STRATEGIC ACQUISITION CENTER PROGRAM MANAGEMENT REVIEW May 2, 2017
VA
Strategic Acquisition Center 1
VA Next 12 Months Modernization Shared Services (Procurement-Likely Candidate) Optimization of Personnel Systems Hard Look at the Mission of the VA—all services “CHOICE” Huge Focus of the VA—Next 12 months Medical System—Becoming the Choice of Veterans -
VA
Targeting Monumental Change—not incremental
Strategic Acquisition Center 2
MSPV-NG Supports the MyVA Transformation – Putting Veterans and their Families First VA is Transforming into a Veteran Centric Organization
VA Secretary David Shulkin is sponsoring “CHOICE” transformation initiative across the Department
CHOICE serves as a catalyst to modernize VA’s culture, processes, and capabilities to put the needs of Veterans and their families first
VA
Supply Chain Transformation is a Priority
VA leadership identified 5 Priorities for 2017 Supply Chain Transformation as a critical enabler for the “CHOICE”
Strategic Acquisition Center
MSPV-NG Supports Supply Chain Transformation
VHA is partnering with its acquisition offices to update the existing MPSV program to support these goals VA will redirect the cost avoidance from this effort to support high priority Veteran programs
MSPV-NG is a National Program for Procuring Medical/Surgical Supplies Across VHA
What is MSPV-NG? The MSPV Program is a national mandatory program that provides a customized distribution system to meet or exceed facility requirements by providing an efficient, cost-effective, just-in-time distribution catalog ordering process MSPV Cataloging items to be distributed under the MSPV Program will include medical, surgical, dental, and selected prosthetics and laboratory supplies, to include textiles Cataloging items utilized to populate the MSPV Catalog will be comprised of acquisitions consisting of IDIQ’s, Blanket Purchase Agreements (BPAs); Basic Ordering Agreements (BOAs); and other National Contracts
VA
Strategic Acquisition Center 4
MSPV-NG Streamlines Ordering Processes Resulting in Benefits to VA and Veterans Provide a streamlined procedure for ordering medical/surgical supplies aimed at:
Improved ease of ordering
Decreased number of purchase card transactions
Reduced number of shipments and invoice processing by facilities
Decreased number of purchase orders
Reduced inventory levels at individual facilities
Increased flexibility for VA Customer and Ordering Officers
VA
Strategic Acquisition Center
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Clinical Involvement and Input is Critical to the Success of MSPV-NG
Item Review via Integrated Product Teams
Clinical Product Review Committees
MSPV-NG has worked to engage IPTs from all major medical areas
CPRCs provide insight into highquality supplies for use across VHA
Clinical experts reviewed items prior to solicitaion for the MSPV-NG Catalog
The CPRC tool was established so that we can gather information nationally
National Center for Patient Safety (NCPS) will participate in product reviews National program offices are engaged to develop the formulary
VA
Strategic Acquisition Center
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VHA Relies on Your Partnership, as Suppliers and Vendors, to Ensure Program Success
MSPV-NG Formulary includes all items that may be ordered by VHA facilities through MSPV-NG
VA
Prime Vendors stock MSPV-NG supplies and fill orders as they are received by VHA facilities Suppliers provide inventory to VHA’s Medical/Surgical Prime Vendors
Strategic Acquisition Center
VHA facilities manage their inventory and place MSPV-NG orders
VHA Hospitals receive orders and provide supplies to clinicians who deliver high-quality health care to Veterans
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General MSPV Information The MSPV is not intended to include “large hospital equipment”, i.e.,
Ultrasound, PET and CT Scanners, MRI, X-Ray Machines, medical ventilators, heart-lung machines, and dialysis machines
This list is not all inclusive – it is intended to demonstrate the category of medical equipment and machinery that will be procured on other contracting vehicles due to their cost, complexity, features, and characterizations
The MSPV shall not ship any medical/surgical or any other supplies that are not on the Government provided master list of approved medical/surgical supplies All medical/surgical supplies shall be provided to the ordering facilities in accordance with the terms and conditions of the MSPV contract Drop shipments shall be made through product contractors only when approved by the customers in accordance with the customer’s requirement
