Office of Procurement, Acquisition and Logistics (OPAL)
Pharmaceutical Reverse Distribution Program
The Reverse Distribution Program provides for multiple reverse distributors capable of assisting the Department of Veterans Affairs (VA), Indian Health Service (IHS), Bureau of Prisons (BOP), ICE Health Services Corps (IHSC), and other approved federal agencies authorized to participate in VA’s Pharmaceutical Prime Vendor (PPV) Program, in achieving maximum credits for the return of expired or soon to be expired pharmaceuticals and in processing any related pharmaceutical waste that may arise out of non-returnable pharmaceuticals.
Order Officers are nominated by the VISN Chief Logistics Officers (CLO) to National Contract Service. National Contract Service designates the Ordering Officers, who can then order against a number of VA’s National Prime Vendors, Indefinite Delivery Indefinite Quantity (IDIQ) contracts, and Blanket Purchase Agreements (BPAs). The commodities include pharmaceuticals, subsistence and nutrition.
Ordering Hierarchy Review for Pharmacy
VA Acquisition Regulation Part 808.002 lists the priorities for use of government supply sources. This hierarchy was initiated, at least in part, by the Procurement Reform Task Force Report of May 2002. The Pharmaceutical Prime Vendor contract with McKesson (VA797P-12-D-0001), awarded April 11, 2012, added the availability of Wholesale Acquisition Cost (WAC) based generics. The hierarchy is set-up below to address it in terms of pharmaceutical purchases:
- National Contract (NAT) – Mandatory (Should always be lowest price available)
- Federal Supply Schedule Restricted (FSR) price (also sometimes identified as XBP (not an acronym just a synonym for FSR)) – If you see the FSR (or XBP), then your pharmacy is listed for a special negotiated price or temporary price reduction. Some restricted Blanket Purchase Agreements (BPA) may also be listed as FSR (or XBP). Most are mandatory, check with Pharmacy Benefits Management (PBM) if unsure.
- Blanket Purchase Agreement (BPA) – Restricted BPA (Your Veterans Integrated Service Network (VISN) is moving market share to this product…it may not be the lowest price until all of market share is moved, so be sure your pharmacy is not an exception which sometimes happens.)
- Big4 Prices – Special price for VA, Health and Human Services (HHS), Department of Defense (DoD) and Coast Guard which should always be lower than or equal to Federal Supply Schedule (FSS) for other agencies. (Brand drugs are considered different from like generics, so a brand with a Big4 price is before the generic only if it has a lower price.)
- FSS prices – When buying a generic drug, Big4 and FSS have equal hierarchy and you look at price.
- Open Market or WAC Priced Generic/WAC Based Generics (WPG or WBG) – WPG or WBG is not part of the original established hierarchy. It came about with the latest McKesson contract. It makes it easier to buy non-FSS items but should always be compared to open market, since there may be major prices differences. You may have local requirements to use WPG or WBG over credit card open market, but it is not part of the ordering hierarchy.
Ordering Officers point of contact: