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Pharmacy Benefits Management Services

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Pharmaceutical Prices

FSS (Federal Supply Schedule) is a multiple award, multi-year federal contract that is available for use by any Federal Government agency. It satisfies all Federal contract laws and regulations. Pricing is negotiated based on how vendors do business with their commercial customers.

The FSS program also provides additional opportunities for savings to the customers with negotiated quantity and tier discounts.

For those products covered under Public Law 102-585, Veterans Health Care Act of 1992, pricing is either negotiated based on vendor’s most favored commercial customer pricing or statutorily-required pricing calculations. Vendors have an opportunity to establish FSS Big 4 prices and FSS dual prices. Big 4 prices are only available to VA, Department of Defense, Public Health Service (Indian Health Service), and U.S. Coast Guard customers and are based on pricing calculations outlined under the Public Law. Dual prices are negotiated for Other Government Agencies (OGAs) that comprise the remaining authorized users of the FSS program. Dual prices are based on most favored commercial customer pricing negotiations held with the vendors.

Blanket Purchase Agreements (BPAs) can also be negotiated under the FSS program. BPAs provide for actual commitment from the facilities in return for additional pricing concessions and value-added services. The most commonly negotiated BPAs revolve around market share agreements and performance agreements. BPAs can be negotiated to incorporate all FSS customers or to target specific customers, e.g. VISNs.

VA National Contracts are requirement-type contracts that offer additional pricing concessions in return for commitment to potential vendors. The VA National Contract program results in pricing lower than FSS and is used for VA’s standardization efforts. The VA National Contracts program is a separate contract vehicle from the FSS contract program.

VA Pharmacy Benefits Management is no longer involved with the dissemination of Drug & Pharmaceutical prices.  Drug pricing is maintained by the VA National Acquisition Center (NAC).  The NAC provides a Contract Catalog Search Tool (CCST) at http://www1.va.gov/nac/.