CALIFORNIA DEPARTMENT OF GENERAL SERVICES CALIFORNIA DEPARTMENT OF

CALIFORNIA DEPARTMENT OF GENERAL SERVICES CALIFORNIA DEPARTMENT OF PUBLIC HEALTH OFFICE OF AIDS RFP DGS 1503 -001 Pharmacy Benefit Manager Bidder’s Conference November 4, 2015 http: //www. dgs. ca. gov/dgs/Home. aspx 1

AGENDA 1: 00 PM 1: 15 PM 2: 15 PM 4: 00 PM Welcome/Overview Review RFP Sections 1 -11 Cost Workbooks Adjourn http: //www. dgs. ca. gov/dgs/Home. aspx 2

BIDSYNC • Bidders are reminded to ensure appropriate staff are subscribed to Bid. Sync • Bid. Sync is the formal method the State Procurement Official will use to communicate with Bidders www. Bid. Sync. com http: //www. dgs. ca. gov/dgs/Home. aspx 3

THE RFP TAKES PRECEDENCE OVER ANYTHING STATED TODAY IN THE BIDDER’S CONFERENCE http: //www. dgs. ca. gov/dgs/Home. aspx 4

N O I T C U D O R T N I W : 1 IE N RV O E I T V C O E S ND A http: //www. dgs. ca. gov/dgs/Home. aspx 5

RFP GOAL The intent of this RFP is to secure one (1) Pharmacy Benefit Manager (PBM) Contractor to service the needs of: q Department of General Services (DGS) and its Participating Entities q California Department of Public Health, Office of AIDS, AIDS Drug Assistance Program (CDPH/OA/ADAP) q Other State and Local Governmental Agencies which are part of the Statewide Pharmaceutical Program (SPP) choosing to utilize the services of a PBM q Departments are collectively referenced as “the State” in this RFP http: //www. dgs. ca. gov/dgs/Home. aspx 6

RFP SECTIONS RFP 1503 -001 addresses needs of both DGS and CDPH/OA/ADAP v Sections common to both programs: • • Section 1 – Introduction Section 2 – Rules Governing Competition Section 3 – Current System Section 4 – Proposed System Section 5 – Administrative Requirements Section 8 – Proposal Format Section 9 - Evaluation http: //www. dgs. ca. gov/dgs/Home. aspx

SECTIONS cont. v Sections specific to one program: • • Section 6 – DGS, Technical Requirements Section 6 - CDPH/OA/ADAP, Technical Requirements Section 7 – DGS, Cost Section 7 - CDPH/OA/ADAP, Cost Section 11 – DGS, Attachments and Appendices Section 11 – CDPH/OA/ADAP, Attachments and Appendices Cost Workbook – DGS Cost Workbook - CDPH/OA/ADAP http: //www. dgs. ca. gov/dgs/Home. aspx 8

SECTION 1: INTRODUCTION AND OVERVIEW PAGE 1 -3 1. 1 Purpose - DGS • Control costs for the State • Create and manage Client database. • Capture and track Client Third Party Insurance Coverage if applicable to DGS Participating Entity’s program. • Capture and track Client/patient eligibility for benefits and coverage. • Provide notification regarding program eligibility and benefits to DGS and DGS Participating Entities and Participating Entity’s clients, if applicable to that Entity’s program. • Host DGS Participating Entity’s program pharmaceutical formularies. • Provide reporting functions. http: //www. dgs. ca. gov/dgs/Home. aspx 9

CONTINUED 1. 1 Purpose – CDPH/OA/ADAP q Establish and maintain a qualified pharmacy network for CDPH/OA/ADAP. q Adhere to the CPDH/OA/ADAP Formulary. q Dispense prescriptions to eligible Clients. q Ensure service/dispensing data accuracy and integrity. http: //www. dgs. ca. gov/dgs/Home. aspx 10

SECTION 1: INTRODUCTION AND OVERVIEW • Term of the Contract: • Three (3) years • March 17, 2016 through March 16, 2019 • Full implementation of the Agreement will take place on July 1, 2016 • Option to extend two (2) additional one-year periods http: //www. dgs. ca. gov/dgs/Home. aspx 11

SECTION 1: INTRODUCTION AND OVERVIEW 1. 3. 1 Background CDPH/OA/ADAP The Ryan White HIV/AIDS Program is administered by the U. S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA), HIV/AIDS Bureau (HAB). The Ryan White legislation created a number of programs, to meet needs for different communities and populations affected by HIV/AIDS. CDPH/OA has as its mission to assure the availability of highquality preventive, early intervention and care services for people living with HIV/AIDS. http: //www. dgs. ca. gov/dgs/Home. aspx 12

