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The SDV-MPG has been in existence since June, 2016. We formed as a result of the U.S. Supreme Court decision in the Kingdomware case and VA’s announcement of the development of a medical/surgical prime vendor program. Our goal was to insure that SDVOSBs would  play a part in the MSPV program. From 2016-2021 we were under the umbrella of the National Veteran Small Business Coalition (NVSBC). As a result of decisions made by the new leadership of the NVSBC it was determined to be in our best interest to leave the NVSBC and form our own organization, thus the formation of the SDV-MPG in January, 2022. We have 22 member firms, all VA/CVE verified SDVOSBs.  Over the past 10 months we have engaged VA at all levels; headquarters, VHA and the SAC as to our  concerns regarding the current prime vendor contract as well as the draft RFP for the upcoming MSPV distribution contracts.  We have also briefed staff of the Senate and House Veterans Affairs Committees as to our concerns

Introduction: Provided to VA MSPV staff to highlight the issues facing SDV-MPG members brought on by VA’s failure to timely and reasonable deal with BPA price increase submissions.

SDV-MPG CONCERNS WITH PRICING OF PRODUCTS FOR VA’S MSPV PROGRAM

February 2023

BACKGROUND: Almost 3 years ago, VA negotiated and awarded Blanket Purchaser Agreements (BPAs) for products to be provided to VA through VA’s MSPV program. Most of the BPAs were awarded to SDVOSBs. Awards were based on “fair and reasonable” pricing in a competitive bidding process. To develop their bid price suppliers used their latest manufacturer’s price, added markups to cover business expenses, MSPV program costs (specific to the MSPV program) and a modest profit. Over the past three years, due to COVID demands and high inflation rates, product prices have risen, in some cases substantially.

Introduction: Questions submitted to VA MSPV  staff based on the release of the final RFP for MSPV Gen-Z.

QUESTIONS TO VA BASED ON RFP ISSUED ON JANUARY 3RD, 2023

1. The RFP addresses Organizational Conflicts of Interest (OCIs) by requiring respondents to self-identify any real or perceived OCI issues. The RFP further requires the respondents to develop and submit to VA a “mitigation plan” addressing the OCI issues. We understand VA has determined it either has, or will, provide “waivers” to any prime vendor who also holds BPAs under the MSPV program, namely Cardinal and Medline. As the proposals including any identification of OCI issues have not yet been submitted, under what authority and justification has VA provided waivers? We respectfully request copies of any waivers and justifications for the waivers VA has established. Also, what effect will Public Law 117-324; “Preventing Organizational Conflicts of Interest

Introduction: SDV-MPG letter to VA MSPV contracting officer on concerns raised by the publication of the draft RFP for MSPV-Gen Z.

December 6, 2022

BY EMAIL: Ashley.Nguyen@va.gov

Ashley Nguyen, Contracting Officer, 36C10X

Strategic Acquisition Center – Frederick

Department of Veterans Affairs

5202 Presidents Court, Suite 103

Frederick, MD 21703

           Re:  MSPV-Gen Z Draft RFP.

Dear Ms. Nguyen:

I hope you and your team had an excellent Thanksgiving holiday. 

As you know, the undersigned has the privilege of serving as the Executive Director of the Service Disabled Veteran Medical Products Group (SDV-MPG), a not-for-profit industry group that represents numerous medical product

Introduction: Summary of Congressional Hearing on “VA Major Acquisitions Failure: In Search of Solutions”.

Congressional Hearing Summary

Committee:  House Veterans Affairs – Subcommittee on Oversight and Investigations and Subcommittee on Technology Modernization

Subject:  VA Major Acquisitions Failures: In Search of Solutions

Date: 9/20/2022

Members Present

Chairman Pappas (D-NH)               Rep. Mann (R-KS)

Rep. Takano (D-CA)                       

Introduction: Provided by SDV-MPG members to Senate and House Veterans Affairs Committee staffs to provide background on the issues faced by service-disabled veteran-owned small businesses in operating as a “distributor” under VA’s MSPV program.

RISKY BUSINESS

THE PLIGHT OF A SERVICE-DISABLED VETERAN-OWNED SMALL BUSINESS PARTICIPATING

IN VA’S MEDICAL/SURGICAL PRIME VENDOR PROGRAM

Presented by

THE SERVICE-DISABLED VETERAN MEDICAL PRODUCTS GROUP

August 2022

SUMMARY: The service-disabled veteran-owned small business (SDVOSB) community has been involved and interested in the success of the VA Medical/Surgical Prime Vendor Program (MSPV) program since its inception. This involvement was heightened with the passage of Public Law 109-461 in 2006 and

Introduction: Provided to VA MSPV staff to identify the concerns raised by SDV-MPG members during meeting on July 21^st regarding VA and DLA MSPV programs.

SDV-MPG CONCERNS BY CATEGORY

July, 2022

Members of the SDV-MPG have identified a number of issues regarding VA’s MSPV program as well as the proposed use of DLA’s MSPV program by VA. The issues identified are as follows:

SUPPLY BPA’s

1. VAMC’s have not provided prime vendors with usage data so prime vendors do not stock and order from Supply BPA holders.

2. The result of #1 is a high number of drop ship orders which causes additional expenses.

3. Another result of #1 is prime vendors not assigning prime vendor ordering numbers (PVONs) which causes further delays and confusion for obtaining specific products by VAMCs.

4. VA cannot process the number

Introduction: Provided to Dwight Deneal, Director, Office of Small Business Programs, Defense Logistics Agency to explain SDV-MPG members challenges working with DLA’s MSPV Program and requesting a meeting to discuss.

CURRENT CHALLENDGES OF SDVOSB’s WORKING WITH CARDINAL

AND DEFENSE LOGISITCS AGENCY

SERVICE DISABLED VERTERANS MEDICAL PRODUCTS GROUP(SDV-MPG)

July 2022

BACKGROUND: The Defense Logistics Agency, on behalf of the Department of Defense and the Armed Services manages a Medical Surgical Prime Vendor Program (MSPV) to provide medical and surgical products at reasonable costs by aggregating volume, to the services and other customers. DLA does this by establishing Distribution and Pricing Agreements (DAPAs) with suppliers of products at prices deemed fair and reasonable

Introduction: Provided to VA staff as a read ahead for a meeting scheduled for March 2, 2022 with SDV-MPG members on suggestions to improve VA’s MSPV program.

VA MSPV DISTRIBUTION CONTRACT AREAS OF CONCERN

SERVICE-DISABLED VETERAN MEDICAL PRODUCTS GROUP

March 2nd, 2022

BACKGROUND: Members of the Service-Disabled Veteran Medical Products Group (SDV-MPG) are committed to helping VA develop a comprehensive Medical Surgical Products Prime Vendor Program (MSPV) to strengthen VA’s ability to provide world class healthcare to veterans. We have been engaged for over 5 years in this effort. We have experienced many versions of a MSPV program and have identified many challenges for a service-disabled veteran-owned small business to participate. A brief history is provided in our paper of February 2022, copy included as an attachment.

We

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