Contracting Process

SOLE SOURCE CONTRACT

Sole Source Contracting is the primary objective of CSF. Our hallmark is a three (3) year sole source committed volume contract and compliance terms that transition a "sales" relationship into a working partnership. Once established, all parties work together to promote value to everyone affected by the contract. Patients are benefited by putting quality products in the hands of our caring providers. Working with LeeSar Distribution Center, our manufacturers experience greater efficiency and economy by dealing direct with our member owned supply chain management company.

CREATING A CSF SOLE SOURCE CONTRACT

Our staff work with member leadership to identify defined categories as determined by clinical or support specialties. Frequently the vendor community has similarly organized product offerings. Once identified, a recent twelve (12) month line item purchase history is conducted that includes the identification of member users. Members are alerted to the new or renewal campaign and asked for Clinical Criteria. Centralized Purchasing works with major member users to determine Clinical Acceptability of Order Qualifiers. Once qualified, Order Finalists are invited to participate in the formal CSF Request for Proposal. CSF conducts an economic analysis of Vendor responses and makes an economic recommendation to the decision-making authority. After considering clinical, economic and logistical merits, the product category is awarded in the best interest of quality patient care.

LIMITED CONTRACT

Recognizing that not every purchase will fall within a defined category, in 2004 CSF created a "Limited Contract." The Limited Contract product is designed to achieve competitive pricing and qualify CSF to receive patronage dividends. It is considered a bridging device that in many instances will eventually qualify for a sole source contract. The Limited Contract enables manufacturers to become familiar with CSF and recognize the value of our supply chain model. Vendors with Limited Contracts have access (per procedure) to member facilities and the opportunity to establish mutually beneficial economic and service relationships with leadership and staff.

CREATING A CSF LIMITED CONTRACT

CSF negotiators evaluate system usage to identify products that do not presently qualify for a sole source contract. This could be due to their relationship to certain equipment, proprietary, or niche status. Once identified, local representative (s) are invited to CSF and presented with a Limited Contract. When executed, pricing is loaded and members are alerted to it's existence and the details critical to it's success.

When implementing a Limited contract, it is important to note that it was generated as a result of existing business that otherwise was being purchased using a member specific pricing agreement, alternative GPO, or other vehicle. It should not be confused with a sole source contract which when implemented is intended to address at least 90% of the defined category.

CONTRACT EVOLUTION

CP & CSF

Defined Category: CP & CSF research current range of product(s) and their manufacturers being utilized within the health systems. Given a high concentration of consistently ordered product, a defined category is established.

CP & CSF

CSF Sole Source Contract vs. CSF Limited Contract: Depending on factors of annual dollar value, compliance potential, and technology stability, a decision is made to pursue a CSF Sole Source Contract or a CSF Limited Contract.

CP

Order Qualifiers: CP identifies vendors capable of satisfying the breadth of product(s) within the defined category.

PRODUCTS COMMITTEE

Products Committee: Once parameters are determined, the appropriate committee(s) are presented with a proposal to pursue a contracting opportunity. Members are given an overview of the defined category and each health systems usage information.

Committees contribute "Clinical Criteria" to be included in contracting considerations. These are required response areas for order qualifiers to address in their response to the product validation process.

Usage data is reviewed to select high volume areas accountable for the product validation process.

Accountable area(s) to determine Clinical Acceptability of products needing validation.

CP

Centralized Purchasing arranges for Order Qualifiers to conduct product evaluations to determine Clinical/other acceptability.

PRODUCTS COMMITTEE

Clinical Criteria, vendor responses and clinical validation feedback are reviewed and order qualifiers are advanced to order finalists or dropped from the process.

CSF

Request for Proposal (RFP) packages are finalized and sent to "Order Finalists."

This information includes:

• Defined Category Title
• Length of contract (3 years) including start and end dates
• % Compliance potential determined. Provides baseline for calculating market share
• Timeline for response
• CSF Terms & Conditions

RFP's received back from Vendors.

Economic Analysis performed and Recommendation prepared.

ADMINISTRATIVE DECISION MAKING TEAM

ADMT is presented with CSF Economic Recommendation, vendor response (s) to Critical Criteria and results from the clinical validation process. A decision to award is made based upon the goal of providing quality patient care within the economic means of the members.

CP MM

Conversion plan reviewed considering current supply line population (s).

CSF

Notify Order Winner and award contract. Move documents from working file to contract file.

CSF

Notify non-winners.

CSF

Make arrangements for contract execution.

CP MM

Make arrangements for staff education and conversion event.

VENDOR REGISTRATION

Click Here for the Vendor Registration page!