DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY November 16, 2016 DLA Troop Support Medical Supply Chain LCDR Ebenezer Aniagyei, USN Deputy Chief Pharmacist Customer Pharmacy Operations Center Vincent Valinotti Pharmaceutical Prime Vendor Program
Agenda Customers Strategic Mission Organization DLA Medical Supply Chain Sales Volume DLA Medical Supply Chain Programs Relationships Becoming a Supplier / Business Expansion Customer Pharmacy Operations Center DLA/DHA Relationship Challenges & Opportunities 2
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Strategic Relationships ASD (Health Affairs) and Defense Health Agency Defense Medical Logistics Standard Support (DMLSS) Program Management Office Department of Veterans Affairs (VA) DoD Pharmacy and Medical Logistics Consultants Other Federal Agencies; FDA, DEA, USPHS, CDC Industry Partners; Manufacturers/suppliers and wholesalers 4
Institutional Deliver the right solution on time, every time Our Dual Focus Operational Every Day Health care economics The business of health care The cost of medical materiel Reliable next day support Business intelligence Every Crisis Ready on day one Varied missions & requirements Resupply & sustainment Control commercial/industrial materiel Situational awareness Vision: To provide an integrated and responsive system of choice for delivering consistent, quality medical materiel support for health care providers to perform their patient care mission
Medical Supply Chain Organization Supply Chain Integrator COL Alex Zotomayor, MS, USA, Director David Johns, Deputy Director DMLSS Office Customer Operations Directorate Nora Steigerwalt, Director EA Program Office Supplier Operations Directorate Dan Keefe, Director Operational Division Forward Cell (Fort Detrick, MD) Institutional Division CPOC Collective Division Pharmaceutical Prime Vendor Division Medical/Surgical Prime Vendor Division Electronic Catalog Division Capital Equipment Division Hospital Supply Division Pharmaceutical Manufacturer/Distributor Division Medical/Surgical Manufacturer/Distributor Division SMSG Division National Contracts IST Supply Support Division 6
Medical Business FY 2016 DHA Home Delivery $3.0B Army $1.5B Air Force $1.0M Navy $761M Marine Corps $47M Other $375M Pharm PV $4,876 FY17 Forecast $5.92B Med/Surg PV $626M Capital Equipment $365M FY16 actual $6.7B Traditional Med/Surg $200M Traditional Pharm $266M ECAT $222M Hospital $129M 7
Ecommerce Deliver the right solution on time, every time Pharmaceutical Prime Vendor Global National Prime Vendor DHA Home Delivery Program Medical-Surgical Prime Vendor Generation V Electronic Catalog (ECAT): Niche medical markets Laboratory, Dental, Optical Traditional Depot Seasonal influenza Direct Vendor Delivery Capital Equipment Contingency Corporate exigency contracts Vendor managed inventory Our Programs 8
Pharmaceutical Prime Vendors National Prime Vendor 9
Pharmaceutical Prime Vendors 10
Medical/Surgical Prime Vendors 11
WARFIGHTER FOCUSED, GLOBALLY RESPONSIVE SUPPLY CHAIN LEADERSHIP Features Multiple Catalog Ordering Online comparison shopping Customer product and vendor selection Direct customer delivery Benefits Electronic Catalog (ECAT) Program Customer Stable pricing, B2B Interface, Ecommerce solution, Robust Search Engines Supplier One focal point for contract administration, 15-day payment post receipt/invoice, No vendor fee Paperless, Electronic published catalog pricing, Available to all Federal Agencies WARFIGHTER FIRST SUPPORT - PEOPLE ENHANCEMENT & CULTURE - STRATEGIC STEWARDSHIP ENGAGEMENT EXCELLENCE - FINANCIAL STEWARDSHIP WORKFORCE - PROCESS DEVELOPMENT EXCELLENCE 12 12
Medical Supply Optimization Strategies Peace Time Surge Sustainment Prime vendor Depot Direct Vendor Delivery Electronic Data Interface Service stock Vendor managed inventory (Service owned) PV surge Warstopper funding key enabler Warstopper Funded Contingency contracts Corporate exigency contracts Vendor managed inventory (DLA owned) PV war reserve materiel Industrial base maintenance ctrs New acquisition Desert Storm Experience 92% New Acquisition Purchase Access not Stock Today 69% Contingency Contracts 8% Depot Stock 24% New Acquisition Opportunity For Improvement 7% Depot Stock 13
