Pharmacy Switch Services for the Red Lake Service Unit
Overview
Buyer
Place of Performance
NAICS
PSC
Set Aside
Original Source
Timeline
Qualification Details
Fit reasons
- NAICS alignment with historical contract wins in similar service areas.
- Scope strongly matches core technical capabilities and delivery model.
Risks
- Past performance thresholds may require one additional teaming partner.
- Potential clarification needed on staffing minimums before bid/no-bid.
Next steps
Validate eligibility requirements, assign capture owner, and schedule partner outreach to confirm teaming strategy before submission planning.
Quick Summary
The U.S. Department of Health and Human Services (HHS), Indian Health Service (IHS), Bemidji Area, intends to award a Firm Fixed-Price Sole Source contract to Change Healthcare/Optum for Pharmacy Switch Services at the Red Lake Indian Hospital, Red Lake, MN. This action is an 8(a) Sole Source (FAR 19.8) and is justified under FAR 6.302-1 and FAR 8.405-6 due to the vendor's unique capabilities. Responses from interested parties are due by March 9, 2026.
Purpose & Justification
This notice of intent is for critical electronic pharmacy Point of Sale (POS) switching services, enabling real-time claims adjudication, eligibility verification, and third-party billing for the IHS. The sole source justification stems from Change Healthcare/Optum's proprietary data, licensing rights, and unique ability to interface with the Red Lake Service Unit (RLSU) RPMS DOS system. Market research confirmed that Change Healthcare is the only source capable of supporting the IHS RPMS interface, which is centrally managed and proprietary. Transitioning to an alternative vendor would introduce unacceptable risks of service disruption and delayed reimbursement.
Scope of Services
The required "Switching Services" facilitate the electronic submission of pharmaceutical claims from the RPMS computer system to third-party Drug Plans for reimbursement. These services include:
- Connect (switch)
- Edits (Pre and post)
- Card Finder
- Web Services Sure-scripts
- Web Services Medicare Eligibility
Contract Details
- Type: Firm Fixed-Price Sole Source Contract
- Anticipated Period of Performance: Base Year plus Four One Year Options
- Estimated Value: $24,720.00 (including all options)
- Set-Aside: 8(a) Sole Source (FAR 19.8)
- NAICS Code: 513210 Software Publishers
- PSC Code: DG11 Telecom Access And Other Usage Billing Services
Response Information
This is a Notice of Intent to Sole Source and not a request for competitive quotes. Interested persons may identify their interest and capability to respond to the requirement or submit a quote. Responses must provide clear and convincing evidence that competition would be advantageous to the Government, including technical capabilities and other information demonstrating the ability to meet the Government's needs.
- Response Due: March 9, 2026, by 6:00 PM ET.
- Contact: Mary Simon, Contract Specialist (mary.simon2@ihs.gov).