Introduction: At the request of Michael Parrish, VA Chief Acquisition Officer & Principal Executive Director, Office of Acquisition, Logistics & Construction SDV-MPG members provided VA a list of specific issues with the MSPV program as seen by the service-disabled veteran-owned small business community.

WHAT SHOULD VA DO TO FIX MSPV DISTRIBUTION

 

  1. Establish that BPA holders (suppliers) are PRIME contractors to VA.
  2. Prohibit distributors from being suppliers.
  3. Not allow prime vendors to charge fees to suppliers.
  4. Establish a formal policy for determining “fair and reasonable prices, which includes a “price preference” for SDVOSBs of 10% like the HUB Zone program.
  5. Establish policy to require VA medical facilities to provide “core list” of products to prime vendors in 15 days of contract award. Put mechanism in place to track compliance.
  6. Establish policy to require prime vendors to establish Prime Vendor Ordering Numbers (PVONs) within 15 days of receipt of core product list from VA medical facilities. Put mechanism in place to track compliance and establish penalties for non-compliance.
  7. Require prime vendors on their ordering platform to ONLY show current BPA prices.
  8. Establish penalties on prime vendors for NOT stocking core items from suppliers.
  9. Reimburse BPA holders (suppliers) for drop ship charges for core items not stocked by prime vendors.
  10. Establish formal “return policy” requiring prime vendor to return any products within 60 days of receiving products.
  11. Prohibit prime vendor representatives from access to any products not on the core MSPV list.
  12. Establish policy that NO products NOT provided by an SDVOSB BPA holder must undergo the “market research” process required by VETS First prior to purchase.
  13. Require prime vendors to pay suppliers within 15 days of receiving products from suppliers.
  14. Prohibit prime vendors from imposing ANY “penalties” on suppliers without VA approval.
  15. Allow suppliers to choose which prime vendors to supply through.
  16. Require compliance with Executive Order 13658 requiring prime vendors to pay minimum wages to employees.
  17. VA must establish a mechanism to monitor prime vendor compliance with all terms and conditions of the prime vendor contracts, staff an office to monitor compliance, and establish penalties for non-compliance.
  18. Establish a disputes resolution board where suppliers can bring issues and concerns to VA.
  19. Establish a SDVOSB Advisory Board, chaired by a VA senior level official with authority to implement changes in VA acquisition policies, procedures and contracting personnel.