University of Illinois at Chicago
Announcement of a Sole Source Purchase
Vendor: McKesson Specialty Division, San Francisco, CA
Amount: An estimated $27,000,000
An estimated start date of 8/7/2014 through 3/19/2017, 31 months
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 since no vendors registered to attend or submitted comments regarding this notice.
First published Monday, July 14, 2014
The University awarded a contract for McKesson Specialty pharmaceuticals to McKesson Specialty Division, San Francisco, CA, for an estimated $27,000,000.
This request is for the procurement of Specialty Pharmaceuticals. The McKesson Specialty Care Distribution (Vendor # @02260267) is a separate wholesaler division. The Specialty Pharmaceuticals are differentiated from standard pharmaceuticals which are available through the general McKesson Corporation - Pharmaceutical wholesaler (Vendor #@00727722). In other words, McKesson has two distinct divisions for pharmacy ordering, processing and distribution methods namely, the general and specialty unit. The general unit processing is for routine, common, and generally for readily available drugs. The specialty unit processing are for drugs that have special handling, may have limited availability or prone to shortages and are very expensive.
This is an economically feasible sole source request as McKesson Specialty Care Distribution provides specific pharmaceutical products (those carved out of the general drug portfolio) to the Department of Ambulatory Care Pharmacy - allowing the pharmacies to dispense specialty medications and products to the University of Illinois patients, students, and employees. In addition, the department provides these specialty pharmaceutical products to the outpatient clinics and/or research areas. McKesson Specialty Care Distribution provides the specialty product portfolio at Federally establishing prices (340B and Wholesale Acquisition Cost) to the UIC Ambulatory Care Pharmacies and provides the specialty product portfolio at Physician-based practice cost to the MacNeal-Berwyn Cancer Center. The department will incur significant expenses to convert operations to another wholesaler and will not benefit from competitive pricing.
The University has determined that this purchase is only economically available from this source because the Three Ambulatory Care Pharmacies (Oncology, Eye, Ear Infirmary and MacNeal Cancer Center) have existing Specialty accounts and McKesson inventory ordering/managing software long standing usage. Standing relationship with McKesson's Specialty Division - via Novation Group Purchasing Organization Agreement. Years prior to FY14 were under the Novation GPO Agreement.
For additional information, contact:
State Purchasing Officer - Aaron M. Finder
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.
July 30, 2014
401 S. Spring Street
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.
James R. Thompson Center
100 West Randolph
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.
July 25, 2014
The State of Illinois has a policy to encourage prospective vendors to hire
qualified veterans, minorities, females, persons with disabilities and ex-offenders.