260035-CONTRACT.PDF

Maricopa County — Formal (2026-07-15)

View PDF Item 79 Meeting page

Extracted text (via pymupdf) 239975 characters

260035-RFP
PHARMACEUTICAL SERVICES FOR CORRECTIONAL HEALTH

LAST REVISION: July 15, 2026
CONTRACT END: September 30, 2031

CONTRACT PERIOD THROUGH SEPTEMBER 30, 2031

TO:
All Departments

FROM:
Office of Procurement Services

SUBJECT:
Contract for PHARMACEUTICAL SERVICES FOR CORRECTIONAL
HEALTH

Attached to this letter is published an effective purchasing contract for products
and/or services to be supplied to Maricopa County activities as awarded by Maricopa
County on July 15, 2026 (Eff. 10/01/2026)].

All purchases of products and/or services listed on the attached pages of this letter
are to be obtained from the vendor holding the contract. Individuals are responsible to
the vendor for purchases made outside of contracts. The contract period is indicated
above.

AS/mm
Attach

Copy to:
Office of Procurement Services
Jen Martin, Correctional Health Services

Please remove Serial 16037-RFP from your contract notebooks

CONTRACT PHARMACEUTICAL SERVICES FOR
CORRECTIONAL HEALTH 260035-RFP

This contract is entered into this 15th day of July, 2026 by and between Maricopa County
(County), a political subdivision of the State of Arizona, and Diamond Drugs, Inc. dba
Diamond Pharmacy Services, a Pennsylvania corporation (Contractor) for the contracting
of a qualified pharmacy provider to deliver comprehensive pharmaceutical services to
inmates within the county jail system.

1.0
CONTRACT TERM

This contract is for a term of five years, beginning on the 1st of October, 2026 and
ending the 30th of September, 2031.

2.0
OPTION TO RENEW

The County may, at its option and with the concurrence of the Contractor, renew
the term of this contract up to a maximum of five additional years, (or at the
County’s sole discretion, extend the contract on a month-to-month basis for a
maximum of six months after expiration). The Contractor shall be notified in
writing by the Office of Procurement Services of the County’s intention to renew
the contract term at least 60 calendar days prior to the expiration of the original
contract term.

3.0
CONTRACT COMPLETION

In preparation for contract completion, the Contractor shall make all reasonable
efforts for an orderly transition of its duties and responsibilities to another
provider and/or to the County. This may include, but is not limited to, preparation
of a transition plan and cooperation with the County or other providers in the
transition. The transition includes the transfer of all records and other data in the
possession, custody, or control of the Contractor that are required to be provided
to the County either by the terms of this agreement or as a matter of law. The
provisions of this clause shall survive the expiration or termination of this
agreement.

4.0
PRICE ADJUSTMENTS

Any requests for reasonable price adjustments must be submitted 60 calendar
days prior to contract anniversary date. Requests for adjustment in cost of labor

SERIAL 260035-RFP

and/or materials must be supported by appropriate documentation. The
reasonableness of the request will be determined by comparing the request with
the Consumer Price Index or by performing a market survey. If County agrees to
the adjusted price terms, County shall issue written approval of the change and
provide an updated version of the contract. The new change shall not be in effect
until the date stipulated on the updated version of the contract.

5.0
PAYMENTS

5.1
As consideration for performance of the duties described herein, County
shall pay Contractor the sum(s) stated in Exhibit A – Vendor Information
and Pricing Page.

5.2
Payment shall be made upon the County’s receipt of a properly completed
invoice.

5.3
INVOICES

5.3.1
The contractor shall submit one legible copy of their detailed
invoice before payment(s) will be made. Incomplete invoices will
not be processed. At a minimum, the invoice must provide the
following information:

•
Company name, address, vendor number, and contact
information
•
County bill-to name and contact information
•
Facility name
•
Contract serial number
•
County purchase order number
•
Invoice number and date
•
Payment terms
•
Date of service or delivery
•
Quantity
•
Contract item number(s)
•
Arrival and completion time
•
Description of purchase (product or services)
•
Pricing per unit of purchase
•
Extended price
•
Total amount due

5.3.2
Contractor will submit electronic invoices for supplies and/or
services, setting forth by date the prescriptions issued and the cost
of said prescriptions to the County for all prescriptions and
medications ordered by the County and issued by the contractor in
the preceding month to:

Correctional Health Services Finance CHSAP@maricopa.gov

SERIAL 260035-RFP

5.3.3
An error in the invoice may cause the entire billing to be returned to
the contractor for correction, which would delay the processing for
payment.

5.3.4
A separate invoice and credit summary must be provided per
facility and cost center. Contractor will submit sample invoices
with RFP response.

5.3.5
CHS will, within 30 working days from the date of receipt of a clean
claim, process and send to Finance an invoice for payment. The
CHS Finance Administrator or designee may adjust the invoice for
items disallowed in accordance with the terms of this contract and
will submit the claim for payment at the adjusted rate. If the
contractor protests the disallowance, the contractor must provide,
in writing, notice to the CHS Finance Administrator or designated
representative of the disputed claim. Items not in dispute are to be
paid in full.

5.3.6
Problems regarding billing or invoicing shall be directed to the
department as listed on the purchase order.

5.3.7
Payment shall only be made to the Contractor by Accounts Payable
through the Maricopa County Vendor Express Payment Program.
This is an Electronic Funds Transfer (EFT) process. After Contract
Award the Contractor shall complete the Vendor Registration Form
located on the County Department of Finance Vendor Registration
Web Site (https://www.maricopa.gov/5169/Vendor-Information).

5.3.8
Discounts offered in the contract shall be calculated based on the
date a properly completed invoice is received by the County.

5.3.9
EFT payments to the routing and account numbers designated by
the Contractor shall include the details on the specific invoices that
the payment covers. The Contractor is required to discuss
remittance delivery capabilities with their designated financial
institution for access to those details.

5.4
DELIVERY

5.4.1
Delivery is desired as soon as possible, and details shall be
stipulated on the purchase order. Contractor shall notify the county
representative listed on the order if the requested delivery date
and/or the anticipated lead time cannot be met. Failure to
communicate to County changes in the order status may result in
default proceedings.

SERIAL 260035-RFP

5.4.2
Supplies or equipment shall be delivered between the hours of time
7:00 a.m. and time 3:00 p.m. MST, Monday through Friday, except
on County recognized holidays.

5.4.3
Delivery shall be F.O.B. Destination Freight Prepaid.

5.5
EXPEDITED DELIVERY

5.5.1
If the department determines that expedited delivery or other
alternate shipping is required, it shall notify the contractor. The
contractor shall determine any additional costs associated with
such delivery terms and communicate that cost to the department.

5.5.2
The department shall not advise the contractor to proceed with an
expedited shipment until acceptable terms are agreed upon and a
purchase order is issued. Upon agreeing to the additional costs, the
department shall advise the contractor to proceed.

5.5.3
Upon receipt of material(s) and invoicing, the department shall
ensure that any additional charges are in compliance with and do
not exceed agreed to costs. The department shall retain all
documents related to these costs.

5.6
SHIPPING DOCUMENTS

A packing list or other suitable shipping document shall accompany each
shipment and shall include the following:

5.6.1
Contract serial number

5.6.2
Contractor’s name and address

5.6.3
Department name and address

5.6.4
Department purchase order number

5.6.5
A description of product(s) shipped, including item number(s),
quantity(ies), number of containers, and package number(s), as
applicable.

5.7
SHIPPING TERMS

Bid price(s) and terms shall be F.O.B. Destination Freight Prepaid at the
location(s) stipulated on the purchase order. All delivery locations are within
Maricopa County.

SERIAL 260035-RFP

5.8
APPLICABLE TAXES

5.8.1
It is the responsibility of the Contractor to determine any and all
applicable taxes and include those taxes in their proposal. The
legal liability to remit the tax is on the entity conducting business
in Arizona. Tax is not a determining factor in contract award.

5.8.2
The County will look at the price or offer submitted and will not
deduct, add, or alter pricing based on speculation or application of
any taxes, nor will the County provide Contractor any advice or
guidance regarding taxes. If you have questions regarding your tax
liability, seek advice from a tax professional prior to submitting
your
bid.
You
may
also
find
information
at
www.azdor.gov/business. Once your bid is submitted, the offer is
valid for the time specified in this solicitation, regardless of
mistake or omission of tax liability. If the County finds overpayment
of a project due to tax consideration that was not due, the
Contractor will be liable to the County for that amount, and by
contracting with the County agrees to remit any overpayments
back to the County for miscalculations on taxes included in a bid
price.

5.8.3
Tax Indemnification: Contractor and all subcontractors shall pay all
Federal, State, and local taxes applicable to their operation and any
persons employed by the Contractor. Contractor shall, and require
all subcontractors to, hold Maricopa County harmless from any
responsibility for taxes, damages, and interest, if applicable,
contributions required under Federal and/or State and local laws
and regulations, and any other costs including transaction privilege
taxes, unemployment compensation insurance, Social Security,
and workers’ compensation. Contractor may be required to
establish, to the satisfaction of County, that any and all fees and
taxes due to municipality or the State of Arizona for any license or
transaction privilege taxes, use taxes, or similar excise taxes are
currently paid (except for matters under legal protest).

6.0
AVAILABILITY OF FUNDS

6.1
The provisions of this contract relating to payment for services shall become
effective when funds assigned for the purpose of compensating the
Contractor as herein provided are actually available to County for
disbursement. The County shall be the sole judge and authority in
determining the availability of funds under this contract. County shall keep
the Contractor fully informed as to the availability of funds.

SERIAL 260035-RFP

6.2
If any action is taken by, any State agency, Federal department, or any other
agency or instrumentality to suspend, decrease, or terminate its fiscal
obligations under, or in connection with, this contract, County may amend,
suspend, decrease, or terminate its obligations under, or in connection with,
this contract. In the event of termination, County shall be liable for payment
only for services rendered prior to the effective date of the termination,
provided that such services are performed in accordance with the
provisions of this contract. County shall give written notice of the effective
date of any suspension, amendment, or termination under this section, at
least 10 days in advance.

7.0
POST AWARD MEETING

The contractor may be required to attend a post-award meeting with the
department to discuss the terms and conditions of this contract. This meeting will
be coordinated by the procurement officer of the contract.

8.0
STRATEGIC ALLIANCE for VOLUME EXPENDITURES (SAVE)

The County is a member of the SAVE cooperative purchasing group. SAVE includes
the State of Arizona, many Phoenix metropolitan area municipalities, and many K-
12 unified school districts. Under the SAVE Cooperative Purchasing Agreement,
and with the concurrence of the successful respondent under this solicitation, a
member of SAVE may access a contract resulting from a solicitation issued by the
County. If contractor does not want to grant such access to a member of SAVE,
state so in contractor’s bid. In the absence of a statement to the contrary, the
County will assume that contractor does wish to grant access to any contract that
may result from this bid. The County assumes no responsibility for any purchases
by using entities.

9.0
INTERGOVERNMENTAL COOPERATIVE PURCHASING AGREEMENTS (ICPAs)

County currently holds ICPAs with numerous governmental entities. These
agreements allow those entities, with the approval of the Contractor, to purchase
their requirements under the terms and conditions of the County contract. It is the
responsibility of the non-County government entity to perform its own due
diligence on the acceptability of the contract under its applicable procurement
rules, processes, and procedures. Certain governmental agencies may not require
an ICPA and may utilize this contract if it meets their individual requirements. Other
governmental agencies may enter into a separate Statement of Work with the
Contractor to meet their own requirements. The County is not a party to any uses
of this contract by other governmental entities.

10.0
DUTIES

10.1 The Contractor shall perform all duties stated in Exhibit B – Scope of Work,
or as otherwise directed in writing by the procurement officer.

SERIAL 260035-RFP

10.2 During the contract term, County may provide Contractor’s personnel with
adequate workspace for consultants and such other related facilities as
may be required by Contractor to carry out its contractual obligations.

11.0
TERMS AND CONDITIONS

11.1 INDEMNIFICATION

11.1.1 To the fullest extent permitted by law, and to the extent that claims,
damages, losses, or expenses are not covered and paid by
insurance purchased by the contractor, the contractor shall defend,
indemnify, and hold harmless the County (as Owner), its agents,
representatives, officers, directors, officials, and employees from
and against all claims, damages, losses, and expenses (including,
but not limited to attorneys' fees, court costs, expert witness fees,
and the costs and attorneys' fees for appellate proceedings) arising
out of, or alleged to have resulted from, the negligent acts, errors,
omissions, or mistakes of the contractor, a subcontractor, anyone
directly or indirectly employed by them, or anyone for whose acts
they may be liable relating to the performance of this contract.

11.1.1.1
Contractor's duty to defend, indemnify, and hold
harmless the County, its agents, representatives,
officers, directors, officials, and employees shall arise
in connection with any claim, damage, loss, or expense
that is attributable to bodily injury, sickness, disease,
death, or injury to, impairment of, or destruction of
tangible property, including loss of use resulting
therefrom, caused by negligent acts, errors, omissions,
or mistakes in the performance of this contract, but
only to the extent caused by the negligent acts or
omissions of the contractor, a subcontractor, anyone
directly or indirectly employed by them, or anyone for
whose acts they may be liable, regardless of whether
or not such claim, damage, loss, or expense is caused
in part by a party indemnified hereunder.

11.1.1.2
The amount and type of insurance coverage
requirements set forth herein will in no way be
construed as limiting the scope of the indemnity in this
section.

11.1.1.3
The scope of this indemnification does not extend to
the sole negligence of County.

SERIAL 260035-RFP

11.2
INSURANCE

11.2.1 Contractor, at Contractor’s own expense, shall purchase and
maintain, at a minimum, the herein stipulated insurance from a
company or companies duly licensed by the State of Arizona and
possessing an AM Best, Inc. category rating of B++. In lieu of State
of Arizona licensing, the stipulated insurance may be purchased
from a company or companies, which are authorized to do
business in the State of Arizona, provided that said insurance
companies meet the approval of County. The form of any insurance
policies and forms must be acceptable to County.

11.2.2 All insurance required herein shall be maintained in full force and
effect until all work or service required to be performed under the
terms of the contract is satisfactorily completed and formally
accepted. Failure to do so may, at the sole discretion of County,
constitute a material breach of this contract.

11.2.3 In the event that the insurance required is written on a claims-made
basis, Contractor warrants that any retroactive date under the
policy shall precede the effective date of this contract and either
continuous coverage will be maintained, or an extended discovery
period will be exercised for a period of two years beginning at the
time work under this contract is completed.

11.2.4 Contractor’s insurance shall be primary insurance as respects
County, and any insurance or self-insurance maintained by County
shall not contribute to it.

11.2.5 Any failure to comply with the claim reporting provisions of the
insurance policies or any breach of an insurance policy warranty
shall not affect the County’s right to coverage afforded under the
insurance policies.

11.2.6 The insurance policies may provide coverage that contains
deductibles or self-insured retentions. Such deductible and/or self-
insured retentions shall not be applicable with respect to the
coverage provided to County under such policies. Contractor shall
be solely responsible for the deductible and/or self-insured
retention and County, at its option, may require Contractor to
secure payment of such deductibles or self-insured retentions by a
surety bond or an irrevocable and unconditional letter of credit.

