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This Sources Sought opportunity from Department Of Veterans Affairs was posted on October 8, 2025. The submission period has ended. Browse the details below for market research, or find similar active opportunities.

6505--Pharmacy Emergent First Fill SDVOSB Set Aside Sioux Falls VA Health Care System and associated CBOCs

Awarded
36C26326Q0035Federal

Contract Overview

Solicitation details, issuing organization, response deadlines, documents, and interested companies for this government contract opportunity.

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AI Contract Overview

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This sources sought notice from the Department of Veterans Affairs seeks qualified contractors to provide pharmacy benefit management services, specifically first-fill prescriptions for patients at the Sioux Falls VA Health Care System and its associated Community-Based Outreach Clinics. The contract aims to establish a five-year, single-award arrangement, with potential task orders issued annually based on the VA's ongoing needs and contractor performance. The services include filling prescriptions primarily for generic drugs, limited to a maximum of ten days' supply (or fourteen days for certain medications), with prescriptions to be filled only for authorized VA providers and adhering to a specified formulary. The contractor must operate an open pharmacy network allowing veterans to fill prescriptions at their chosen pharmacy, with services provided during standard hours and on federal holidays, but prescriptions are to be picked up in person, not mailed or delivered. Reimbursement will be based on the Average Wholesale Price (AWP), discounted by a specified percentage plus a dispensing fee, ensuring prices do not exceed those available to the general public or the contractor’s lowest third-party reimbursement. The contractor is responsible for maintaining confidentiality and complying with all applicable privacy laws, including HIPAA, and must ensure pharmacies are licensed and in good standing in their respective states. The contract emphasizes quality assurance through VA audits, proper record-keeping, and adherence to federal and state regulations. Overall, the initiative aims to streamline pharmacy services for VA beneficiaries, ensuring timely access to medications while maintaining strict compliance with legal, safety, and privacy standards.

General Info

Five-year contract for SDVOSB to provide new prescription pharmacy services at Sioux Falls VA.

Agency

Department Of Veterans Affairs → Network Contract Office 23 (36C263)

NAICS

524292 - Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds

Place of Performance

Sioux Falls VA Health Care System 2501 West 22nd Street, Sioux Falls, 57105

Set-Aside

SDVOSBC

Documents

1

Pharmacy Emergent First Fill SDVOSB Set Aside - Sioux Falls VA Health Care System

DOCX, Low prioritysources-sought
Low

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Timeline

PhaseAwarded
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Sources Sought

Awarded

Contract was awarded

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Organization & Contact Information

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AgencyDepartment Of Veterans Affairs → Network Contract Office 23 (36C263)
Contacts1 person available
OfficeSaint Paul, MN, 55101, USA
Organization / Agency
Department Of Veterans Affairs → Network Contract Office 23 (36C263)
Office AddressSaint Paul, MN, 55101, USA
Contacts
Michael WichtContract Specialist

