# Presentation: 205924

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**Department of Veterans Affairs **
**National Acquisition Center**
**Industry Conference**
**October 9 – 10, 2007**

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**AGENDA**
- Federal Supply Schedule (FSS) Program
- National Standardization Program
- Pharmaceutical Prime Vendor (PPV) Program
- Consolidated Mail Outpatient Pharmacy (CMOP) Program
- Pharmacy Repackaging Program

## PPV Program 

**PPV Program **

**FSS Program**

**VA CMOP Program**

**National Standardization**

**Pharmacy Repackaging Program**

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**PHARMACEUTICALS AND THE FSS PROGRAM**
- FSS contracts establish the products & product prices
- Approximately 95% of all products used by VA are sourced through the FSS program

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**PHARMACEUTICALS AND THE FSS PROGRAM**
- FSS contractor participation in the PPV Program optional
- 99+% of FSS contractors participate
-     In the PPV program

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**VA’s NATIONAL STANDARDIZATION PROGRAM**
- Reason for Standardization
- 	 - Purpose
-     - Benefits

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**VA’s NATIONAL STANDARDIZATION PROGRAM**
- National Standardization mandatory
-    for VA facilities and participating Other Government Agencies
- Approximately $331,000,000 in annual sales
- $456,135,208 estimated annual cost avoidance

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**VA’s NATIONAL STANDARDIZATION PROGRAM**
- Competitive procurements
- Awards are requirements-type contracts
- Contract Period:  Base of 12 months
-     with four, 12-month options
**   **

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**VA’s NATIONAL STANDARDIZATION PROGRAM**
- Prices lower than existing FSS prices
- Contracted items distributed through
-  	 VA’s PPV Program
**	****    **

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**VA’s Pharmaceutical Prime Vendor Program**
- Provides the products covered by Federal Government contracts to VA Medical Centers, CMOPs, and Other Government Agencies
- Mandatory for VA and participating
-    Other Government Agencies
** ****	****    **

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**Pharmaceuticals and VA’s Consolidated Mail Outpatient Pharmacy (CMOP) Program**
**                  ****What is a CMOP?**
**	**

## Slide 12

**Notes:**

(overview of production area – focused on TCA)

## Slide 13

**Notes:**

(example of A-frame UUA device)

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**Consolidated Mail Outpatient Pharmacy (CMOP) Program**
- Current CMOP Facilities:
- 	- Leavenworth, Kansas
- 	- Lancaster (Dallas), Texas
- 	- Chelmsford (Boston), Massachusetts
- 	- Hines (Chicago), Illinois
- 	- Charleston, South Carolina
- 	- Murfreesboro, Tennessee
- 	- Tucson, Arizona

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**Consolidated Mail Outpatient Pharmacy (CMOP) Program**
- Approximately 96M+ Rx filled annually
- 85% of VA prescriptions filled through
-     the CMOP Program
- Approximately $2.7B for products

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**Consolidated Mail Outpatient Pharmacy (CMOP) Program**
- Pharmaceutical products delivered to the CMOP facilities by the PPV contractor (currently McKesson Corporation)
- CMOP facilities deliver the products directly to patients’ homes

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**Pharmacy Repackaging Program**
- High volume/limited product supply
- BPAs against FSS contracts for large or bulk packaging
- Approximately $33M in annual sales
- $48,211,136 estimated cost avoidance for FY 2006

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**Pharmacy Repackaging Program**
- Currently four drugs on contract:
- 	-Omeprazole Capsules
- 	-Spironolactone Tablets
- 	-Furosemide Tablets
- 	-Isosorbide Dinitrate Tablets

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**Pharmacy Repackaging Program**
- Procedure:
- 	-NAC issues delivery order to BPA contractor
- 	-BPA contractor delivers to Pharmacy     Repackaging Program contractor (currently Prepak Systems, Inc.)

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**Pharmacy Repackaging Program**
- Procedure:
- 	-Prepak Systems, Inc. repackages in unit-of-use sizes in Government-labeled bottles
- 	-VA facilities place orders directly from Prepack Systems, Inc.

## INTERRELATION OF VA’s PHARMACEUTICAL PURCHASING PROGRAMS

**POINTS OF CONTACT:**
- Maria Ramirez, Assistant Director, 708/786-4385
- _[Maria.ramirez1@va.gov](mailto:Maria.ramirez1@va.gov)_
- German Arcibal, Senior Contract Specialist,
-    PPV Program, 708/786-7663
- _[German.arcibal@va.gov](mailto:German.arcibal@va.gov)_
- Steve Bense, Senior Contract Specialist, CMOP Program, 708/786-5175
- _[Steve.bense@va.gov](mailto:Steve.bense@va.gov)_

## Thank You!