11.2.7 The insurance policies required by this contract, except Workers’
Compensation and Errors and Omissions, shall name County, its
agents,
representatives,
officers,
directors,
officials,
and
employees as additional insureds.

SERIAL 260035-RFP

11.2.8 The policies required hereunder, except Workers’ Compensation
and Errors and Omissions, shall contain a waiver of transfer of
rights of recovery (subrogation) against County, its agents,
representatives, officers, directors, officials, and employees for any
claims arising out of Contractor’s work or service.

11.2.9 If available, the insurance policies required by this contract may be
combined with Commercial Umbrella Insurance policies to meet
the minimum limit requirements. If a Commercial Umbrella
insurance policy is utilized to meet insurance requirements, the
Certificate of Insurance shall indicate which lines the Commercial
Umbrella Insurance covers.

11.2.9.1
Commercial General Liability

Commercial General Liability (CGL) insurance and, if
necessary, Commercial Umbrella insurance with a
limit of not less than $2,000,000 for each occurrence,
$4,000,000
Products/Completed
Operations
Aggregate, and $4,000,000 General Aggregate Limit.
The policy shall include coverage for premises
liability, bodily injury, broad form property damage,
personal injury, products and completed operations
and blanket contractual coverage, and shall not
contain any provisions which would serve to limit third
party action over claims. There shall be no
endorsement or modifications of the CGL limiting the
scope of coverage for liability arising from explosion,
collapse, or underground property damage.

11.2.9.2
Automobile Liability

Commercial/Business Automobile Liability insurance
with a combined single limit for bodily injury and
property damage of not less than $1,000,000 each
occurrence with respect to any of the Contractor’s
owned, hired, and non-owned vehicles assigned to or
used in performance of the Contractor’s work or
services or use or maintenance of the premises under
this contract.

11.2.9.3
Workers’ Compensation

11.2.9.3.1
Workers’ compensation insurance to
cover obligations imposed by Federal
and State statutes having jurisdiction of

SERIAL 260035-RFP

Contractor’s employees engaged in the
performance of the work or services
under this contract; and Employer’s
Liability insurance of not less than
$1,000,000 for each accident, $1,000,000
disease
for
each
employee,
and
$1,000,000 disease policy limit.

11.2.9.3.2
Contractor, its subcontractors, and sub-
subcontractors waive all rights against
this contract and its agents, officers,
directors, and employees for recovery of
damages to the extent these damages
are
covered
by
the
workers’
compensation and Employer’s Liability or
Commercial Umbrella Liability insurance
obtained
by
Contractor,
its
subcontractors,
and
its
sub-
subcontractors pursuant to this contract.

11.2.9.4
Professional Liability Insurance

Contractor
shall
maintain
Professional
Liability
insurance which will provide coverage for any and all
acts arising out of the work or services performed by
the contractor under the terms of this contract, with a
limit of not less than $1,000,000 for each claim, and
$3,000,000 aggregate claims.

11.2.9.5
Crime

Contractor shall maintain Commercial Crime Liability
Insurance with a limit of not less than $500,000 for
each occurrence. The policy shall include, but not be
limited to, coverage for employee dishonesty, fraud,
theft, or embezzlement.

11.2.10 Certificates of Insurance

11.2.10.1
Prior to contract award, Contractor shall furnish the
County with valid and complete Certificates of
Insurance, or formal endorsements as required by the
contract in the form provided by the County, issued by
Contractor’s insurer(s), as evidence that policies
providing the required coverage, conditions and limits
required by this contract are in full force and effect.
Such certificates shall identify this contract number

SERIAL 260035-RFP

and title.

11.2.10.2
In the event any insurance policy(ies) required by this
contract is (are) written on a claims-made basis,
coverage shall extend for two years past completion
and acceptance of Contractor’s work or services and
as evidenced by annual certificates of insurance.

11.2.10.3
If a policy does expire during the life of the Contract, a
renewal certificate must be sent to County 15 calendar
days prior to the expiration date.

11.2.10.4
Certificates of Insurance shall identify Maricopa
County as the certificate holder as follows:

Maricopa County
c/o Risk Management
301 W Jefferson St, Suite 910
Phoenix, AZ 85003

11.2.11 Cancellation and Expiration Notice

Applicable to all insurance policies required within the insurance
requirements of this contract, Contractor’s insurance shall not be
permitted to expire, be suspended, be canceled, or be materially
changed for any reason without 30 days prior written notice to
Maricopa County. Contractor must provide to Maricopa County,
within two business days of receipt, if they receive notice of a
policy that has been or will be suspended, canceled, materially
changed for any reason, has expired, or will be expiring. Such notice
shall be sent directly to Maricopa County Office of Procurement
Services and shall be mailed, or hand delivered to 301 W. Jefferson,
Suite 700, Phoenix, AZ 85003, or emailed to the procurement
officer noted in the solicitation.

11.3
FORCE MAJEURE

11.3.1 Neither party shall be liable for failure of performance, nor incur any
liability to the other party on account of any loss or damage
resulting from any delay or failure to perform all or any part of this
contract, if such delay or failure is caused by events, occurrences,
or causes beyond the reasonable control and without negligence of
the parties. Such events, occurrences, or causes include, but are
not limited to, acts of God/nature (including fire, flood, earthquake,
storm, hurricane, or other natural disaster), war, invasion, act of
foreign enemies, hostilities (whether war is declared or not), civil
war, riots, rebellion, revolution, insurrection, military or usurped

SERIAL 260035-RFP

power
or
confiscation,
terrorist
activities,
nationalization,
government sanction, lockout, blockage, embargo, labor dispute,
strike,
and
interruption
or
failure
of
electricity
or
telecommunication service, and pandemic.

11.3.2 Each party, as applicable, shall give the other party notice of its
inability to perform and particulars in reasonable detail of the
cause of the inability. Each party must use best efforts to remedy
the situation and remove, as soon as practicable, the cause of its
inability to perform or comply.

11.3.3 The party asserting Force Majeure as a cause for non-performance
shall have the burden of proving that reasonable steps were taken
to minimize delay or damages caused by foreseeable events, that
all non-excused obligations were substantially fulfilled, and that the
other party was timely notified of the likelihood or actual
occurrence which would justify such an assertion, so that other
prudent precautions could be contemplated.

11.4
ORDERING AUTHORITY

Any request for purchase shall be accompanied by a valid purchase order
issued by a County department or directed by a Certified Agency
Procurement Aid (CAPA) with a purchase card for payment.

11.5
PROCUREMENT CARD ORDERING CAPABILITY

County may opt to use a procurement card (Visa or Master Card) to make
payment for orders under this contract.

11.6
INTERNET ORDERING CAPABILITY

It is the intent of Maricopa County to use the Internet to communicate and
to place orders under this contract.

11.7
NO MINIMUM OR MAXIMUM PURCHASE OBLIGATION

This contract does not guarantee any minimum or maximum purchases will
be made. Orders will only be placed under this contract when the County
identifies a need and proper authorization, and documentation have been
approved.

11.8
PURCHASE ORDERS

11.8.1 County reserves the right to cancel purchase orders within a
reasonable period of time after issuance. Should a purchase order
be canceled, the County agrees to reimburse the Contractor for

SERIAL 260035-RFP

actual and documentable costs incurred by the Contractor in
response to the purchase order. The County will not reimburse the
Contractor for any costs incurred after receipt of County notice of
cancellation, or for lost profits, or for shipment of product prior to
issuance of purchase order.

11.8.2 Contractor agrees to accept verbal notification of cancellation of
purchase orders from the County procurement officer with written
notification to follow. Contractor specifically acknowledges to be
bound by this cancellation policy.

11.9
BACKGROUND CHECK

Contractor may be required to pass multiple background checks (e.g.
Sheriff’s Office, County Attorney's Office, Courts, as well as Maricopa
County general government) to determine if the respondent is acceptable
to do business with the County. This applies to, but is not limited to, the
company, subcontractors, and employees, and the failure to pass these
checks shall deem the respondent non-responsible.

11.10 SUSPENSION OF WORK

The procurement officer may order the Contractor, in writing, to suspend,
delay, or interrupt all or any part of the work of this contract for the period of
time that the procurement officer determines appropriate for the
convenience of the County. No adjustment shall be made under this clause
for any suspension, delay, or interruption to the extent that performance
would have been so suspended, delayed, or interrupted by any other cause,
including the fault or negligence of the Contractor. No request for
adjustment under this clause shall be granted unless the claim, in an amount
stated, is asserted in writing as soon as practicable after the termination of
the suspension, delay, or interruption, but not later than the date of final
payment under the contract.

11.11 STOP WORK ORDER

11.11.1 The procurement officer may, at any time, by written order to the
Contractor, require the Contractor to stop all, or any part, of the work
called for by this contract for a period of 90 calendar days after the
order is delivered to the Contractor, and for any further period to
which the parties may agree. The order shall be specifically
identified as a stop work order issued under this clause. Upon
receipt of the order, the Contractor shall immediately comply with
its terms and take all reasonable steps to minimize the incurrence

SERIAL 260035-RFP

of costs allocable to the work covered by the order during the period
of work stoppage. Within a period of 90 calendar days after a stop
work order is delivered to the Contractor, or within any extension of
that period to which the parties shall have agreed, the procurement
officer shall either:

11.11.1.1
cancel the stop work order; or

11.11.1.2
terminate the work covered by the order as provided in
the Termination for Default or the Termination for
Convenience clause of this contract.

11.11.1.3
The procurement officer may make an equitable
adjustment in the delivery schedule and/or contract
price, and the contract shall be modified, in writing,
accordingly, if the Contractor demonstrates that the
stop work order resulted in an increase in costs to the
Contractor

11.12 TERMINATION FOR CONVENIENCE

Maricopa County may terminate the resultant contract for convenience by
providing 120 calendar days advance notice to the Contractor.

11.13 TERMINATION FOR DEFAULT

11.13.1 The County may, by written Notice of Default to the Contractor,
terminate this contract in whole or in part if the Contractor fails to:

11.13.1.1
deliver the supplies or to perform the services within
the time specified in this contract or any extension;

11.13.1.2
make progress, so as to endanger performance of this
contract; or

11.13.1.3
perform any of the other provisions of this contract.

11.13.2 The County’s right to terminate this contract under these
subparagraphs may be exercised if the Contractor does not cure
such failure within 10 business days (or more if authorized in
writing by the County) after receipt of a Notice to Cure from the
procurement officer specifying the failure.

11.14 PERFORMANCE

It shall be the Contractor’s responsibility to meet the proposed performance
requirements. Maricopa County reserves the right to obtain services on the

SERIAL 260035-RFP

open market in the event the Contractor fails to perform, and any price
differential will be charged against the Contractor.

11.15 ACCEPTANCE

Upon completion of services, service delivery shall be deemed accepted and
the warranty period shall begin when a) material(s)/equipment is installed
(as necessary) and fully operational; and/or b) the department has deemed
all service/work completed, including but not limited to, any inspection,
repair, installation, design, development, deployment, operation, and initial
training, (as applicable). Additionally, all documentation shall be completed
prior to final acceptance.

11.16 CONTRACTOR EMPLOYEE MANAGEMENT

11.16.1
Contractor shall endeavor to maintain the personnel proposed in
their proposal throughout the performance of this contract.

11.16.2
If
Contractor
personnel’s
employment
status
changes,
Contractor shall provide County a list of proposed replacements
with equivalent or greater experience.

11.16.3
Under no circumstances shall the implementation schedule to be
impacted by a personnel change on the part of the Contractor.
Contractor shall not reassign any key personnel identified in their
proposal without the express consent of the County.

11.16.4
County reserves the right to immediately remove from its
premises any Contractor personnel it determines to be a risk to
County operations.

11.16.5
County reserves the right to request the replacement of any
Contractor personnel at any time, for any reason.

11.17 TRAINING

Contractor shall provide training services to completely train approximately
10 County personnel in the use and care of the equipment. All training shall
take place on-site in Maricopa County, unless otherwise negotiated with
County.

11.18 WARRANTY OF SERVICES

11.18.1
The Contractor warrants that all services provided hereunder will
conform to the requirements of the contract, including all
descriptions, specifications, and attachments made a part of this
contract. County’s acceptance of services or goods provided by

SERIAL 260035-RFP

the Contractor shall not relieve the Contractor from its
obligations under this warranty.

11.18.2
In addition to its other remedies, County may, at the Contractor's
expense, require prompt correction of any services failing to meet
the Contractor's warranty herein. Services corrected by the
Contractor shall be subject to all the provisions of this contract
in the manner and to the same extent as services originally
furnished hereunder.

11.19 INSPECTION OF SERVICES

11.19.1
The Contractor shall provide and maintain an inspection system
acceptable to County covering the services under this contract.
Complete records of all inspection work performed by the
Contractor shall be maintained and made available to County
during contract performance and for as long afterwards as the
contract requires.

11.19.2
County has the right to inspect and test all services called for by
the contract, to the extent practicable at all times and places
during the term of the contract. County shall perform inspections
and tests in a manner that will not unduly delay the work.

11.19.3
If any of the services do not conform to contract requirements,
County may require the Contractor to perform the services again
in conformity with contract requirements, at no cost to the
County. When the defects in services cannot be corrected by re-
performance, County may:

11.19.3.1
require the Contractor to take necessary action to
ensure that future performance conforms to contract
requirements; and

11.19.3.2
reduce the contract price to reflect the reduced value
of the services performed.

11.19.4
If the Contractor fails to promptly perform the services again or
to take the necessary action to ensure future performance in
conformity with contract requirements, County may:

11.19.4.1
by contract or otherwise, perform the services and
charge to the Contractor, through direct billing or
through payment reduction, any cost incurred by
County that is directly related to the performance of
such service; or

SERIAL 260035-RFP

11.19.4.2
terminate the contract for default.

11.20 MAINTENANCE

The contractor shall provide maintenance for the materials under this
contract upon acceptance of materials by the department.

11.21 USAGE REPORT

The Contractor shall furnish the County a usage report, upon request,
delineating the acquisition activity governed by the contract. The format of
the report shall be approved by the County and shall disclose the quantity
and dollar value of each contract item by individual unit of measure.

11.22 STATUTORY RIGHT OF CANCELLATION FOR CONFLICT OF INTEREST

Notice is given that, pursuant to A.R.S. § 38-511, the County may cancel any
contract without penalty or further obligation within three years after
execution of the contract, if any person significantly involved in initiating,
negotiating, securing, drafting, or creating the contract on behalf of the
County is at any time, while the contract or any extension of the contract is
in effect, an employee or agent of any other party to the contract in any
capacity or consultant to any other party of the contract with respect to the
subject matter of the contract. Additionally, pursuant to A.R.S. § 38-511, the
County may recoup any fee or commission paid or due to any person
significantly involved in initiating, negotiating, securing, drafting, or creating
the contract on behalf of the County from any other party to the contract
arising as the result of the contract.

11.23 OFFSET FOR DAMAGES

In addition to all other remedies at Law or Equity, the County may offset
from any money due to the Contractor any amounts Contractor owes to the
County for damages resulting from breach or deficiencies in performance
of the contract.

11.24 SUBCONTRACTING

The Contractor may not assign to another Contractor or subcontract to
another party for performance of the terms and conditions hereof without
the written consent of the County. All correspondence authorizing
subcontracting must reference the bid serial number and identify the job or
project.