Full Description

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Sources Sought Notice
DESCRIPTION
This is a request for information only and it is not a solicitation announcement. The purpose of this sources-sought notice is to gain knowledge of qualified potential contractors and their socio-economic size classification in accordance with NAICS code 524292 - Pharmacy Benefit Management and other third-party administration of Ins. and Pension funds.
Responses will be used by the Government to make appropriate acquisition decisions.
Description of Service
The Sioux Falls VA Health Care System (SFVAHCS) is seeking a Contractor to provide pharmacy benefit management first-fill services. The contractor shall fill first-time prescriptions for patients seen at these facilities and the associated Community-Based Outreach Clinics (CBOCs) and provide medication counseling per Omnibus Budget Reconciliation Act of 1990 requirements (OBRA-90). Prices shall be offered with respect to Average Wholesale Price (AWP).
Locations Covered
Sioux Falls VA Health Care System 2501 West 22nd Street Sioux Falls, SD 57105
And associated CBOCs
Aberdeen CBOC 3307 SE 10th Ave Aberdeen, SD 57401
Sioux City CBOC 380 West Anchor Drive Dakota Dunes, SD 57049
Spirit Lake CBOC 1850 Royal Avenue Spirit Lake, IA 51360
Wagner CBOC 400 West Highway 46 Wagner, SD 57380
Watertown CBOC 4 19th ST NE Watertown, SD 57201
Period of Performance
This is a single award for five (5) years, from 07-01-2025 to 06-30-2030; task orders for each ordering period:
Ordering Period Begins Ends 1 01-01-2026 12-31-2026 2 01-01-2027 12-31-2027 3 01-01-2028 12-31-2028 4 01-01-2029 12-31-2029 5 01-01-2030 12-31-2030
Task orders will be issued by the Government at its discretion based on the continued need for services, Contractor performance, and availability of fiscal year funds for a given task order.
Task order periods of performance may be for the entire ordering period stated above or a portion of it, depending on the Government's need for services.
Estimated Quantities
The following estimates are estimated amounts based on the VA's historical needs. The estimates are not a guarantee to the Contractor. Actual cost or quantity may be equal, lesser, or greater than the estimate below.
Facility Location Estimated Number of Generic and Brand Name Prescriptions Filled (Five Year Period of Performance) Sioux Falls VA Health Care System and associated CBOCs 15,000
Scope of Work
The contractor shall provide an open pharmacy network that will allow Veterans to receive medications at a pharmacy of their choice. The medical facility will provide a list of formulary medications that will be approved for reimbursement. Any medications not on the formulary list would require an override approval. The medical facility will provide and maintain a list of approved prescribers. The provider network will be limited to providers approved by the medical center.
6. Hours of Operations
Pharmacies should have standard operating hours that would allow Veterans the opportunity to fill prescriptions without significant inconvenience.
Federal holidays are:
New Year s Day Martin Luther King Jr.'s Birthday President s Day Memorial Day Juneteenth Independence Day Labor Day Columbus Day Veterans Day Thanksgiving Day Christmas Day Any day specifically declared by the President of the United States to be a national holiday.
In addition, the services outlined above will be provided for patients of the VA. These services shall be provided for patients seen in the facility's Emergency Department. General Requirements
Prescription Fill Process DESCRIPTION OF WORK/SPECIFICATIONS:
Prescriptions filled shall be in written, verbal, or faxed form provided by authorized providers.
The authorized voucher for that specific location must accompany the patient s prescription. The contractor shall provide voucher forms with appropriate billing and customer service information as well as have the ability to track utilization by VA specific location.
Prescriptions shall be filled and dispensed only for prescription drugs as VA authorized providers.
The Sioux Falls VA will create a formulary also called an Emergent Drug List. Any medications not on the Emergent Drug List (EDL) will require approval by a Sioux Falls pharmacist prior to being filled. The Sioux Falls VA s formulary will be forwarded to the contractor after each UPDATE by the Chief, Pharmacy, or his/her designee.
The Sioux Falls VA will provide a list of approved VA providers that can have prescriptions filled thru this contract. This list will be updated by the facility as needed.
Prescriptions shall be filled and limited to a maximum of ten (10) days supply with the exception of: one vial of insulin on local formulary, one inhaler on local formulary, and a maximum of fourteen (14) days supply of antibiotics on local formulary or limited to restricted quantities as listed in the formulary.
No refills will be authorized. The contractor shall fill out NEW PRESCRIPTIONS ONLY!
Reimbursement shall be determined by the average wholesale price (AWP) discounted by the applicable percentage plus the applicable dispensing fee. The total price charged to the Sioux Falls VA Health Care System shall not exceed that charged to the general public and shall not exceed the price charged by the contractor s lowest third-party reimbursement.
Prescriptions filled under this contract shall be generic drugs ONLY. If medication is available from a manufacturer in generic form, it should be provided to the patient. If the generically manufacturered product is unavailable at the time of Veteran need (i.e. shortage), Contractor staff is to obtain prior authorization approval from a Sioux Falls VA Pharmacist prior to filling that medication for the Veteran.
The Sioux Falls VA Health Care System's beneficiaries will pick up their own prescriptions at the dispensing pharmacy. No prescriptions are to be mailed. No prescriptions are to be delivered. Veterans are not to be charged by the contracted pharmacy under this contract for the prescription dispensed under this contract.
The Sioux Falls VA Health Care System will randomly audit prescription fills. The Sioux Falls VA Health Care System will have free access during regular business hours, and upon reasonable notice, to such books, records, invoices, and prescription files as deemed necessary to verify claim information, prescription volume, and the usual and customary charges to the general public for covered prescriptions. The contractor shall make all prescription records and invoices available at the time of the audit.
