Pre-negotiation Objective Memorandum
Name
University
Author Note
Pre-negotiation Objective Memorandum
Pre-Negotiation Memorandum
SECTION I: Instructions
Contracting Activity
Competitive
Negotiation Objectives
The preliminary negotiation objectives were developed and updated in response to the discussion with Company A, B, and C following the order and orientation meetings and finalized subsequently.
SECTION II: Summary of Key Documents
“Key documents are not needed, a summary of Key Documents Omitted”
Offerors
Supplier Company A.
Supplier Company B
Supplier Company C.
Description of Contract Line Items
Description. Unit Price
Medications. 15%
Distributions. $ 1.50
Community Service Surcharge. $ 0.80
SECTION III: Introductions
Background
Troy is a Federal Civilian Agency operating stores of fifteen nursing homes and other ancillary health clinics all over the four-state region of Southeast United States. It has employed physicians who prescribe medications for nursing home patients and other outpatients who are being treated in various clinics. There are approximately two hundred and eighty thousand orders that are written patient-specific prescriptions for patients in the nursing homes yearly and some one hundred and fifty formulary medications used in replenishing supplies at the nursing homes she clinics to be distributed by the nursing staff to patients annually. The organization’s request for the purchase of pharmacy services including buying of medications, shipment, and their distribution in 30 days to nursing home residents. The request for proposal also directed that bulk medications should be ordered by nurses in advanced practices and even physicians and to be conserved as on-shelf stores at the clinics and the nursing homes.
Type of Contract
Fixestoresce Contract. Troy requires a pharmacy services Supplier who will supply medications, ship and distribute them to nursing home residents and clinics. The organization will be able to work with a company that is charging 15% off the average wholesale price for medication prices, 1.50 dollars per blister pack for distributions, and a community service surcharge of 0.8 dollars per order. The term is 30 days to nursing home residents and the contract is renewed annually. The supplier is however not required to provide on-door pharmacists at the clinics and nursing homes but rather to establish relationships with the community pharmacists for prompt supply of medications whenever the prescribed medications are not available on the formulary.
Purpose of Negotiation
The purpose of this memorandum is to give the chronology of record events that will lead to the award of the supplier service tender to Company A. The decisions include the commodore finding and recommendations regarding their review of the applications and the cist evaluation results fine following the detailed cost analysis for every application that was earlier received.
Source Selection
Method
Full and Open competition.
Potential Sources
Company A, a reputable regional company with a well-developed pact with Community Pharmacies networks and is planning to continue the development. The negotiation was done with the Chief Procurement Officer.
Company B is a developing regional organization but rather smaller than Company A. The organization is planning on contracting with the community pharmacies that Company A is presently using. The negotiations were performed together with the Procurement Officer together with the Chief Executive Officer.
Company C is a prominent federal company that is planning to treaty with its relevant associates in the community. The procurement officers participated in the negotiations.
The follow-up letter was sent to each of the Offerors and additional classifications were received on 12th April 2021. A copy of each letter was filled in the company registry.
SECTION IV: Evaluation of Costs
“Cost Evaluation not Applicable.”
SECTION V: Pre-Negotiation Costs.
Company A. The organization offers are as followed.
18% of the Average Wholesale Price for the cost of medications.
Charging a dispersion price of 1.47 dollars per blister packs.
A surcharge of the community pharmacy of 1.10 dollars per order.
Company B. The offers tabled by the company were as followed.
22% of the average wholesale price for the price of the medication.
A distribution fee is charged at 1.39 dollars per blister pack.
A surcharge of the community pharmacy of 0.80 dollars for each order.
Company C. The negotiated offers were summarized as follows.
19% off the average wholesale price charged for the specific medications.
A distribution fee is charged at 2.20 dollars per blister pack.
A surcharge of the community pharmacy of 0.70 dollars per order made.
SECTION VI: POM Price Analysis
The following pricing information was requested;
Medication Price. This price is to be conveyed in a percentage and must be less than the wholesale average price put by the pharmaceutical organizations that the company charges for specific medications. This price will be used in nursing homes and clinics.
Price of Distribution. This price includes packaging and shopping patient-specific blister packs. The shipment is to be done overnights and administered to the nursing home patients.
A surcharge of the community pharmacy. This price comprises dollar amounts for activities of making orders and the getting of drugs that the store is short of for the clinics or those drugs that should be delivered to the nursing homes quicker than ordering overnight. The cost shall pass through the drugstore and surcharge fees added to compensate the expenses of administration of packing and delivering of prescriptions to the nursing homes.
SECTION VII: POM Other Information
Negotiation Questions
The following questions are expected to be answered during the negotiations.
What are your reasons why you feel that you can meet our supplier’s needs?
Can you explain the readings behind your stand?
Why do you think this term is fair and very reasonable.
What are some of the concerns you have about our conditions?
What documentation do you have to validate your stand?
What else do you feel that our organization should understand about your company?
POM Activities
The initial offers from the Offeror were received on 3rd April 2021 which were then reviewed and abstracted and the letters of deficiency were afterward sent to respond to each offer on 10th April 2021. The second offer was received on 6th April 2021. The updated objectives of negotiations were then prepared in response to each offer or.
Recommendation
Five suggestions in total were submitted in reaction to the Request Proposal and the analysis ascertained that 3 of the companies are in the range of the stipulated that price and need to be evaluated by the examination team of Troy. By comparison, the company is paying 15% of the average wholesale to prove for medication, charging a $1.50 distribution price on every blister pack and a charge for the community pharmacy of $0.80 on each order. Company A turned out to be the incumbent.
Preparer ________________________ Date: _______________
Reviewer ________________________ Date: _______________
Approved ________________________ Date: ________________
Approved ________________________ Date: ________________