The subcontractor’s rate for the job shall not exceed that of the prime
Contractor’s rate, as bid in the pricing section, unless the prime Contractor
is willing to absorb any higher rates. The subcontractor’s invoice shall be

SERIAL 260035-RFP

invoiced directly to the prime Contractor, who in turn shall pass-through the
costs to the County, without mark-up. A copy of the subcontractor’s invoice
must accompany the prime Contractor’s invoice.

11.25 AMENDMENTS

All amendments to this contract shall be in writing and approved/signed by
both parties. Maricopa County Office of Procurement Services shall be
responsible for approving all amendments for Maricopa County.

11.26 ADDITIONS/DELETIONS OF REQUIREMENTS

The County reserves the right to add and/or delete materials and services
to a contract. If a service requirement is deleted, payment to the Contractor
will be reduced proportionately, to the amount of service reduced in
accordance with the bid price. If additional materials or services are
required from a contract, prices for such additions will be negotiated
between the Contractor and the County.

11.27 RIGHTS IN DATA

11.27.1
The County shall have the use of data and reports resulting from a
contract without additional cost or other restrictions except as
may be established by law or applicable regulation. Each party
shall supply to the other party, upon request, any available
information that is relevant to a contract and to the performance
thereunder.

11.27.2
Data, records, reports, and all other information generated for the
County by a third party as the result of a contract are the property
of the County and shall be provided in a format designated by the
County or shall be and remain accessible to the County into
perpetuity.

11.27.3
Contractor will retain and reserves all rights, title, use, control,
interest in and ownership of its assets including, but not limited
to, its software, reporting, packages, and user documentation;
operations, procedures, and strategies; formulary and clinical
services; manufacturer, wholesaler, group purchase, and vendor
contracts and resultant data and information; patient, drug
dispensing claims, and drug utilization information; trademarks
and service marks.

11.27.4
In addition to maintaining a drug formulary, Contractor shall
manage all pharmaceutical expenditures, be in control of the
prescription claims, and exclusively receive any subsequent
discounts, incentives, and remunerations generated due to these

SERIAL 260035-RFP

services provided. As such, the County shall not receive, directly
or indirectly, any rebates, discounts, price concessions, or other
remunerations for any pharmaceuticals or products supplied by
contractor or its partners under this contract or any other
providers.

11.28 ACCESS TO AND RETENTION OF RECORDS FOR THE PURPOSE OF AUDIT
AND/OR OTHER REVIEW

11.28.1
In accordance with Section MC1-372 of the Maricopa County
Procurement Code, the Contractor agrees to retain (physical or
digital copies of) all books, records, accounts, statements,
reports, files, and other records and back-up documentation
relevant to this contract for six years after final payment or until
after the resolution of any audit questions, which could be more
than six years, whichever is longest. The County, Federal or State
auditors and any other persons duly authorized by the
department shall have full access to and the right to examine,
copy, and make use of, any and all said materials.

11.28.2
If the Contractor’s books, records, accounts, statements, reports,
files, and other records and back-up documentation relevant to
this contract are not sufficient to support and document that
requested services were provided, the Contractor shall reimburse
Maricopa County for the services not so adequately supported
and documented.

11.29 AUDIT DISALLOWANCES

If at any time it is determined by the County that a cost for which payment
has been made is a disallowed cost, the County shall notify the Contractor
in writing of the disallowance. The course of action to address the
disallowance shall be at the sole discretion of the County , and may include
either an adjustment to future invoices, request for credit, request for a
check, or a deduction from current invoices submitted by the Contractor
equal to the amount of the disallowance, or to require reimbursement
forthwith of the disallowed amount by the Contractor by issuing a check
payable to Maricopa County.

11.30 STRICT COMPLIANCE

Acceptance by County of a performance that is not in strict compliance with
the terms of the contract shall not be deemed to be a waiver of strict
compliance with respect to all other terms of the contract.

SERIAL 260035-RFP

11.31 VALIDITY

The invalidity, in whole or in part, of any provision of this contract shall not
void or affect the validity of any other provision of the contract.

11.32 SEVERABILITY

The removal, in whole or in part, of any provision of this contract shall not
void or affect the validity of any other provision of this contract.

11.33 RELATIONSHIPS

11.33.1
In the performance of the services described herein, the
Contractor shall act solely as an independent Contractor, and
nothing herein or implied herein shall at any time be construed as
to create the relationship of employer and employee, co-
employee, partnership, principal and agent, or joint venture
between the County and the Contractor.

11.33.2
The County reserves the right of final approval on proposed staff.
Also, upon request by the County, the Contractor will be required
to remove any employees working on County projects and
substitute personnel based on the discretion of the County within
two business days, unless a different time period was previously
approved by the County.

11.34 NON-DISCRIMINATION

Contractor agrees to comply with all provisions and requirements of
Arizona Executive Order 2009-09, including flow down of all provisions and
requirements to any subcontractors. Executive Order 2009-09 supersedes
Executive Order 99-4 and amends Executive Order 75-5 and is hereby
incorporated into this contract as if set forth in full herein. During the
performance of this contract, contractor shall not discriminate against any
employee, client, or any other individual in any way because of that person’s
age, race, creed, color, religion, sex, disability, or national origin. (Arizona
Executive
Order
2009-09
can
be
viewed
at
https://apps.azsos.gov/public_services/register/2009/46/governor.pdf).

11.35 WRITTEN CERTIFICATION PURSUANT to A.R.S. § 35-393.01

If vendor engages in for-profit activity and has 10 or more employees, and if
this agreement has a value of $100,000 or more, vendor certifies it is not
currently engaged in and agrees for the duration of this agreement to not
engage in, a boycott of goods or services from Israel. This certification does
not apply to a boycott prohibited by 50 U.S.C. § 4842 or a regulation issued
pursuant to 50 U.S.C. § 4842.

SERIAL 260035-RFP

11.36 CERTIFICATION REGARDING DEBARMENT AND SUSPENSION

11.36.1
The undersigned (authorized official signing on behalf of the
Contractor) certifies to the best of his or her knowledge and belief
that the Contractor, its current officers, and directors:

11.36.1.1
are not presently debarred, suspended, proposed for
debarment,
declared
ineligible,
or
voluntarily
excluded from being awarded any contract or grant
by any United States department or agency or any
state, or local jurisdiction;

11.36.1.2
have not within a three-year period preceding this
contract:

11.36.1.2.1 been convicted of fraud or any
criminal offense in connection with
obtaining, attempting to obtain, or as
the result of performing a government
entity
(Federal,
State,
or
local)
transaction or contract; or

11.36.1.2.2 been convicted of violation of any
Federal or State antitrust statutes or
conviction for embezzlement, theft,
forgery,
bribery,
falsification
or
destruction of records, making false
statements,
or
receiving
stolen
property regarding a government entity
transaction or contract;

11.36.1.3
are not presently indicted or criminally charged by a
government entity (Federal, State, or local) with
commission of any criminal offenses in connection
with obtaining, attempting to obtain, or as the result
of performing a government entity public (Federal,
State, or local) transaction or contract;

11.36.1.4
are not presently facing any civil charges from any
governmental entity regarding obtaining, attempting
to obtain, or from performing any governmental
entity contract or other transaction; and

11.36.1.5
have not within a three-year period preceding this
contract had any public transaction (Federal, State, or
local) terminated for cause or default.

SERIAL 260035-RFP

11.36.2
If any of the above circumstances described in the paragraph are
applicable to the entity submitting a bid for this requirement,
include with your bid an explanation of the matter including any
final resolution.

11.36.3
The Contractor shall include, without modification, this clause in
all lower tier covered transactions (i.e. transactions with
subcontractors or sub-subcontractors) and in all solicitations for
lower tier covered transactions related to this contract. If this
clause is applicable to a subcontractor or sub-subcontractor, the
Contractor shall include the information required by this clause
with their bid.

11.37 VERIFICATION REGARDING COMPLIANCE WITH A.R.S. § 41-4401 AND
FEDERAL IMMIGRATION LAWS AND REGULATIONS

11.37.1
By entering into the contract, the Contractor warrants compliance
with the Immigration and Nationality Act (INA using E-Verify) and
all other Federal immigration laws and regulations related to the
immigration status of its employees and A.R.S. § 23-214(A). The
Contractor shall obtain statements from its subcontractors
certifying compliance and shall furnish the statements to the
procurement officer upon request. These warranties shall remain
in effect through the term of the contract. The Contractor and its
subcontractors shall also maintain Employment Eligibility
Verification forms (I-9) as required by the Immigration Reform and
Control Act of 1986, as amended from time to time, for all
employees performing work under the contract and verify
employee compliance using the E-Verify system and shall keep a
record of the verification for the duration of the employee’s
employment or at least three years, whichever is longer. I-9 forms
are available for download at www.uscis.gov.

11.37.2
The County retains the legal right to inspect documents of
Contractor and subcontractor employees performing work under
this contract to verify compliance with paragraph 11.37.1 of this
section. Contractor and subcontractor shall be given reasonable
notice of the County’s intent to inspect and shall make the
documents available at the time and date specified. Should the
County suspect or find that the Contractor or any of its
subcontractors are not in compliance, the County will consider
this a material breach of the contract and may pursue any and all
remedies allowed by law, including, but not limited to suspension
of work, termination of the contract for default, and suspension
and/or debarment of the Contractor. All costs necessary to verify
compliance are the responsibility of the Contractor.

SERIAL 260035-RFP

11.38 CONTRACTOR LICENSE REQUIREMENT

11.38.1
The Contractor shall procure all permits, insurance, and licenses,
and pay the charges and fees necessary and incidental to the
lawful conduct of his/her business, and as necessary complete
any requirements, by any and all governmental or non-
governmental entities as mandated to maintain compliance with
and remain in good standing. The Contractor shall keep fully
informed of existing and future trade or industry requirements,
and Federal, State, and local laws, ordinances, and regulations
which in any manner affect the fulfillment of a contract and shall
comply with the same. Contractor shall immediately notify both
the Office of Procurement Services and the department of any
and all changes concerning permits, insurance, or licenses.

11.39 INFLUENCE

11.39.1
As prescribed in MC1-1203 of the Maricopa County Procurement
Code, any effort to influence an employee or agent to breach the
Maricopa County Ethical Code of Conduct or any ethical conduct,
may be grounds for disbarment or suspension under MC1-902.

11.39.2
An attempt to influence includes, but is not limited to:

11.39.2.1
A person offering or providing a gratuity, gift, tip,
present,
donation,
money,
entertainment
or
educational passes or tickets, or any type of valuable
contribution or subsidy that is offered or given with
the intent to influence a decision, obtain a contract,
garner favorable treatment, or gain favorable
consideration of any kind.

11.39.3
If a person attempts to influence any employee or agent of
Maricopa County, the chief procurement officer, or his designee,
reserves the right to seek any remedy provided by the Maricopa
County Procurement Code, any remedy in equity or in the law, or
any remedy provided by this contract.

11.40 CONFIDENTIAL INFORMATION

11.40.1
Any information obtained in the course of performing this
contract may include information that is proprietary or
confidential to the County. This provision establishes the
Contractor’s obligation regarding such information.

SERIAL 260035-RFP

11.40.2
The Contractor shall establish and maintain procedures and
controls that are adequate to assure that no information
contained in its records and/or obtained from the County or from
others in carrying out its functions (services) under the contract
shall be used by or disclosed by it, its agents, officers, or
employees, except as required to efficiently perform duties under
the contract. The Contractor’s procedures and controls, at a
minimum, must be the same procedures and controls it uses to
protect its own proprietary or confidential information. If, at any
time during the duration of the contract, the County determines
that the procedures and controls in place are not adequate, the
Contractor shall institute any new and/or additional measures
requested by the County within 15 business days of the written
request to do so.

11.40.3
Any requests to the Contractor for County proprietary or
confidential information shall be referred to the County for review
and approval, prior to any dissemination.

11.41 PUBLIC RECORDS

Under Arizona law, all offers submitted and opened are public records and
must be retained by the County at the Maricopa County Office of
Procurement Services. Offers shall be open to public inspection and
copying after contract award and execution, except for such offers or
sections thereof determined to contain proprietary or confidential
information by the Office of Procurement Services. If an offeror believes
that information in its offer or any resulting contract should not be released
in response to a public record request, under Arizona law, the offeror shall
indicate the specific information deemed confidential or proprietary and
submit a statement with its offer detailing the reasons that the information
should not be disclosed. Such reasons shall include the specific harm or
prejudice which may arise from disclosure. The records manager of the
Office of Procurement Services shall determine whether the identified
information is confidential pursuant to the Maricopa County Procurement
Code.

11.42 INTEGRATION

This contract represents the entire and integrated agreement between the
parties and supersedes all prior negotiations, proposals, communications,
understandings, representations, or agreements, whether oral or written,
expressed, or implied.

SERIAL 260035-RFP

11.43 UNIFORM ADMINISTRATIVE REQUIREMENTS

By entering into this contract, the Contractor agrees to comply with all
applicable provisions of Title 2, Subtitle A, Chapter II, Part 200—UNIFORM
ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT
REQUIREMENTS FOR FEDERAL
AWARDS contained in Title 2 C.F.R. § 200 et seq.

11.44 GOVERNING LAW

This contract shall be governed by the laws of the State of Arizona. Venue
for any actions or lawsuits involving this contract will be in Maricopa County
Superior Court, Phoenix, Arizona.

11.45 FORCED LABOR

11.45.1
By submitting a bid for this solicitation and/or entering into a
contract as a result of this solicitation, contractor agrees to
comply with all applicable portions of Arizona Revised Statutes
Section 35-394. Contracting; procurement; prohibition; written
certification; remedy; termination; exception; definitions.

11.45.2
Contractor certifies that it does not currently, and agrees for the
duration of the contract, that it will not use:

11.45.2.1
The forced labor of ethnic Uyghurs in the People’s
Republic of China.

11.45.2.2
Any goods or services produced by the forced labor
of ethnic Uyghurs in the People’s Republic of China.

11.45.2.3
Any contractors, subcontractors or suppliers that use
the forced labor or any good or services produced by
the forced labor of ethnic Uyghurs in the People’s
Republic of China.

11.45.3
If contractor becomes aware during the term of the agreement
that contractor is not in compliance with this paragraph, the
contractor shall notify the County within five business days after
becoming aware of the noncompliance. If the contractor fails to
provide a written certification to the County that the contractor
has remedied the noncompliance within 180 days after notifying
the County of its noncompliance, then the agreement terminates,
except that if the agreement termination date occurs before the
end the 180-day period, the agreement terminates on the
agreement termination date.

SERIAL 260035-RFP

11.46 PRICES

Contractor warrants that prices extended to County under this contract are
no higher than those paid by any other customer for these or similar
services.

11.47 ORDER OF PRECEDENCE

In the event of a conflict in the provisions of this contract and
Contractor’s license
agreement, if applicable, the terms of this contract shall prevail.

11.48 UNIQUE
ENTITY
IDENTIFIER
(UEI)
AND
SYSTEM
FOR
AWARD
MANAGEMENT REGISTRATION

All contractors that receive funding must have a UEI number through
https://sam.gov/content/entity-registration. Contractor must also remain
maintain current information and active registration with the System for
Award Management (www.sam.gov) throughout the term of the contract.

