Mr. Paul Skalman Assistant Director Program Management Resource Support GSA Expo May 2010

2. 2 AGENDA What is the VA FSS Program Mission & Vision VA FSS Schedule Programs Current Transformation Old Structure vs. New Future Initiatives Questions

3. 3 VA FEDERAL SUPPLY SCHEDULE PROGRAM

4. 4 WHAT IS THE VA FSS PROGRAM? Listing of contracts to multiple companies supplying comparable commercial supplies and services. Establishes long-term contracts between the Government and responsible commercial companies in order to provide eligible FSS users supplies/services at fixed prices, terms, and conditions. VA FSS contracts provide eligible buyers with a simplified process for obtaining more than 1 million commercial supplies/services.

5. 5 To be the foremost source for quality healthcare products and services VA FSS VISION STATEMENT

6. IMPORTANT DEFINITIONS MULTIPLE AWARD SCHEDULE (MAS) SCHEDULE 6 - Products/services are organized into 9 schedules. - Products/services are organized into 9 schedules.

7. OVERVIEW OF THE VA FSS SCHEUDLES 65 IB - Drugs and Pharmaceutical-related Products 65 IIA - Medical Equipment and Supplies 65 IIC - Dental Equipment and Supplies 65 IIF - Patient Mobility Devices 65 VA - X-Ray Film, Equipment, and Supplies 65 VII - Diagnostic, Reagents, Test Kits and Sets 66 III - Cost-Per-Test for Clinical Laboratory Analyzers 621 I - Professional and Allied Healthcare Staffing Services   621 II – Medical Laboratory Testing and Analysis Services 7

8. 65 IB – DRUGS & PHARMACEUTICAL RELATED PRODUCTS Veterans Health Care Act of 1992 Federal Ceiling Price (FCP) Covered drugs Generic drugs, medicated disinfectants, IV delivery systems, dietary supplements, etc. $7 billion total sales FY 2009 8

9. 65 IIA – MEDICAL EQUIPMENT & SUPPLIES 96 special item numbers (SIN) Everything from simple gauze bandages to high-tech physiological monitors Equipment installation and training Leasing/rental options $1.2 billion total sales FY 2009 9

10. 621 I – PROFESSIONAL & ALLIED HEALTHCARE STAFFING SERVICES In 2001 the VA issued the solicitation for Professional Medical Healthcare Services August of 2002 VA expands schedule to include Allied Healthcare Professionals (i.e. physicians and nurses). For performance at Federal Government Healthcare Treatment Facilities. For long-term and short-term assignment periods. $555 million total sales FY 2009 10

11. VA FSS SCHEDULES 65 IIC – DENTAL EQUIPMENT & SUPPLIES Operating items, hand instruments, teeth, etc. $109 million total sales FY 2009 65 IIF – PATIENT MOBILITY DEVICES Canes, walkers, crutches, wheelchairs (configured purchases) ramps $75 million total sales FY 2009 11

12. VA FSS SCHEDULES 65 VA - X-RAY FILM, EQUIPMENT & SUPPLIES X-ray film, digital imaging equip and access $6.7 million total sales FY 2009 65 VII - DIAGNOSTIC, REAGENTS, TEST KITS & SETS Blood glucose meters and strips, microbiology items, etc. Products work in tandem with GSA FSS 66 scientific equipment for labs $183 million total sales FY 2009 12

13. VA FSS SCHEDULES 66 III - COST-PER-TEST FOR CLINICAL LABORATORY ANALYZERS Similar to cost per copy All equipment, consumables, maintenance, and training paid for on a per test basis More tests run, lower per test price $245 million total sales FY 2009 13

14. VA FSS SCHEDULES 621 II – MEDICAL LABORATORY TESTING & ANALYSIS SERVICES Patient test samples/results outsourced Primarily esoteric tests $43 million total sales FY 2009 14