SECTION 1: INTRODUCTION AND OVERVIEW 1. 3. 2 Background DGS/PD Pharmaceutical Acquisitions Section (Rx Section) implements and administers the Statewide Pharmaceutical Program (SPP) established by Government Code (GC) Sections 14977 -14982. http: //www. dgs. ca. gov/dgs/Home. aspx 13

SECTION 1: INTRODUCTION AND OVERVIEW 1. 4 Procurement Official Mary Anne Selvage Department of General Services Procurement Division All RFP inquiries and questions must be directed to only this person. Proposals shall be submitted to the secure mailbox, as outlined in Sections 8. 3. 1 and 8. 4. 1, Proposal Submission. http: //www. dgs. ca. gov/dgs/Home. aspx

SECTION 1: INTRODUCTION AND OVERVIEW 1. 5 Key Action Dates: • October 28, 2015 by 2: 00 PM PT-Last day to submit questions prior to Bidder’s Conference • November 13, 2015 by 2: 00 PM PT-Letter of Intent to Bid due • December 8, 2015 by 2: 00 PM PT- DRAFT Proposal due • December 14 - 17, 2015 -DGS and CDPH responses to Draft Proposals • January 27, 2016 by 2: 00 PM PT- FINAL Proposal due • February 24, 2016 - Contract awarded http: //www. dgs. ca. gov/dgs/Home. aspx

N O I T I S T E E L P U M R : CO 2 N NG O NI I T R C E SE OV G http: //www. dgs. ca. gov/dgs/Home. aspx 16

SECTION 2: RULES GOVERNING COMPETITION 2. 1 Identification and Classification of RFP Requirements • Mandatory – Bidder must comply with all Mandatory requirements in Section 2 2. 2 Proposal Requirements and Conditions • Review Sections 2. 2. 1 to 2. 2. 12 http: //www. dgs. ca. gov/dgs/Home. aspx

SECTION 2: RULES GOVERNING COMPETITION 2. 2 Proposal Requirements and Conditions (continued) • RFP Questions • • Submit to Bid. Sync by the due date If questions are proprietary in nature, can be submitted by email to the Procurement Official and marked as CONFIDENTIAL. • Addenda • • RFP modifications will be made by addenda to those identified in the Letter of Intent Addenda will be posted on Bid. Sync http: //www. dgs. ca. gov/dgs/Home. aspx

REQUEST TO CHANGE REQUIREMENTS OF THE RFP 2. 2 Proposal Requirements and Conditions (continued) • Bidders’ Challenges to the Technical Requirements are handled through the question and answer period. • Submit requests to secure mailbox by November 24, 2015 by 2: 00 PM PT, review Sections 8. 3. 1 and 8. 4. 1, Proposal Mailbox. • DGS and CDPH/OA may issue addendums to the RFP changing the Technical Requirements based on Bidders’ challenges. http: //www. dgs. ca. gov/dgs/Home. aspx

SECTION 2: RULES GOVERNING COMPETITION 2. 3 Bidding Steps 2. 3. 1 Preparation of Proposal - Refer to Appendix C: Competitive Bidding and Proposal Responsiveness - Carefully read and adhere to RFP instructions and requirements - Review proposal for completeness and clarity of content. http: //www. dgs. ca. gov/dgs/Home. aspx

LETTER OF INTENT TO BID • Bidders are required to submit a Letter of Intent to Bid ØSubmit Attachment 1, Letter of Intent to Bid ØSubmit contact information for the person who will receive RFP information • This letter contains background information on the Bidder that will be used by the State Evaluation Team to determine if Bidder is qualified to participate in the PBM RFP • Due date November 13, 2015 by 2: 00 PM PT • Bidders are encouraged to submit the Letter of Intent to Bid earlier to help the State ensure you are receiving pertinent information related to this RFP http: //www. dgs. ca. gov/dgs/Home. aspx 21

SECTION 2: RULES GOVERNING COMPETITION 2. 3 Bidding Steps • Review Proposal guidelines outlined in 2. 3. 4. 1 to 2. 3. 4. 10. • Pay attention to signatures needed and delivery of proposal. • Review Sections 2. 3. 5 to 2. 3. 8 for information related to demonstrations, proposal errors, rejection of proposal, contract award and debriefing. http: //www. dgs. ca. gov/dgs/Home. aspx

