Board Session Agenda Review Form
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1 MARION COUNTY BOARD OF COMMISSIONERS Board Session Agenda Review Form Meeting date: February 10, 2016 Department: Finance Agenda Planning Date: 02/04/16 Time required: 10 min Audio/Visual aids Contact: Camber Schlag Phone: Ext 3944 Department Head Signature: TITLE Issue, Description & Background Financial Impacts: Marion County Contract Review Board - Medical Services RFP Protest Letter On January 14, 2016 Diamond Pharmacy Services issued a protest letter to Justin Ford, Contract Specialist at the Marion County Sheriff s Office. The Marion County Sheriff s Office issued a multi-award RFP for Inmate Medical Services on November 17, 2015 and closed on December 10, The purpose of the Multi-Award RFP was to obtain qualified firms to provide various medical services to the inmates at the Marion County Jail. Two proposals were received in response to the RFP and were found responsive specifically for pharmaceutical services: Correct Rx and Diamond Pharmacy Services. The Marion County Sheriff s Office issued a notice of intent to award letter on January 8, 2016 to the highest ranking proposal, Correct Rx, based on the evaluation criteria of the RFP. If protest is upheld, there will be an impact on staff time and potential impact for increased prescription costs. Impacts to Department & External Agencies If Option 2 selected, the department will have to go through the request for proposal process again impacting staff time and delivery of services. If Option 3 selected, there will be a higher cost to Marion County for prescription services. Options for Consideration: The Marion County Contract Review Board may: Option 1: Deny protest and direct award to Correct Rx. Option 2: Cancel the RFP and direct reissuance of a new RFP with revised cost proposal evaluation criteria. Option 3: Approve protest and direct award to Diamond Pharmacy Services. Recommendation: List of attachments: Option 1: Deny protest and direct award to Correct Rx. - Marion County Contracts & Procurement Manger Request for Proposal Diamond Pharmacy Services Protest information letter - Diamond Pharmacy Services protest letter - Marion County MC-SO Cost Comparison - Marion County MC-SO Solicitation Award Transmittal
2 MARION COUNTY BOARD OF COMMISSIONERS Board Session Agenda Review Form Presenter: Camber Schlag & Bruce Armstrong Copies of completed paperwork sent to the following: (Include names and addresses.) Copies to: Camber Schlag, Contracts & Procurement Manager Bruce Armstrong, Legal Counsel Justin Ford, Sheriff's Office
3 (503) (503) FAX BOARD OF COMMISSIONERS Samuel Brentano Kevin Cameron Janet Carlson CHIEF ADMINISTRATIVE OFFICER John Lattimer Date: February 1, 2016 To: Board of Commissioners From: Camber Schlag RE: Request for Proposal Diamond Pharmacy Services Protest Information The Marion County Sheriff s Office issued a multi-award RFP for Inmate Medical Services on November 17, 2015 and closed on December 10, The purpose of the Multi-Award RFP was to obtain qualified firms to provide various medical services to the inmates at the Marion County Jail. Those services included physician, dental, psychiatric, OB/GYN, Nursing, x-ray and pharmaceutical. Two proposals were received in response to the RFP and were found responsive specifically for pharmaceutical services: Correct Rx and Diamond Pharmacy Services. The Marion County Sheriff s Office issued a notice of intent to award letter on January 8, 2016 to the highest ranking proposal, Correct Rx, based on the evaluation criteria of the RFP. On January 14, 2016 Diamond Pharmacy Services issued a protest letter to Justin Ford, Contract Specialist at the Marion County Sheriff s Office. A copy of the protest letter received by Diamond Pharmacy Services is attached to this memo. Mr. Ford provided the Contracts and Procurement Manager a copy of the protest letter, who then consulted with