11.49 RELIGIOUS ACTIVITIES

The contractor agrees that costs, planned or claimed, including costs
incurred, shall not include any expense for any religious activity.

11.50 POLITICAL ACTIVITY PROHIBITED

None of the funds, materials, property, or services contributed by the County
or the contractor under the agreement shall be used in the performance of
this agreement for any partisan political activity, or to further the election or
defeat of any candidate for public office.

11.51 EQUAL EMPLOYMENT OPPORTUNITY

11.51.1
The contractor shall not discriminate against any employee or
applicant for employment because of race, age, disability, color,
religion, sex, or national origin. The contractor shall take
affirmative action to ensure applicants are employed and that
employees are treated during employment without regard to their
race, age, disability, color, religion, sex, or national origin. Such
action shall include but is not limited to the following:
employment, upgrading, demotion or transfer, recruitment, or
recruitment advertising, lay-off or termination, rates of pay or
other forms of compensation, and selection for training, including
apprenticeship.

SERIAL 260035-RFP

11.51.2
Contractor shall comply with the following provisions:

11.51.2.1
Title VI and VII of the Civil Rights Act of 1964, as
amended (42 U.S.C. §§ 2000a, et seq.);

11.51.2.2
The Rehabilitation Act of 1973, as amended (29
U.S.C. §§ 701, et seq.);

11.51.2.3
The Age Discrimination in Employment Act of 1967,
as amended (29U.S.C. §§ 621, et seq.);
11.51.2.4
The Americans With Disabilities Act of 1990 (42
U.S.C. §§ 12101, et seq.); and Arizona Executive
Order 2009-09, as amended, et seq. which mandates
that all persons shall have equal access to
employment opportunities.

11.51.2.5
Contractor understands that the United States has
the right to seek judicial enforcement of this
assurance.

11.52 CERTIFICATION REGARDING LOBBYING

11.52.1
Contractor certifies, to the best of their knowledge and belief,
that:

11.52.1.1
No federal appropriated funds have been paid or will
be paid, by or on behalf of the contractor, to any
person for influencing or attempting to influence an
officer or employee of any agency. This applies to a
Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress
in connection with the awarding of any federal
contract, the making of any federal grant. Including
the making of any federal, loan the entering into of
any cooperative agreement, and the extension,
continuation, renewal, amendment, or modification
of any federal contract, grant, loan, or cooperative
agreement.

11.52.2
If any funds other than federal appropriated funds, have been
paid or will be paid to any person for influencing or attempting to
influence an officer or employee of any agency, member of
Congress, an officer or employee of Congress, or an employee of
a member of Congress in connection with this federal contract,
grant, loan, or cooperative agreement, the undersigned shall
complete and submit Standard Form-LLL, “Disclosure Form to
Report Lobbying,” in accordance with its instructions.

SERIAL 260035-RFP

11.52.3
Contractor shall include Lobbying Certification language in the
award documents for all subcontractors (including sub-grants,
and contract under grants, loans, and cooperative agreements)
and that all sub-recipients shall certify and disclose accordingly.

11.52.3.1
The
Lobbying
Certification
is
a
material
representation of fact upon which reliance was
placed when this transaction is made or entered into.
Submission of this certification is prerequisite for
making or entering into this transaction imposed by
section 1352, Title 31, U.S. Code. Any successful
proposer(s) who fail to file the required certification
shall be subject to a civil penalty of not less than
$10,000.00 and not more than $100,000.00 for each
such failure.

11.53 CLEAN AIR ACT & CLEAN WATER ACT

Contractor must comply with all applicable standards, orders, or
requirements issued under section 306 of the Clean Air Act (42 U.S.C. 7606),
section 508 of the Clean Water Act (33 U.S.C. 1368) Executive Order 11738,
and Environmental Protection Agency regulations.

11.54 ENERGY POLICY AND CONSERVATION ACT

Contractor must adhere to the standards and policies relating to energy
efficiency, which are contained in the State energy conservation plan issued
in compliance with the Energy Policy and Conservation Act (Pub. L. 94-163,
89 Stat.871).

11.55 CONTRACT DISPUTES

All Contract disputes will be handled in accordance with the Maricopa
County Procurement Code, MCI-906.

11.56 INCORPORATION OF DOCUMENTS

The following are to be attached to and made part of this Contract:

11.56.1
Exhibit A – Vendor Information and Pricing

11.56.2
Exhibit B – Scope of Work

11.56.3
Exhibit B-1, Diamond Drugs, Inc. Narrative

11.56.4
Exhibit C, 340B Contract Pharmacy Services Agreement

SERIAL 260035-RFP

11.57 NOTICES

All notices given pursuant to the terms of this contract shall be addressed
to:
For County:
Maricopa County
Office of Procurement Services 301 W. Jefferson St. Suite 700
Phoenix, Arizona 85003-1647

For Contractor:

Diamond Drugs, Inc.
dba Diamond Pharmacy Services Attn: Mr. Mark J. Zilner
645 Kotler Drive
Indiana, PA 15701

11.58 INQUIRIES

11.58.1 Administrative telephone/email inquiries shall be addressed to:

ANDREA STUPKA, PROCUREMENT OFFICER
TELEPHONE: (602) 506-3504
Andrea.Stupka@maricopa.gov

11.58.2 Inquiries may be submitted by telephone but must be followed up
in writing. No oral communication is binding on Maricopa County.

SERIAL 260035-RFP

EXHIBIT A - Vendor Information and Pricing

RESPONDENT'S NAME:
Diamond Drugs, Inc.
DOING BUSINESS AS (DBA):
Diamond Pharmacy Services
COUNTY VENDOR NUMBER:
VC0000002402
MAILING ADDRESS:
645 Kolter Drive, Indiana, PA 15701
REMIT TO ADDRESS:
645 Kolter Drive, Indiana, PA 15701
TELEPHONE NUMBER:
724-349-1111
WEB SITE:
www.diamondpharmacy.com
CONTACT NAME:
Mark J. Zilner
CONTACT TELEPHONE NUMBER:
724.349.1111 x 1003
REPRESENTATIVE'S E-MAIL ADDRESS:
mzilner@diamondpharmacy.com
UNIQUE ENTITY IDENTIFIER (UEI)
GNLMBK4LVNQ4

*Credit card payments will be assessed a 3%
convenience fee PAYMENT TERMS: 2% 30 DAYS
NET 31

1.0 PRICING:
Contractor pricing shall use one of the following formulas: (i) base cost (actual
acquisition cost) of medications or pharmaceutical supplies plus (+) a dispensing
fee per prescription; or (ii) average wholesale price (AWP) minus (-) a percentage.
Diamond’s dispensing fees (hereinafter “DF”) (base, specialty, compounds, IV,
ATRs, etc.) and return processing fee will remain fixed and firm for the first 24
contract months (October 1, 2026, through September 30, 2028) and will be
increased on October 1, 2028, and each October 1st thereafter by three percent
(3%).
Proposer shall initial the formula selected for
pricing:
1.1 Base cost (actual acquisition
cost) of medications or
pharmaceutical supplies plus (+) a
YES
NO
REBATE
WILL ALLOW OTHER GOVERNMENTAL ENTITIES TO
PURCHASE FROM THIS CONTRACT:
Provided contractor’s class of trade designation
permits contracting with such agencies.
X

WILL ACCEPT PROCUREMENT CARD FOR
PAYMENT*:
X

SERIAL 260035-RFP

dispensing fee per prescription
Dispensing fee per prescription:
$ 3.40 base DF, $5.00 compound IV DF, $25.00
non-sterile compound DF, $35.00 340B DF,
$250.00 specialty DF, $1.25 Processing Fee(PF)
per card on returns - Please see our pricing sheet
in Tab 3. Section 2.2.10 Pricing of the proposal
document
Effective 10/1/2028
Dispensing fee per prescription
$3.50 base DF, $5.15 compound IV DF, $25.75
non-sterile compound DF, $36.05 340B DF,
$257.50 specialty DF, $1.29 Processing Fee on
returns
Effective 10/1/2029
Dispensing fee per prescription
$3.61 base DF, $5.31 compound IV DF, $26.52
non-sterile compound DF, $37.13 340B DF,
$265.22 specialty DF, $1.33 PF on returns
Effective 10/1/2030
Dispensing fee per prescription
$3.72 base DF, $5.47 compound IV DF, $27.32
non-sterile compound DF, $38.25 340B DF,
$273.18 specialty DF, $1.37 PF on returns

Diamond Pharmacy will provide credit on oral solid medications in full and partial blister
cards at one hundred percent (100%) of the actual acquisition cost of the medication at
the time of dispensing less a one dollar and twenty-five cents ($1.25) processing fee per
returned card.

Backup pharmacy services will be billed as a pass-through charge at the contracted
backup pharmacy’s rate—as billed through a pharmacy benefit management (PBM)
company—plus the backup pharmacy’s delivery charge or on-call charge, or the taxi or
courier charge, if applicable

SPECIAL PRICING SITUATION:

limited distribution medications, and chemotherapy agents are invoiced at the price
charged to Diamond by our wholesaler or from the specialty pharmacy plus two-hundred
and fifty ($250) dollars per prescription.

When needed, compounded IV Medications – those medications that are compounded
by a Diamond IV Specialist or that are prepared by a Diamond IV Specialist in kits (with

SERIAL 260035-RFP

dry powder vials and reconstitution liquids) for infusion at the facility are billed at the
Average Wholesale Price (AWP) per ingredient as published by Medi-Span, plus five-
dollars ($5.00) per piece.

When needed, stock IV medications are billed at Diamond’s AAC at the time of dispensing
plus the then current dispensing fee per piece.

When needed, non-sterile compounded medications will be billed at Diamond’s Actual
Acquisition Cost per ingredient plus compounding labor plus twenty-five dollars (25.00)
per piece.

OPTIONAL SERVICES

Optional Service: Non-formulary Alternative Treatment Recommendations (ATRs) are an
enhanced clinical service beyond the scope of this agreement and will be provided with
appropriate access to the patients’ full medication chart, at a rate of three hundred and
fifty dollars ($350) per facility code per month, if requested. CHS will have the option to
select which facilities may benefit from ATRs

Optional Service: Patient care plan development and virtual pharmacy consultations, if
requested will be provided at a rate of one hundred and twenty-five dollars ($125.00) per
care plan. Virtual pharmacy consultations will be provided at a rate of ($125.00) per hour
with a one hour minimum, if requested

Optional Baggie Cycle-fill Strip Packaging: Strip packaging dispensed from Diamond is an
optional solution provided by Diamond at a separately negotiated rate based on project
specifications

Optional Automated Dispensing Machines other than Swisslog/InSite: Automated onsite
dispensing is an optional dispensing solution provided by Diamond at a separately
negotiated rate based on project specifications and requirements of an incoming ADM
vendor.

SERIAL 260035-RFP

EXHIBIT B – Scope of Work
1.0
INTENT

1.1
Maricopa County Correctional Health Services (CHS) intends to contract
with
qualified
pharmacy
providers
to
deliver
comprehensive
pharmaceutical services to incarcerated patients within the county jail
system.
1.1.1 Scope of Services
1.1.1.1 Prescription Fulfillment

1.1.1.1.1 Timely dispensing of medications.

1.1.1.1.2 Stat (same day) prescription orders when
deemed necessary by CHS providers.

1.1.1.1.3 Packaging must be in blister-packs and/or
Automated Dispensing Machine (ADM)
canisters.

1.1.1.2 Pharmacist Availability
1.1.1.2.1 24/7 access to licensed pharmacist consultation
services.

1.1.1.3 Medication Types

1.1.1.3.1 Intravenous (IV) and injectable medications.

1.1.1.3.2 Fluids and equipment required for IV therapy.

1.1.1.4 Electronic Interfacing
1.1.1.4.1 With CHS’ Electronic Health Record (EHR).

1.1.1.4.2 With ADM software.

1.1.1.5 Reporting

1.1.1.5.1 Deliver accurate and meaningful reports on
pharmaceutical services and inventory.
1.1.1.6 Other Medical Goods

SERIAL 260035-RFP

1.1.1.6.1 Supply durable medical goods and any
prescription-based items as ordered by CHS
providers.
1.1.2 Contractor Responsibilities

1.1.2.1 Provide all necessary equipment, supplies, medications,
and labor.
1.1.2.2 Pharmacy services shall be provided at Maricopa County
(County) Jails.
1.1.3 The County intends to enter into a contract with a respondent to
meet the project requirements and to provide the best value in terms
of competitive pricing and responsive professional services.
1.1.4 Background
The County Jail system is the fourth largest in the United States, with
a daily population of approximately 7,000 patients and an estimated
100,000 bookings annually. CHS operates eight clinic locations
across five jails, plus an Intake,

Transfer, and Release (ITR) facility, with approximately 250,000
patient encounters per year. Here’s the link to the jails:
https://mcso.org/Home/Jailsa The
National Commission on
Correctional Healthcare (NCCHC) accredits CHS. There are a total of
85 providers with prescriptive authority.

During fiscal year 2025, there were 277,603 patient specific and
stock prescriptions dispensed in addition to 70,484 dispensing from
the ADM which required canisters to be refilled 6,766 times.
Currently, all CHS facilities operate through an integrated EHR
system that provides prescription order entry, electronic medication
administration, and comprehensive patient documentation. CHS
requires that all respondents have EHR interfacing capabilities so that
all new orders will continue to be transmitted through a secure
National Council for Prescription Drug Programs (NCPDP)
bidirectional interface with no delay in service.

1.2
Other governmental entities under agreement with the County may have
access to services provided hereunder (see also Sections 8.0 and 9.0
above).

1.3
The County reserves the right to award this contract to multiple vendors.
The County reserves the right to award in whole or in part, by item or group
of items, by section or geographic area, or make multiple awards, where
such action serves the County’s best interest.

SERIAL 260035-RFP

2.0
SCOPE OF WORK
2.1
CONTRACTOR QUALIFICATIONS

2.1.1 Contractor shall have at least seven years of demonstrated
successful experience in providing pharmacy services to
correctional/detention facilities of similar population as the
County Jail facilities with a minimum Average Daily Population
(ADP) of 4,000 patients and within a multi-facility system.

2.1.2 Contractor must provide documentation demonstrating their
capability to interface with Electronic Health Record (EHR) and
Automated Dispensing Machine (ADM) systems currently in use
by existing clients. The documentation should include the
duration these interfaces have been operational. Fully functional,
turn-key interfaces must be in place and operational by the
contract start date. The selected contractor will be solely
responsible for all interface setup costs on their side.
2.1.3 CHS currently uses Fusion EHR and Swisslog/Talyst ADM
systems. The EHR enables the electronic entry and transmission
of patient orders directly from the point of origin to the pharmacy,
reducing delays and medical errors, eliminating paper-based
processes, and ensuring information is accessible to other care
providers.

