DEPARTMENT OF VETERANS AFFAIRS
Office of Acquisition and Materiel Management
National Acquisition Center
P. O. Box 76
Hines, I L 60141

January 4, 2001
In Reply Refer To: 90N

Michael H. Trujillo, M.D.
Director, Indian Health Service
5600 Fishers Lane
Rockville, M D 20857

Dear Dr. Trujillo:

My staff at the Department of Veterans Affairs (V A) National Acquisition Center (N A C) has received several inquiries from tribal pharmacists, who use funds granted under I H S ' P. L. 93-638 contracts, asking whether the Tribal Self-Governance Amendments of 2000 (P.L. 106-260), Section 7, give their clinics the right to become direct members of the V A Pharmaceutical Prime Vendor (P P V) program. Traditionally, tribal clinics with IHS contracts could participate in V A's P P V program only indirectly through an I H S intermediary, such as an I H S R S S C. (An Interagency Agreement between I H S and V A, along with advance requirements commitments, facilitate I H S' direct participation.)

Because our P P V contract is not a part of the Federal Supply Schedule
program administered by G S A (and V A) under the Federal Property Act, we
believe that only two sentences of the Tribal Self-Governance Amendments,
Section 7, apply to the tribal clinics' requests. Section 7 added these new
sentences to the end of Section 105(k) of P. L. 93-638:

For purposes of carrying out such contract, grant, or agreement, the Secretary shall, at the request of an Indian tribe, enter into an agreement for the acquisition, on behalf of the Indian tribe, of any goods, services, or supplies available to the Secretary from the General Services Administration or other Federal agencies that are not directly available to the Indian tribe under this section or under any other Federal law, including acquisitions from prime vendors. All such acquisitions shall be undertaken through the most efficient and speedy means practicable, including electronic ordering arrangements.

This new statutory language does not grant tribal clinics automatic, direct access to V A's or any other P P V contract. However, it authorizes the Secretary of the Department of Health & Human Services (H H S) to reach an agreement with V A on terms for granting requesting tribes access to V A's P P V.

In response to the above statutory provision, I would like to initiate
discussions with a representative of the Secretary of H H S, in order to produce an
agreement between V A and H H S that allows tribes to achieve direct access to
V A's P P V contract for the benefit of both parties. There are legal and technical
issues to be resolved, so, I would like, with your approval, to get the process
started soon. Perhaps you or a designee could phone me at (708) 786-5157, to
discuss how and when our two agencies can meet to discuss implementing
Section 7 of the Amendments.

Sincerely,

George T. Patterson
Executive Director

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