not removed without prior written knowledge to the MMCAP Office? b. Propose damages for removing MMCAP contract products before they should be removed. c. What steps, including a timeframe for each step, do you take to ensure there is adequate inventory for a product that is added due to a change in the NDC number, deletion, replacement of a product by the manufacturer, or in situations where the Vendor is notified that MMCAP has determined a need to switch its procurement selections to the only available contract priced product. d. What type of notification will be provided to the MMCAP Office, and how often will it be sent, if an MMCAP-contracted vendor reports a price change that has not been reported by the MMCAP Office. e. Provide a sample of the contract activity report requested above. Data fields should include, but are not limited to: Item Description NDC Current Price Previous Price Packaging Manufacturer 29
  30. 30. Effective Date Change Type (e.g., Addition, Change, Price Increase, etc.) f. When an MMCAP Participating Facility requests to add an MMCAP contract product to the distribution center’s inventory, commit to an average number of days in which the product will be adequately stocked based on usage. C. Convenience Contracts. MMCAP has several convenience or access contracts in place with various manufacturers for Wholesale Acquisition Cost minus zero percent (WAC – 0%). These purchases must be counted as on-contract purchases. 1. Does Vendor have the ability to report all WAC – 0% pricing as on-contract purchases to the MMCAP Office, MMCAP-contracted vendors, and MMCAP Participating Facilities? 2. Will these products be included in each MMCAP Participating Facility’s Service Fee Discount? 7.8 Ordering Equipment A. Ordering System. Provide a detailed description of Vendor’s ordering system(s) and any value added offering for these. B. Hardware, Software, and Devices 1. Describe in detail the hardware, hardware configurations, software operating system(s), and version that will be provided and their associated fees, if any. Be sure to include this information ONLY in the Pricing and Fee Information Worksheet. DO NOT list any fee information in this section. 2. Describe Vendor’s peripheral equipment (scanners, hand held devices, printers, etc) necessary for electronic order entry and bar code scanning capability. The equipment to be furnished by the Vendor will be fully installed and perform to manufacturers’ specifications. 3. Describe Vendor’s procedure for communicating and providing updates or systems changes and training on these changes as they occur throughout the term of the contract. C. Installation. Describe the installation of the above cited equipment and software. D. Training. Describe Vendor’s orientation and training program for Vendor-furnished equipment and automated ordering systems using the minimum training requirements for MMCAP Participating Facilities (include both initial training during implementation period and ongoing training as requested by MMCAP Participating Facilities during the contract term). Include timelines for all events. MMCAP’s preferred training will include: 1. Proper use of order entry devices including computer and hand held units 2. How to access and interpret Vendor’s inventory status 3. Order placement process (product inquiry, placement, order edit, printback confirmation, etc.) 4. Any required ordering system maintenance 5. Downloading price changes 6. Performing file maintenance 7. Requesting or printing bar code labels 8. Download/Run/Print/Export contractually required reports 30

×