2.1.4 Contractor shall be responsible for compliance with CHS policies
as well as the following standards of care:

2.1.4.1 National Commission on Correctional Health Care (NCCHC)

2.1.4.2 Arizona Board of Pharmacy (AZBOP)

2.1.4.3 Drug Enforcement Administration (DEA)

2.1.4.4 Substance Abuse and Mental Health Services
Administration (SAMSHA)
2.1.4.5 American Correctional Association (ACA)

2.1.4.6 American Jail Association (AJA)

2.1.4.7 Joint Commission [formerly the Joint Commission on
Accreditation of Healthcare Organizations (JCAHO)]

SERIAL 260035-RFP

2.1.4.8 National Association of Boards of Pharmacy (NABP)
Verified Accredited Wholesale Distributor (VAWD)

2.1.5 Contractor must have prior experience managing a 340B Drug
Pricing Program within a correctional facility setting. Provide a
description of your organization’s history, experience, and
approach to managing 340B programs. Note that CHS currently
operates a 340B program in collaboration with its existing
pharmacy services provider.

2.1.6 Contractor must be an approved Office of Pharmacy Affairs
Information System (OPAIS) contracted pharmacy. A 340B
Contract Pharmacy agreement must be established by contract
start date. Contractor must provide a detailed plan for drafting
and executing a 340B Contract Pharmacy as part of response.

2.1.7 Contractor shall provide a list of all facilities with contact persons
at each facility where a 340B program is being managed.

2.1.8 Contractor shall have a process in place for the return and
accountability of full or partially used pharmaceutical blister
cards including issuing credit to CHS. Contractor shall only
provide medications which have not been returned by another
customer.
2.2
CONTRACTOR REQUIREMENTS

This section will address the service requirements for the requested
pharmaceutical services. CHS requires the contractor to provide the
County Jails with general and specialized pharmacy services, including
a comprehensive pharmaceutical services program. These services
must conform to all governing federal, state, and local laws, statutes,
rules, and regulations. At a minimum, the following services are
required:

2.2.1 Medication and Pharmacy Equipment

2.2.1.1 Generic Medications: Generic medications will be used
unless the authorized prescribing provider specifically
designates “dispense as written.” CHS will establish
standing rules for substitution of generic medications.
Brand name medications will only be dispensed when
specifically requested by the prescriber and approved by
the Chief Medical Officer (CMO) or designee.
2.2.1.2 Over The Counter Medications (OTC): Contractor shall
supply OTC medications ordered by the prescriber or

SERIAL 260035-RFP

ordered for use by the healthcare facilities per CHS’
medication
administration
policy:
J-D-02-02
MEDICATION
ADMINISTRATION
AND
DOCUMENTATION. This
pertains to stock and patient specific prescriptions.
2.2.1.3 Contractor shall provide, at no cost to CHS, pill crushers,
and all medication cutting devices required for the safe
administration of medications in a correctional facility.

2.2.1.4 Contractor shall provide, at no cost to CHS, one handheld
scanner per facility for an electronic inventory control
system that allows for reconciliation of all medication
prescribed, ordered, in inventory, and all equipment
necessary to perform reconciliation.

2.2.1.5 Contractor shall provide and maintain medication carts
required in each facility to assure safe and efficient
medication distribution and include the specifications as
part of their bid proposal. CHS currently uses
approximately 75 carts in various sizes to distribute
medication throughout its facilities. Contractor shall be
responsible for all equipment, maintenance, and repair
costs associated with these carts.

2.2.1.6 CHS may purchase other supplies and/or equipment as
referenced in Exhibit B-1 but not explicitly mentioned in
section 2.2.1 from the Contractor when it is determined
to be the most cost-effective option.
2.2.2 Delivery, Packaging, and Repackaging

2.2.2.1 All orders submitted via the EHR, facsimile, or telephone
shall be delivered to the designated County Jail facility
the following day, except for Sundays and county
holidays. All deliveries shall be made per the facility’s
rules and regulations governing security. Back-up
pharmacy for emergency orders shall be available on
Sundays and holidays.
2.2.2.2 Packaging of pharmaceuticals to include a specialized
dispensing system that ensures safe and efficient
medication distribution. This dispensing system will
include blister cards, baggies, soft medication programs,
ADM canisters, and any other means of dispensing
medication as necessary to ensure compliance with all
the laws governing the dispensing of pharmaceuticals.

SERIAL 260035-RFP

Contractor must use a Food and Drug Administration
(FDA)
Registered
Repackager
when
repackaging
medications into blister cards.

2.2.2.3 Medications shall be dispensed and packaged in unit
dose blister cards or ADM canisters with the medication
name, strength, manufacturer name, NDC, expiration
date, and lot number on the individual foil backing of
each bubble in a blister card or ADM canister.
2.2.2.4 Contractor shall provide the quantity of medications as
ordered by the provider, up to a default of a 30-day
supply, to the designated facility.

2.2.2.5 All prescriptions and other information, such as
medication leaflets, as required by law, shall accompany
the issuance of a prescription and shall be provided in
English and, as necessary, in Spanish, pursuant to the
needs of the patient.

2.2.2.6 Contractor shall assure that all orders are signed for by
authorized CHS personnel when delivered and are
tracked by contractor’s pharmacy. A detailed packing
slip, listing the medications enclosed, must accompany
each delivery of pharmaceuticals.

2.2.2.7 Contractor shall provide emergency medication supplies
that CHS determines necessary to alleviate pain,
infection, modify dangerous behavior, or to preserve life
at the County’s Jail facilities.

2.2.3 Prescription and Program Management

2.2.3.1 Contractor shall designate account manager who shall
be primary point of contact for issue resolution or
concerns.

2.2.3.2 Contractor shall manage prescribing practices through
record-keeping and prescription tracking. The County
will designate such authorized personnel in writing, and
only those persons shall be authorized to order
prescriptions
and
other
medications
from
the
contractor.

2.2.3.3 Contractor shall establish procedures to verify the
completeness of transmitted prescriptions to the
pharmacy via the current EHR system. In addition, if the

SERIAL 260035-RFP

Electronic Prescribing of Controlled Substances

(EPCS) is down, the contractor shall be able to
receive controlled substances transmitted by facsimile.
2.2.3.4 Contractor shall provide a 24-hour toll-free number for
use by the County in ordering pharmaceuticals and other
controlled medications.

2.2.3.5 Contractor’s clinical pharmacist shall screen the profiles of
each patient
to ensure safe and therapeutic medication administration.

2.2.3.6 Contractor shall maintain a pharmacist on call 24 hours a
day, 365 days per year, to respond to questions concerning
medications, operations, and contract-related matters.
Contractor shall maintain a 24-hour toll-free telephone
number for access to said pharmacist.

2.2.3.7 Contractor shall arrange with a local pharmacy to provide
backup pharmaceutical coverage to CHS for emergency
prescriptions. Back-up or emergency pharmacy must also
be able to provide 24/7/365 service, including medication
delivery. Contractor shall be solely responsible for all courier
costs. Contractor shall include the pharmacy name and an
action plan (including costs) in the response.
2.2.4 Audit and Reporting

2.2.4.1 Contractor’s clinical pharmacist will review each medication
room on-site every quarter to ensure that all procedures
comply with governing laws. The clinical pharmacist shall
provide documentation of each inspection and any
recommendations to improve compliance.

2.2.4.2 Contractor must supply to the County, every month, a (1)
drug utilization report identifying the medications used by
each patient, and prescriber or patient profile, (2)
comprehensive drug formulary management report, (3) any
other customized ad hoc reports requested by CHS. In
addition, direct electronic access to contractor’s CHS-
related database shall be allowed for reporting purposes.

2.2.4.3 The contractor must agree to cooperate and facilitate a
quarterly audit of its pharmacy services provided to the
County. This audit will assess the compliance of the
contractor’s services with all federal, state, and local laws,

SERIAL 260035-RFP

rules, regulations, and guidelines governing the operation of
the Jail and the provision of pharmaceutical care for
correctional facilities. When such audits are conducted, the
County shall provide a copy of the written report of the audit
to the contractor and shall meet with contractor’s personnel
to review the audit.
2.2.5 Scope of Data Access

2.2.5.1 The contractor shall provide CHS with the following:

2.2.5.1.1 Order Information: Order date, order number, drug
name, Drug Database Identifier (DDID), strength,
dosage form, quantity ordered, dispensing
location,
ordering
prescriber,
and
patient
identifiers (as required for clinical and operational
reporting).
2.2.5.1.2 Pricing and Financial Data: Unit price, extended
price, contract pricing tier, and total transaction
cost.

2.2.5.1.3 Formulary Data: Formulary status,
preferred/alternate product designation, and
formulary change history.
2.2.5.1.4 Shipment and Fulfillment Data: Ship date,
delivery confirmation, partial shipments, and
backorder notifications.
2.2.5.2 Access Method
2.2.5.2.1 A flat file will be delivered by the contractor.
2.2.5.3 Data Support
2.2.5.3.1 Contractor shall immediately notify CHS of any
delays or data validity issues with the flat file.
2.2.5.4 The contractor shall meet all requirements for Support
and Training in the section above in this section at no
additional cost to CHS. Any costs related to compliance
with these conditions must be absorbed by the
contractor.

2.2.6 Electronic/Online Access

2.2.6.1 Contractor shall provide a process for electronic
submission of reorders and refills.

SERIAL 260035-RFP

2.2.6.2 Contractor shall provide electronic/on-line access to
updates of pharmaceutical supplies, medication, pricing
(as applicable) and news releases.

2.2.6.3 Contractor shall provide electronic/on-line purchase,
quantity, type reporting statistics by patient, facility,
medication type, and be able to provide categorized and
detailed reports free of charge and customizable to CHS.

2.2.6.4 Contractor shall provide a process for ordering
medication in the event electronic transmission is not
available.

2.2.7 Formulary Development
2.2.7.1 Contractor shall submit a proposed formulary that will
foster safe, appropriate and effective drug therapy.

2.2.7.2 Contractor shall meet with designated CHS personnel to
develop and implement a cost-effective formulary designed
to maximize CHS safety and drug efficacy.

2.2.7.3 Contractor must strictly detail, monitor, and review current
industry prescribing practices and recommend appropriate
formulary changes to the CHS CMO/Pharmacy Director for
approval.
2.2.7.4 Contractor shall describe any additional offerings that may
be available for cost control and formulary processes.

2.2.7.5 Contractor shall submit an updated proposed formulary
annually to the CHS Pharmacy Director.

2.2.8 Non-formulary Request System

2.2.8.1 Contractor will have a formulary control system in
accordance with the established CHS system.

2.2.8.2 Contractor shall describe any additional offerings that may
be available for cost control and formulary processes.
2.2.9 Credits/Current Inventory

2.2.9.1 Contractor shall specify how existing drug inventory and
returns of unused medications/supplies will be used and
credited.

SERIAL 260035-RFP

2.2.9.2 Contractor shall provide current credit policy and process.

2.2.10 Pricing

2.2.10.1 Contractor pricing shall use one of the following formulas:
(i) base cost (actual acquisition cost) of medications or
pharmaceutical supplies plus (+) a dispensing fee per
prescription; or (ii) average wholesale price (Average
Wholesale Price (AWP)) minus (-) a percentage.

2.2.10.2 Contractor shall state, in layman’s terms, how any
manufacturer rebates, price adjustments or any other form
of credit that is received shall be shared with CHS.

2.3
REFERENCES

2.3.1 Contractor must provide at least five reference accounts to which
they are presently providing this service. Included must be the
name of the government or company, individual to contact, phone
number, street address and e-mail address. References shall be
for services provided to facilities that have one or more of the
following characteristics: 1) NCCHC accredited, 2) ADP of at
least 4000 patients, or 3) multi-facility jail systems.

SERIAL 260035-RFP

EXHIBIT B-1 - DIAMOND DRUGS, INC. NARRATIVE
Unless otherwise noted, Contractor’s response to Serial 260035-RFP is
incorporated by reference and made part of this contract.

Executive Summary
Benefits of a Continued Diamond Partnership

Opportunities for success begin with trusted and respected relationships. Trust is the
bedrock of any successful organization, and Diamond understands its significance. At
Diamond, we take this responsibility seriously and will continue to ensure your multi-
pharmacist led management team includes highly experienced professionals who
understand the intricacies of correctional pharmacy services.

Diamond has worked diligently to earn and maintain the trust of Correctional Health
Services (CHS) by meeting our commitments, acting with integrity, and doing the right
thing regardless of the circumstances and challenges for the past twenty years.

Pharmacy services are integral to your healthcare model and retaining the right partner is
critical. We understand the unique complexities and regulatory requirements of
correctional pharmacy services and the importance of being a fully integrated and
engaged member of your healthcare team. Our experience and values align perfectly with
CHS’ mission to provide quality patient care with compassion, collaboration, and
innovation.

Diamond has always been an industry first mover in anticipating and addressing short-
term issues while also assisting in developing long-term strategies for our clients. We
have always adhered to the highest ethical and accreditation standards when
recommending solutions to CHS. We continuously aim to provide innovative solutions and
prompt responsiveness to CHS’ needs regarding customer service, enhanced clinical
services,
cost-avoidance
initiatives,
superior
formulary
management,
pricing
transparency, interface development and support, regulatory compliance, meaningful
reporting, NCCHC compliance, and insightful analytics. We do not just respond to
challenges—we anticipate them and offer proactive strategies to drive long-term success
for both of our organizations.

As your pharmacy partner, we remain committed to meeting and exceeding CHS’ goals
stipulated in Sections 1.0, 2.0, and 3.0 in the most cost-effective and responsible manner
regarding:

•
Prescription fulfillment of patient specific medications and compliant stock
distribution
•
Pharmacist availability 24/7/365 for operational and clinical consulting
•
Access to all medications including non-sterile compounds, specialty meds,
and compounded IVs
•
An established and fully supported Opioid Treatment Program
•
An established and fully supported 340B program

SERIAL 260035-RFP

•
An established interface with Fusion
•
An established interface with Swisslog
•
Continued access to meaningful and actionable reporting and analytics
•
Continued provision of all necessary equipment, medication carts, scanners,
supplies, medications, inspection services, meeting attendance, software
access, and project labor
•
Four decades of demonstrated successful experience in providing pharmacy
services to correctional/detention facilities of similar size to Maricopa
County and much larger
•
Accreditation as a National Association of Boards of Pharmacy (NABP)
Accredited Drug Distributor (formerly known as a Verified Accredited
Wholesale Distributor (VAWD))
•
Continued use of an FDA Registered Repackager when repackaging oral solid
stock medications from bulk manufacturer containers into cost-effective
blister cards
•
Continued licensure as a non-resident Arizona licensed wholesaler for
distribution of legend stock medications to ensure complete regulatory
compliance
•
Data access to CHS teams in a HIPAA compliant and secure manner
•
Continued access to a web-based Online Reporting Dashboard
•
Continued access to a web-based electronic reconciliation program (check-in,
returns, and refills)
•
Formulary support that will continue to ensure safe, appropriate, and effective
drug therapy
•
Enhanced clinical services that foster positive patient outcomes and cost-
avoidance
•
Prompt responsiveness to the CHS Administrative Team, Finance
Team, Pharmacy and Nursing Directors, Chief Medical Officer, and
the Medication Room Assistants
•
Meeting and exceeding all proposed performance requirements
•
Continuation of all existing services without interruption into a new contract
period
•
Provision of value-added services and key differentiators that
continue to improve efficiencies and staff productivity, and
•
The provision of best value regarding competitive pricing and
responsive professional services

We are confident that our proposal will reaffirm the distinct advantages and flexibility that
Maricopa County CHS will continue to enjoy through its partnership with Diamond
Pharmacy Services.

