HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM
FILE ID: 13 - bd I1
Date: 4/1/ 2013
Commission Meeting Date: 5/09/2013
Requesting Department: FIRE -RESCUE
District Impacted: All
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: Piggyback — Pharmaceuticals and Pharmaceuticals Returned Goods Processing Services —
Minnesota Multistate Contracting Alliance for Pharmacy (MMCAP).
Law Department
Matter ID No.
13-60
Purpose of Item:
A resolution of the Miami City Commission, authorizing the procurement of Pharmaceuticals from Cardinal
Health, Inc., and the provision of Pharmaceuticals Returned Goods Processing Services from Guaranteed
Returns, Inc., utilizing existing Minnesota Multistate Contracting Alliance For Pharmacy ("MMCAP")
Contracts, effective through June 30, 2013 and November 1, 2013, respectively, subject to any further
renewals, extensions and/or replacement contracts by MMCAP, for the Department of Fire -Rescue, to be
utilized on an as -needed -contract basis, subject to the availability of funds and budgetary approval at the time
of need; further acknowledging the cooperative procurement benefits of MMCAP that enables the City to
aggregate its purchasing volume with that of other participating member agencies in order to realize a larger
percentage discount pricing structure to the financial benefit of the citizens of the City; further authorizing
piggybacks of other and future cooperative MMCAP contracts without additional City Commission
authorization upon determination by the Chief Procurement Officer that said piggybacks are in compliance
with Section 18-111 of the Procurement Code, subject to the availability of funds and budgetary approval at the.
time of need.
Background Information:
SEE ATTACHED
Budget Impact Analysis
YES Is this item related to revenue?
YES Is this item an expenditure? If so, please identify funding source below.
General Account No: 00001.184010.552100.0000.00000
Special Revenue Account No: 18-180027.05.1886.Drugs and Medicine.184010
CIP Project No: N/A
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost: N/A
Maintenance Cost: N/A
Total Fiscal Impact: N/A
Final Approvals
(SIGN AND DATE)
CIP N/A ' • • . ..Budget2L.
If using or receiving capital funds
Grants N/A...... Risk Management
Purchas;� f� �1Pt. Directo
Chic � City Manage
D.�..o 1 ..F7
N/
Agenda Item Summary Form, Continued...
Subject: Piggyback — Pharmaceuticals and Returned Goods Processing Services — Minnesota Multistate
Contracting Alliance for Pharmacy (MMCAP).
Background Information:
The Minnesota Multi -State Contracting Alliance for Pharmacy (MMCAP), created in 1985, is a free,
voluntary group purchasing organization operated and managed by the Materials Management Division
of the State of Minnesota's Department of Administration for government -run health care facilities. It
combines the purchasing power of its members to receive the best prices available for the products and
services for which it contracts. MMCAP contracts with over 150 pharmaceutical manufacturers, and
also has contracts for distributors to support the pharmaceutical contracts.
As an arm of the Minnesota Department of Administration, Materials Management Division, MMCAP
must follow Minnesota laws that govern the actions of state agencies. When establishing contracts,
MMCAP must comply with competitive procurement laws found in Minnesota Statutes Chapter 16C.
In accordance with Section 18-111 of the City's Code, "[...] the city may, in lieu of other city
competitive bidding procedures, accept a competitive bid which has been secured by or on behalf of any
federal, state, county or municipal government or from any other governmental entity, state funded
institutions and not -for profit organizations, subject to a determination by the chief procurement officer
that the contract was entered into pursuant to a competitive process in compliance with city laws,
policies and procedures; provided, however, that in the purchase of goods or services in excess of
$25, 000. 00, such contracts shall be approved by the city manager [...] "
The procurement laws found in the Minnesota Statutes Chapter 16C.06 (attached) confirm that
solicitations issued by said State comply with the City of Miami's laws, policies, and procedures
concerning competitive sealed bidding and proposals. The City's Department of Fire -Rescue ("Fire -
Rescue") is particularly interested in using two of the contracts available through MMCAP, namely:
Pharmaceuticals and Pharmaceuticals Returned Goods Processing.
The Pharmaceuticals contract is with Cardinal Health, Inc. This contract will serve as an alternate source
for Fire -Rescue, as well as the Urban Search and Rescue Team (Florida Task Force II), to purchase
pharmaceuticals, especially when there are pharmaceutical drug shortages. The contract provides a
venue for the City's Urban Search and Rescue Team to purchase the pharmaceuticals that they are
required to have in stock, as mandated by the Federal government. Furthermore, the contract makes
readably available substitute drugs when the requested type of drug is not available. Also, due to the
large number of participating States, pricing for pharmaceuticals is much more competitive than what
may be offered directly to the City.
The Pharmaceuticals Returned Goods Processing contract is with Guaranteed Returns, Inc. Fire -Rescue
currently has to pay a private vendor (about $600) to dispose of all the expired drugs in stock. Not only
does Fire -Rescue have limited space to store of all of the expired medicines, but is missing out on the
opportunity to make for the City much needed dollars by utilizing this contract. Neighboring
government agencies, such as the Miami -Dade County Fire -Rescue Department, have benefited from
using this contract. Back in March of 2011, they were able to receive in return $74,129.87 worth of
expired drugs.
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