Revolutionizing VA’s Distribution and Supply Management with MSPV Program for GENZ V1 

Introduction

The Department of Veterans Affairs (VA) is seeking to establish a Medical Surgical Prime Vendor (MSPV) program for GENZ V1 distribution and supply management. The MSPV program is a strategic sourcing initiative that aims to streamline the procurement of medical supplies and equipment for VA medical facilities across the nation. The MSPV program for GENZ V1 is a follow-on to the current MSPV-Next Generation (NG) program, which expires in 2023. The VA intends to award multiple indefinite delivery/indefinite quantity (IDIQ) contracts to qualified vendors who can provide comprehensive distribution and supply chain management services for GENZ V1 products.

Historical Background

The VA has been using the MSPV program since 2004 to procure medical supplies and equipment from prime vendors who act as intermediaries between the VA and manufacturers. The MSPV program has evolved over time to meet the changing needs and requirements of the VA and its customers. The current MSPV-NG program was awarded in 2016 to four prime vendors: Cardinal Health, Medline Industries, Owens & Minor, and American Medical Depot. The MSPV-NG program covers over 30,000 products in 19 categories, such as surgical instruments, gloves, wound care, and infection control.

The MSPV program for GENZ V1 is a new initiative that will focus on a subset of products that are critical for patient care and safety. GENZ V1 products are defined as those that are used in direct patient care, have a high impact on clinical outcomes, and have a high degree of standardization potential. The VA has identified about 4,000 products that fall under the GENZ V1 category, such as needles, syringes, catheters, IV solutions, and sutures. The VA expects to achieve significant cost savings, quality improvements, and operational efficiencies by implementing the MSPV program for GENZ V1.

RFP Description

The VA issued a request for proposals (RFP) for the MSPV program for GENZ V1 on August 23, 2023. The RFP number is 36C10B21R0010 and the solicitation is posted on GovWin IQ. The RFP is open to all vendors who can meet the minimum qualifications and requirements specified in the solicitation. The RFP consists of two parts: Part A – Technical Proposal and Part B – Price Proposal. The technical proposal should demonstrate the vendor’s capabilities and experience in providing distribution and supply chain management services for GENZ V1 products. The price proposal should provide the vendor’s pricing structure and methodology for delivering GENZ V1 products to VA medical facilities.

The RFP states that the VA intends to award multiple IDIQ contracts with a base period of one year and four one-year option periods. The total estimated value of the contracts is $5 billion over five years. The RFP also states that the VA will use a best value trade-off approach to evaluate the proposals and select the awardees. The evaluation factors are: technical capability, past performance, small business participation, and price. The RFP indicates that technical capability is significantly more important than past performance, which is significantly more important than small business participation, which is significantly more important than price.

Who Should Participate?

The MSPV program for GENZ V1 is a lucrative opportunity for vendors who can provide high-quality distribution and supply chain management services for medical supplies and equipment. The potential benefits of participating in this program include:

  • Access to a large and stable market of VA medical facilities that require GENZ V1 products on a regular basis.
  • Long-term contractual relationship with the VA that provides revenue certainty and visibility.
  • Competitive advantage over other vendors who are not part of the MSPV program for GENZ V1.
  • Opportunity to leverage economies of scale and scope by offering a wide range of products and services to the VA.
  • Opportunity to enhance customer satisfaction and loyalty by delivering superior service and value to the VA.

To participate in this program, vendors should have:

  • A proven track record of providing distribution and supply chain management services for medical supplies and equipment in the federal government or commercial sector.
  • A robust inventory management system that can ensure timely delivery of GENZ V1 products to VA medical facilities.
  • A quality management system that can ensure compliance with VA standards and regulations for GENZ V1 products.
  • A strong financial position that can support the capital investment and operational costs associated with the MSPV program for GENZ V1.
  • A diverse team of qualified personnel who can execute the contract requirements and provide excellent customer service to the VA.

The Challenges

The MSPV program for GENZ V1 is not without challenges. Vendors who are interested in pursuing this opportunity should be aware of the potential risks and difficulties that they may encounter, such as:

  • High competition from other vendors who are also vying for a share of the MSPV program for GENZ V1.
  • High expectations from the VA regarding the quality, performance, and reliability of the GENZ V1 products and services.
  • High complexity and variability of the VA’s needs and requirements for GENZ V1 products and services.
  • High compliance and reporting requirements from the VA regarding the contract terms and conditions, such as delivery schedules, inventory levels, quality standards, and performance metrics.
  • High uncertainty and volatility of the market conditions and demand patterns for GENZ V1 products and services.

What Makes This Solicitation Unique?

The MSPV program for GENZ V1 is a unique solicitation that differs from the previous MSPV programs in several ways. Some of the key features that make this solicitation unique are:

  • The VA’s MSPV program for GENZ V1 is revolutionizing the way medical supplies and equipment are procured. Instead of the traditional approach, the VA is using a category management methodology that groups similar products or services into categories and applies tailored procurement strategies for each category. This approach optimizes spending, improves performance, and increases efficiency in acquiring medical supplies and equipment.
  • The program is also changing the way medical supplies and equipment are delivered to its medical facilities. The two-tier distribution model involves two levels of distribution: a national distribution center (NDC) and a regional distribution center (RDC). The NDC receives, stores, and ships GENZ V1 products from manufacturers to RDCs. The RDCs then receive, store, and ship GENZ V1 products from NDCs to VA medical facilities. This model reduces inventory costs, improves delivery times, and enhances the visibility of the supply chain for the VA.
  • The VA is adopting a performance-based contracting approach to award contracts to vendors. This contracting method focuses on the outcomes or results that are expected from the vendor rather than the inputs or processes that are required by the vendor. The VA has established performance standards and metrics for each contract line item number (CLIN) that measure the vendor’s performance in terms of quality, timeliness, accuracy, availability, and customer satisfaction. These metrics will be used to monitor, evaluate, and incentivize the vendor’s performance throughout the contract period.

How GDI Consulting Can Help

GDI Consulting is a leading provider of capture and proposal services for federal government contracts. GDI Consulting has extensive experience and expertise in helping vendors win contracts in the healthcare sector, especially in the VA. GDI Consulting can help vendors with the following aspects of the MSPV program for GENZ V1:

  • Market research and intelligence
  • Capture management
  • Proposal development and writing
  • Post-award support