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Contracting Basics

Contracting Basics Joseph J. Canzolino R.Ph. Deputy Chief Consultant, Pharmacy Benefits Management vaww.pbm.va.gov www.pbm.va.gov. Contracting Basics. Federal Supply Schedule (FSS) Multisource Contracts Mandatory for Covered Drugs only (brand-name products) Public Law 102-585

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Contracting Basics

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  1. Contracting Basics Joseph J. Canzolino R.Ph.Deputy Chief Consultant, Pharmacy Benefits Managementvaww.pbm.va.gov www.pbm.va.gov

  2. Contracting Basics • Federal Supply Schedule (FSS) • Multisource Contracts • Mandatory for Covered Drugs only (brand-name products) • Public Law 102-585 • Buy American, Trade Agreements Act and Non-designated countries • Pricing Oversight and Audit Requirements National Acquisition Center www1.va.gov/oamm/oa/nac

  3. Contracting Basics • Temporary Price Reduction (TPR) • Modification of FSS Contract • Specific agencies • Specific time frame • Specific price (lower than FSS) National Acquisition Center www1.va.gov/oamm/oa/nac

  4. Contracting Basics • Blanket Purchase Agreement (BPA) • Modification of FSS Contract • Specific agencies • Market share or volume based • Tiered prices (lower than FSS) National Acquisition Center www1.va.gov/oamm/oa/nac

  5. Contracting Basics • National Contracts • Requirements • Don’t always get many offers • Initiated by PBM • PBM clinical review will determine type of contract • Evaluation factors vs. price alone • Therapeutic Interchange contract • Therapeutic equivalence - evaluated by price alone • Evaluation factors - evaluated by best value • Standardization contract • Generic contract - evaluated by price National Acquisition Center www1.va.gov/oamm/oa/nac

  6. Contracting Basics • Standardization contract • Market conditions • Adequate competition • Sufficient raw materials • Price reduction and stabilization • Contracting requirements • Minimum volume requirements • Vendors and package sizes Pharmacy Benefits Management www.pbm.va.gov

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