Senior Contract Specialist
Tel: (708) 786-7663
Tel: (708) 786-5174
1. Where can I get a copy of the PPV contract and the list of VA PPV participants?
2. What is the current PPV contract number?
You can download the current PPV VA797P-12-D-0001.
3. When did the PPV contract take effect?
The base period took effect on August 10, 2012 and expired on August 9, 2014. The first option period took effect on August 10, 2014 and will expire on August 9, 2016. There are two option periods remaining.
4. Are open market purchases allowed under the PPV contract?
No, you cannot make open market purchases under the PPV contract.
5. What are the delivery requirements under the PPV contract?
6. What are the requirements for emergency delivery?
7. What is the distribution fee for the PPV contract?
The PPV contract provides for negative distribution fees (discount off the contract price). The first option period distribution fees are:
Fast Pay: -9.15%
Net 30: -8.65%
WAC Based Priced Generics
Fast Pay: -9.15%
Net 30: -9.15%
Other Government Agencies
The net distribution fees for other Government agency facilities is less 0.25% to pay for the recovery fee. Example: 8.65 — 0.25 = 8.40%…McKesson will apply -8.40% to the price of the item.
Medical Surgical Products
Fast Pay: -9.15%
Net 30: -9.15%
Except syringes, CMOP is not authorized to order medical surgical products through the PPV contract.
8. How are pharmaceutical prices communicated to McKesson?
The VA Pharmacy Benefits Management (PBM) team maintains the price database for contracted pharmaceutical products with assigned National Drug Codes (NDC). McKesson downloads the prices nightly from the PBM website. McKesson is mandated to only load items and prices included in the PBM pricing database.
The prices for the medical/surgical items and other non-NDC items are available in the MSPV Database. Other contracted items not maintained in the PBM database are provided to McKesson manually by the Contracting Officer.
9. What are ACOs and where are the ACOs?
ACOs are Administrative Contracting Officers appointed by the PPV Contracting Officers. There are three appointed ACOs, one for each Service Area Organization (SAO, SAO East, Central, and West). The ACO appoints the Contracting Officer Representatives (CORs) at the facility level.
10. What are Ordering Officers?
Ordering Officers (OO) are VA personnel authorized to place orders through the PPV contract. OOs are nominated by the VISN Chief Logistics Officers and appointed by the PPV CO.
The OO designation is only for VA. Other Government Agencies must assign their own ordering personnel. The OO list is sent to McKesson weekly and must be provided before McKesson will grant PPV ordering access and Controlled Substance Ordering System (CSOS) approval access.
11. Are Tribal Indian Health facilities eligible to participate in the VA PPV program?
No, only Tribal Indian Health facilities (including sovereign Tribal health facilities that have a federal Government contract are authorized to participate in the VA PPV program. Indian Health facility participation in the VA PPV contract is coordinated through NSSC Oklahoma.
12. Are 340B prices available through the PPV?
No, McKesson is not allowed to load 340B prices or any contract prices that are not maintained by VA.
13. How are facilities added into the PPV program?
The sponsoring agency (e.g. VA, BoP, IHS, etc.) notifies the PPV Contracting Officer of the need to add a new facility. In addition to the request, the sponsoring agency must submit a copy of each of the following documents:
Once notified, the CO will initiate a bilateral modification via eCMS to add the facility into the PPV program. Modifications to add facilities are done on a quarterly basis. It may take up to 30 days for McKesson to complete set up for a new facility. The PPV Participants List is updated upon execution of a modification to add or delete facilities from the PPV program.
14. How are facilities removed from the PPV program?
Facilities are removed from the PPV via a fully executed bilaterla modification — this process can be done at any time. The sponsoring agency and/or the facility must notify the CO prior to its removal from the program. All outstanding invoices must be paid before the modification to remove the facility will be executed. The PPV Participants list will be updated upon execution of a modification to add or delete facilities from the PPV program.
15. How can a State Veterans Home (SVH) participate in the VA PPV program?
The SVH must have a sharing agreement with a VA Medical Center. The sharing agreement must include the agreed upon duties and responsibilities of both parties, specifying the terms pertaining to ordering and payment procedures. The duties and responsibilities will determine the type of SVH participation in the PPV program. In addition to the terms of the sharing agreement, the SVH must also agree to the terms and provisions of the PPV contract.
16. What is SVH Options 1 and 2?
SVH options 1 and 2 are the types of SVH participation in the PPV program.
Under option 1, the SVH manages its own ordering and bill payment — payment is made directly to the prime vendor using state funds. Option 1 SVH are eligible for FSS OGA pricing.
Under option 2, SVH orders are approved, assigned a federal purchase order number, transmitted to the PPV, and paid for by the sponsoring VA Medical Center. Option 2 orders are paid for by the VA using VA funds and, as such, are eligible for pricing similar to that received by the VA.
17. What are the payment options under the PPV program?
There are two acceptable methods of payment, Net 30 and Fastpay.
Payment is due to the PPV within 30 days from the date of the valid invoice.