15. CONTRACTOR TEAMING ARRANGEMENTS (CTA) What is a GSA Schedule CTA? Example: GSA FSS Schedule 71 III vs. VA FSS Schedule 65 IIA Special Item Number (SIN) 71-315: Hospital Patient Room Furniture SIN A-69: Acute Care Beds 15 A GSA Schedule CTA is an arrangement between two or more GSA Schedule contractors to work together to meet agency requirements. The CTA document is a written agreement between team members detailing the responsibilities of each team member. The CTA allows the contractor to meet the government agency needs by providing a total solution that combines the supplies and/or services from the team members' separate GSA Schedule contracts. It permits contractors to complement each other's capabilities to compete for orders for which they may not independently qualify. A customer benefits from a CTA by buying a solution, rather than making separate buys from various contractors. Benefits - Satisfies the customer with a single solution; Increases competitive edge; Increases market share; Increases visibility; Focuses on core capabilities; Obtains complementary capabilities; Integrates different skills; Offers additional opportunities with customers; Builds direct relationships with customers; Maximizes use of one or more GSA Schedule solutions; Shares risks and rewards; Allows more opportunities for small and small disadvantaged businesses; and Reduces the number of items Schedule contractors need to carry on their Schedule contracts, thus reducing inventory and tracking costs. Information about teaming - Please visit GSA eLibrary (formerly Schedules e-Library) to find GSA Schedule contractors who match the supply or service criteria. When should CTA be established - GSA Schedule contractors may establish a CTA in advance of any known requirement or after requirements are defined and the Request for Quotation (RFQ) issued. Having an on-the-shelf team arrangement for non-complex buys will allow the contractors to respond quickly and easily when requirements emerge. For highly complex buys, a customized CTA may be required. In either case, the CTA should include the names of the team members, their respective GSA Schedule contract numbers, and a description of the responsibilities of each team member.Agencies should review CTAs to ensure that the CTAs clearly delineate team member responsibilities and provide for coordination and cooperation between team members, thus diminishing the risk for all parties involved. A GSA Schedule CTA is an arrangement between two or more GSA Schedule contractors to work together to meet agency requirements. The CTA document is a written agreement between team members detailing the responsibilities of each team member. The CTA allows the contractor to meet the government agency needs by providing a total solution that combines the supplies and/or services from the team members' separate GSA Schedule contracts. It permits contractors to complement each other's capabilities to compete for orders for which they may not independently qualify. A customer benefits from a CTA by buying a solution, rather than making separate buys from various contractors. Benefits - Satisfies the customer with a single solution; Increases competitive edge; Increases market share; Increases visibility; Focuses on core capabilities; Obtains complementary capabilities; Integrates different skills; Offers additional opportunities with customers; Builds direct relationships with customers; Maximizes use of one or more GSA Schedule solutions; Shares risks and rewards; Allows more opportunities for small and small disadvantaged businesses; and Reduces the number of items Schedule contractors need to carry on their Schedule contracts, thus reducing inventory and tracking costs. Information about teaming - Please visit GSA eLibrary (formerly Schedules e-Library) to find GSA Schedule contractors who match the supply or service criteria. When should CTA be established - GSA Schedule contractors may establish a CTA in advance of any known requirement or after requirements are defined and the Request for Quotation (RFQ) issued. Having an on-the-shelf team arrangement for non-complex buys will allow the contractors to respond quickly and easily when requirements emerge. For highly complex buys, a customized CTA may be required. In either case, the CTA should include the names of the team members, their respective GSA Schedule contract numbers, and a description of the responsibilities of each team member.

