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  • E-Articles - How to Save Money on IT Procurement Using the Texas CISV and DIR Contract

    Texas State agencies and authorized political sub divisions can save a substantial amount of money on IT commodity purchases simply by tapping into the existing Texas Department of Information Resources (DIR) Cooperative Contracts and by soliciting Requests For Proposals (RFP) from authorized Catalog Information Systems Vendors (CISV).

    According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
    >What is the Texas CISV Purchasing Program?

    The CISV Purchasing Program is designed to allow all Texas state agencies, as well as authorized county and local government agencies, to procure “automated information systems products and/or services” in a manner that is both competitive and cost-effective.

    Listed products and services mu
    ; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

    Examples of combination products may in
    t meet the Texas State Automated Information System (AIS) Products/Services requirements which include “products or services that are associated with automation (computers) or telecommunication systems. This includes hardware, software, programming, maintenance, repair, and installation of systems.”

    Vendor Requirements for Appearing in
    lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

    the Texas CISV System

    Vendors that are listed in the CISV system are also required to be listed on the Centralized Master Bidders List (CMBL) which is a database maintained by the State of Texas. It is used as a mailing list repository to ensure that approved and authorized vendors receive bids soliciting the products or servic
    here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
    s that each vendor is authorized to supply.

    In addition to CMBL membership, CISV-authorized vendors are required to create and maintain publicly-available web pages listing all of the CISV items that the vendor is authorized to provide to Texas government agencies.

    Products appearing in the CISV system, and on the vendor’s web pages, are
    d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

    Combination pro
    classified according to a 3 digit Class code and a 2 digit Product or Service code.

    For example: Class Code 204 identifies Computer Hardware And Peripherals For Microcomputers. Here are some examples of product or service codes appearing under that classification:


    • 53 Microcomputers, Desktop or Tower-ba
    ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
    sed
    • 54 Microcomputers, Handheld, Laptop, and Notebook
    • 55 Microcomputers, Multi-Processor
    • 77 Printers, Laser

    You simply add the Class code to the beginning of the product code to get the complete number. For example: 20453 is the full item number for products classified as Microcomputers, Desktop or Tower-based
    easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
    >.

    There are currently nearly fifty 2-digit product codes in the 204 category ranging from Cabinets and Cases: Desktop Cases, Tower Cases, Drive Cabinets, etc. to Workstations: SPARC, RISC, etc. (For Use With CAD/CAM, etc.)

    In addition to the above requirements, each vendor is required to provide an in-depth plan for maintaining, repairi
    nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
    g and supporting all of the items sold through the CISV program. This plan must include the following items:


    A specified contact person who will act as the company representative for all customer service and support-related questions and issues.


    A Direct Telephone Number that can be used to reach the contact per
    and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
    on directly.


    Published Hours of business that the contact person may be reached.


    Full Warranty Details for all CISV-listed products.
    A Written Guarantee stating that the vendor will supply “equivalent replacement parts” for any product sold through the CISV program for at least three years after th
    ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
    product manufacturer discontinues manufacturing the product.

    How the Texas CISV Saves Procurement Time and Dollars

    Providing “Best Value”

    The CIS is designed to provide procurement officers with a single point of access to review all IT-related products and services that are authorized to appear in the CIS system.

    The CI
    ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

    Following aspects would a
    SV helps procurement officers compare product offerings based upon a number of key measurements including price, availability, installation costs, etc.

    Negotiations

    The system provides a way to negotiate pricing, terms and conditions in an online environment that eliminates the need to play “telephone tag”. Vendors and procurement
    dd to the challenges in developing combination products:

    Which markets to tap where the combination products can do fairly well?
    Which combination prod
    officials can log into the system and post questions and responses in their own timeframe.

    Quotation Support

    The procurement official can generate a Request for Quotation (RFQ) to multiple vendors that handle the required CISV-listed product or service.

    Request for Information (RFI)

    The CISV system also provides a conveni
    cts are meaningful and rational?
    Which therapeutic categories to select?
    Which Combinations can address unmet needs of the patients?
    Do combin
    nt method for requesting additional information about listed products or services such as product availability, estimated delivery time, related installation costs, etc.

    The Role of the Texas Department of Information Resources (DIR) in CISV

    The Texas DIR is not directly involved in the CISV system. The agency maintains its own
    tions increase the patient compliance?
    What would be the developing cost?
    How to tackle the risks encountered during combination product developmen
    Cooperative Contracts program that may list products and services at prices that differ from those listed in the CISV program by the same vendor. These pricing differences are usually based upon the fact that the DIR’s procurement volume may be greater than the procurement volume of Texas governmental agencies that purchase through the
    t?

    As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
    CIS system.

    The Texas DIR does require Cooperative Contracts vendors to be listed on the Centralized Master Bidders List just as CISV vendors are.

    An Overview of the Texas DIR Procurement Process

    The DIR uses a 4-step procurement process:

    1. When an authorized State agency needs to procure an IT-related product or
    ping new procedures for reviewing their safety, efficacy and quality.

    Professional from academic institutions, pharmaceutical industries, health care indust
    service, the DIR posts a Request for Offer (RFO) using the Electronic State Business Daily (ESBD) web page. This RFO details the required products or services as well as any other necessary supporting information, documents or requirements. It is the responsibility of vendors who are authorized to use the ESBD web site to check regularly t
    y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
    see if there have been any RFO postings that involve the products or services they sell.

    2. Authorized and interested vendors are typically given 14 business days, or longer, to respond to the RFO by submitting all of the required information.

    3. DIR staff review all of the responses in order to determine those that provide the “best va
    .

    As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
    ue” for the State. The definition of “Best Value” has been set by the Texas Legislature.

    4. Once all responses have been reviewed, DIR staff may negotiate a contract with one or more winning vendors. However, the DIR also has the right to cancel the RFO and not award the contract to any vendor it determines that to be in the best interest
    elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

    Companies that provide selfless information through particip
    of the State.

    Procurement Peace of Mind

    Procurement officials who utilize the CISV and DIR procurement systems have the best chance of procuring IT goods and services at the best available price from vendors that have been approved by the State of Texas and that will support their products and services after the sale is completed


    tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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