FSS Compliance

Automating Compliance to VA Contracts

The Department of Veterans Affairs's (VA) Federal Supply Service (FSS) program works with contracted pharmaceutical manufacturers to establish one or more commercial tracking customers. This ensures that the government receives a price discount relationship vis-a-vis the manufacturer's commercial pricing policies in order to provide preferential pricing to federal purchasing organizations. Via the Price Reduction Clause, the VA requires that this price discount relationship between the government and the tracking customer is maintained and expects manufacturers to  disclose any violations within 14 calendar days.

FSS contracting terms present significant compliance challenges. Manufacturers must review all recently created contracts, contract changes, and transactions on a frequent basis. They then must calculate net prices on these contracts, as well as tracking customer transactions, and determine if any prices are in violation of the Price Reduction Clause. If violations are identified, resolution actions must be tracked and potentially reported to the VA and temporary or permanent price reductions must be created.

In order to achieve FSS compliance, pharmaceutical manufacturers need a systematic way to monitor their pricing and contract data in order to detect, resolve, and report any violations in a timely manner so that they can avoid hefty fines and penalties.

Model N FSS Compliance

The Model N FSS Compliance application is a comprehensive solution that provides pharmaceutical manufacturers end-to-end business process support while allowing them to monitor and disclose all pricing information in order to reduce risk of non-compliance. Users can define and manage their Tracking Customer and Most Favored Customer policies, which are then used to monitor all contract and sales transactions on a regular basis. The FSS Compliance application provides in-depth visibility and analytical tools to view and manage price points while allowing users to effectively and efficiently resolve potential violations.

Full Compliance through Transparency and Integration

Model N's FSS Compliance allows users to define and manage compliance easily and efficiently, complementing Model N's Government Pricing application while maintaining full transparency and auditability for purposes of compliance. Through seamless integration into Model N's contract management application, FSS Compliance handles the entire compliance life cycle, from policies and price points to notifications and reports.

FSS Compliance at a Glance