We remain fully prepared to continue supporting the County and CHS at the highest
standards and to exceed all expectations established.

Methodology and Approach to Service

Diamond will continue to provide CHS with a consistent and reliable medication
dispensing process, prompt and responsive support, and comprehensive pharmacy

SERIAL 260035-RFP

program management solutions in the most cost-effective manner.

Our value proposition to Maricopa is the centerpiece of our approach:

•
We will always listen and collaborate to fully understand your needs. CHS
has unique needs and those may not be the same as correctional
institutions in Pima, or Pinal, or Mohave Counties. Diamond listens to best
understand your specific needs and establishes a methodology that aligns
with what is important to you and delivers solutions.
•
We apply 42 years of correctional pharmacy experience to further
customize our program for Maricopa County CHS. As you know, there is
no one-size-fits-all approach to pharmacy services. We are the most
experienced pharmacy provider in the industry, and this enables us to
customize the proper pharmacy program for Maricopa CHS to achieve
your goals. This was seen firsthand in our ability to operationalize
automated dispensing when given this challenge by CHS. And as you
know, there is no pharmacy with the purchasing power of Diamond to
lower your medication costs.
•
We wish to remain a partner to CHS so we can continue to grow and
be better together. Diamond seeks a mutually beneficial relationships
with our clients. We have several relationships with county jails and
Departments of Corrections extending over 40 years and we are
extremely proud of our relationship with CHS.

Our focus will always be to highlight the benefits that Diamond will continue to provide to
Maricopa County to improve efficiency and productivity while helping you reduce costs.

Our hosted electronic platforms for ordering, record management, distribution, returns,
and reporting are unmatched and set industry standards. We also provide our clients with
the industry’s most comprehensive monthly financial reporting, which is critical in
managing your patient population and overall costs.

We will provide a highly responsive team of four Executive Consultant Pharmacists
(ECPs) to lead an experienced and dedicated team assigned explicitly to CHS that quickly
accommodates your needs and requests. Whether CHS needs a report, consultation,
pricing, specialty medications, backup support, or technology troubleshooting, we will
provide a thorough response to those needs.

Our value proposition shapes our approach to services. Our methodology is centered on
five key elements: accreditation standards and regulatory compliance, strong formulary
management and cost-avoidance programs, superior customer service, innovation and
adaptability, and a Company of Five service model.

Company of Five: As a pharmacy, we believe that senior Executive Consultant
Pharmacists (ECPs) are integral to providing our customers with the highest level of
service and responsiveness. We utilize pharmacists and not salespeople as your account
representatives and daily contacts.

SERIAL 260035-RFP

From our first correctional client in 1983 to today, a pharmacist has always been assigned
to our correctional clients as their executive consultant and account manager. We also
employ nearly 1,000 dedicated individuals supporting our institutional pharmacy
operations. This ensures that there are always qualified personnel to meet your needs
promptly.

As a large company, we have the financial strength to make these resources available to
ensure superior customer service. As a family-owned business, we take tremendous pride
in our customers knowing and considering us as a Company of Five to exceed your day-
to-day medication dispensing and pharmacy program management needs.

Your Four Executive Consultant Pharmacists have the autonomy to make day-to-day
business and operational decisions on our behalf. All four have been with our company
for over 20 years, and they are very comfortable in knowing what decisions are in their
authority and what would need to be escalated to the Director or Executive level within
our hierarchy. Your two primary pharmacy technicians, Loretta and Chris, have been with
us respectively for 24 years and six years.

One of our key messages is that we provide customers with all the benefits of a large
corporation with the mindfulness, responsiveness, and attention to detail of a family-
owned business. We trust our Executive Consultant Pharmacists to be the face of our
organization and to make decisions regarding service issues and unexpected surges
during the day-to-day management of your account. No matter how many clients we
serve, our reliance on our ECPs and Company of Five philosophy always keeps service
accessible, personalized, and responsive.

Running a family-owned business, the Zilner family of pharmacists remain fully engaged
with daily operations. Mark Zilner RPh., President and CEO, and primary owner is readily
available to resolve issues and to make any decisions that require significant financial or
policy commitments. At all times, day or night, weekday or weekend, your Executive
Consultant Pharmacist has cellphone access to Mark when an emergency decision is
needed.

You can continue to trust Diamond to manage your pharmacy program properly, provide
reliable medication dispensing and delivery, quickly and effectively handle the
unexpected, and ensure compliance with regulatory and accrediting bodies.

Executive Consultant
Pharmacist Role

We task our ECPs with:
•
Overseeing daily pharmacy operations and ensuring efficient and
effective processes are in place to foster positive patient outcomes
•
Implementing electronic ordering, reconciliation, and medication management
systems
•
Maintaining your formulary with a focus on cost avoidance and patient safety

SERIAL 260035-RFP

•
Maintaining liaison relationships with your facility and other administrative
personnel
•
Assist in the development of facility level protocols and procedures
•
Assist in the development of disease-state management protocols
•
Provide guidance regarding the medication disposal and destruction process
•
Analyzing clinical and pharmacoeconomic financial data and reporting
•
Serve as a resource regarding regulatory compliance with local, state, and
federal rules, regulations, and laws pertaining to the practice of pharmacy and
stock distribution
•
Resolving facility level issues and concerns promptly
•
Staying current regarding industry and pharmacy practices that can better
serve our customers while also providing guidance when changes are required
•
Working in concert with Maricopa County CHS to develop forward thinking
strategies Value Added Services, Differentiators, and Efficiencies

Many of the services and products listed below are unique to Diamond and separate
our program and services from the rest of the industry:

Clinical Pharmacist Specialists

By staffing a Certified Diabetes Educator, an Anticoagulation Specialist, an
Adverse Drug Reaction Coordinator, and a Board-Certified Psychiatric Pharmacist,
we are able to deliver measurable clinical improvements and cost efficiencies that
directly benefit our clients.

Compounding Department

We employ four accredited compounding pharmacists, enabling us to prepare
most compounded medications in-house. This reduces reliance on third-party
vendors, minimizing delays in acquiring and starting medications and come with
additional costs when our competitors outsource these services.

Office of Pharmacy Therapeutics and Integrated Clinical Services (OPTICS)

We staff five OPTICS-Credentialed PharmD Clinical Pharmacists with advanced
certifications and specialized training. These include:

•
Board-Certified Pharmacotherapy Specialist (BCPS)
•
Board-Certified Ambulatory Care Pharmacist (BCACP)
•
Medication-Assisted Treatment (MAT) Accreditation
•
Pharmacogenomics Accreditation
•
Board-Certified Geriatric Pharmacist (BCGP)
•
PGY1 Residency-trained professionals

HIV and Infectious Disease Expertise

Our AAHIVE-accredited HIV Pharmacist and infectious disease team review patient
regimens daily to ensure the clinical appropriateness and cost-effectiveness of
HAART protocols and Hepatitis C therapies.

SERIAL 260035-RFP

IV Compounding Services

Our in-house IV compounding capabilities allow patients to begin therapy without
delay. Unlike many industry pharmacy providers, we avoid outsourcing, thus
reducing costs and improving turnaround time. Our team monitors each patient
from initiation through completion, ensuring labs are drawn and dosages adjusted
as needed.

True-Unit Dose Blister Card Packaging

Our commitment to unit-dose blister card packaging and labeling ensures patient
safety and more credit on returned medications. All pharmacies reclaim
medications to be re-dispensed if they offer credit. Our extensive use of unit-dose
blister cards allows for maximum credit and safety and is compliant with Boards
of Pharmacy. This also uniquely permits us to ensure medication integrity during
the reclamation process.

340B Program Management

Our two dedicated 340B pharmacists bring extensive regulatory and operational
expertise. We proactively identify partnership opportunities with covered entities
to reduce medication costs and improve care. We hope the county is willing to
explore expanding the current 340B program beyond STD medications for even
greater cost-avoidance

MAT Program Leadership

As CHS knows very well, we are a national leader in MAT/OTP program
development for correctional facilities. With decades of experience, we dispense
tens of thousands of MAT doses to CHS annually.

Virtual Clinical Program

As an enhanced clinical service at a separately negotiated price, we integrate our
clinical pharmacists virtually into your onsite medical care team eliminating the
need for an expensive on-site pharmacist placement.

Unique Barcoded Identification

Every item we dispense includes a unique barcode (distinct from the
prescription number), allowing your security and finance teams to track all
products shipped to and returned from CHS County Jails.

U.S. Food and Drug Administration (FDA) and State Licensure

Diamond is licensed as a wholesale distributor in Arizona, enabling compliant

SERIAL 260035-RFP

stock distribution of first dose and starter medications. This reduces reliance
on local backup pharmacies and lowers overall program costs.

FDA Registered Repackager

As an FDA-registered repackager, Diamond legally provides CHS with cost-
effective stock medications in 30-count blister cards for easy administration.

Drug Quality and Security Act of 2013 (DQSA) Compliance

We strictly adhere to the Drug Quality and Security Act (DQSA) to ensure the
integrity of our medication supply chain and prevent counterfeit products from
entering your facilities.

NABP Drug Distributor Accreditation

Diamond has voluntarily earned NABP Drug Distributor Accreditation (formerly
VAWD), demonstrating our commitment to the highest industry standards and
product authenticity.

Web-based Online Reporting Program

We pioneered the first online reporting dashboard in correctional pharmacy,
offering 24/7/365 access to real-time data from any internet-connected
device—at no additional cost.

Web-Based Electronic Reconciliation Program

Our web-based reconciliation system tracks every product shipped and
returned, improving accountability, saving time, and boosting staff
productivity—also at no extra cost.

Continuity of Care Voucher Discharge Program

We support continuity of care by providing a discharge voucher program for
inmates re-entering the community. This program ensures that individuals leaving
the facility can access up to a 30-day supply of their prescribed medications at a
pharmacy of their choice—at no cost to the patient. This bridge in care helps
preserve therapeutic progress and supports successful reintegration, reducing the
risk of recidivism.

EHR Interface Expertise

Diamond has established interfaces with most major Electronic Health Record
(EHR) systems in the industry. Our experienced interface team is available to
support your facility with integration, consultation, and ongoing optimization,
ensuring seamless data exchange and operational efficiency.

SERIAL 260035-RFP

Automated Dispensing Machines

We are the only correctional pharmacy currently contracted to offer Automated
Dispensing Machines (ADMs) through two leading providers of dispensing
technology. This optional solution is a possible remedy to Swisslog’s exit from the
industry (available at a separately negotiated rate) that enables on-site, just-in-time
dispensing of patient-specific multidose envelopes—streamlining med-pass
operations and improving medication access.

Automated Storage and Retrieval System (ASRS)

We have installed an Automated Storage and Retrieval System (ASRS) in our main
pharmacy location. This machine was custom designed for our needs in
dispensing medication to correctional customers. This technology has increased
efficiency, lowered operations costs, improved accuracy, and reduces the
potential for human error in the dispensing process.

Value of Alternative Dispensing and Packaging Options Available from
Diamond if CHS were to Lose the Swisslog Dispensing Process

To preserve CHS’ investment regarding Swisslog/InSite ADMs, Diamond and CHS
have reached out to Webence to discuss options available to support Insite
machines after the CHS Swisslog maintenance agreement expires in 2026. Capsa
Healthcare is also wishing to engage with CHS regarding onsite ADMs and so is
Advanced Pharmacy Solutions (APS). If an extended maintenance agreement
cannot be achieved with Swisslog or Webence, below are proposed options
available from Diamond.

Cycle-fill Strip Packaging/Baggies

Optional Dispensing Solution: we can provide CHS with medication dispensing in
auto-med roll packaging via our use of the Parata-brand bag system.

Labeling on our unit dose baggies include the following:

•
Inmate’s name
•
Medication name and strength
•
Medication identification
•
Lot and expiration
•
Rx Number
•
Directions
•
Time of administration

Most oral-solid routine medications can be packaged in unit dose bags. We do not
package certain antibiotics that can cause cross-contamination of the packaging
machinery, hazardous medications, oncology medications, controlled substance
medications, and PRN medications in baggies. Patient specific OTC medications can be

SERIAL 260035-RFP

dispensed in baggies or bulk via manufacturers’ stock bottles. Each prescription is
appropriately labeled and dispensed in complete compliance with all federal and state
laws, rules, regulations, and provisions.

As part of our quality assurance process, we utilize Parata Check Pass technology as a
means to provide additional accuracy with the packaging of multi-dose or unit dose bags.
This system uses imaging to ensure that the correct medications are contained in each
bag, significantly eliminating the chance of a packaging error. This adds an extra layer of
efficacy and safety for your inmate patients that most other pharmacies do not utilize.

We also recommend that medication dispensing of strip packaging may be more
beneficial and cost-effective as a cycle fill where a14-day supply of all eligible medications
are dispensed on the same calendar day; and for medications orders in between the cycle
fill dates, those would be dispensed in a catch-up supply to the 14-day cycle fill. This
process is much more methodical and efficient for facility staff and was developed by
assisted living and long-term care facilities to reduce the potential of missed
medications.

With our proposed cycle fill solution, the dispensing process is essentially automated.
CHS and Diamond will create the cycle fill schedule for an entire year in advance and
medication orders needed in between the cycle will be the only medications that Diamond
will need to dispense each day as a catch up to the auto cycle-fill.

Proposed Benefits Include:

•
Improved efficiency by decreasing med-pass time
•
Less medication preparation time
•
Less cart space needed
•
Peel and administer a designated packet for each inmate patient
•
Parata Check Pass Technology for improved accuracy and quality assurance

We do not provide credit on unused or discontinued baggies as this is not permitted by the
Commonwealth of Pennsylvania nor the Arizona Board of Pharmacy. This is very
important to note as this solution, or a daily just-in-time modified model will most likely
be offered to CHS by resident and/or non-resident pharmacy providers. To work within
the State of Arizona, pharmacies must adhere to the more stringent regulations even if
the Board of Pharmacy in their respective state of licensure has conflicting or more
lenient requirements regarding medication returns in strip packaging

The only way a pharmacy can reclaim medications initially dispensed in baggies would
be to tear open those baggies upon return to their pharmacy and most likely return those
to a stock bottle on their pharmacy shelf and losing complete integrity of the returned
medication. For this reason, Boards of Pharmacy would frown, or possibly take
disciplinary action for medication misbranding as the pharmacy would lose its ability to
accurately account for a medication’s lot number and expiration date once it is removed
from the baggie. This is also a patient safety issue as your inmate patients could receive
outdated or recalled medications and you would have no way to know.

SERIAL 260035-RFP

Cycle-fill strip packaging is an alternative solution we provide at a separately negotiated
rate based on project specifications and needs.

On-Site Automated Dispensing Machine Alternatives to Swisslog

Information in this section is confidential and proprietary but still considered part of the
contract.

Arizona Dispensing Option

We are willing to support an option of acquiring a resident pharmacy permit and investing
the resources necessary to establish a separate brick-and-mortar pharmacy in the state
of Arizona or perhaps even leasing space from CHS to provide just-in-time onsite
dispensing should there be a loss of the current Swisslog dispensing process. An
Arizona-based Diamond pharmacy will provide job creation, economic development, and
sizeable tax benefits to local and state governments while showing our genuine
commitment.to Maricopa County, and the state of Arizona. A local presence would also
support a just-in-time daily delivery model of single and multi-dose pill packets to each
CHS facility that is being proposed by some industry competitors, although the concept in
our opinion does have some shortcomings operationally and comes with a significantly
higher program cost.