DRAFT PROPOSALS • Draft Proposals due December 8, 2015 by 2: 00 PM PT. • Draft proposals are not mandatory, but help ensure proposals are compliant with the requirements of the RFP. • Pricing is NOT to be included in the Draft Proposal. • Cost Workbook should include the deliverable and description of services Bidder will charge to the State, but no costs. http: //www. dgs. ca. gov/dgs/Home. aspx 23

SECTION 2: RULES GOVERNING COMPETITION 2. 4. 1 Challenge of Award • Bidder must submit documentation within seven calendar days of the posting of Intent to Award. 2. 4. 3 Disposition of Proposal • All materials submitted in response to the RFP are the property of the State of California. http: //www. dgs. ca. gov/dgs/Home. aspx

T N E R R U C : 3 N O I T M C E E T S YS S http: //www. dgs. ca. gov/dgs/Home. aspx 25

SECTION 3: CURRENT SYSTEM CDPH/OA • CDPH/OA/ADAP is currently in contract with Ramsell Public Health Rx, LLC. , a Pharmacy Benefit Manager (PBM. ) • The Contract was executed in 2011. • This Contract provides prescription fulfillment for enrolled clients through community, commercial, and public health clinic pharmacies throughout California. • The current annual spend through this Agreement is approximately $450 million. http: //www. dgs. ca. gov/dgs/Home. aspx 26

SECTION 3: CURRENT SYSTEM DGS • DGS is currently in contract with Perform. Rx LLC. , a PBM. • The agreement was executed in 2010. • At this time, the California Department of Corrections and Rehabilitation, Department of Adult Parole Operations (DAPO) and the California Department of Veterans Affairs (CDVA) utilize this contract for the fulfillment of prescriptions at the community pharmacy level for their enrolled clients. • The annual spend through this Agreement is approximately $2. 5 million. http: //www. dgs. ca. gov/dgs/Home. aspx

4: D E S PO O PR N O I T M C E E T S YS S http: //www. dgs. ca. gov/dgs/Home. aspx 28

SECTION 4: PROPOSED SYSTEM 4. 1 Overall Goal: • CDPH/OA/ADAP Goals are stated in Section 1. 2. 1 • DGS Goals are stated in Section 1. 2. 2 • Sections 6, Technical Requirements, CDPH/OA and DGS, contain the unique requirements for the systems. http: //www. dgs. ca. gov/dgs/Home. aspx 2 9

E V I T A R T S I N I M D A S : T 5 EN N M O I E T R I C U E S EQ R http: //www. dgs. ca. gov/dgs/Home. aspx 30

SECTION 5: ADMINISTRATIVE REQUIREMENTS • Bidders are required to adhere to Administrative Requirements of the RFP. • Attachment 3, Administrative Requirements Response, is found in Sections 11. Bidders are to indicate their willingness and ability to satisfy these requirements by checking boxes and/or initialing where indicated. http: //www. dgs. ca. gov/dgs/Home. aspx

SECTION 5: ADMINISTRATIVE REQUIREMENTS Mandatory Requirements are the following: 5. 3. 1, Bidder Responsibility 5. 3. 7, Non-Discrimination toward WTO GPA Signatories 5. 3. 2, Confidentiality 5. 3. 8, Darfur Contracting Act 5. 3. 3, Contractor Responsibility 5. 3. 9, Iran Contracting Act 5. 3. 4, Bidder Declaration (includes Subcontractor information) 5. 3. 10, Corporate Qual. to Do Business in CA. 5. 3. 5, Payee Data Record 5. 3. 11, Federal Debarment, Suspension, etc 5. 3. 6, Contract Terms http: //www. dgs. ca. gov/dgs/Home. aspx 3 2

SECTION 5: ADMINISTRATIVE REQUIREMENTS • Section 5. 4, Preferences and Incentives, outlines the following non-mandatory requirements: • 5. 4. 1, Small Business Preference • 5. 4. 2, Target Area Contract Preference Act (TACPA) • 5. 4. 3, California Disabled Veteran Business Enterprise (DVBE) Incentive • 5. 4. 4, DVBE Declaration • 5. 4. 5, Commercially Useful Function • Bidders requesting a preference or incentive must certify that they will comply with the requirement detailed in these sections. http: //www. dgs. ca. gov/dgs/Home. aspx 3 3

L A C I N H C TE – S 6 NT NS ME O E I T IR C U SE EQ R http: //www. dgs. ca. gov/dgs/Home. aspx 34

SECTIONS 6 : INTRODUCTION • CDPH/OA/ADAP and DGS have separate and unique Sections 6 outlining the Technical Requirements for each Department • Detailed technical requirements pertaining to this RFP define each Department’s requirements, desired operating objectives and environment. • Bidder shall propose to meet each Department’s needs as defined in this RFP. • The Sections 6 become part of the resulting contracts and are incorporated into Appendix B, Statement of Work, in their entirety. http: //www. dgs. ca. gov/dgs/Home. aspx

