# Presentation: 590261

## Medical/Surgical Prime Vendor Program–All  Under One Roof

**Medical/Surgical Prime Vendor Program–All  Under One Roof**

** **

## Agenda

**Prime Vendor Defined**
**Why a Mandatory Prime Vendor Program?**
**Prime Vendor Program Overview**
**Product Contractor Participation**
**Program Benefits to Product Contractors**

## Agenda

**Importance of FSS and National Standardization  to the MSPV Program **
**Product Contract Prices**
**Prime Vendor/Product Supplier Agreements**
**Benefits to Customers – Customer’s Perspective**
**Future Program Initiatives**
**Q&A**

## Prime Vendor Defined

**Primary Distribution Channel**
**Provider of Comprehensive Product Lines**
**Shortens Logistics Pipeline **
**Partnership**

## Why a Mandatory Prime Vendor Program?

**Partial VA Participation**
**Redundancy Within VA**
**Continued Dependency on NAC for Pricing Support**
**Veterans Health Administration Determination**

## Prime Vendor Program Overview

** ****Best-Value, Requirements-Type Contracts    **
**Product Prices Separate From the Prime Vendor Distribution Fee**
**Product Prices Established by Federal Government Contracts**

## Prime Vendor Program Overview

**Five-Year Contracts, If All Options Are Exercised**
**Inclusion of Medical/Surgical and Related Items**
**Next-Day Deliveries  **
**Separate Levels of Effort for Conventional and Just-In-Time Deliveries**

## Prime Vendor Program Overview

**Fill-Rate Requirements**
**Delivery F.O.B. Destination**
**Net 15 Days Prompt Payment**
**“****Common Use” Items**
**Pharmaceutical Use**
**Med/Surg Use**

## Product Contractor Participation 

**Participation Determined by FSS Contractors Prior to FSS Contract Award **
- Non-Participating Contractors May be Included After Award
- FSS Contract Modification Required
**Participation is Prime Vendor Program Specific**
- All VA Facilities Given Equal Access to All Participating Product Suppliers
**Non-Participation by Product Contractors Affects Customer Product Availability **

## Program Benefits to Product Contractors

**Consolidates Shipping Locations**
**Reduces Invoice & Receivables Processes**
**Reduces Customer Service Support **
**Market Exposure**

## Importance of FSS and National Standardization to the MSPV Program

**MSPV Program Dependant on FSS and National Standardization For Pricing Information**
**FSS Program Offers Choice of Products **
***Sales Under the Prime Vendor Program For FSS and BPA Products Considered FSS Sales***

## Product Contract Prices

**Prime Vendors Invoice Medical Centers at the Federal Government Prices From:****	**
**FSS Contracts**
**National Standardization**
**VISN and Medical Center Contracts**
**Product Contract Prices:**
**Pricing Data Electronically “Pulled” For FSS and National Standardization Contracts Participating (as Product Suppliers) in the MSPV Program  **

## Product Contract Prices

**Availability of Pricing Information to Prime Vendors, Medical Centers, FSS and National Standardization Contractors:**
**Prices Provided Electronically on the 1st and the 15****th**** of Each Month**
** ****Authoritative Source for Product Prices:**
- VA MSPV Database
- _[www.va.gov/vastorenac](http://www.va.gov/vastorenac)_

## Product Contract Prices

**Product Price Accuracy and Timely Price Changes Critical to the MSPV Program**
**Prompt and Accurate Pricing Actions Reduce Price Discrepancies for Medical Centers**

## Prime Vendor/Product Supplier Agreements 

**Prime Vendor/Product Supplier Agreements **
**Payment Terms**
**Liability Insurance Requirements **
**MSPV Program Requires No More Than $1,000,000 (Except for High-Risk Items)**
**Delivery Requirements**
**Tracing Fees**

## Benefits to Customers – Customer’s Perspective 

**VISN 23 - MSPV Program Customer**
**VA Midwest Healthcare Network**
**Facilities in Five States:  Minnesota, Iowa, Nebraska, South Dakota, and North Dakota**
**Serve Veterans in Eight States**
**Eight Medical Centers/Health Care Systems – 12 Campuses**
**36 Community-Based Outpatient Clinics****	****         **
**262,164 Enrolled Patients Treated ****	****	**
**2,268,717 Outpatient Visits**