We were the first correctional/nursing facility pharmacy in the industry to deploy single-
and multi-dose pill packs to customers in 1993. Over the past three decades, we have
continuously used this packaging technology in hundreds of assisted living and skilled
nursing facilities to increase efficiency and productivity, decrease medication preparation
time, and help to solve staffing issues.

We realize correctional facilities struggle to find nursing staff. Any opportunity to reduce
the time necessary for nursing staff to perform functions not directly attributed to patient
care is certainly in the best interest of CHS.

With a possible Arizona presence, we are proposing that Direct-Observation-Therapy
(DOT) medications eligible for dispensing in single or multi-dose pill packets (baggies)
can be implemented by us at all CHS facilities. We will organize, package, and box by
unit, cell block, inmate name, date, and time of administration these just-in-time pill
packet medications. Medications that are unable to be packaged in pill packs are certain
antibiotics that can cause cross-contamination, hazardous, oncology, controlled
substances, and as needed (PRN) medications. Patient-specific OTC medications can be
dispensed in pill packs or bulk via manufacturers’ stock bottles. Each prescription will be
appropriately labeled and dispensed in complete compliance with all federal and state
laws, rules, regulations, and provisions.

DOT medications will be coordinated by us and placed on a daily fill schedule, where the
patient's medications are automatically dispensed and delivered together daily. Our goal
would be to automate this process on behalf of CHS so that all active prescriptions are

SERIAL 260035-RFP

delivered to CHS facilities prior to any inmate patients running out of medication.

As part of our quality assurance program, we use vision scanning to verify the accuracy of
each medication in each pill packet from our drug database. The technology utilizes
imaging to analyze the contents of each pill packet matching criteria from our database
for each pill, including the medication’s color, shape, length, width, contour, color, and size
for the highest levels of quality control ensuring the correct medications are in the proper
patient packet where available.

We would prepare, dispense, and deliver medications in pill packets daily Monday – Friday
from an Arizona-based pharmacy that are ordered by 1:00 p.m. MT on days that do not
fall on a holiday. The daily supply for the packets will be modified to accommodate
holidays and weekends. Late orders and emergency orders will be addressed by our
pharmacy or local emergency pharmacy as they are received.

This alternative model allows for orders to arrive at each facility daily prior to the following
morning medication pass. Each pack will be labeled with inmate's name, medication
name and strength, directions, lot number, expiration date, and the exact administration
date. Each packet will also contain a 2-D barcode identifying the medication contents that
the EHR can capture with a scan to document medication administration. We will check
and verify each packet electronically prior to dispensing.

To properly implement the packaging process, we will need to develop an interface
through the EHR or the JMS interface, utilizing daily facility inmate movement reports or
CHS system-wide data. This ensures that we will obtain the current inmate location when
labeling the pill packets and that only the medications needed for a specific daily med
pass will be dispensed, reducing waste and costs. The EHR interface will also need to
include accurate Hour of Administration (HOA) codes to ensure proper administration
times on each pill packet.

As a current Arizona licensed wholesaler and an FDA Registered Repackager, we are
already well positioned to support this system with first-dose starter stock in cost-
effective blister card packaging. As your team knows, pill packets alone are not a single
solution, and minimal stock support will be critical to ensure patient safety, timely
administration, and overall program success. We also recommend the administration of
controlled substances from stock as daily counts of individual packets on a flow record
would be highly cumbersome and time-consuming.

Daily pill packets may be a viable option to assist with staffing shortages, medication
storage, med-pass preparation time, actual med-pass time, and the need for medication
destruction. We are the industry leader helping facilities meet the unique challenges of the
correctional pharmacy industry. We have the experience, expertise, and financial
resources to offer this solution for CHS from an Arizona-based pharmacy that we
anticipate can be spun up in six to twelve months.

We recognize that CHS desires to be an innovator and leader in providing the best inmate
healthcare services and is relying on your pharmacy partner that will provide high-quality

SERIAL 260035-RFP

medication dispensing and pharmacy program management services to CHS. We are
innovators and will strive to find ways to streamline pharmacy services and improve staff
productivity at each CHS clinic in the event that Swisslog automated dispensing is lost.

If this option is of interest to CHS, we are certainly willing to have this conversation and
develop a collaborative plan and cost-proposal to make it a reality.

Medication Inflation and Cost-Avoidance Benefits in Collaboration with Diamond

As the nation’s largest provider of correctional pharmacy services, we have the largest
purchasing power in the industry. In most years, we can keep our client medication costs
lower than the annual drug inflation rate reflected in the CPI-U. In the past 5 years, CHS
has benefited from our purchasing power and cost-avoidance recommendations. In
2019-20 medication cost inflation was (-0.86%), in 2020-21 (-4.98%), in
2021-22 (0.98%), in 2022-23 (1.8%), in 2023-24 (1.61%) and in 2024-25 (2.01%).

Drug manufacturers regularly increase their prices, especially on branded drugs,
irrespective of overall economic trends. Fortunately, the price reductions brought by
generic and biosimilar drugs, our tremendous purchasing power and purchasing volume,
and use of rebates partially offset upfront brand-name drug price increases, which helps
moderate overall drug cost increases.

We purchase our medications from Cardinal Distribution, a nationally recognized
distributor, and from several manufacturers and generic distributors. We also participate
in national group purchasing organizations (GPOs) that further negotiate favorable drug
pricing for Diamond. These contract prices are seen in the low acquisition costs we
subsequently offer to our customers.

Over 1,800 correctional institutions in 49 states, including the Arizona Department of
Corrections with three separate medical vendors over the past 10 years and Maricopa
CHS for the past 20 years, currently put their trust in us each day to meet and exceed,
their/your medication dispensing and pharmacy program management needs. As the
longest tenured and most experienced pharmacy provider within the industry, we make
innovative pharmacy program management recommendations that often are not
considered by other industry providers. This results in cost savings and improved
efficiency.

Diamond Believes that Our Customers Receive the Greatest Cost-avoidance and
Value when Medications are Invoiced at the Time of Dispensing

Value Added Virtual Clinical Services Model Innovated by Diamond

Information in this section is confidential and proprietary but still considered part of the
contract.

24/7/365 Hours of Operation

SERIAL 260035-RFP

Around-the-Clock Customer Service and Consultation Benefit

We are open 24 hours a day, 7 days a week, and 365 days a year. Our staff of
regularly scheduled pharmacists is always available to:

•
Receive, process, and ship prescription orders
•
Answer questions and handle customer concerns
•
Coordinate emergency orders and responses

Diamond has regularly scheduled pharmacists and operational staff on duty every
moment of the year at our corporate pharmacy. They can immediately view patient
profiles and access databases (without being paged or awakened in the middle of the
night) to ensure safe and effective therapeutic decisions that best serve our clients.

Unit-Dose Advantage is a Key Safety Benefit Unique to Corrections

We package, label, and dispense medications in a manner that allows us to accept more
medications for return and reclamation while protecting the safety of your patients and
the integrity of reclaimed medications.

A true unit-dose packaging system has the back of each individual bubble of the blister
card (on those medications eligible for reclamation) labeled with the medication’s name,
strength, lot number, expiration date, and manufacturer.

So why is this important for CHS?

Distinguishing between unit-dose and unit-of-use packaging is extremely important
because unit-dose packaging ensures the safety of your patients during the medication
return and reclamation process as the medication’s lot number and expiration date are
tracked and always documented. Unit-of-use packaging does not track this information
and CHS would most likely be at great risk of receiving outdated or recalled medications
that have been reclaimed and re-dispensed by other pharmacies.

Preserving the lot number, expiration date, and sanitary condition of each individual
bubble of the blister pack on medications eligible for reclamation is a choice available for
all pharmacies. Diamond believes in doing things right while also doing the right things
for our clients and the industry.

Financially, a pharmacy providing credit on returned medications from correctional
institutions around the country will not offer credit and then discard those medications.
That would be a significant financial loss to the pharmacy. Some pharmacies may remove
medications from returned blister cards, return them to a stock bottle and comingle the
lot numbers, then repackage, and re-dispense the medication to correctional clients. This
violates most State Boards of Pharmacy regulations as all medication accountability is
lost. Most Boards of Pharmacy do not permit reuse if a medication is relabeled. When
Diamond receives the individual bubbles back, we do not punch the pills out; rather, we
assemble each previously labeled bubble into a new blister card, maintaining their

SERIAL 260035-RFP

integrity.

These pharmacies cannot guarantee the integrity of their
dispensed tablets, the lot number, or the expiration date of
the medication. This is because the medications returned by their
customers around the country do not remain in the original intact
bubble packaging. The medication may then be mixed into a large
manufacturer’s stock bottle and subsequently re-dispensed to
patients, including yours.

Unique Card Identification is a Loss Prevention Benefit Unique to Diamond Customers

We, to our knowledge, are the only pharmacy which provides a unique identifier (different
from the prescription number) on each prescription label which helps to account for every
piece of product dispensed or distributed to CHS from Diamond.

Without this unique barcode identifier, investigating and reporting any mishandling,
diversion, or inappropriate prescribing of medication would be difficult (if not impossible).
The unique identifier embedded by onto our label is the only way to track medications to
the individual blister card or individual piece of product for non-oral solid medications.
Most pharmacies can only identify products according to the prescription number, which
is problematic for facility security staff when multiple blister cards (or inhalers, injections,
creams, etc.) are received in fulfillment of a prescription or stock order.

Knowing the exact cards that were electronically checked in when the shipment is
received at the facility allows us to identify each MRA who checked in the order for
complete accountability and documentation of the received order.

High-Quality Equipment Provided on Loan at No
Additional Cost

Medication Carts

Our carts are top-of-the-line, durable, lightweight, and narrow for easy maneuverability
throughout correctional facilities. Our carts contain:

•
Three blister card drawers
•
A three-inch drawer (for the storage of topicals, ophthalmic medications, etc.)
•
A separate, locked narcotic box
•
Convenient features such as an extension table, an attached cup holder,
an attached MAR holder, and a trash receptacle, when requested

Our locked narcotic box meets all U.S. Drug Enforcement Administration (DEA), State
Board of Pharmacy, and State Board of Nursing requirements related to the provision of
a double-locked storage area.

Medication carts vary in size, style, and options. We already provides CHS with 75 locking

SERIAL 260035-RFP

medication carts on loan for medication administration along with routine and emergency
cart maintenance.

The number of carts and model is determined by facility size, average daily population, and
at the discretion of Diamond. To date, all additional medication cart requests have been
accommodated at no additional costs or upcharges.

Discharge and Release Planning

Information in this section is confidential and proprietary but still considered part of the
contract.

Diamond Minimizes Disruptions Caused by Recalls and Backorders

We have a team of staff pharmacists and purchasing department personnel dedicated to
addressing manufacturers’ recalls and medication backorders. When we are notified of a
recall, our team immediately reviews our current inventory and removes the item
identified in the recall from our pharmacy and/or distribution area(s). We then generate
multiple reports to identify patients who may have received the recalled medication and
those customers that may have received the medication as stock.

From there our team notifies each customer, relevant prescribers, and facility personnel
according to our pre-established protocols and procedures. If a medication must be
returned to us or the manufacturer, procedures are communicated to each facility based
on the manufacturer’s recall instructions

Our pharmacists and purchasing manager also check backordered items daily. If a
backorder appears to be lengthy, our pharmacists investigate alternative supply lines. In
addition, alternative medications are presented to your prescribers for consideration.
Backorder memos (please see the example below) are also sent to your facility and
Pharmacy Director bi-monthly with recommended alternatives, if available.

Our prescription volume, and the diversity of our extensive customer base of correctional
institutions, long-term care institutions, and assisted living facilities require us to always
maintain a large inventory of prescription and over the counter (OTC) medications.

Lorazepam injection:

Over the past 18 to 24 months, all pharmacies nationwide in all service areas including
retail, hospital, long-term care, and correctional have experienced shortages and
backorders on a key medication used in our industry – lorazepam SDV injection.

When rationing is implemented by wholesalers during a shortage, the wholesaler will
proportionally ration their supply to customers based on their recent purchase history. Our
purchases are well over $350 million in medications annually and we purchase a
significant amount of lorazepam injection yearly. As a result, our allotment of lorazepam

SERIAL 260035-RFP

during a backorder is much higher than local or smaller correctional industry pharmacies
with lower purchasing history.

Smaller pharmacies will often push a narrative that bigger is not better; yet when there is
a shortage of a particular medication the opposite is true. Diamond was able to
successfully mitigate the impact of the lorazepam shortage to our customers. At the first
sign of the shortage, our purchasing department immediately purchased all available
supplies of the lorazepam. From there, we instituted a rationing program of our own and
used our allotted supply and rationed supply to fulfill patient specific orders for
lorazepam the lorazepam injection. We also implemented a policy that limited stock to a
single vial per facility per day to stretch our supply as far as possible.

Our purchasing power and plan of action was successful and most of our customers
experienced little to no impact on inmate care. Specific to CHS, We have gone above and
beyond to keep a special supply available to CHS until just recently regarding lorazepam
carpujects when that supply became exhausted.

Bi-cillin LA injection:

Similar to the lorazepam narrative, Bi-cillin LA is a common medication used by
correctional healthcare systems. For several years there has been an on-again-off-again
supply of Bi-cillin LA. Thinking that the supply issue was resolved in 2025, it came to be
that a subsidiary of the manufacturer initiated a recall and the medication was once again
on short supply. Diamond for some time has maintained an emergency supply
specifically for CHS that has allowed us to meet your needs to this point without any
significant impact to patient care. When your Pharmacy Director could no longer acquire
Bi-cillin LA from your 340B account, Diamond was able to offer product to bridge the CHS
need.

Medication Assisted Treatment (MAT)

Medication Assisted Treatment (MAT) utilizing FDA approved medications is a central
component of the standard of care for the treatment of individuals with Opioid Use
Disorders (OUDs). Statistically the Bureau of Justice Statistics surveys found that nearly
two-thirds (63%) of people in jail meet criteria for drug dependence or abuse. A
combination of behavioral interventions decreases opioid use, increases treatment
retention, reduces overdose, and reduces criminal activity.

We are the nation’s correctional pharmacy leader in MAT program development and
maintenance. We have been involved with MAT programs in some capacity for several
decades. We currently dispense or distribute tens of thousands of doses of MAT
medications monthly to CHS and have the financial strength to support and acquire the
significant demand for these pharmaceuticals. We have access to MAT medications in
oral-solid dosage forms, dissolvable films, and long-acting injections. As medication
experts, we understand that the correct medication, dosage, and length of treatment for
a client is essential.

SERIAL 260035-RFP

Our investment in developing proprietary software workflow systems and daily workflow
CQI checkpoints specifically for daily controlled substance medications, packing sheets,
invoices, and hard copy prescriptions eases the burden of your onsite personnel. DEA
tracking requirements, product packaging, and most importantly STAT patient release
considerations with MAT prescription supplies are handled by us so that the patient has
a sufficient supply until their next MAT clinician/patient encounter.

