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Public Higher Education Bulletin

 
University of Illinois at Chicago
SoleSource #284JCM
Announcement of a Sole Source Purchase
Change Order
Published Thursday July 2, 2015
Vendor: McKesson Corporation
Change Order Amount: $12,000,000

Request increase due to unpredictable volume of pharmaceutical orders. The scope of services from McKesson did not change. The Change Order increase will provide continual purchases for the month of July and August 2015, until sole source 522JCM is awarded.
The State Purchasing Officer for this procurement is now Aaron M. Finder.
The University award process may be delayed up to thirty days as this award goes through a state approval process.
Change Order
Published Friday March 27, 2015
Vendor: McKesson Corporation
Change Order Amount: $50,000,000

The purpose of this announcement is to modify the estimated contract amount at the beginning of the term. The University awarded a contract for 340B pharmaceuticals beginning on 03/20/2014 for a three year period in the estimated amount of $ 24,000,000. 340B pharmaceutical purchases are distinguished from other pharmaceuticals in that they are priced lower based on rates set by the Federal government for dispensing to under-served patients. The original estimated amount was based upon historic expenditures.

Actual expenditures are never 100% predictable because they vary as a function of the patient volume and medication pricing, which may change. Actual expenditures for fiscal year 2015 to-date have increased significantly due to a surge in patient volume and recent FDA approval of several new specialty drugs that are both expensive and in ever increasing demand. One example being recently approved pharmaceuticals used to treat hepatitis C were dispensed to approximately 275 patients. This treatment cost is approximately $50,000 per patient per month. The resulting hepatitis C pharmaceutical purchases totaled approximately $23 million since January 2014.

Each year, increases in drug prices and approvals of new medications are expected. However, due to unpredictable utilization and unanticipated drug expenses associated with these newly approved hepatitis C medications, drug expenditures, particularly specialty drug expenditures have increased in 2014 at a record rate.

This Notice reports an increase in the estimated contract amount of $ 50,000,000. Increased utilization is expected to continue.

This purchase continues to be economically available from a single source because McKesson gives us the opportunity to negotiate significant extended relationship service components in addition to an efficient and effective drug purchase dispensary process, including software that compiles data on a virtual inventory basis and ordering software that Pharmacy staff at seven ambulatory pharmacies are trained on.
The State Purchasing Officer for this procurement is now Gary Reis.
The University award process may be delayed up to thirty days as this award goes through a state approval process.
Award Info Published Friday April 4, 2014
Awarded to:
Vendor: McKesson Corporation, San Francisco, CA
Amount: An estimated $24,000,000
Terms:
An estimated start date of 3/20/2014 through 3/19/2017, 36 months
Renewals:
None
The University award process may be delayed up to thirty days as this award goes through a state approval process.
The hearing has been cancelled
Published Wednesday March 5, 2014
The hearing has been cancelled since no vendors registered to attend or submitted comments regarding this notice.
First published Tuesday, February 18, 2014
The University awarded a contract for continual purchase of 340B priced drugs to McKesson Corporation, San Francisco, CA, for an estimated $24,000,000.
Purchase of 340B pharmaceutical drug products by the Department of Ambulatory Care for seven Pharmacies to continue purchasing from the only economically feasible vendor, McKesson. The multi-year term gives the opportunity to negotiate some significant extended relationship service components in addition to the efficient and effective drug purchase dispensary process and inventory management process.
The University has determined that this purchase is only economically available from this source because the compatibility of equipment, accessories, replacement parts, or service is a paramount consideration.

For additional information, contact:
John Meehan
University of Ilinois at Chicago
Purchasing Division (M/C 560)
809 South Marshfield Avenue
Chicago, IL 60612-7203
Phone: (312) 413-5961
FAX: (312) 996-2055
State Purchasing Officer - Shirley Webb

We will hold a public hearing at the date, time and location specified below, if we receive a request to testify regarding the sole source determination. We will also hold a hearing if any vendor submits a signed statement showing the capability to provide the stated supplies/services at or below the amount indicated.

The public hearing allows any interested party the opportunity to testify for or against the sole source determination as described in this notice. The purpose of the hearing is to receive information from the public in a reasonable manner. Formal rules of evidence will not apply. The hearing officer will produce minutes of the hearing and may record it in order to aid in the production of the minutes. After conclusion of the hearing we will decide whether the sole source determination was appropriate.

We must receive any request to testify and any vendor statement no later than the registration date and time indicated below. If we do not receive a timely request or statement, we will not hold the hearing. We reserve the right to cancel the procurement prior to any scheduled hearing. Please confirm the status of the hearing with the Hearing Contact.

Date:
March 5, 2014
Time:
2:00 PM
Location:
Stratton Building
Room 511
401 S. Spring Street
Springfield, IL

If you cannot attend the meeting in-person at the primary location, you may attend via audio or video conference, as available, at one of the optional locations.

Alternate Location(s):
James R. Thompson Center
Room 9-035
100 West Randolph
Chicago, IL

Hearing Contact:
Keely Burton
Phone:(217) 558-5143
Fax:(217) 558-5407
Date, time, and location are subject to change and/or cancellation. It is the responsibility of potential participants to confirm these details prior to attendance.

Registration Deadline:
February 28, 2014
Register with:
Keely Burton
Phone:(217) 558-5143
Fax:(217) 558-5407

The State of Illinois has a policy to encourage prospective vendors to hire qualified veterans, minorities, females, persons with disabilities and ex-offenders.

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Sole Source Justification
  • 284JCM.pdf (893 KB)
Sole Source Justification Part 2
  • 284JCMpart2.pdf (247 KB)