## Benefits To Customers – Customer’s Perspective 

## Benefits To Customers – Customer’s Perspective 

**Services Provided by VISN 23 Facilities:**
**Primary Care**
**Specialty Care**
**Outpatient Care**
**Nursing Home Care**
**Home Health Care**
**Mental Health Care**
**Six Medical School Affiliations:  Minnesota, Nebraska, Iowa, North Dakota, South Dakota, Creighton****   **

## Benefits To Customers – Customer’s Perspective 

**All VISN 23 Facilities Are Participants in the MSPV Program as of April 2005**
**Two Campuses Use Just-In-Time Service Level **
**10 Campuses Use Conventional Service Level  **
**Number of Orders Placed Per Campus Under the MSPV Program Range From One/Week to Five/Week**
**Number of Deliveries Per Week Range From One/Week to Five/Week**

## Benefits To Customers – Customer’s Perspective 

**CORE Items Were Identified By Each Facility Prior to the Start of the Contract**
**CORE Item Lists for Facilities Range From 34 to Over 500 Items**
**CORE Item Lists Change – New Items Added, Items Deleted**
**MSPV Contractor Provides Assistance With Identifying VA Standardized Items and Other Contract Items**

## Benefits To Customers – Customer’s Perspective 

**ORDERING PROCESS**
**Ordering is Done Through EDI Process/Prime Vendor’s Web-Based Ordering System**
**Reduced Number of Orders Placed**
**Typical 30 Orders Per Week vs. Three Orders Per Week**
**Order From One Vendor for CORE Items Rather Than From Multiple Vendors**
**Order in Smaller Quantities - CORE items are Available in Both Case Quantities and Low Unit of Measure**

## Benefits To Customers – Customer’s Perspective 

**INVENTORY MANAGEMENT**
**Next Day Delivery**
**Reduction in Stock on Hand**
**Reduction in Inventory Value**
**Increased Inventory Turns**
**Less Storage Space Required for Med/Surg Items**
**Reduction in Inventory Frees Up Inventory Space For Use By Other Items, Such as Surgery Items**

## Benefits To Customers – Customer’s Perspective 

**Inventory Management **
**Several Facilities Have Been Able to Eliminate or Reduce Med/Surg Items From Warehouse Inventory and Other Hospital Inventory Areas – Reduces Handling**
**One Facility Has Been Able to Eliminate Its Warehouse Space Located Off-Site**

## Benefits To Customers – Customer’s Perspective 

**Receiving Process**
**Streamlined - Only One Order to Process Rather Than Multiple Orders for CORE Items**
**All Items Are Delivered in One Order – Reduces Staggered Deliveries**
**Items Only Need to be Handled Once When Delivered Direct to SPD Areas**
**Billing**
**Fewer Invoices to Process**

## Benefits To Customers – Customer’s Perspective 

**Employee Satisfaction**
**All Employees Involved in the Process Are Very Satisfied With the MSPV Program**
**Inventory Managers**
**Materiels Handlers**
**Logistics Managers**
**Logistics Customers**
**Seamless for Our Customers**

## Benefits To Customers – Customer’s Perspective 

**Customer Service**
**VAMC Employees Pleased With Customer Service Provided by the MSPV Contractor**
**The MSPV Contractor Responsive to VA Needs**
**Fill-Rate Ranges From 96 – 100%**
**Comprehensive Reports Provided Monthly**
**The MSPV Program Continues to Meet Our Expectations**

## Pending Program Initiatives 

**Program Expansion to Other Government Agencies**
**Use of Non-Prime Vendor Numbers for Order Placement and Other Prime Vendor Functions **

## Medical/Surgical Prime Vendor Program

**Q&A**
**Point of Contact:**
**Maria A. Ramirez, MSPV Program Manager                           and Contracting Officer **
**(708) 786-5181**
**(708) 786-5256 (fax)**
- _[Maria.ramirez@med.va.gov](mailto:Maria.ramirez@med.va.gov)_
**Tim Richards, Contract Specialist**
**(708) 786-4959**
**(708) 786-5256 (fax)**
**Timothy.richards@med.va.gov**
**Copy of Presentation will be made available after 5 p.m.,**
**October 4 at **_[www.va.gov/vastorenac](http://www.va.gov/vastorenac)_