16. CONTRACTOR TEAMING ARRANGEMENTS (CTA) What are the benefits of a GSA Schedule CTA? Single Solution Increases competition and market share Increases opportunities for small businesses When should a GSA Schedule CTA be established? In advance of any known requirement After requirements are defined and the RFQ is issued 16

17. CONTRACTOR TEAMING ARRANGEMENTS (CTA) Where can I find information on other GSA Schedule contractors who may want to team? GSA E-Library http://www.gsaelibrary.gsa.gov/ElibMain/home.do GSA Contractor Teaming Arrangements Website http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_OVERVIEW&contentId=8124 17

18. VA FSS ANNUAL SALES 18

19. TRAITS OF THE VA FSS PROGRAM 19 Open and Continuous Solicitation Cycle Multi-year: 5 year base with option to extend* up to an additional 5 years** *Option to extend for 1, 2, or 5 years **Currently, there is NO extension option for PHARMACEUTICAL contracts Fixed-Price Contract with Economic Price Adjustment

20. FSS PROGRAM CHARACTERISTICS Product Availability- Similar and Identical products are available from multiple sources (more than one contractor) providing a variety of products and services. Competition – FAR Part 8 requires review of 3 or more Other Terms and Conditions are incorporated into individual contracts, such as: Delivery terms Return goods policy Warranty and liability statements 20 Open & Continuous Solicitations – Vendors may submit offers at any time. This allows contractors to provide the latest technology to Federal customers. Open & Continuous Solicitations – Vendors may submit offers at any time. This allows contractors to provide the latest technology to Federal customers.

21. FSS PROGRAM CHARACTERISTICS Worldwide Deliveries Domestic (48 Contiguous States, DC, Hawaii, Alaska and Puerto Rico) Overseas (Overseas destination other than AK, HI & PR) FOB Destination Pricing Use of Government Purchase Card (Smart Pay Program) Micro-purchase threshold Economic Price Adjustments (EPA) Order Limitations – Minimum and Maximum order requirements Disaster Recovery Program – Public Law 109-364, John Warner National Defense Authorization Act Use of FSS contracts by Certain Entities – Recovery Purchasing 21 FOB Destination Pricing - At a minimum, includes the 48 Contiguous States and DC. FOB Destination Pricing - At a minimum, includes the 48 Contiguous States and DC.

22. AUTHORIZED USERS OF THE FSS PROGRAM Authorized Users – All Federal Agencies and activities in the Executive, Legislative, and Judicial Branches VA, DOD (& Coast Guard), Bureau of Prisons, Indian Health Services, etc. Includes State Veteran Homes with Sharing Agreements FAR Part 51 Authorized Representatives State and Local Entities under Disaster Recovery GSA Website for Agency Eligibility 22 FOB Destination Pricing - At a minimum, includes the 48 Contiguous States and DC. FOB Destination Pricing - At a minimum, includes the 48 Contiguous States and DC.

23. VA FSS TRANSFORMATION “Henry Ford is reported to have offered $25,000 to anyone who would show him how to save a single nut and bolt on each automobile that he made.” 23 Without Henry Ford, our country would not be the America we know today. His obsession with reducing costs and improving productivity allowed him to build the first automobile that ordinary people could afford and led to the construction of a vast network of roads and highways that gave birth to today’s mobile society. It also set the stage for total quality management and continuous improvement programs that are prevalent in the automotive industry today. More importantly, we have learned that continuous improvement is expected in virtually every industry as an organization focuses on the needs and wants of their customers. Without Henry Ford, our country would not be the America we know today. His obsession with reducing costs and improving productivity allowed him to build the first automobile that ordinary people could afford and led to the construction of a vast network of roads and highways that gave birth to today’s mobile society. It also set the stage for total quality management and continuous improvement programs that are prevalent in the automotive industry today. More importantly, we have learned that continuous improvement is expected in virtually every industry as an organization focuses on the needs and wants of their customers.

