The U.S. Department of Veterans Affairs Vendor Managed Inventory (VMI)   2

Background
The U.S. Department of Veterans Affairs, Veterans Health Administration (VHA), is establishing a Vendor Managed Inventory (VMI) program to secure guaranteed access to critical medical supply items and ensure continuous supply chain resiliency during emergencies or disruptions.
Under the Regional Readiness Center (RRC) program, VHA currently manages warehouses on the east and west coasts and will award a single-year multiple-award Indefinite Delivery Indefinite Quantity (IDIQ) contract with option years to a base of vendors.
The VMI will provide Contractor Inventory Material (CIM), Contractor Furnished Material (CFM), and Government Purchased Material (GPM) coverage for critical medical supplies to support VHA’s 171 hospitals, 1,093 outpatient healthcare facilities, Regional Readiness Centers, and other Fourth Mission partners nationwide and in U.S. territories.

Work Details
2. SCOPE OF WORK
The intent of the program is to buy access to material by funding suppliers with inventory holding and management fees to gain access to vendor’s material. The program’s intent is also to purchase some material and have the vendor store and manage that inventory at vendor warehouses to ensure freshness of supply at point of need also with the consideration of a management fee.
The vendor would be responsible for ensuring items are available for distribution nationwide and in U.S. territories at the request of the VA, providing inventory controls, performing stock rotation—including ensuring items remain unexpired without the VA taking possession, and delivering to secondary destinations in the event of a contract award.
The vendor would be compensated for these services by receiving inventory holding and/or management fees to include costs related to managing the program (including, but not limited to, storage costs, inventory accounting, insurance, packing and labeling, costs associated with shipment, disposal, replenishment, contract execution, and stock rotation).

Table 1 – Coverage Types Summarized:
CIM: Contractor owned, contractor managed material stocked at normal supplier business model levels; VHA pays for guaranteed access and purchases upon order release.
CFM: Contractor owned, contractor managed material stocked beyond normal levels; VHA pays fees to increase availability and purchases upon order release.
GPM: Government owned, contractor managed material stocked to government-directed levels; contractor manages storage, inventory rotation, stocking, shipping, and disposal.

Additional functions to be performed include:
- Inventory visibility and accountability
- Order processing and management
- Delivery of supplies to RRC locations within 24 hours
- Delivery of supplies to VAMC locations within 48 hours
- Data analysis and reporting
- Integration with existing systems and processes

Period of Performance
Project start within five days after contract award.
12 months (365 calendar days) base period from date of signed contract with XX option periods following the base year.

Place of Performance
Work performed at the Contractor’s facility at no additional cost to VA; distribution and delivery of material nationwide, including U.S. territories, to Regional Readiness Centers, VHA medical centers, hospitals, outpatient facilities, and secondary destinations as required.

Bidder Requirements
Offerors must have nationwide warehouse and inventory management capabilities to support CIM, CFM, or GPM coverage for critical medical supplies (including personal protective equipment and other critical materiel).
They must meet delivery standards (24 hours to RRCs; 48 hours to VAMCs), provide inventory visibility and accountability, and integrate with VA systems.
Contractor personnel must hold appropriate background investigations (Tier 1 NACI, Tier 2 MBI, or Tier 4 BI as required), possess HSPD-12 PIV credentials, complete VA Privacy and Information Security Awareness and Rules of Behavior training, and sign VA Form 0752 Non-Disclosure Agreements.
Travel must comply with Federal Travel Regulations and be pre-approved.
Offerors must obtain any necessary licenses, permits, and approvals to perform the work.