Legal Counsel, and has provided an initial response below with each area of concern. The protest letter was timely. The primary issue raised by Diamond Pharmacy Services in its protest letter is quoted below: In accordance with Section 4.2 of your RFP, we are submitting a protest on the grounds that the pricing submitted by Correct Rx on your list of 100 randomly selected medications, which was utilized to score the cost proposal, is erroneous, and therefore, would make their submission non-responsive and subsequently make Correct Rx ineligible for an award. Diamond Pharmacy Services also made the following requests: Can Marion County confirm with Correct Rx that they will still invoice the quoted price even if the quoted price (calculated using the discount to AWP) falls 555 Court Street NE P.O. Box Salem, OR
4 below their AAC? We strongly recommend as part of the pricing investigation that Marion County request of Correct Rx the exact National Drug Code (NDC) number they utilized for each line item of the price list, along with their quoted source that they use for AWP pricing. We also suggest that Marion County quite candidly ask Correct Rx which items on the list fall below their AAC, so you can determine yourself if you believe that they would sell that item at an extreme discount to their purchase price. As you complete your evaluation of our concerns, we kindly ask that you compare our credit policies, as credit will typically lower your invoiced costs per month by up to 15%. Marion County RFP and Contracting Process The Inmate Medical Services RFP stated that timely proposals will be reviewed for Responsiveness to all RFP requirements including compliance with Minimum Requirements section and Proposal Content Requirements section. Section of the RFP. The county conducted its responsiveness review of the two pharmaceutical proposals. This review and determination was completed to ensure all RFP requirements including minimum requirements are met. Both proposals from the two pharmaceutical companies passed the responsiveness and responsibility determination and moved onto the evaluation scoring criteria. A copy of each proposer s minimum qualifications document is attached. Marion County s practice is to hold proposers accountable for the terms stated in their proposals. The county maintains accountability by including pricing terms within the contract that is negotiated with a successful proposer. Any contractor that fails to comply with its contract terms will be held accountable by the county. Marion County Sheriff s Office staff has contacted Correct Rx and received confirmation that the pricing information included in Correct Rx s proposal was accurate and contained no errors. As part of the cost proposal review, the Marion County Sheriff s Office reviewed the credit policies of the two proposals received. The Marion County Contract Review Board may: Option 1: Option 2: Option 3: Deny protest and direct award to Correct Rx. Cancel the RFP and direct reissuance of a new RFP with revised cost proposal evaluation criteria. Approve protest and direct award to Diamond Pharmacy Services. 555 Court Street NE P.O. Box Salem, OR
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8 Drug Name Code Generic Qty Diamond Medication Correct Rx price on Cost their medication list Aripiprazole 2mg Tablet TAB Yes 30 $ $ Acetaminophen 325mg Tab TAB Yes 180 $ 0.85 $ 2.16 AcetaZOLAMIDE 250mg Tab TAB Yes 120 $ $ Albuterol 0.083% INH UD NEB Yes 75 $ 2.43 $ 1.80 Allopurinol 100mg Tablet TAB Yes 7 $ 1.01 $ 0.28 Amiodarone 200mg Tablet TAB Yes 60 $ 6.83 $ Amitriptyline 100mgTablet TAB Yes 30 $ $ 3.86 amlodipine 5mg Tablet TAB Yes 30 $ 0.34 $ 4.67 Aplisol 50 Test INJ No 5 $ $ Aspirin 81mg Chew Tab CHW Yes 30 $ 0.11 $ 0.90 Aspirin EC 325mg Tablet TAB Yes 5 $ 0.03 $ 0.08 Atenolol 50mg Tablet TAB Yes 30 $ 0.43 $ 2.10 Azithromycin 250mg Tab TAB Yes 30 $ $ Baclofen 10mg Tablet TAB Yes 90 $ $ Mupirocin 2% Ointment