24. VA FSS TRANSFORMATION The VA FSS is currently undergoing a substantial transformation. Over the past 18 months, we have been diligently working to evaluate our current systems and methods, as well as to examine how other similar groups handle/complete their workload. As a result, we determined that a change was needed within our service in order to promote efficiency and effectiveness in our day to day actions, as well as our overall program. 24

25. GROWTH OF VA FSS 25

26. OLD VA FSS STRUCTURE**PROGRAM ORIENTATED** 26 Explain each team’s responsibilities Discuss the cradle to grave processExplain each team’s responsibilities Discuss the cradle to grave process

27. NEW VA FSS STRUCTURE**TASK ORIENTED** 27

28. INTAKE, ANALYSIS, & PROGRAM SUPPORT BRANCH MISSION: To provide centralized management that streamlines processing and distribution of assignments that optimally support and enhance the FSS Service Vision & Mission Statements 28

29. INTAKE BRANCH RESPONSIBILITIES CENTRALIZED INTAKE INITIAL REVIEW/ CLARIFICATION 29

30. CONTRACTING BRANCH MISSION: To provide expert and timely evaluation, negotiation, documentation, and administration of contract actions that support and enhance the FSS Service Vision. 30

31. NEGOTIATION & AWARD SECTION RESPONSIBILITIES PRICE ANALYSIS NEGOTIATION OBJECTIVES 31

32. NEGOTIATION & AWARD SECTION RESPONSIBILITIES FINAL PROPOSAL REVISION (FPR) AWARD 32

33. ADMINISTRATIVE SECTION RESPONSIBILITIES 33 Pharm contracts cannot be extended beyond the 5 years markPharm contracts cannot be extended beyond the 5 years mark

34. ADMINISTRATIVE SECTION RESPONSIBILITIES 34 CONTRACT CLOSEOUT POST-AWARD AUDIT ACTIONS

35. PROGRAM MANAGEMENT & RESOURCE SUPPORT BRANCH MISSION: To provide high quality FSS program management through awareness, information, and education of stakeholders and policy support functions that enhance the FSS Service Vision. 35

36. PROGRAM MANAGEMENT & RESOURCE SUPPORT RESPONSIBILITIES 36 TRAINING CONTRACT RELATED

37. PROGRAM MANAGEMENT & RESOURCE SUPPORT RESPONSIBILITIES 37 WEB PORTAL SOCIAL MEDIA

38. INTAKE BRANCH FUTURE INIATIVES 38 ACCELERATED PROGRAM CENTRALIZED HELP DESK

39. CONTRACTING BRANCH FUTURE INIATIVES Standardize all forms in order to increase efficiency and effectiveness Create an electronic tool to serve as a centralized reference point for administrative actions Develop and maintain a mechanism for organizing files 39

40. PROGRAM MANAGEMENT & RESOURCE SUPPORT BRANCH FUTURE INIATIVES Schedule consolidations and SIN revisions On-line Sales reporting and IFF payment Enhance current marketing plan and enhance training for FSS contractors, eligible ordering facilities, and employees. Create one portal entry for contractor’s product/pricing information Continual develop of the VA FSS monthly e-newsletter Mailing list Continue to work with GSA on policy program initiatives 40

41. PROGRAM MANAGEMENT & RESOURCE SUPPORT BRANCH FUTURE INIATIVES Update website to become more user friendly 41

42. PROGRAM MANAGEMENT & RESOURCE SUPPORT BRANCH FUTURE INIATIVES 42

43. PROGRAM MANAGEMENT & RESOURCE SUPPORT BRANCH FUTURE INIATIVES Upcoming additions to the website Training landing page (Including presentations & video clips) Audience specific pages (i.e. prospective contractors, current contractors, & customers) FAQs FSS Purchasing Program Info (e.g. Disaster recovery & ARRA) FSS Blog 43

44. IMPORTANT CONTACT INFO 44 VA FSS HELP DESK (P) (708) 786 – 7737 (F) (708) 786 – 4975 (E) helpdesk.ammhinfss@va.gov

45. IMPORTANT WEBSITES VA NAC FSS http://www1.va.gov/oamm/oa/nac/fsss/index.cfm Contract Catalog Search Tool http://www1.va.gov/nac/ Schedules E-Library (schedule information) http://www.gsaelibrary.gsa.gov 45