MURIEL BOWSER
MAYOR
January 15, 2021
The Honorable Phil Mendelson
Chairman
Councilofthe District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Pursuant to section 451 of the District of Columbia Home Rule Act (D.C. Official Code 1-
204.51) and the Procurement Practices Reform Act (D.C. Official Code 2-351.01 et seq.),
enclosed for consideration and approval by the Council of the District of Columbia is proposed
contract CW81262 with Magellan Medicaid Administration. The proposed contract is in the not-
to-exceed amountof $3,082,851.00 for the period ofOctober 16, 2020 through July 19, 2021.
Under the proposed contract, Magellan Medicaid Administration shall provide pharmacy benefit
services for the Districts Medicaid eligible fee-for-service recipients through the pharmacy
benefit manager which includes a point of sale pharmacy system allowing eligible District
Medicaid and Medicaid waiver beneficiaries immediate access to needed pharmaceuticals, and
timely and accurate payment of prescription claims to pharmacies through the real time
verificationofbeneficiaries eligibility, drug coverage, and reimbursement levels.
1 am available to discuss any questions you have regarding the proposed contract. In order to
facilitate a response to any questions you may have, please have yourstaff contactMare Scott,
Chief Operating Officerofthe Office of Contracting and Procurement, at (202) 724-8759.
I look forward to the Councils favorable consideration of this contract.
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of Contracting and Procurement
Pursuant to section 202(c) of the Procurement Practices Reform Act of 2010, as amended, D.C.
Official Code 2-352.02(c), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(A) Contract Number: CW81262
Proposed Contractor: Magellan Medicaid Administrator
Contract Amount (Base Period): $3,082,851.00
Unit and Method of Compensation: Firm Fixed Unit Price
Term of Contract: October 16, 2020 through July 19, 2021
Type of Contract: Requirements Contract
Source Selection Method: Sole Source
(B) For a contract containing option periods, the contract amount for the base period and for
each option period. If the contract amount for one or more of the option periods differs from
the amount for the base period, provide an explanation of the reason for the difference:
Base Period Amount: $3,082,851.00
Option Period 1 Amount: $5,294,000.00
Explanation of difference from base period (if applicable):
Option Period 1 is higher than the base period because: (1) the base period is less than twelve
months as opposed to option period one which is for twelve months; and (2) a material change in
the Managed Care Organization and an increase in drug cost.
(C) The date on which the letter contract or emergency contract was executed:
The letter contract was executed on October 15, 2020.
(D) The number of times the letter contract or emergency contract has been extended:
One
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(E) The value of the goods and services provided to date under the letter contract or emergency
contract, including under each extension of the letter contract or emergency contract:
$990,000.00
(F) The goods or services to be provided, the methods of delivering goods or services, and any
significant program changes reflected in the proposed contract:
The purpose of this contract is to continue to provide operations and maintenance for the Pharmacy
Benefit Management System (PBMS) and provide pharmacy benefit services for the Districts
Medicaid eligible fee-for-service recipients through the pharmacy benefit manager which includes a
point of sale (POS) pharmacy system allowing eligible District Medicaid and Medicaid waiver
beneficiaries immediate access to needed pharmaceuticals, and timely and accurate payment of
prescription claims to pharmacies through the real time verification of beneficiaries eligibility,
drug coverage, and reimbursement levels.
(G) The selection process, including the number of offerors, the evaluation criteria, and the
evaluation results, including price, technical or quality, and past performance components:
The prior competitive procurement for these services was conducted on January 23, 2014 under
solicitation number DCHT-2013-R-0137. Three proposals were received on the closing date.
Award was made to Magellan on July 20, 2015. Magellan designed and built the Pharmacy Benefit
Manager (PBM) system using their proprietary software. As a result, it would be prohibitive in
terms of time and cost for the District to use an off-the-shelf software other than Magellans
software, the District would inherit an insurmountable cost to have a new vendor significantly
modify the current software to meet the Districts needs.
To avoid a break in the pharmacy benefits services, an emergency contract was executed on July
19, 2020 with an expiration date of October 15, 2020. Due to time constraints it is not feasible to
conduct a competitive procurement and award a contract prior to the expiration date of the
emergency contract. The sole source award ensures continuation of service while the District
prepares a solicitation for competition and award of a contract with a three-year base and two
option years upon Council approval.
To continue the pharmacy benefit services and to avoid a break in services a Letter Contract was
executed on October 15, 2020, for the period of performance of 60 days from October 16, 2020 in
the amount of $660,000.00. On November 30, 2020, modification M001 was executed to extend
the letter contract period of performance to January 14, 2021 in the amount of $330.000.00.
(H) A description of any bid protest related to the award of the contract, including whether the
protest was resolved through litigation, withdrawal of the protest by the protestor, or
voluntary corrective action by the District. Include the identity of the protestor, the grounds
alleged in the protest, and any deficiencies identified by the District as a result of the protest:
None
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(I) The background and qualifications of the proposed contractor, including its organization,
financial stability, personnel, and performance on past or current government or private
sector contracts with requirements similar to those of the proposed contract:
Contractor is currently providing these services to the satisfaction of the District under the current
letter contract which expires January 14, 2021. Likewise, Magellan has performed satisfactorily
since it was awarded the contract on July 20, 2015.
