Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF JUNE 16,1999 PSA#2368

5600 Fishers Lane, Room 13A-19 Rockville, MD 20857

Q -- PRIME VENDOR AGREEMENT SOL HRSA 232-BPHC-AG-01(9) DUE 080999 POC James Quinn (301) 443-5343 The Health Resources and Services Administration (HRSA) intends to solicit proposals with the intent of signing an Agreement with an organization having the capability to develop, maintain, and coordinate a prime vendor program in accordance with Section 340B of the Public Health Service Act, Public Law 102-585, "Limitation on Prices of Drugs Purchased by Covered Entities". Section 340B provides that a drug manufacturer who sells covered outpatient drugs to covered entities must sign a pharmaceutical pricing agreement with the Secretary of Health and Human Services in which the manufacturer agrees to charge a price for covered outpatient drugs that will not exceed that amount determined under a statutory formula. Section 340B also mandates the establishment of a prime vendor program. Consistent with this mandate, HRSA has developed a program which will consist of both price negotiation and drug distribution for covered entities that elect to participate in the prime vendor program (member entities). The Prime Vendor shall operate as an independent entity and not as an agent of the Government. No Federal funds will be awarded to the Prime Vendor under this Agreement. The resultant bi-lateral Agreement will not be subject to the terms of the Federal Acquisition Regulation (FAR). The Prime Vendor shall provide, directly or by subcontract, all drug/pharmaceutical items authorized under Section 340B for distribution to all member entities. In addition, the Prime Vendor has the option to offer other catalog items, as appropriate. During the first year of the HRSA Prime Vendor Program, it is estimated that between 5,000 and 7,000 covered entities may participate in the program. On September 18, 1998, HRSA issued a Request For Agreement (HRSA Agreement No. 232-BPHC-AG-01(8)). No award was made and the solicitation was canceled. The offeror which submits a technically-acceptable and responsive proposal which offers the best value to the member entities will be selected to sign the bi-lateral Agreement with HRSA tobecome the Prime Vendor. HRSA reserves the right to not award an Agreement if it is determined that no organization meets the technical and business criteria enumerated in the HRSA Request For Agreement (RFA). RFA HRSA 232-BPHC-AG-01(9) will be released on or about June 21, 1999. Offerors will have 45 days from release of the RFA to submit their proposals. All requests for this RFA must be submitted in writing and cite RFA HRSA 232-BPHC-AG-01(9) to the attention of James Quinn. Requests may be telefaxed to (301) 443-6038. If additional information is needed, please contact James Quinn at jquinn@hrsa.gov. Telephonic requests will not be honored. Posted 06/14/99 (W-SN342522). (0165)

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