SECTION 6: MANDATORY (M) REQUIREMENTS The Requirements specified in this Section are classified as either Mandatory or Mandatory-scored. • Mandatory and Mandatory-scored requirements are non-negotiable. • A Pass/Fail evaluation will be utilized for mandatory requirements. All items labeled mandatory must be marked “Yes” to pass. • Failure to respond affirmatively to any mandatory requirement shall result in disqualification of the proposal. http: //www. dgs. ca. gov/dgs/Home. aspx

SECTION 6: MANDATORY-SCORED (MS) REQUIREMENTS • All items labeled mandatory-scored (MS) are non-negotiable. • These questions will be scored as specified in Section 9, Evaluation. • The CDPH/OA Sections that will be scored are; 6. 5. 14, 6. 5. 23, 6. 6. 3, 6. 9. 2, 6. 15. 1, and 6. 15. 3. • The DGS Sections that will be scored are; 6. 5. 16, 6. 5. 17, 6. 9. 2, 6. 10. 3 and 6. 14. 2. • Mandatory-scored items must be marked “Yes” to pass. Failure to respond affirmatively to any mandatory-scored requirement shall result in disqualification of the proposal. http: //www. dgs. ca. gov/dgs/Home. aspx

SECTION 6: RESPONSES TO TECHNICAL REQUIREMENTS PAGE 6 -3 Bidder must indicate willingness and ability to satisfy all technical requirements by signing the statement on page 6 -3. Failure to do so will result in rejection of Bidder's proposal. http: //www. dgs. ca. gov/dgs/Home. aspx

NS O I T C SE http: //www. dgs. ca. gov/dgs/Home. aspx 7: ST CO http: //www. dgs. ca. gov/dgs/Home. aspx

SECTION 7: COST PAGE 7 -2 Section 7. 2 Cost Information Guidelines • CDPH/OA/ADAP and DGS have separate and unique Sections 7 which relate to separate and unique Attachments 15, Cost Workbooks • State Evaluation Team will use Attachments 15, Cost Workbooks to evaluate proposal costs unique to each Department • State Evaluation Team recognizes that additional information may need to be included in the Cost Workbooks. • Cost Workbooks must be filled out completely with costs entered to two (2) decimal places. DO NOT MODIFY COST WORKBOOK. THIS WILL RESULT IN PROPOSAL BEING REJECTED. http: //www. dgs. ca. gov/dgs/Home. aspx

CDPH/OA/ADAP SECTION 7: COST PAGE 7 -3 Attachment 15 – CDPH/OA/ADAP Cost Workbook contains ten worksheets Attachment 15 Cost Workbook Cost Worksheet Chain Independent – base Independent – enhanced 340 B Total Cost Points Available HMO Mail Order Specialty Hospital Miscellaneous 400 http: //www. dgs. ca. gov/dgs/Home. aspx

DGS SECTION 7: COST PAGE 7 -3 Attachment 15 – DGS Cost Workbook contains two (2) worksheets Attachment 15 – Cost Workbook Cost Worksheet – FY 2014 -15 Total Cost Points Available DGS FY 2014 -15 History 240 http: //www. dgs. ca. gov/dgs/Home. aspx 4 2

COST WORKBOOKS http: //www. dgs. ca. gov/dgs/Home. aspx

CDPH/OA/ADAP SECTION 7. 2, COST INFORMATION GUIDELINES ATTACHMENT 15 - COST WORKSHEET • Cost Workbook located in CDPH/OA/ADAP Section 11 http: //www. dgs. ca. gov/dgs/Home. aspx

CDPH/OA/ADAP SECTION 7: COST PAGE 7 -20 • 7. 5 Final Contract Pricing • 7. 6 Cost Worksheet Download Instructions • Bidders must follow the instructions below to download Attachment 15, Cost Workbook: 1) Download Attachment 15, Cost Workbook, from the www. eprocure. dgs. ca. gov website. 2) Rename the file as “(Enter Company Name) RFP DGS 1503 -001 CDPH/OA/ADAP Cost Workbook. xls” and save. 3) Complete the Worksheets. 4) After finalizing the worksheets, copy the Excel file and submit as specified in Section 8. 3, Proposal Submission. http: //www. dgs. ca. gov/dgs/Home. aspx 4 5

DGS SECTION 7. 2, COST INFORMATION GUIDELINES ATTACHMENT 15 - COST WORKSHEET Cost Workbook located in DGS Section 11 http: //www. dgs. ca. gov/dgs/Home. aspx 4 6

