6505--RFI - DRAFT SOW for PPV 2028

Form / Attachment / Pricing Sheet

This document, titled "DRAFT PPV 2028 Distribution Fees," outlines different categories of pharmaceutical products and associated distribution fee payment terms (FASTPAY or NET30). It serves as a reference for understanding pricing structures related to the "PPV 2028" initiative.

• Product Categories: Includes "Ultra Expensive," "GLP-1s," "Specialty," "OTC," "VA FSS, all other and VA/DLA national contracts," and "WBPG ANDA."
• Payment Terms: For each category, both "FASTPAY" and "NET30" options are listed, indicating different payment timelines.
• Definitions: Provides detailed definitions for "Ultra Expensive," "GLP-1s," "Specialty," "OTC," "VA FSS, all other and VA/DLA national contracts," and "WBPG ANDA" to clarify the criteria for each category.

This document is crucial for bidders to understand how different types of pharmaceutical products will be categorized for distribution fee purposes. It directly impacts pricing strategies and proposal development by defining the terms under which products will be acquired and paid for. Bidders should review the definitions carefully to ensure accurate pricing and fee calculations in their proposals.

Statement of Work (SOW) / Performance Work Statement (PWS)

This Statement of Work (SOW) outlines the requirements for a Pharmaceutical Prime Vendor (PPV) contract, which is exclusively for pharmacy ordering.

• The PPV shall maintain an adequate supply and distribute drug/pharmaceutical items (Federal Supply Class 65) and other contracted items dispensed under Government supply contracts. These items are sold under various Federal Supply Schedules (FSS), Blanket Purchase Agreements (BPAs), Basic Ordering Agreements (BOAs), and VA/DLA National Contracts.

• Products and incidental services are for direct use by covered facilities; resale is prohibited.

• The Government anticipates adding facilities to the contract on a monthly basis, processed via bilateral modification.

• Payment will be made under the Prompt Payment Act. Fast Pay is mandatory for VA facilities and optional for Other Government Agencies (OGAs).

• The PPV must provide and maintain an emergency contingency plan for disaster recovery.

• The PPV shall make available specific product categories at established government prices, including:

  • Single source innovator, multiple source innovator, and biological insulin pharmaceutical products.
  • Generic & multiple source pharmaceuticals & drugs, human blood products, & over-the-counter drugs.
  • Complete IV delivery systems.
  • Dietary/Nutritional/Supplements.
  • Antiseptic Skin Cleansers, Detergents, Dispensers (small personal sizes only).

• The PPV must also supply products under FSS and NCS contract programs, including blood-glucose monitoring units and consumables, and specific medical/surgical products for outpatient pharmacy dispensing (not bulk orders for CMOP facilities).

• Insulin Syringes and pen needles for CMOPs are to be ordered through the PPV contract.

• A minimum 98% fill-rate is required, calculated daily.

• Delivery is generally required next-day or next scheduled delivery day for orders placed by 6:00 pm customer local time, between 8:00 am and 3:00 pm.

• Emergency deliveries must be within 12 hours (24 hours for outside Continental US) of order receipt, 24/7.

• Specific requirements for expiration dating on delivered products are outlined (e.g., minimum 3 months, 6 months for CMOP/IHS/Honolulu/Saipan, 20 months for bulk items to HHS SSC/Perry Point/EPS/NAC).

• The contract includes a 120-calendar day implementation/transition period.

• Performance period details are not explicitly stated but implied to be multi-year with option periods.

• Delivery locations are to facilities covered under the contract, including VA, IHS, BOP, and IHSC.

• Prospective prime vendors must have a minimum of 5 years' experience as a pharmaceutical prime vendor.

• PPV employees entering BOP and IHSC facilities are subject to investigative procedures.

• The PPV must provide an electronic ordering system, including bar code scanning capability, at no cost to the Government.

• The PPV must provide two of the newest model hand-held order entry devices per ordering account.

• Software upgrades and technical support are to be provided at no cost.

• Training on the ordering system and processes is required.

• The PPV must comply with Drug Supply Chain Security Act (DSCSA) requirements.

• Specific ordering requirements are detailed for CMOP, National Acquisition Center (NAC), Emergency Pharmacy Service (EPS), IHS Tribal, Satellite Facility Proxy Ordering, and facilities outside the Continental United States.

• The PPV must provide various reports, including Velocity, Usage, Contract Compliance, Narcotic, Fill Rate, Product Allocations, Vendor Contract Supply Problem, Sales Reports, and others as detailed in Section I-26.

Request for Industry Review and Comments

The Department of Veterans Affairs (VA) is seeking industry review and feedback on a DRAFT Statement of Work (SOW), Definitions, and Distribution Fee Categories for the Pharmaceutical Prime Vendor (PPV) 2028 acquisition. This early engagement aims to ensure the final SOW is clear, comprehensive, and structured to support effective competition.

Industry is invited to provide input on:

• Unclear, conflicting, or ambiguous requirements

• Technical or operational requirements affecting performance

• Suggestions for distribution operations, inventory management, reporting, data exchange, or order fulfillment

• Noted risks, barriers, or areas needing additional definition

• Suggestions to improve efficiency or align with industry best practices

• Provide feedback no later than 11 AM Central Time on July 2, 2026.

• Send responses via email to Karen.Ade@va.gov.

• Include Company Name, Point of Contact (name, phone, email), UEI and CAGE Code, and Socioeconomic designation(s) if applicable.

• This is not a solicitation; no contract will be awarded from this notice.

• Participation in this review is voluntary and does not preclude future solicitation participation.

• All feedback is for market research and SOW refinement only.

• The Government will not reimburse costs associated with providing comments.

• DRAFT PPV28 Definitions 6-11-2026

• DRAFT PPV28 SOW 6-11-2026

• DRAFT PPV28 Pricing Categories 6-11-2026

Other / Unclassified

This document provides a comprehensive list of definitions for terms used throughout a solicitation and any resultant contract(s), particularly related to pharmaceutical prime vendor (PPV) programs and government healthcare facilities.

This document is crucial for bidders to understand the specific terminology and acronyms employed in the solicitation and contract. Key definitions include:

• Automatic Replenishment: A system for automated order entry linked to pharmacy management.
• Area Office: An Indian Health Service (IHS) facility overseeing local operations.
• Basic Ordering Agreements (BOAs): Agreements establishing product prices for items from specific manufacturers.
• BIG 4: Four government organizations entitled to Federal Ceiling Price for pharmaceuticals.
• Blanket Purchase Agreement (BPA): A simplified method for filling repetitive needs.
• CMOP (Consolidated Mail Outpatient Pharmacy): Large VA facilities for filling and mailing prescriptions.
• Contracting Officer (CO): The government official responsible for awarding and administering the contract.
• Covered Drugs: Innovator drugs requiring a prescription, with pricing under Section 603 of Public Law 102-585.
• Federal Ceiling Price (FCP): A drug discounting process administered by the VA.
• Federal Supply Schedule (FSS): GSA program for obtaining commercial supplies and services.
• Indian Health Service (IHS): Agency providing health services to American Indians and Alaska Natives.
• Pharmaceutical Prime Vendor (PPV): A business providing a broad range of pharmaceutical products.
• Universal Product Numbers (UPNs): Unique identifiers for healthcare products.
• Veterans Affairs Medical Centers (VAMCs): Medical facilities operated by the VA.

Understanding these definitions is essential for accurately interpreting contract requirements, deliverables, and operational procedures.