Contract pharmacies shall maintain a log of Sioux Falls VA Health Care System prescriptions filled and have the patient sign next to each prescription number for each prescription received. A copy of the log shall be maintained at the contract pharmacy and be readily accessible for random VA audit.
All prescriptions must have proper auxiliary labels attached and appropriate counseling and drug interaction sheets provided.
AWP (average wholesale price) shall be based on the current Pharmacy Fundamental Reference REDBOOK and REDBOOK Updates published by Medical Economics Data, Inc., the AWP Medispan or First DataBank pricing schedule and whichever is most advantageous to the government.
The contractor and his/her contract pharmacies shall keep all information concerning the Sioux Falls VA Health Care System's beneficiaries confidential and shall not release or disclose information to any person, except as authorized in writing and according to all applicable laws. The Privacy Act of 1974, Public Law 93-579, February 31, 1974 (S U.S.C. 552a) applies to this procurement.
Pharmacies authorized to fill prescriptions under the contractor's plan shall agree to the following conditions:
All information concerning the Sioux Falls VA Health Care System's beneficiaries shall be kept confidential and shall not be disclosed to any person, except as authorized in writing and according to all applicable laws.
Representatives of the Sioux Falls VA Health Care System are authorized to visit the contractor's site and the premises of any pharmacy filling Sioux Falls VA Health Care System prescriptions during regular business hours for the purposes of auditing and evaluation, which may include the inspection of clinical records.
The contractor shall report all adverse drug events reported by the Sioux Falls VA Health Care System's beneficiaries to the Pharmacy Department at the Sioux Falls VA Health Care System, and to the prescribing provider.
The Government reserves the right to fill any prescription covered under this contract through the use of its own resources and/or staff.
Services provided under this contract will be monitored by the Contracting Officer's Technical Representative (COTR) as designated.
If the contract pharmacy is having difficulty with any claim or any other situation, they will contact the contractor. The contract pharmacy will not contact employees of the facility.
The contractor shall not make authorizations to the contracted pharmacies for prescriptions that fall outside of the normal constraints as stated within. If this occurs, the contractor will be responsible for reimbursing the local pharmacy for the prescription.
Audits
Pharmacy Services at the facility shall review the monthly statements provided by the contractor regarding fills at the local emergent fill pharmacies. Should SF find discrepancies in the billing, a request will be made by the facility to the contractor to provide a copy of the consultation in question.
If the prescription in question is not able to be produced within 10 calendar days, the contractor will adjust the statement by the amount in question. This review process will only be available for 90 days after the date of the prescription fill in question. Thus, the contract pharmacies will only be required to keep the hard copies available for 90 days. Privacy Requirements
The contractor shall comply with the requirements of the Federal Privacy Act of 1974 (Public Law 93-579), HIPAA (Public Law 104-191), and the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1972 (Public Law 83-255), as well as other statues regarding confidentiality of patient information during and after the execution of this BPA.
The contractor and the contracted pharmacies shall keep all information concerning VA beneficiaries confidential and shall not release or disclose information to any person, except as authorized in writing and according to all applicable laws.
The contractor shall not store patient information on a mobile device. A verbal contact is sufficient to obtain prior authorization when needed. The Contractor is prohibited from transferring Personal Health Information (PHI) by fax or email to and/or from a VA facility.
The contracted pharmacies including subcontracted pharmacies that are authorized to fill prescriptions under the BPA and subsequent task orders must agree to the following conditions:
All information concerning VA beneficiaries shall be kept confidential and shall not be disclosed to any person, except as authorized in writing from VA, and according to all applicable laws. Representatives of the VA are authorized to visit the contractor s sites and the premises of any pharmacy filling VA prescriptions during regular business hours for the purposes of auditing and evaluation, which may include the inspection of clinical records. The contractor shall report all adverse drug events reported by VA beneficiaries to both facilities Chief of Pharmacy, COR, to the prescribing CBOC provider, and Emergency Room provider if applicable. Pharmaceutical services provided to VA beneficiaries meet all standards applicable to Medicaid recipients in the State where services are provided, and standards set forth in the current version of The Joint Commission accreditation manual for Ambulatory Care/Pharmaceutical Services. Licensing and Qualification Requirements
Pharmacies utilized by the contractor shall be in good standing with their respective State Board of Pharmacy in Iowa, South Dakota, Minnesota, and Nebraska
Pharmacies utilized by the contractor shall have a current Drug Enforcement Administration (DEA) license, controlled substance license, and license from the respective State Board of Pharmacy.
Pharmacists Requirements:
Graduate of an Accreditation Council for Pharmacy Education (ACPE) College of Pharmacy Licensed in the States of Iowa, South Dakota, Minnesota, and Nebraska (as applicable) and in good standing with the State Board of Pharmacy. Pharmacy Requirements:
Licensed pharmacy in the State of Iowa, South Dakota, Minnesota, and Nebraska Current DEA, controlled substance license

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