DGS SECTION 7: COST PAGE 7 -8 • 7. 5 Final Contract Pricing • 7. 6 Cost Worksheet Download Instructions • Bidders must follow the instructions below to download Attachment 15, Cost Workbook: 1) Download Attachment 15, Cost Workbook, from the www. eprocure. dgs. ca. gov website. 2) Rename the file as “(Enter Company Name) RFP DGS 1503 -001 DGS Cost Workbook. xls” and save. 3) Complete the Worksheets. 4) After finalizing the worksheets, copy the Excel file and submit as specified in Section 8. 4. 1, Final Proposal Submission. http: //www. dgs. ca. gov/dgs/Home. aspx 4 7

L A S PO O R P 8: N O T I T A C SE RM FO http: //www. dgs. ca. gov/dgs/Home. aspx 48

SECTION 8: PROPOSAL FORMAT • Provides an overview of the proposal format, content and submittal processes. • Critical information is found on pages 8 -2 and 8 -3, items 8. 3. 1, Draft Proposal Submission and 8. 4. 1, Final Proposal Submission This is an electronic submission process. Mailbox: RXRFP 1503 -001@dgs. ca. gov • Submission of a Draft Proposal is optional but strongly recommended. This allows a Bidder to obtain the benefit of a preliminary review prior to submission of a Final Proposal. • Draft Proposals must contain all the material specified in Section 8. 7. 1, Administrative Category, and 8. 7. 2, Technical Category. Standard Agreement (STD 213) must be included but need not be signed. http: //www. dgs. ca. gov/dgs/Home. aspx

SECTION 8. 3. 5, GUIDELINES • Section 8. 6 provides eight points which serve as guidelines for the submittal process • Section 8. 7 presents the three categories of the proposal: Administrative Category, Technical Category and Cost Category including the manner in which to submit • Pricing figures may not appear in any proposal submissions except Final Proposal, Cost Workbook. http: //www. dgs. ca. gov/dgs/Home. aspx 50

• Page 8 -7, item 8. 8, Proposal Documents, summarizes the Attachments or Appendices to be submitted in each category. • Bidders are responsible for providing sufficient and easily located information and documentation to allow their Proposal to be thoroughly evaluated by the State Evaluation Team. • Failure to do so may result in the rejection of the proposal!! http: //www. dgs. ca. gov/dgs/Home. aspx 51

N O I T C E S 9: http: //www. dgs. ca. gov/dgs/Home. aspx N O I T A U L A V E http: //www. dgs. ca. gov/dgs/Home. aspx 52

SECTION 9. 1, INTRODUCTION PAGE 9 -2 This section describes how the State Evaluation Team will: • Evaluate submitted proposals • Identify proposals that meet the RFP’s objectives • Identify proposals which provide the best value for the State. It is the State’s intent to conduct a comprehensive, impartial evaluation of all proposals received. The State will use a pass/fail and high score method of selection. Award of this RFP will be made to a single Bidder in accordance with the method identified within this section. http: //www. dgs. ca. gov/dgs/Home. aspx 53

SECTION 9. 3, OVERVIEW OF EVALUATION PROCESS PAGES 9 -2 TO 9 -3 Six Step Process: 1. Evaluate each proposal to determine if a Bidder’s Proposal is responsive and responsible to all mandatory (pass/fail) requirements in Section 5, Administrative Requirements. Note: If a Bidder is deemed non-compliant to any mandatory requirements, evaluation of the Bidder’s proposal may not proceed to Step 2. 2. Evaluate each proposal to determine if a Bidder’s Proposal is responsive and responsible to mandatory (pass/fail) and mandatoryscored (pass/fail) requirements in Sections 6, Technical Requirements. Note: If a Bidder is deemed non-compliant to any mandatory or mandatory scored requirements, the evaluation of the Bidder’s proposal will not proceed to Step 3. http: //www. dgs. ca. gov/dgs/Home. aspx 54

SECTION 9: OVERVIEW OF EVALUATION PROCESS PAGES 9 -2 TO 9 -3 3. Determine the Technical Requirements Score for each Bidder’s Proposal compliant to Steps 1 and 2 above. NOTE: The specific criteria the State Evaluation Team will use to evaluate and score each Technical Requirement is included as part of the requirement’s description within Section 6. 4. Determine the Cost Score for each Bidder’s Proposal. Note: If a Bidder is deemed non-compliant to cost presentation and/or requirements, the evaluation of the Bidder’s proposal will not proceed to Step 5. 5. Determine the Total Score for each Bidder’s Proposal by aggregating the Technical Requirements Score and Cost Score for each proposal. 6. Determine and apply any applicable preferences and/or incentives to each qualified Proposal. http: //www. dgs. ca. gov/dgs/Home. aspx 55

