6515--36C10X23Q0014 | RFI MSPV Gen-Z V1 - Commercial Fees

RFI 36C10X23Q0014 2 Request for Information (RFI) The Department of Veterans Affairs (VA) is issuing this RFI in accordance with FAR 15.201(e). The agency does not intend to award a contract but rather gather information on customary commercial practices and other market information pertinent for acquisition planning, from both Distributors and Suppliers. Information received in response to this market research will assist VA in making informed decisions regarding the MSPV Gen-Z V1 procurement. VA will interpret non-responses to this RFI as an understanding that VA will consider industry s silence as acceptance of VA s unilateral decision with regards to the questions provided below. Information received in response to this RFI that does not pertain to the questions below will not be considered. For the purposes of this RFI, the terms Prime Vendor and Distributor are used interchangeably, and have the same meaning to the Government. Additionally, the terms chargebacks and penalties are used interchangeably. If the respondents believe that this is an inappropriate interpretation, please explain the differences of these terms in your narrative response. Objective VA seeks written industry feedback regarding standard commercial practices in a distributor and supplier relationship, with a focus on standard commercial fees and chargebacks and any other charges assessed within that relationship. THERE IS NO SOLICITATION AT THIS TIME. This request for information does not constitute a request for proposals; submission of any information in response to this market survey is purely voluntary; the government assumes no financial responsibility for any costs incurred. In your response to this RFI, please provide the following information: Organization name, address, email address, website address, telephone number, business size, NAICS code; and Unique Entity ID. In your email response, please include in the subject line if you are responding from the perspective of a DISTRIBUTOR or a SUPPLIER . Additionally, please include the RFI number. Example Subject Line: DISTRIBUTOR RFI 36C10X23Q0014 Answers to the following questions: Is the practice of charging Commercial Fees and/or Chargebacks customary throughout the distribution industry in general and the medical supply distribution industry in particular? Are Commercial Fees and/or Chargebacks considered a revenue stream or solely as a means of cost recoupment? If considered a cost recoupment, provide examples of typical costs incurred that result in fees being assessed. What types of fees are typically assessed and accepted as customary industry practice? Please provide examples of fees or chargebacks accepted as or considered customary industry practice. Explain the difference (if any) between distribution costs, commercial fees, and chargebacks in context of the Prime Vendor (PV) and Supplier relationship. Are Commercial Fees and/or Chargebacks customarily assessed as a percentage or a flat rate? If charged as a percentage, a percentage of what? If charged as a percentage, what is the range (highest and lowest) of percentages? If charged as a percentage, what is the average (mean) percentage? Are the Commercial Fees and/or Chargebacks a standard rate across all suppliers? If not, why? In what circumstances are Commercial Fees and/or Chargebacks typically assessed? To what extent does the practice of assessing Commercial Fees and/or Chargebacks vary within the medical supply distribution industry? What is the average percentage of orders (or shipments) that incur Commercial Fees and/or Chargebacks? Are the Commercial Fees and/or Chargebacks assessed to suppliers consistent among distributors regardless of supplier size and/or type? If not, why? If not, what are the primary drivers? How are Commercial Fees and/or Chargebacks customarily assessed? For example, as a billing to suppliers or as an offset to an invoice? Other? When Commercial Fees and/or Chargebacks are assessed by a PV, does the supplier receive an itemized statement explaining the fees and amounts assessed? If not, why? In instances where authorized suppliers are unable to reach or meet agreed upon contract requirements within the commercial agreement between them and the PV due to incurred Commercial Fees and/or Chargebacks, what actions (if any) should a PV take to escalate to or notify VA (Contracting Officer, Contracting Officer Representatives, VHA Procurement, Medical Supply Program Office)? What actions (if any) does a PV take to assist suppliers in avoiding incurring Commercial Fees and/or Chargebacks? In what circumstances (if any) may a supplier assess fees and/or penalties against a distributor? How does the ability to assess Commercial Fees and/or Chargebacks affect the ability of a distributor to successfully perform as a VA MSPV? What impact (if any) does a limit/threshold/cap on the Commercial Fees and/or Chargebacks to be assessed have on the ability of a distributor to successfully perform as a VA MSPV? How does contractual language regarding Commercial Fees and/or Chargebacks affect the ability of a supplier to successfully perform under the VA MSPV Program? How would a PV incorporate the management of risk into a single Commercial Fee to cover the Commercial Fees and/or Chargebacks normally assessed on the suppliers? What, if any, are the concerns related to this single charge if covered under the VA MSPV contract? Are all Commercial Fees and/or Chargebacks delineated in a bilateral agreement between the distributor and supplier? What additional information or considerations would you like to provide to VA to inform a decision relative to the prohibition/allowance/capping of Commercial Fees and Chargebacks in the MSPV Gen-Z V1 contract that is not specifically addressed in the above questions? STRUCTURE AND SUBMISSION OF RESPONSES Distributors and Suppliers should respond to this RFI by Wednesday, October 26th, 2022 by 5:00 PM ET via e-mail to contact@example.gov, contact@example.gov, and contact@example.gov. In your email response, please include in the subject line if you are responding from the perspective of a DISTRIBUTOR or a SUPPLIER . Additionally, please include the RFI number. Example Subject Line: DISTRIBUTOR RFI 36C10X23Q0014 . Narrative responses shall not exceed 7 pages, 12 pt font. Additionally, respondents may provide an attachment not to exceed 1 page, to support the responses provided. Attachment provided can be an example of an invoice or additional supporting data, but shall not be an extension to the narrative response.