VA
Only the reduced drop shipment fee shall apply to these orders
Strategic Acquisition Center
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Other General MSPV Information MSPV Delivery Requirements Conventional/Bulk Delivery (CBD) Method – 3 days per/week Low Unit of Measure (LUM) – Daily, 5-days per week (excluding weekends) Emergency Deliveries – within 12 hours after receipt of order
Product Suppliers The MSPV must establish distribution agreements with new product suppliers within 30 calendar days from notification by the VA. If a distribution agreement cannot be established within the allotted time, the MSPV shall notify the Contracting Officer, in writing
Other Miscellaneous MSPV Topics Contractor Use of Mandatory Sources of Supply or Services Contract Phase-In/Contract Phase-Out (Contract Implementation)
VA
Strategic Acquisition Center
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MSPV Product Service Codes
4240 – Safety & Rescue Equipment 6505 – Drugs, biologicals 6509 – Drugs and Biologicals, Veterinary Use 6510 – Surgical Dressing Materials 6515 – Medical & Surgical Instruments 6520 – Dental Equipment, Instruments, & Supplies 6525 – Imaging equipment and supplies 6530 – Hospital equipment 6532 – Hospital and Surgical Clothing & Related Special Purpose Medical/Surgical Supplies 6540 – Ophthalmic instruments, equipment & supplies 6545 – Replenish-able Field Medical Sets, Kits, and Equipment
VA
6550 – In Vitro Diagnostic Substances, Reagents, Test Kits and Sets 6630 – Chemical Analysis Instruments & Equipment 6640 – Laboratory Equipment & Supplies 6650 – Optical Instruments, Test Equipment, Component, & Accessories 6670 – Scales and Balances 7910 – Floor Polishers and Vacuum cleaning equipment 7920 – Brooms, Brushes, Mops & Sponges 7930 – Cleaning & Polishing Compounds and Preparations 8305 - Textile Fabrics 8520 – Toilet Soap, Shaving Preparation, & Dentifrices
Strategic Acquisition Center
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Adding New Items to the MSPV Program 1
2
2.1
Customers (Clinicians) see, or buy something via UPC or Purchase Order while visiting another facility, trade show, or other event. Like product and decide to make it part of daily commonly used items
Submit request to MSPV Program Office to have item included under the MSPV Catalog
PMO conduct study to determine annual usage by other VAMCs and decides item is not a good candidate for MSPV
2.2
PMO determines that product is a good candidate for inclusion under the MSPV Program — Forward product information, to include supporting requirement documentation to SAC MSPV Program Coordinator requesting the item be added to the MSPV catalog
2.3
MSPV Coordinator will evaluate request to ensure all MSPV criteria has been met, i.e., competition requirements, etc. — If deemed a good candidate for MSPV Program, item will be added via the proper contractual administrative actions, i.e., BPA Award, Mod, or new contract
VA
Strategic Acquisition Center
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MSPV Catalog Solicitation Process Solicitation Method
Overview All contract vehicles will generally be competed BPAs, BOAs, or other Contracts resulting in single award
Two Different Methods of Solicitation Kingdomware Supreme Court Ruling Rule of “two” or more
Solicitation closing dates will — SDVOSBs/VOSBs generally be a standard 30 VA FSS Schedule 65 and 66 day response time (eBUY) MSPV Catalog will be populated by completion of FedBizOpps (Non FSS Requirements) the Product and Pricing Document (PPD) — Cascading Approach
RFQ Each RFQ will provide language advising potential Quoters of the following Contract Line Items selected for inclusion in each BPA shall meet the (salient) characteristics prescribed by the Program Office
• Set-Asides for Small Business Manufacturers
• Other Socioeconomic Groups • Unrestricted
VA
Strategic Acquisition Center
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MSPV Solicitation Overview • 33 Solicitations • Rolling 15 day schedule for solicitations and evaluations – Target Start Date ~June 15th – Target End Date ~December 15th
• SDVOSB set a-side/and open market solicitation planned for all products lines, except surgical instruments
VA
Strategic Acquisition Center
