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A Message From Toby Calvo, SDVMPG President ...

A Letter from Scott Denniston, SDVMPG Executive Director ...

Introduction:Talking points paper to discuss ongoing issues with current VA MSPV program and expectations of problems to follow MSPV Gen – Z contracts when awarded.  SDV-MPG members met with Senate and House Veterans Affairs Committees majority and minority staffs in June 2023.

VA’S MEDICAL/SURGICAL PRIME VENDOR PROGRAM

OPERATIONAL CHALLENGES

April 2023

Our members continue to face challenges with the MSPV program. We polled our membership and the following four categories consistently inhibit their ability to succeed. We hope this document will provide a guide for our discussion moving forward.

1. LACK OF COMMAND STRUCTURE:

• Responsibility for program resides in

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: [email protected]

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