MOHAWK MEDBUY CORPORATION FOR NATIONAL BRAND DISTRIBUTION SERVICES
LAST DATE FOR QUESTIONS: MAY 22, 2024 2:00 PM ET
CLOSING TIME: MAY 31, 2024 2:00 PM ET
Purpose
This negotiated RFP is an invitation from MMC to prospective suppliers to submit Proposals for the provision of the National Brand Distribution Services (the “Services”) on behalf of Mohawk Medbuy Corporation.
1.4 Background
MMC is a not-for-profit organization that negotiates and manages major contracts for its Customers as one of its responsibilities. For further information about MMC visit its website at www.mohawkmedbuy.ca.
MMC is issuing this RFP and will administer the RFP process set forth herein for the benefit and on behalf of the Purchaser. References herein to “potential Purchasers” or “Purchasers” include any Canadian Healthcare Provider that has been provided access, either directly or indirectly through MMC, to MMC contracts, including any contract arising from this RFP process. For the purposes hereof, a Canadian Healthcare Provider means:
(i) a public hospital; (ii) a Department or Ministry (or an agency thereof) of the Federal, a Provincial or a Territorial Government or any entity owned by, controlled by or created by any one or more of the foregoing, that directly provides healthcare services in Canada or represents or acts on behalf of or otherwise contracts for public hospitals or other publicly funded providers of healthcare services in Canada, which entities would include a provincial or regional health authority and an entity providing provincial or regional materials management services for healthcare providers in Canada; (iii) a not-for-profit or charitable organization that provides healthcare services in Canada; and (iv) an entity, controlled by any one or more of the foregoing, which provides purchasing or materials management services to Canadian healthcare providers.
Extensibility:
By participating in this RFP, each Proponent acknowledges and agrees that:
• Proponent submissions under this RFP will be made available to Ontario Health, the Ministry of Health, the Ministry of Long-Term Care, the Ministry of Government and Consumer Services, Ontario Healthcare Providers (“OHP”) and Shared Service Organizations (“SSO”) through direct distribution or upon request;
• Any OHP or SSO, and their respective affiliates, may purchase goods and/or services under this RFP, including OHPs and SSOs that may participate in the future after the expiration of any existing contracts with other vendors;
• Proponent submissions under this RFP may be accessed by any OHP or SSO at any time during the term of the contract;
• Any volumes described in this RFP are estimates based on the OHPs and SSOs participating under this RFP and do not include any additional volumes from OHPs or SSOs that may participate in this RFP in the future. Proponent submissions will be evaluated based on the estimated volumes described in this
RFP; RFP for National Brand Distribution Services – MMC – April 2023 – 8 –
• Any OHP or SSO that accesses this RFP will conduct its own financial evaluation taking into account its estimated volumes;
• Any OHP or SSO that accesses the RFP submissions will conduct its own evaluation of the submissions in accordance with the methodology described in this RFP; and
• If applicable, this RFP will indicate which elements of pricing must be extended to all OHPs and SSOs and which elements or pricing may have a variable component (e.g. pricing that differs based on geography).
1.5 Objectives
1.5.1 MMC Objectives
MMC is seeking to satisfy the following objectives in issuing this RFP:
(a) to identify Qualified Proponents for the supply and delivery of Services as further
detailed in this RFP;
(b) achieve the best solution for the needs of the Purchaser;
(c) obtain quality Services at best overall value;
(d) enhance customer satisfaction and improvements in services; and
(e) support a higher level of product standardization for the Purchaser.
1.5.2 Purchaser Objectives
Subject to the terms of the RFP, it is intended that the Purchaser will have the right to enter into an Agreement with their Preferred Proponent.
If there are subcategories of Services, there may be circumstances in which a different
Proponent is successful for each of the subcategories.
1.6 Agreement
Each Preferred Proponent will be required to enter into an agreement (“Agreement”)
based on the Form of Agreement Schedule. No obligations arise until such time as the
Agreement is signed.
There is no guarantee of any volume of Services being purchased by the Purchaser.
Negotiation of an Agreement between the Purchaser and a Preferred Proponent will involve a dynamic whereby the Purchaser and the Proponent exchange offers and counteroffers until a point where they reach either a contract in respect of the object of the negotiations, or a point where they conclude that a contract will not be feasible.
RFP for National Brand Distribution Services – MMC – April 2023 – 9 – MMC’s preference is to sign the Agreement in the form attached to the RFP. Notwithstanding that or anything to the contrary contained in this RFP, MMC reserves the right to consider modifications to certain provisions in the Agreement
requested by a Proponent. If the requested modifications are deemed to be Material Changes, the Proponent’s total score will be reduced by five (5) points. All submitted modifications are subject to review and acceptance by MMC.
1.6.1 Standardization of Services
Proponents should note that the Purchaser may use the RFP process to establish standardization within their location of the type of Services being acquired under the RFP.
While it is not the intention of MMC to use the RFP to standardize the Services, MMC reserves the right to do so.
1.7 Project Information and Background
1.7.1 Background and Current State
Currently Mohawk Medbuy Corporation (MMC) is under contract with three (3) National Suppliers, and the intention of MMC is to sign Agreements with Proponents on or before December 15, 2024, and to implement the new agreements effective April 1, 2025, or sooner. The majority of products are delivered directly to MMC Distribution Centres, however suppliers do deliver product direct to the purchasers facilities.
Any quantities supplied by MMC in this RFP are estimates only and will be used by MMC for the purpose of evaluating Proposals. The Proponent should not rely on these estimates. MMC does not warrant, represent or guarantee that these estimated quantities will constitute the actual quantity of products to be purchased.
While MMC has used considerable effort to ensure an accurate representation of information in this RFP, the information contained in this RFP is supplied solely as guidance for Proponents. The information is not guaranteed or warranted to be accurate by MMC or the Purchaser, nor is it necessarily comprehensive or exhaustive. Nothing in this RFP is intended to relieve Proponents from forming their own opinions and conclusions with respect to the matters addressed in this RFP.
1.7.2 Future/Desired State
The intent with this RFP is to make the following awards:
1. Award a National Brands Supplier for each of the manufacturers listed in the Rebate (Pricing) Form. Multiple suppliers may be awarded for manufacturers where it is beneficial to the Purchaser. E.g. In a scenario where a Supplier has exclusive rights to a subset of products with a manufacturer, and this Supplier offers a lower rebate (relative to other Suppliers) for the non-exclusive products available from the same manufacturer. In this situation MMC may award to the Supplier with the higher rebate for the non-exclusive products.
RFP for National Brand Distribution Services – MMC – April 2023 – 10 –
1. Award no minimum or maximum number of manufacturers to any one respondent.
2. Award suppliers with 100% of the listed manufacturer’s volume that the Purchasers purchase.
Proponents are strongly encouraged to put forward their best offer.
MMC is seeking a five (5) year Agreement, with options in favour of MMC to extend the term of the Agreement, on the same terms and conditions, including Rebates (Pricing), for one (1) additional period of two (2) years.
Each Proponent who submits a bid in response to this RFP agrees to hold its then current contract rebates firm for up to a period of six (6) months beyond the expiry date of the
Agreement (or the expiry of any option years exercised, if applicable).