SECTION 9: COST ANALYSIS PAGES 9 -4 – 9 -12 In the Proposal Scoring the State Evaluation Team will evaluate and score the Bidder’s responses in each Bidder’s proposal, for both CDPH/OA/ADAP and DGS, to determine a Total Score. http: //www. dgs. ca. gov/dgs/Home. aspx 56

PLEASE FOLLOW ALONG IN SECTION 9. 4. 4 COST ANALYSIS PAGES 9 -3 TO 9 -11 http: //www. dgs. ca. gov/dgs/Home. aspx 57

SECTION 9. 5. 3, TOTAL SCORE PAGES 9 -6 TO 9 -9 v The State Evaluation Team will calculate the CDPH/OA/ADAP Total Score for each proposal. The CDPH/OA/ADAP Total Score will be calculated by aggregating the CDPH/OA/ADAP Technical Requirements Score and the CDPH/OA/ADAP Cost Score. v The State Evaluation Team will calculate the DGS Total Score for each proposal. The Total Score will be calculated by aggregating the DGS Technical Requirements Score and DGS Cost Score. http: //www. dgs. ca. gov/dgs/Home. aspx 58

SECTION 9. 5. 3, TOTAL SCORE PAGE 9 -10 The State Evaluation Team will calculate a Total Proposal Score as follows: o Weight the CDPH/OA/ADAP Total Score by 95% o Weight the DGS Total Score by 5% o Sum the weighted CDPH/OA/ADAP Total Score and the weighted DGS Total Score to Calculate the Total Proposal Score. http: //www. dgs. ca. gov/dgs/Home. aspx 59

SECTION 9. 5. 4, PREFERENCE POINT CALCULATION PAGE 9 -11 Small Business Preference Calculation Formula: SB Preference Points = (Highest Non-Small Business Total Score) x (5%) Example: Note: If a non-small business is subcontracting with a certified small business for twenty-five percent (25%) of the resulting contract, it will receive the same five percent (5%) preference as described above. However, a non-small business cannot use this preference to displace a small business in line for award. http: //www. dgs. ca. gov/dgs/Home. aspx 60

SECTION 9. 5. 4, PREFERENCE POINT CALCULATION PAGE 9 -10 DVBE Incentive Calculation If a DVBE Incentive is to be applied to a qualified Bidder’s total score, the incentive amount applied to each proposal will vary in conjunction with the percentage of proposed DVBE participation as follows: Confirmed DVBE Participation 3% and above 2% to 2. 99% inclusive 1% to 1. 99% inclusive DVBE Incentive Points 15 10 5 http: //www. dgs. ca. gov/dgs/Home. aspx 61

SECTION 9. 5. 4, PREFERENCE POINT CALCULATION PAGE 9 -12 TACPA Preference Calculations Preferences will be applied to a qualified Bidder’s total in accordance with Government Code Section 4530 et seq. (TACPA). http: //www. documents. dgs. ca. gov/pd/poliproc/tacpapage. pdf http: //www. dgs. ca. gov/dgs/Home. aspx 6 2

SECTION 9. 6, AWARD AND NEGOTIATIONS PAGE 9 -10 Award The contract will be awarded to the responsive and responsible Bidder with the highest number of points including all applicable preference and incentive points. Negotiations The State may elect to enter into negotiations pursuant to Government Code §§ 14977 -14982 if conditions exist. http: //www. dgs. ca. gov/dgs/Home. aspx 63

N : IO 0 1 AT N TR O I S T N C O E S EM D http: //www. dgs. ca. gov/dgs/Home. aspx 64

SECTION 10: DEMONSTRATION This RFP will not require demonstrations but DGS may request them at a later date. http: //www. dgs. ca. gov/dgs/Home. aspx

S T EN M H C A T T A S : 11 ICE S D N EN O I P T P C A SE ND A http: //www. dgs. ca. gov/dgs/Home. aspx 66

SECTIONS 11: ATTACHMENTS AND APPENDICES Ø RFP 1503 -001 contains two (2) Sections 11 – CDPH/OA/ADAP Section 11 and DGS Section 11 § CDPH/OA/ADAP: üStandard state Attachments numbers 1 – 14 üAppendix B, Standard Agreement (STD 213) - Signature is required on Proposal üCDPH/OA/ADAP Exhibits A – M üAppendix E, ADAP Attachments 6 b – 6 j üCDPH/OA/ADAP Attachment 15, Cost Workbook http: //www. dgs. ca. gov/dgs/Home. aspx 67