The contractor has demonstrated through past performance reports that their organization has the
history, organizational and technical experience, including the key personnel required to
successfully meet the requirements of the proposed contract. Likewise, it has been determined that
the contractor maintains the financial resources, accounting and operational controls to successfully
fulfill the Districts requirement. The contractor has been determined responsible in accordance
with the Districts standards for responsibility.
.
(J) A summary of the subcontracting plan required under section 2346 of the Small, Local, and
Disadvantaged Business Enterprise Development and Assistance Act of 2005, as amended,
D.C. Official Code 2-218.01 et seq. (Act), including a certification that the subcontracting
plan meets the minimum requirements of the Act and the dollar volume of the portion of the
contract to be subcontracted, expressed both in total dollars and as a percentage of the total
contract amount:
The Department of Small and Local Business Development (DSLBD) has approved a waiver to
reduce the subcontracting goal to 35% for an amount of $1,078,997.80. The Contracting Officer
determined that the Contractor has a subcontracting plan that meets the DSLBD requirement.
(K) Performance standards and the expected outcome of the proposed contract:
The expected benefit and outcome of the required services under the contract includes improved
delivery of the operations providing pharmacy benefits to the Districts Medicaid eligible fee-for-
service recipients through the pharmacy benefit manager system.
(L) The amount and date of any expenditure of funds by the District pursuant to the contract
prior to its submission to the Council for approval:
$990,000.00
(M) A certification that the proposed contract is within the appropriated budget authority for the
agency for the fiscal year and is consistent with the financial plan and budget adopted in
accordance with D.C. Official Code 47-392.01 and 47-392.02:
The Agency Fiscal Officer certified that funding in the amount of $3,082,851.00 is available to
support the Pharmacy Benefit Manager contract.
(N) A certification that the contract is legally sufficient, including whether the proposed
contractor has any pending legal claims against the District:
3
 The contract has been reviewed by the Office of the Attorney General and found to be legally
sufficient. The contractor has no pending legal claim against the District.
(O) A certification that Citywide Clean Hands database indicates that the proposed contractor is
current with its District taxes. If the Citywide Clean Hands Database indicates that the
proposed contractor is not current with its District taxes, either: (1) a certification that the
contractor has worked out and is current with a payment schedule approved by the District;
or (2) a certification that the contractor will be current with its District taxes after the District
recovers any outstanding debt as provided under D.C. Official Code 2-353.01(b):
On November 9, 2020, the Citywide Clean Hands database certified that the Contractor is current
with its District taxes.
(P) A certification from the proposed contractor that it is current with its federal taxes, or has
worked out and is current with a payment schedule approved by the federal government:
The contractor has certified that it is current with its Federal taxes.
(Q) The status of the proposed contractor as a certified local, small, or disadvantaged business
enterprise as defined in the Small, Local, and Disadvantaged Business Enterprise
Development and Assistance Act of 2005, as amended, D.C. Official Code 2-218.01 et seq.:
The contractor is not a certified local, small or disadvantaged business enterprise.
(R) Other aspects of the proposed contract that the Chief Procurement Officer considers
significant:
None
(S) A statement indicating whether the proposed contractor is currently debarred from providing
services or goods to the District or federal government, the dates of the debarment, and the
reasons for debarment:
As of December 1, 2020, the Contractor does not appear on the Office of Inspector General
Exclusions Database, the Federal Excluded Parties List or the Districts list of Debarred and
Suspended Contractors.
(T) Any determination and findings issues relating to the contracts formation, including any
determination and findings made under D.C. Official Code 2-352.05 (privatization
contracts):
Determination and Findings for Letter Contract, dated October 16, 2020
Determination and Findings for a Sole Source Procurement, dated September 18, 2020
Determination and Findings for Contractors Responsibility, dated December 1, 2020
Determination and Findings for Price Reasonableness, September 2, 2020
4
(U) Where the contract, and any amendments or modifications, if executed, will be made
available online:
http://ocp.dc.gov
(V) Where the original solicitation, and any amendments or modifications, will be made available
online:
http://ocp.dc.gov
5
 Government of the District of Columbia
Office of the Chief Financial Officer 1101 4th Street, SW
Office of Tax and Revenue Washington, DC 20024
Date of Notice: November 9, 2020 Notice Number: L0004465571
MAGELLAN MEDICAID ADMINISTRATION INC FEIN: **-***9793
3 CORPORATE SQ NE FL 6 Case ID: 578688
ATLANTA GA 30329-2014
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
CO
liability with the District of Columbia Office of Tax and Revenue or the Department of Employment
Services. As of the date above, the individual/entity has complied with DC Code 47-2862, therefore
this Certificate of Clean Hands is issued.
TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
CHAPTER 28 GENERAL LICENSE
SUBCHAPTER II. CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE 47-2862 (2006)
PY
47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
Authorized By Marc Aronin
Chief, Collection Division
To validate this certificate, please visit MyTax.DC.gov. On the MyTax homepage, click Clean Hands
and then the Validate a Certificate of Clean Hands hyperlink.
1101 4th Street SW, Suite W270, Washington, DC 20024/Phone: (202) 724-5045/MyTax.DC.gov
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
Department of Health Care Finance
Office of the Chief Financial Officer
MEMORANDUM
TO: George A. Schutter
Chief Procurement Officer
Office of Contracting and Procurement
THRU: Delicia V. Moore
Associate Chief Financial Officer
Human Support Services Cluster
FROM: Darrin Shaffer
Agency Fiscal Officer
Department of Health Care Finance
DATE: November 18, 2020
SUBJECT: PBM Contract - (Magellan) CW81262
The Office of the Chief Financial Officer hereby certifies that the sum of $3,082,851.00 is included in the Districts
Local Budget and Financial Plan submitted to Congress by the Chairman of the Council to the Speaker of the House
of Representatives for Fiscal Year 2021 to fund the costs associated with the PBM contract. As the Districts
pharmacy benefits manager (PBM), administer and maintain a PBMS with a POS component for eligible District
beneficiaries, and provide and administer all programs and services. This certification supports the Magellan
CW81262 for the period from 10/16/20 through 7/19/21. This funding certification replaces the original document
provided on 5/18/2020 and the revised documents provided on 8/5/20 and 9/22/20.
This allocation is as follows:
Vendor: Magellan Contract Number: CW81262
Fiscal Year 2021 Funding: 10/16/2020-07/19/2021
Agency Fund Program PCA Index CSG Grant/Ph Amount
HT0 0100 6000 O3100 LO310 0409 $770,712.75
HT0 8250 6000 O3100 O31A1 0409 MMAD21/21 $2,312,138.25
FY21 Contract Total: $3,082,851.00
Upon approval by Congress of the Districts Local Budget and Financial Plan funds will be sufficient to pay for
fees and costs associated with the contract. There is no fiscal impact associated with the contract.
Should you have any questions, please contact me at (202) 442-9079.
441 4th Street, N.W., Suite 960N, Washington, D.C. 20001 (202) 442-5988 FAX (202) 478-1373
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of the Attorney General
x*e*
ATTORNEY GENERAL as
KARL A. RACINE
peer
Commercial Division
Government Contracts Section
MEMORANDUM
TO: Ronan Gulstone
Director
Office of Policy and Legislative Affairs
FROM: Robert Schildkraut
Chief, Procurement Section
Commercial Division
Office of the Attorney General
DATE: January 6, 2021
SUBJECT: Contract Number CW81262 for Administration of Pharmacy Benefit
Manager System (PBMS) and Pharmacy Support Services Contractor:
Magellan Medicaid Administration, Inc.
Proposed Contract Amount: NTE $3,082,851.00
Thie c2 to Certify tha is Office has reviewed the above-referenced Contract and
that we have found it to be legally sufficient. If you have any questions in this regard, please do
not hesitate to call me at 724-4018
a 2.
Robert Schildkraut
400 6th Street, NW, Suite 9100, Washington, DC 20001 (202) 727-3400 Fax (202) 347-8922
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of Contracting and Procurement
October 8, 2020
Meredith Delk, PhD, MSW
GM & SVP Government Markets
Magellan Medicaid Administration
11013 West Broad Street, Suite 500
Glen Allen, VA 23060
Subject: Letter Contract No. CW81262
Caption: Pharmacy Benefit Manager
Dear Ms. Delk,
This Letter Contract between the District of Columbia (District) and Magellan Medicaid
Administration ("Contractor"), wherein Contractor agrees to perform the services set forth in
Section C of proposed Contract No. CW81262, Attachment A.
This is a requirement contract on fixed unit prices as set forth in the pricing schedule,
Attachment B.
The District intends to definitized the Letter Contract within 60 days of October 16, 2020, at
which time this Letter Contract shall merge with the Definitized Contract. Before the expiration
of the 60 days, the Contracting Officer may authorize an additional period in accordance with
Section 2425.9 of the District of Columbia Municipal Regulations (27 DCMR). If the District
does not definitize this letter contract within 60 days of October 16, 2020, the date of award of
this letter contract or any extensions thereof, this letter contract shall expire. In the event of
expiration of this letter contract, the District shall pay Contractor for the services performed
under this letter contract in an amount not to exceed $660,000.00. In no event shall the amount
paid under this letter contract or any extensions thereof, exceed 50% of the total definitized
contract amount.
The effective date of this letter contract shall be October 16, 2020. The duration of the
definitized contract shall be from October 16, 2020 to July 19, 2021. The District shall pay
Contractor for the services performed during the duration of the definitized contract in an
amount not to exceed $3,082,851.00.
One Judiciary Square, 441