Number:

Department of Pharmacy Policies & Procedures
Number: 6:03
Effective Date: January 1989
Revisions: 9/96 ; 8/99
Approval: October, 1999
Subject: BIDS AND CONTRACTS
A. POLICY

The UAMS pharmacy department will utilize the bidding and contracting process to obtain quality product at the most economical price while maximizing the number of stock turnovers each year.

B. PROCEDURE

1. Institutional Bid and contract (Delivery Order)

This procedure is used for items that are commonly used only on the UAMS campus. The contract can be awarded for a one year period with provisions for an extension for up to three years based on price stabilization terms. This procedure may be used for specific items or may also be used for non-specified items in the case where an alternate source vendor is being selected.

a. Review records to determine annual usage of each item to be bid.

b. Prepare and bid request and send it to the UAMS purchasing office

c. The bid is handled according to UAMS purchasing policy.

d. Pharmacy reviews the bid results to assure that the low bid has acceptable quality.

e. Purchasing awards the contract and assigns a contract number.

f. Pharmacy encumbers funds to equal the estimated yearly expenditure for the contract.

g. Purchasing prepares a Delivery Order Form for use by the pharmacy in ordering the items.

2. Group Purchasing Bids and Contracts

The University Hospital participates in the University Hospital Consortium buying group. The majority of all pharmacy items are purchased through the bid process managed by this group.

Pharmacy supply estimates the annual usage of each item submitted on the UHC bid.

UHC prepares and bids the products according to the UHC Pharmacy Purchasing Program Manual.

UHC sends a comprehensive printout of all items for which a bid has been received to the UAMS pharmacy.

Pharmacy reviews all tentative awards for problems or concerns.

A representative from the pharmacy meets with other UHC members to review the bid material.

Awards are made in accordance with UHC contract specifications and representatives opinions.

Listings of awards are sent by UHC to all vendors and to each hospital. Contract updates are given as needed during the year.

3. PHS Pricing for Out Patient Pharmacy

Out patient pharmacy qualifies as a Disproportionate Share Hospital and purchases medications and supplies in accordance with Public Health Service guidelines.
Outpatient Pharmacy cannot participate with any other group purchasing organization for medications while accessing PHS pricing.

4. Prime Vendor Contract

The UHC negotiates the contract for prime vendors for all UHC bid awards. This vendor serves as the primary source of all drug purchases for the specified contract time. It is the responsibility of the pharmacy and UAMS purchasing departments to obtain an alternate vendor to use for prime vendor stock-outs and for emergency items. (See procedure for institutional bids and contracts)