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MSPV Solicitation Overview
Formulary Progress: Phase 2 detailed by Supply Line Level 1
IPT Stand-up
Package Review
Final VOA Upload
SAC Refinement
Actionable Package
Solicitation Issued
Contract Award
Supply Line Level 1 (Program Manager)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
Apparel/Textiles Central Supply Sterilization Solutions and Supplies Critical Care Dental Equipment/Dental Supplies Dialysis/Pheresis Emergency Medical Services Supplies and Equipment Endoscopy Suite IV and Irrigation Supplies Laboratory (Rodney Hickson) Medical Documentation Products (TaKia Dunn) Medical Imaging Radiotherapy Nuc Medicine Cath Lab OR - Instruments Surgical OR - Miscellaneous OR - Surgery Supplies Specific Service OR - Sutures Optometry Orthopedics/Prosthetics and Sports Medicine Patient Care Products Patient Exam Room Instruments and Supplies Pharmacy Physiological and Psychological Testing and Monitoring Respiratory Therapy and Anesthesia Safety Devices and Supplies Syringes and Needles Urology Supplies Wound Care KEY:
Phase completed
Phase in progress
Excluded
Tentative Proposed Schedule SDVOSB set-aside BNOE Solicitation June 15:
Solicitation Aug 1:
1. Medical Imaging Radiotherapy
2. Patient Care 3. Patient Exam Room 4. Physiological 5. Respiratory Therapy 6. Critical Care/Dialysis and Pheresis/ Emergency Medical Service/ Medical Documentation/ Optometry/Orthopedics/ Pharmacy/Central Supply Sterilization/Safety Devices
Solicitation June 30:
17. Medical imaging Radiotherapy 18. Patient Care 19. Patient Exam Room 20. Physiological 21. Respiratory Therapy 22. Critical Care/Dialysis and Pheresis/ Emergency Medical Service/ Medical Documentation/ Optometry/Orthopedics/ Pharmacy/Central Supply Sterilization/Safety Devices
Solicitation Aug 15:
7. Operating Room 8. Syringes and Needles 9. Urology Supplies 10. Wound Care 11. Dental Equipment
23. Operating Room 24. Syringes and Needles 25. Urology Supplies 26. Wound Care 27. Dental Equipment
Solicitation July 14:
Solicitation Sept 1:
12. Apparel/Textile/Gloves 13. Endoscopic Suite 14. IV/Solutions 15. Laboratory 16. All BN items SDVOSB set-aside
VA
Open Market BNOE
28. Apparel/Textile/Gloves 29. Endoscopic Suite 30. IV/Solutions 31. Laboratory 32. Surgical Instruments 33. Open market All BN items
Strategic Acquisition Center
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A Data-driven Negotiations Approach Data Source
VA
Data Types
EDI
Item level pricing and volumes from electronic payments
US Bank Purchase Card
Item level pricing and volumes from pc payments (select vendors)
MedPDB
Item level commercial and DoD pricing
External data
Item level commercial pricing and market trends (deflation, inflation)
eCMS / Microstrategy tool
Item level commercial pricing and market trends (deflation, inflation)
Strategic Acquisition Center
Integrated view of VA, DoD, and Commercial pricing
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Dashboard Examples View of all available data on price for this product & implied cost avoidance
LDP based on adjustments within dashboard
Tab allows evaluation of offer against LDP and implied cost avoidance
Single view of impact of quantity on price and most common pricing
View of the change in price over time and any violations of contract pricing Regional and local view of pricing to ID any geographic trends
VA
Strategic Acquisition Center
Antidotal Example On one bandage, VA best price is 44%> than avg. commercial price; avg. price more than double lowest commercial price JonDoe Inc: 1.5“ 5yd Coflex bandage, 48Ct 18.50 Lowest MedPDB commercial price Lowest Defensible Price is 17.77
VA
22.74
32.64
33.46
42.19
Average MedPDB commercial price
MedPDB VA Best price
Lowest PC1 price
Average PC1 price
44% more 128% more
Strategic Acquisition Center 18
Category Spend Review Number of products by percent greater VA's price is than the Lowest Defensible Price # of products
Confirmable
80
Needs checking 73
XX% of products have historical average prices at least 50% greater than the LDP
60
40
72
34 23 19
20
34 23
12
12
12
12
75% to 100%
100% to 125%
0
0% to 25%
25% to 50%
50% to 75%
10 5 5
125% to 150%
9
4 4
150% to 175%
175% to 200%
18
Above 200%
VA Price over LDP (%)
VA
Strategic Acquisition Center 19
MSPV 2.0
Looking to Leapfrog Forward in Medical Supply Chain
VA
Strategic Acquisition Center 20
STRATEGIC ACQUISITION CENTER
VA
Strategic Acquisition Center 21