Becoming a Supplier/ Business Expansion What we need Access to FDA approved products brand, generic, OTC Product availability through Ecommerce programs How to making products available in the Pharm Prime Vendor program Government pricing vehicle (FSS, DAPA, BPA, National Contract) Business relationship with the Prime Vendors 14
Customer Pharmacy Operation Center CPOC 15
Customer Pharmacy Operations Center (CPOC) Mission: Customer Service. Facilitate & enable access to industry Roles Identify sources Clarify needs and alternatives Determine availability of TAA compliant sources and recommending Non-availability Determination when compliant sources are not available. Find hard to find drugs. Promote sources that provide the best value...national Contracts, generics, etc. 16
Customer Pharmacy Operations Center CPOC: Small Team Global Impact Established in 2011 DLA s response and pharmacists vision to improve customer support for all DLA customers; internal and external Team: 5 military pharmacists, 2 civ pharmacists, 1 civ analyst Goals and Objectives Put the customer first Facilitate Pharmaceutical and Med/Surg Prime Vendor support Enable sourcing optimization efficiencies Modify procurement behavior Mitigate impact of drug and vaccine shortages Leverage business Intelligence tools and purchase data/analysis Support Medical Readiness and contingency response Build partnerships with other federal agencies and industry 17
DLA/DHA RELATIONSHIP Background On March 11, 2013, the Deputy Secretary of Defense directed the implementation of the Military Health System (MHS) governance reform. Services to be provided work together to generate value as an enterprise for the benefit of the DOD and it 9.7millinon beneficiaries. 18
DLA/DHA RELATIONSHIP Service Provider - 8 responsibilities Two directly related to DLA (iv) - Define and implement standardized business rules to guide and execute DoD policies for pharmacy operations. (vii) - Oversee, negotiate, and manage all existing centralized/enterprise requirements and contracts regarding pharmacy operations within pharmacy purchased care and mail order contracts, Prime Vendor contracts, and joint contracts with the VA; work with the DHA Contracting function to identify contracting support resource needs and to build a requirements development process for new centralized contracts to support MTF pharmacy contractor staffing as well as MTF pharmacy automation support. 19
DHA/DLA RELATIONSHIP DHA PHARMACY OPS DIV The Service Provider, in coordination with the Customer and, as necessary, the Defense Logistics Agency (DLA), will: (i). Define structures and processes needed to centrally program, budget, execute, and manage Pharmacy program funds by FY 15 (1 October 2014); such structures and processes will be developed via collaboration between the DHA (POD and Medical Business Operations Group), the Customer s resource management personnel and Service Pharmacy Consultants, and DLA; (xvi). Develop strategies to leverage the DoD s purchasing power and foster competition for pharmacy automation contracts. Such activities will include, but are not limited to, the following: 1. Establish centralized contract vehicles for pharmacy automation products and services for overlapping Customer requirements; 20
DHA/DLA RELATIONSHIP Pharmacy Performance Metrics Objective of Measure Metric Standard Owner Increase compliance with centralized drug purchasing rules % of prescriptions filled as generic when generic is identified as a preferred agent % compliance with purchasing from national contracts (Prime Vendor) >90% within 30 Days Customer 90% Customer 21
Challenges and Opportunities Specialty Pharmacy / Limited Distribution Items Drug Supply Chain Security Act (DSCSA) Track and Trace Ecommerce expansion Joint National Contracts expansion Auto substitution at the military treatment level pilots underway. 22
Customer Pharmacy Operations Center DLA-Troop Support Philadelphia, PA cpoc@dla.mil 23
DEFENSE LOGISTICS AGENCY AMERICA S COMBAT LOGISTICS SUPPORT AGENCY