Payment is made to the PPV within 24–48 hours after receipt of valid invoice. Similar to a credit card transaction, payment is processed by US Bank.
All VA facilities are mandated to use the Fastpay method. OGA facilities have the option to use either Fastpay (subject to Financial Service Center, Austin, TX approval) or Net 30 terms.
18. Are medical/surgical items on FSS contract available through the PPV?
A limited number and quantity of medical/surgical products are available through the PPV at the established contract price. The availability and delivery of medical/surgical items through the PPV contract shall be in limited quantities and made available strictly for outpatient pharmacy dispensing at the medical facility level.
The PPV is prohibited from fulfilling bulk orders (i.e. bulk orders placed by a CMOP facility) for this category of items. The medical/surgical items are available on the PPV contract for products awarded under the Schedule 65 II A, Medical Equipment & Supplies contract, including VA standardization contracts, blanket purchase agreements, and basic ordering agreements.
VA ordering facilities are not required to purchase medical/surgical items from the PPV contract. Except for syringes, CMOPs are not authorized to order medical/surgical products through the PPV contract.
Available medical/surgical products fall under the following special item number (SIN) categories:
|A-10||Cannulas, Airways, Tubes, and Accessories|
|A-13||Gloves, Medical, Surgeons and Exam (Latex & Vinyl) All Size|
|A-13(a)||Sterile Latex Gloves|
|A-13(b)||Sterile Vinyl Gloves|
|A-13(b)||Non-Sterile Latex Gloves|
|A-13(c)||Non-Sterile Vinyl Gloves|
|A-15||Needles, Syringes & Jet Injectors|
|A-15(c)||Syringes & Needle Combination|
|A-15(d)||Syringes & Needle Combination (anti stick)|
|A-15(e)||Protective sheaths for needles, hypodermic & IV (anti stick)|
|A-16||Stockings (Anti–Embolism/Compression Only)|
|A-22(b)||Urinary Drainage Bags, Kits and Sets|
|A-26(a)||Pads, Bed Linen Products|
19. What are Prime Vendor “False” items?
Prime Vendor “False” (PV “F”) items are items under Government contract but not available through the Prime Vendor. False items will not appear in the PPV catalog, but may be available for open market purchase through McKesson. To get Government pricing, the items must be ordered directly from the contractor (i.e. FSS, BPA, BOA, standardized contract). Prime Vendor “True” (PV “T”) items are available through McKesson at Government contract pricing.
There are some PV “F” items that can be ordered through the PPV contract and are available through McKesson at Government contracted prices — these appear in the PPV catalog designated as drop ship (“DS”). McKesson forwards the order to the appropriate vendor, who then delivers the items directly to the PPV customer and bills through McKesson. Payment is processed by McKesson under the customer’ PPV account.
20. How do I find out if a pharmaceutical item is under Government contract?
The NAC Contract Catalog Search Tool is a complete database of all products offered under NAC contract vehicles, including the PPV contract. Follow these general instructions to navigate to the Pharmaceutical catalog:
The pricing databases are also available as downloadable zip files from the Pharmacy Benefits Management team. Available files include: National Contract Prices; FSS, Big4, VA Only, Tier, and National Contract Prices; Federal Supply Schedule (FSS) prices only; Restricted Federal Supply Schedule (FSSR)prices; and VA, Department of Defense, Public Health Service, Coast Guard (Big4) prices only).
21. Can you clarify the PPV contract Return Goods Policy (I-21 Section a & e)?
Section A (extracted text)
The PPV shall accept customer returns in accordance with applicable laws, regulations, and normal business practices for credit at no charge to the facility for conditions 1 through 5 below. Returned products shall be credited to the individual ordering facility accounts within seven days of product receipt.
Section A Clarification:
McKesson’s normal business practice is to accept product returns within 30 days or product receipt. This means that under the PPV contract, McKesson shall accept returns for credit at no charge to the facility for conditions 1, 2, 3, and 5 above if the return is processed within 30 days of product receipt. Under condition 4 (recalled products), McKesson shall accept returns for credit regardless of date of receipt. If the return is processed after 30 days, McKesson may charge a handling fee not to exceed 25% of the return value. Processing of the return must be done through McKesson Connect.
If products are to be returned to McKesson, process the return promptly.
Section E (extracted text)
Whenever the PPV accepts a request for return of products purchased from the PPV that are outside of the conditions listed in items 1 through 5 above (i.e. order error by the customer), the PPV shall perform such return in accordance with standard industry practice:
Section E Clarification
For returns that do not fall under the five conditions above, McKesson may decline to accept the returns. PPV customers may use the contracted Reverse Distributor for returns outside of the five conditions above (I-21.a.1-5)
If McKesson accepts returns outside of the five conditions above with the return processed within 30 days of product receipt, conditions 1 & 2 under I-21.e apply.
If McKesson accepts returns outside of the five conditions above but the return is processed after 30 days of products receipt, McKesson may charge a handling fee (not to exceed 25%) even for products stocked for the PPV program.