SECTIONS 11: ATTACHMENTS AND APPENDICES CON’T § DGS: üStandard state Attachments numbers 1 – 14 üAppendix B, Standard Agreement: Standard 213 (STD 213) - signature is required on Proposal üExhibits A - I üDGS Attachment 15, Cost Workbook http: //www. dgs. ca. gov/dgs/Home. aspx 68

CDPH/OA/ADAP SECTION 11: ATTACHMENTS AND APPENDICES PAGES 11 -2 TO 11 -99 § Section provides all Attachments Bidders are to use in their Proposal. This includes mandatory and non-mandatory Attachments. § Page 11 -2 provides a table of all the Attachments found in this Section. § First to be addressed is Attachment 1, Letter of Intent to Bid, due to DGS secure mailbox by November 13, 2015. § Attachment 2 provides a checklist to confirm that the Proposal includes all required forms. http: //www. dgs. ca. gov/dgs/Home. aspx

PAGE 11 -2 The Attachments requiring a signature and/or additional information are: q Attachment 4, Confidentiality Statement q Attachment 5, Bidder Declaration Form q Attachment 6, Payee Data Record q Attachment 7, Darfur Contracting Act q Attachment 8, Iran Contracting Act q Attachment 9, Federal Debarment, Suspension, Ineligibility and Voluntary Exclusion q Attachment 10, Small Business Preference (if requested) q Attachment 11, Target Area Contract Preference Act (if requested) q Attachment 12, Disabled Veteran Business Enterprise Dec. Form (if requested) http: //www. dgs. ca. gov/dgs/Home. aspx 7 0

PAGE 11 -2 continued q Attachment 13, Bidder’s Summary of Contact Activities and Labor Hours (if applicable) q Attachment 14, Manufacturer’s Summary of Contact Activities and Labor Hours (if applicable) v A pdf of each signed Attachment must be submitted as described in Section 8. 4, Proposal Submission. DGS will require original signed documents be submitted upon award of the Contract. http: //www. dgs. ca. gov/dgs/Home. aspx 7 1

PAGE 11 -22 • Section 11. 2, Appendices, begins on this page • The table describes Appendices A through E found on pages 11 -31 to 11 -99 • Page 11 -23, Appendix A, Contract Development, Item C. , State Model Contract, names the items and Exhibits which will become part of the Final Contract • Appendix B, Standard Agreement, requires information to be entered by Bidder including signature. SPECIAL NOTE: Some of the Attachments and Exhibits are accessed through a web link. Please notify the Procurement Official, Section 1. 4, should you experience any difficulty with these links!!!! http: //www. dgs. ca. gov/dgs/Home. aspx 7 2

APPENDIX F, PROPOSAL EVALUATION TOOL PAGE 11 -100 Ø Appendix F, Proposal Evaluation Tool, is the document that the State Evaluation Team will use to record the scores of the Bidders’ Proposals. NOTE: Ø Attachment 15, Cost Workbook, is critical as cost is the primary evaluation criterion for the award of this RFP. http: //www. dgs. ca. gov/dgs/Home. aspx

DGS SECTION 11: ATTACHMENTS AND APPENDICES PAGES 11 -2 TO 11 -62 § Section provides all Attachments Bidders are to use in their Proposal. This includes mandatory and non-mandatory Attachments. § Page 11 -2 provides a table of all the Attachments found in this Section. § First to be addressed is Attachment 1, Letter of Intent to Bid, due to DGS secure mailbox by November 13, 2015. § Attachment 2 provides a checklist to confirm that the Proposal includes all required forms. http: //www. dgs. ca. gov/dgs/Home. aspx 7 4

PAGE 11 -2 The Attachments requiring a signature and/or additional information are: q q q Attachment 4, Confidentiality Statement Attachment 5, Bidder Declaration Form Attachment 6, Payee Data Record Attachment 7, Darfur Contracting Act Attachment 8, Iran Contracting Act Attachment 9, Federal Debarment, Suspension, Ineligibility and Voluntary Exclusion q Attachment 10, Small Business Preference (if requested) q Attachment 11, Target Area Contract Preference Act (if requested) q Attachment 12, Disabled Veteran Business Enterprise Dec. Form (if requested) http: //www. dgs. ca. gov/dgs/Home. aspx 7 5

