View the contract and listing of participants.

36W79720D0001

The base period started 8/10/2020 and ends 8/9/2022. The first option period starts 8/10/2022 and ends 8/9/2024. The second option period starts 8/10/2024 and ends 8/9/2026. The third option period starts 8/10/2026 and ends 8/9/2028.

No, you cannot make open market purchases under the PPV contract.

• Next-day or next scheduled delivery day for all orders placed by 6:00pm customer local time.
• Delivery shall be made between 8:00am and 4:00pm customer local time.
• Delivery to multiple sites may be requested.
• Customers are able to place PPV orders seven days a week, with orders placed on Friday, Saturday, or Sunday delivered on the following Monday.

• Emergency deliveries shall be delivered within 12 hours (36 hours for facilities located outside the Continental United States) after receipt of order by the PPV, 24/7.
• Emergency orders can be placed by fax or telephone.
• The PPV (McKesson) allows for six emergency deliveries per calendar month at no additional transportation/handling cost to the facility.  See PPV contract section I-19 for the full requirements.

• Brand Pharmaceutical Products, Generic Pharmaceutical Products and Medical Surgical Products
• Specialty Pharmaceutical Products
  • Fast Pay: -4.00%
  • Net 30: -3.50%
• WAC Based Priced Generics
  • Fast Pay: -4.00%
  • Net 30: -3.50%
• The net distribution fee for Other Government Agency (OGA) facilities is less 0.25 percent to pay for the recovery fee. Example: 9.65-0.25=9.40%. McKesson will apply negative 9.40% to the price of items ordered by OGAs.

The NAC provides the prices electronically to McKesson.  McKesson is mandated to only load items and prices provided by the NAC.  Other contracted items not maintained by the NAC (contracts awarded by DLA) are provided by the PPV Contracting Officer to McKesson for manual loading.

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.

Ordering Officers (OO) are VA personnel authorized to place orders through the PPV contract. OO nominations are initiated by the employees’ supervisors and appointed by the PPV CO (Reference VAAR 801.601). Ordering Officer designations are only for VA.  Other Government Agencies (OGAs) assign their own ordering personnel. The Ordering Officers list is sent weekly to the PPV. An Ordering Officer designation is needed before the PPV grants PPV ordering access and Controlled Substance Ordering System (CSOS) approval access.

No, only Tribal Indian Health facilities (including sovereign Tribal health facilities) that have a federal Government compact are authorized to participate in the VA PPV program.  Indian Health facility participation in the VA PPV contract is coordinated through NSSC Oklahoma.

No, McKesson is not allowed to load 340B prices or any contract prices that are not maintained by VA.

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: 

• Copy of the DEA Certificate showing the exact facility’s name & complete address
• Point of contact name, phone, and email
• If SVH, a copy of the fully executed sharing agreement
• Estimated annual procurement
• For other agencies (e.g. Peace Corps), a copy of the current Interagency agreement or MOU

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.

Facilities are removed from the PPV via a fully executed bilateral 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.

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.

SVH options 1 and 2 are the types of SVH participation in the PPV program.

Option 1:
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.

Option 2:
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.

There are two acceptable methods of payment, Net 30 and Fastpay.

Net 30
Payment is due to the PPV within 30 days from the date of the valid invoice.

Fastpay
Payment is made to the PPV within 24–48 hours after receipt of valid invoice, similar to a credit card transaction.  The Financial Service Center, Austin, Tx administers the VA Fastpay program.

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.

The PPV shall be required to make available upon request, the following product categories at the established government prices. The product categories are listed as Special Item Numbers (SINs) on Federal Supply Schedule (FSS) Group 65, Part I, Section B, Drugs, Pharmaceuticals & Hematology Related Products. In the event there is a non-availability determination specific authorization for each exception will be provided to the PPV.

Table 1: Special Item Categories

In addition to the above product categories, the PPV shall also maintain an adequate supply of, and distribute products under the FSS and NCS contract’s programs listed below.

1. Blood-glucose Monitoring Units and Consumables including Miscellaneous items included on a National Contract or Federal Supply Schedule Group 65, Part VII, In-Vitro Diagnostics, Reagents, Test Kits, and Test Sets.
2. Only Medical/surgical products on VA’s NCS National Standardization Contracts in the categories listed in Table 2 below shall be made available at established contract prices. Availability and delivery of medical/surgical items through the PPV contract shall be in limited quantities strictly for outpatient pharmacy dispensing at the medical facility level. The PPV is prohibited from fulfilling bulk orders (i.e., bulk orders placed by VA’s CMOP facilities) for this category of items (with the exceptions noted in number 3 below). The medical/surgical items to be included on VA’s NCS National Standardization Contracts provided on the PPV contract(s) are shown in Table 2. The purchase of medical and surgical products through the PPV contract(s) is optional for ordering facilities.
3. Insulin Syringes: Consolidated Mail Outpatient Pharmacies (CMOPs) may purchase Insulin Syringes and pen needles on contract through the Pharmaceutical Prime Vendor (PPV) contract. Orders for Insulin Syringes and pen needles shall be placed routinely through the PPV contract.
4. Antiseptic Liquid Skin Cleansing Detergents and Soaps included on a National Contract or Federal Supply Schedule Special Item Number 622.
5. Specialty pharmaceuticals: medications which treat chronic, complex or rare diseases, and which have a minimum of four out of seven additional characteristics related to the distribution, care delivery and/or cost of the medicines. These seven characteristics include: list price in excess of $6,000 per year, initiated/maintained by a specialist, requiring administration by another individual or health care professional, requiring special handling in the supply chain, requiring patient payment assistance, distributed through nontraditional channels, or medication has significant side-effects that require additional monitoring of therapy and/or disease requires additional monitoring of therapy.

Table 2: Medical/Surgical Item Categories

Introduction of New Products under, Medical Equipment & Supplies to include Condoms/Family Planning. Products added to this category will be by mutual consent

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.

The Contract Catalog Search Tool is a complete database of all products offered under OPAL contract vehicles, including the PPV contract.  Follow these general instructions to navigate to the Pharmaceutical catalog: 

Begin Search → Search Pharmaceutical Catalog →
Search by displayed search criteria

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.

1. Products shipped through the PPV contract in error (i.e. incorrect item, price, or quantity);
2. Products received through the PPV contract with visible or concealed damages;
3. Products received through the PPV contract with visible soiling or with an appearance of tampering;
4. Recalled products, regardless of level of recall or date of receipt;
5. Products received through the PPV contract that have less than six months shelf life dating at the time of receipt from the PPV, unless otherwise authorized by facilities.

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:

1. For returned products stocked by the PPV, the products shall be returned to the PPV at no charge to the customer.
2. For special order products requiring return of the product to the supplier by the PPV, the customer will pay the fee normally charged by the product supplier to its commercial customers.

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.

WAC Based Priced Generics (WBPG, WPG in McKesson) – Any generic pharmaceutical that is not under a current Federal Government contract or Government pricing agreement.  The pricing for WBPG/WPG items is based on the published WAC.  WBPG items are considered contracted items when purchased through the PPV.  Order placement of WBPG through the PPV contract is optional and subject to periodic review by the Government.

Criteria for WBPG items:

• Must have FDA approved National Drug Code (NDC)
• Must be TAA compliant
• Must have published Wholesale Acquisition Cost (WAC)

VA staff may access the information on our NCS SharePoint.