OIN Yes 10 $ 4.63 $ Beta-val 0.1% Ointment OIN Yes 45 $ $ 3.84 BuPROPion 75mg Tablet TAB Yes 120 $ $ 7.78 BusPIRone 10mg Tablet TAB Yes 180 $ 7.54 $ Calc. Antac Assort Tabs CHW Yes 30 $ 0.26 $ 0.51 Cephalexin 500mg Cap CAP Yes 30 $ 2.64 $ 3.31 ChlorproMAZINE 200mg Tab TAB Yes 30 $ $ Citalopram 40mg Tablet TAB Yes 30 $ 0.89 $ 7.17 Clindamycin 150mg Capsule CAP Yes 60 $ 4.59 $ 6.43 clonidine 0.1mg Tablet TAB Yes 30 $ 0.55 $ 0.68 clonidine 0.3mg Tab TAB Yes 30 $ 0.99 $ 1.42 DiphenhydrAMINE 25mg Cap CAP Yes 90 $ 1.03 $ 3.08 Divalproex DR 500mg Tab TAB Yes 60 $ 6.85 $ Doxazosin 4mg Tablet TAB Yes 30 $ 7.62 $ 3.82 Docusate Sod 100mg Cap CAP Yes 30 $ 0.32 $ 0.37 Carbamide Perx 6.5% Otic SOLA Yes 15 $ 0.93 $ 1.86 Ferrous Sulfate 325mg Tab TAB Yes 60 $ 0.35 $ 0.35 FLUoxetine 20mg Capsule CAP Yes 30 $ 0.69 $ 6.99 FluPHENAZine 10mg Tablet TAB Yes 60 $ 5.59 $ 7.83 FluvoxaMINE 50mg Tab TAB Yes 180 $ $ Folic Acid 1mg Tablet TAB Yes 30 $ 0.40 $ 0.21 Furosemide 80mg Tablet TAB Yes 30 $ 0.59 $ 1.16 Gabapentin 300mg Capsule CAP Yes 270 $ $ Gabapentin 600mg Tablet TAB Yes 90 $ 6.78 $ Gemfibrozil 600mg Tablet TAB Yes 60 $ 3.63 $ glipizide 5mg Tablet TAB Yes 15 $ 0.21 $ 0.43 Guaifenesin DM Syp 10ml SYP Yes 50 $ 2.29 $ 4.88 Haloperidol 2mg Tablet TAB Yes 90 $ $ 5.12 HCTZ 25mg Tablet TAB Yes 45 $ 0.31 $ 0.32 Konsyl S/F Packet PKT Yes 100 $ $ Hydrocod/Apap 10/325 Tab TAB Yes 180 $ $ Hydrocortisone 1% Cream CRE Yes 28 $ 1.25 $ 2.61 HydrOXYzine Pam 50mg Cap CAP Yes 30 $ 2.03 $ 0.84 HydrOXYzine Pam 25mg Cap CAP Yes 15 $ 0.74 $ 0.39 Ibuprofen 400mg Tablet TAB Yes 80 $ 2.16 $ 2.62 Ibuprofen 800mg Tablet TAB Yes 90 $ 4.25 $ 4.28 Indomethacin 50mg Capsule CAP Yes 90 $ 4.67 $ 5.03 Isoniazid 300mg Tablet TAB Yes 24 $ 2.34 $ 0.51 Isentress 400mg Tab TAB No 60 $ 1, $ 1, LamiVUDine 150mg Tablet TAB Yes 60 $ $ LamoTRIgine 100mg Tab TAB Yes 45 $ 2.03 $ LamoTRIgine 100mg Tab TAB Yes 90 $ 4.06 $ Lantus (insulin Glargin) INJ No 10 $ $ LevETIRAcetam 500mg Tab TAB Yes 60 $ 5.62 $ 0.65 Levothyroxine 50mcg Tab TAB Yes 30 $ 8.55 $ 1.34 Artificial Tears Sol. SOL Yes 15 $ 1.30 $ 2.84 Lisinopril 20mg Tablet TAB Yes 30 $ 0.62 $ 2.90
9 Lithium Carb 300mg Caps CAP Yes 60 $ 1.43 $ 0.86 Loperamide 2mg Capsule CAP Yes 30 $ 6.29 $ 3.60 Loratadine 10mg Tablet TAB Yes 30 $ 1.17 $ 6.77 LORazepam 0.5mg Tablet TAB Yes 30 $ 0.67 $ 1.73 LORazepam 2mg Tablet TAB Yes 30 $ 0.98 $ 3.11 Losartan 50mg Tablet TAB Yes 30 $ 1.38 $ 6.10 Meclizine 25mg Chew Tab CHW Yes 90 $ 2.35 $ 0.35 Meloxicam 7.5mg Tab TAB Yes 30 $ 0.41 $ 8.56 metformin 500mg Tablet TAB Yes 90 $ 1.27 $ 5.70 Methimazole 10mg Tablet TAB Yes 30 $ 2.87 $ 2.07 Methocarbamol 750mg Tab TAB Yes 30 $ 1.55 $ 1.86 Metoprolol 25mg Tablet TAB Yes 60 $ 1.06 $ 1.46 Metoprolol 50mg Tablet TAB Yes 60 $ 1.21 $ 2.94 MetroNIDazole 500mg Tab TAB Yes 21 $ 4.57 $ 1.38 Miconazole Nitrate 2% Cre CRE Yes 28 $ 1.74 $ 2.48 Miconazole Nitrate 2% Cre CRE Yes 28 $ 1.74 $ 2.48 Mirtazapine 30mg Tablet TAB Yes 30 $ 3.06 $ 7.47 Norvir 100mg Tablet TAB No 60 $ $ Olanzapine 15mg Tablet TAB Yes 30 $ 4.77 $ Olanzapine 2.5mg Tablet TAB Yes 30 $ 1.77 $ Omeprazole 20mg Capsule CAP Yes 30 $ 1.12 $ 9.11 Oxycodone IR 10mg Tab TAB Yes 120 $ $ 6.76 Pantoprazole 40mg Tablet TAB Yes 30 $ 1.90 $ 1.17 PARoxetine 20mg Tablet TAB Yes 30 $ 1.95 $ 7.38 Permethrin 5% Cream CRE Yes 60 $ $ Perphenazine 8mg Tablet TAB Yes 30 $ $ 5.22 Phenytoin Sod 100mg Cap CAP Yes 120 $ $ 6.91 Potassium Chl 10MEQ Caps CAP Yes 30 $ 7.72 $ 2.68 Prazosin 2mg Capsule CAP Yes 60 $ $ 6.87 PredniSONE 10mg Tablet TAB Yes 50 $ 5.74 $ 1.08 Promethazine 25mg Tablet TAB Yes 15 $ 0.24 $ 0.65 Quetiapine 100mg Tablet TAB Yes 60 $ 2.81 $ Ranitidine 150mg Tablet TAB Yes 30 $ 1.36 $ 4.00 Risperdal Cons 50mg Kit INJ No 1 $ $ risperidone 0.5mg Tablet TAB Yes 180 $ 3.51 $ Mytab Gas 80mg Chew Tab CHW Yes 90 $ 2.30 $ 2.56 Metronidazole Vag 0.75% GEL Yes 70 $ $ Warfarin Sod 10mg Tablet TAB Yes 30 $ 8.45 $ 2.57 Totals $ 4, $ 3,893.09
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