PAGE 11 -2 continued q Attachment 13, Bidder’s Summary of Contact Activities and Labor Hours (if applicable) q Attachment 14, Manufacturer’s Summary of Contact Activities and Labor Hours (if applicable) v A pdf of each signed Attachment must be submitted as described in Section 8. 4, Proposal Submission. DGS will require original signed documents be submitted upon award of the Contract. http: //www. dgs. ca. gov/dgs/Home. aspx 7 6

PAGE 11 -26 • Section 11. 2, Appendices, begins on this page • The table describes Appendices A through E found on pages 11 -28 to 11 -60 • Page 11 -28, Appendix A, Contract Development, Item C. , State Model Contract, names the items and Exhibits which will become part of the Final Contract • Appendix B, Standard Agreement, requires information to be entered by Bidder including signature. SPECIAL NOTE: Some of the Attachments and Exhibits are accessed through a web link. Please notify the Procurement Official, Section 1. 4, should you experience any difficulty with these links!!!! http: //www. dgs. ca. gov/dgs/Home. aspx 7 7

APPENDIX E, PROPOSAL EVALUATION TOOL PAGE 11 -60 Ø Appendix E, Proposal Evaluation Tool, is the document that the State Evaluation Team will use to record the scores of the Bidders’ Proposals. NOTE: Ø Attachment 15, Cost Workbook, is critical as cost is the primary evaluation criterion for the award of this RFP. http: //www. dgs. ca. gov/dgs/Home. aspx 7 8

: 5 1 S S OK T EN KBO M R H C O A W T T T S A O C http: //www. dgs. ca. gov/dgs/Home. aspx

ATTACHMENTS 15: COST WORKBOOKS RFP 1503 -001 contains two (2) separate and unique Cost Workbooks for CDPH/OA/ADAP and DGS Used by the State Evaluation Team to calculate the proposal’s Cost Score. Refer to: Ø Section 9. 5. 1. 2, CDPH/OA/ADAP Cost Score Evaluation. Ø Section 9. 5. 2. 2, DGS Cost Score Evaluation Represents 80% of the total points available for the proposal. http: //www. dgs. ca. gov/dgs/Home. aspx

ATTACHMENTS 15: COST WORKBOOKS CDPH/OA/ADAP PBM Cost Workbook: v. Ten worksheets o Cost Worksheet o HMO o Chain o Mail Order o Independent – base o Specialty o Independent – enhanced o Hospital o 340 B o Miscellaneous http: //www. dgs. ca. gov/dgs/Home. aspx 81

ATTACHMENTS 15: COST WORKBOOKS CONT DGS PBM Cost Workbook v Two worksheets o Cost Worksheet – FY 2014 -15 o DGS FY 2014 -15 History http: //www. dgs. ca. gov/dgs/Home. aspx 82

PROPOSAL TOTAL SCORE-SECTION 9. 5. 3 Weight the CDPH/OA/ADAP Total Score by 95% Example: ADAP Bidder ADAP Total Score Weighting Bidder 1 460. 92 . 95 Weighted ADAP Total Score 437. 9 Bidder 2 415 . 95 394. 25 Bidder 3 495 . 95 470. 25 Bidder 4 371. 4 . 95 352. 83 http: //www. dgs. ca. gov/dgs/Home. aspx

PROPOSAL TOTAL SCORE - SECTION 9. 5. 3 CONT Weight the DGS Total Score by 5% Example: DGS Bidder DGS Total Score Weighting Weighted DGS Total Score Bidder 1 Bidder 2 Bidder 3 Bidder 4 292 247. 04 277. 59 235. 57 . 05. 05 14. 6 12. 35 13. 88 11. 78 http: //www. dgs. ca. gov/dgs/Home. aspx 84

PROPOSAL TOTAL SCORE - SECTION 9. 5. 3 CONT Sum the weighted CDPH/OA/ADAP Total Score and the weighted DGS Total Score to Calculate the Total Proposal Score. Example: Total Proposal Score Bidder 1 Weighted ADAP Total Score 437. 9 Weighted DGS Total Score 14. 6 Total Proposal Score 452. 5 Bidder 2 394. 25 12. 35 406. 6 Bidder 3 470. 25 13. 88 484. 13 Bidder 4 352. 83 11. 78 364. 61 http: //www. dgs. ca. gov/dgs/Home. aspx 85

Ø If you prefer, you may post your questions to Bid. Sync. DGS will respond as quickly as possible by posting answers on Bid. Sync no later than December 2, 2015. Ø If your questions are considered confidential and would expose any information your company deems “trade secrets” you may email them to the Procurement Official, Section 1. 4, page 1 -10. http: //www. dgs. ca. gov/dgs/Home. aspx 86