FDA and Arizona Licensure as a Wholesale Distributor of Stock Legend Medication

We are properly licensed as a wholesaler to distribute prescription stock medication in the
state of Arizona. This status is important, as all correctional institutions including
Maricopa have prescription stock on hand for first dose and other administration
requirements. Sadly, this is also the subject most argued by pharmacy providers who do
not work with an Arizona wholesaler for stock medications. There is no basis for argument
regarding wholesale requirements. The Federal Food, Drug & Cosmetic Act § 503(e)(2)(A)
and § 503(e)(3)(B) are very clear.

The FDA is also very clear by requiring stock distribution via a wholesaler when a
pharmacy’s total annual dollar volume of prescription drugs sold to licensed practitioners,
including correctional institutions, exceeds five (5%) percent of the dollar volume of that
retail pharmacy’s annual prescription drug sales.
Please reference [64 Fed. Reg. 67,720, 67,748 (Dec. 3, 1999)]

We know that we dispense more than 5% of our gross sales as stock for correctional
facilities. In fact, we dispense approximately 13% of all medications to correctional
institutions as stock. For this reason, we strictly comply with rules and regulations
established by the FDA and Arizona wholesaler laws.

We encourage your evaluation team to have this conversation with all respondents to
your procurement and to ask them a simple question, “What wholesaler do you partner
with in the state of Arizona for stock distribution of prescription medications?”

It is reasonable to assume that if Diamond distributes
more than 5% of our gross sales as stock to our
correctional customers, other correctional pharmacy
services providers must also distribute at least 5% of
their gross sales as stock

FDA-Registered Repackager Compliance

If a pharmacy is under the 5% rule we mentioned above, or working with a wholesaler as
required for stock distribution if above the 5% rule, an FDA Registered Repackager must be
utilized to legally sell CHS legend stock medications that are not in the original
manufacturer packaging. Simply stated, if you are receiving stock medications in blister
card packaging, those blister cards legally need to be obtained from an FDA Registered
Repackager.

SERIAL 260035-RFP

We know that most correctional institutions house first-dose, interim, or routine supplies
of legend stock medications. Therefore, Diamond was the first industry provider to
establish a wholly owned subsidiary FDA Registered Repackager – RemedyRepack.

Our use of RemedyRepack permits us to legally distribute legend stock medications in
blister packs and other packaging in addition to bulk bottles so that Maricopa can
effectively manage the cost of stock medications. We encourage your evaluation team
to verify the name of the FDA Registered Repackager each respondent will utilize to
ensure regulatory compliance during their proposal evaluation.

Drug Quality and Security Act (DQSA) Compliance

The Drug Quality and Security Act of 2013 (DQSA) was signed into law with the intent of
building an electronic system to identify and trace prescription drugs as they are
distributed as stock in the United States.

With the tremendous amount of counterfeit medications infiltrating the supply chain, the
goal of the system is to track a drug at each point in the supply chain, so the drug can be
verified as being procured from a legitimate source. To avoid purchasing
pharmaceuticals from the gray market, we contract with Cardinal Distribution, one of the
three national prime pharmaceutical wholesalers. We also obtain some pharmaceuticals
from reputable secondary wholesalers that only purchase directly from drug
manufacturers and that maintain transaction information (TI) / transaction history (TH) /
transaction statement (TS) and readily provide this information to us with each purchase.

Transaction Documentation

Under DQSA, any stock sale must be accompanied by transaction information (TI),
transaction history (TH), and a transaction statement (TS) in paper or electronic format.
The transaction history must include transaction information for each transaction
originating with the manufacturer of the product to the current vendor. These regulations
apply to stock sold by a licensed wholesaler or a licensed pharmacy.

Electronic Pedigree Documents

We provide customers with access to our online portal to retrieve and print pedigree
information when needed. The web-based portal has basic search functions for a
customer to look up their information based on date, purchase order, and lot number.

5.6.1.1.1 Reporting

5.6.1.1.1.1
Medication Administration Records

Provide a sample of the Medication Administration Records that are generated and
supplied to the facilities on a monthly basis.

In those instances when Fusion is offline, we provide adequate supplies of medication

SERIAL 260035-RFP

administration records (MARs) to serve as legal and medical records of the drugs and
therapy administered to the patients in your facilities. These forms are printed on heavy
stock and are pre-punched with large holes to withstand repeated use or provided in PDF
for them to be printed on site at each CHS clinic.

Each MAR contains:

•
Patient name, identification number, date of birth, and location
•
Facility name and/or number
•
Charting dates
•
Medication name, brand, prescriber, and directions
•
Original order and discontinue dates
•
Hour and date of med pass
•
Initials and signature of individual administering medication
•
Room for medication notes such as injection-sites, results observed,
and any reasons for non-administration

5.6.1.1.1.2
Pharmacy Management Reports

Provide samples of the pharmacy management reports that are generated for the
facilities on a monthly basis. These should include the following at a minimum:

5.6.1.1.1.2.1
Detailed patient profiles
5.6.1.1.1.2.2
Patient drug allergy and drug interaction alerts
5.6.1.1.1.2.3
5.6.1.1.1.2.3 Monthly drug usage per patients
5.6.1.1.1.2.4
Drug utilization report
5.6.1.1.1.2.5
Continual narcotic controlled substances inventory
5.6.1.1.1.2.6
Monthly psychotropic usage report
5.6.1.1.1.2.7
List of patients taking medications that are known to produce adverse side
effects when they are exposed to the sun
5.6.1.1.1.2.8
Total doses per patient dispensed
5.6.1.1.1.2.9
Percentage of patients on medications
5.6.1.1.1.2.10
Percentage of patients on psychotropics medications
5.6.1.1.1.2.11
Formulary vs. non-formulary medications dispensed
5.6.1.1.1.2.12
Number of prescriptions per patient
5.6.1.1.1.2.13
to low usage by dollar amount
5.6.1.1.1.2.14
High to low usage by quantity dispensed
5.6.1.1.1.2.15
Medication breakdown listed by specific physician
5.6.1.1.1.2.16
Medication classification report
5.6.1.1.1.2.17
Cost containment recommendation report
5.6.1.1.1.2.18
Side effect and drug interaction report
5.6.1.1.1.2.19
Stop date report

Diamond or Fusion is able to provide each report stipulated in the requirement above with
most of those reports already part of our monthly Formulary Management Reporting
package. Detailed patient profiles are available 24/7 in our online reporting dashboard.
Patient drug and allergy reports are emailed to the MRAs when clarification is needed.
The perpetual narcotic controlled substance inventory is recorded on paper flow records

SERIAL 260035-RFP

for each medication until that capability is available from Fusion or the 2026 Pyxis project.
Photo- and heat sensitivity reports are provided daily to CHS and facility management
staff to comply with the Graves vs. Arpaio litigation.

Analyzing monthly utilization, formulary management trends, medication expenditures,
clinical service metrics, polypharmacy information, and your clinicians’ overall
prescribing habits is critical for effectively managing your budgetary dollars and ensuring
proper care. It is impossible to manage budgetary dollars and clinical outcomes without
meaningful reports and analytics.

The facility and administrative levels need accurate and dependable reporting, where
data is presented in a user-friendly and easy-to-understand format. Our high-quality
reports reflect our customers’ specific needs.

Maricopa will continue to have access to over 300 standard reports/charts and Diamond
can customize and create reports to meet your facility’s specific needs. Essential, ad hoc,
requested, and customized reports are all provided at no additional cost. All reports are
provided, maintained, and disposed of in compliance with all federal and state laws and
department policies and procedures. This includes Health Insurance Portability and
Accountability Act (HIPAA) regulations.

Diamond’s Online Reporting Program (ORP) Already Provides CHS With 24/7/365
Access to Reports and Patient Information

In addition to the expansive access to printed reports, electronic reporting is yet another
Diamond innovation that we introduced to the correctional pharmacy industry. Our
extensive history and experience have allowed us to develop meaningful and informative
reports tailored to meet the specific needs of our customers.

ORP is already providing CHS with a straightforward way to retrieve accurate data
immediately by logging in to our real-time web-based dashboard to build a customized
report. You can continue to generate many different reports with ORP because you—the
user—can view and print the data based on the parameters you choose, with sorting
available by patient, medication, and prescriber. CHS easily accesses our statistical
reports whenever you need them on a 24/7/365-accessible dashboard in a user-friendly
and easy-to-understand format.

ORP Functions Made Simple

•
Reviewing single or multiple CHS clinics, individually or collectively
•
Reviewing multiple therapeutic classes, individually or collectively
•
Filtering reports by individual or multiple patient(s), medication(s), and
prescriber(s)
•
Viewing medications by formulary, non-formulary, or both
•
Filtering by stock, patient specific, or both
•
Selecting brand name medications, generics, or both
•
Providing medication history with directions
•
Selecting by keep-on-person (KOP) or directly observed therapy (DOT) status

SERIAL 260035-RFP

•
And much more…

We provide ORP at no cost to CHS for you to have a powerful
management tool that provides total prescriptive and prescriber
accountability and unmatched financial reporting and analysis.

5.6.1.1.1.2 Invoices

Invoices containing drug name, NDC and AWP.

Diamond invoices a minimum of once monthly but can invoice more frequently upon
request. Each invoice details all charges for the current month, any unpaid balances, and
any credits issued in the current month. Customized invoices over the past 20 years
accommodate all information currently required by CHS. Our invoices are formatted as
Excel spreadsheets that can be downloaded from our sFTP site or by hard copy.

See proposal for sample
invoices.

5.6.1.1.1.4 Inspections
Provide a sample of the consultant pharmacy quarterly inspection including the items
looked at and how the report is formatted.

A fully credentialed, Arizona licensed pharmacist from Diamond will continue to conduct
in person quarterly inspections of the medication rooms in your facilities. The inspection
helps to ensure that CHS is not placed at risk and complies with all relevant federal, state,
and local laws, rules and regulations; the Controlled Substances Act; the Arizona Board
of Pharmacy; National Commission on Correctional Health Care (NCCHC), American
Correctional Association (ACA), and the Joint Commission requirements and standards.

During facility inspections, Jeff DiGiorgio RPh., is there as a resource. This is extremely
important because he is familiar with each facility’s security requirements, physical
layout, rules, and regulations. Jeff also has an established relationship with your
administrative team to provide a comprehensive and honest inspection report.

During an inspection visit, we review the following:

•
The cleanliness and organization of the medication rooms
•
Medication ordering, charting, documentation, inventory, and record keeping
•
Narcotic and sharps record keeping and counts
•
The presence or absence of outdated, discontinued, or recalled medication
•
Medication distribution and med pass procedures
•
The contents of the emergency (ER) kit and/or crash cart
•
Refrigerator temperature and contents
•
Stock levels
•
The pharmaceutical care of patients
•
Medication utilization and individual therapies
•
Appropriate storage and security of medications and supplies
•
Existence of and compliance with appropriate policies and procedures for

SERIAL 260035-RFP

medications
•
Current reference materials include the Nursing Drug
Handbook (NDH), poison control center information, do-
not-crush lists, etc.

Our signed inspection reports include observations, recommendations, and suggested
corrective actions. Following inspections, the results are discussed with the facility
designees and CHS Pharmacy Director. During subsequent inspections, we review all
previous recommendations to ensure compliance, and that corrective action was taken
to maintain accreditation standards.

See proposal for sample reports.

5.6.1.2 Qualifications

Company History and Extensive Industry Experience

In 1970, pharmacists Gilbert and Joan Zilner acquired Diamond Drugs, a small corner
pharmacy in Indiana, Pennsylvania, initially established in 1918. Over the following
decades, their family-owned business expanded to serve both the local community and
long-term care institutions. In 1983, Diamond submitted its first proposal to provide
pharmacy services to a correctional facility—a pivotal moment that transformed the
company into the national leader of correctional pharmacy services.

Today, we are the largest privately held correctional pharmacy provider in the U.S., serving
over 1,800 correctional institutions and hundreds of thousands of patients nationwide. We
offer a comprehensive suite of pharmacy services, including patient-specific medications,
inhouse custom compounding, inhouse IV compounding, respiratory therapy, MAT
program support, limited-distribution medications, regulatory and DEA-compliant stock
distribution programs, technology solutions, alternative packaging options, on-site
dispensing solutions, and medical supplies.

Diamond provides comprehensive pharmacy services to over 210,000 inmates across 12
state Departments of Corrections ranging in census from 1,400 to over 35,000 per
correctional system, with additional support to four more DOCs through partial dispensing
and repackaging. The remaining patients are served in local, county, and regional jails,
juvenile centers, work-release programs, and forensic treatment facilities.

Our growth is driven by competitive pricing, reliable delivery, exceptional customer
service, and a loyal, experienced workforce. We have never changed our name, sought
venture capital, or acquired competitors, choosing instead to reinvest in our operations
and technology to serve our clients better.

With nearly 1,000 employees across 15 internal departments, Diamond values continuity
and expertise. Nearly one-third of our team has been with us for over 10 years, and many
employees have celebrated 20, 25, or even 30+ years of service. This deep institutional
knowledge ensures consistent, high-quality care and long-term client relationships built

SERIAL 260035-RFP

on trust and integrity.

As our client list has grown and industry demands have changed, Diamond has grown to
meet these demands accordingly by establishing two wholly owned subsidiaries
(Sapphire and RemedyRepack) and multiple divisions within our corporate infrastructure.

Our Extended Corporate Family

RemedyRepack plays a key role in our operations by legally repackaging legend stock
medications into affordable 30- count blister cards. By using RemedyRepack, we can cut
program costs, maintain regulatory compliance, and avoid relying on outside vendors to
manage our large-scale repackaging needs.

Diamond Distribution was established to ensure full compliance with state and federal
regulations related to the distribution of stock medications. According to federal law—
and many state laws—pharmacies are limited to dispensing no more than 5% of their
gross dollar sales as stock.

Diamond, like most correctional pharmacies, dispenses more than this 5% threshold. That
is why we strictly follow all applicable U.S. Food and Drug Administration (FDA) guidelines,
DEA guidance, and state wholesaler regulations.

Diamond Medical Supply offers over 10,000 products tailored to the needs of our
correctional customers. As a reliable backup for medical supplies, we provide rapid order
turnaround and flexibility to purchase items individually rather than by the case. Many of
our frequently ordered products are available for convenient online ordering at
diamondmedical.com.

OPTICS – As the demand for clinical services has grown across the industry, Diamond
has led the way with enhanced offerings through our Office of Pharmacy Therapeutics
and Integrated Clinical Services (OPTICS).

Our team of highly credentialed Clinical Doctors of Pharmacy set the standard in
correctional pharmacy care. They regularly present at major industry conferences, such as
ACA and NCCHC, and when requested they will work extensively with your team on
medication consultations, formulary development, REMS medication management, and
Alternative Treatment Recommendations (ATRs) for non-formulary medication orders,
which significantly reduces pharmacy expenditures and increases patient care — topics
we’ll cover in more detail later in this proposal.

Preparing for Continued Growth

Information in this section is confidential and proprietary but still considered part of the
contract.

Industry Experience and Expertise that Truly makes a Difference

SERIAL 260035-RFP

Diamond has been dispensing prescriptions for juveniles and inmates in the state of
Arizona since 1998. We currently service 31 correctional institutions in Arizona ranging in
capacity from 30 to 5,839, which includes Maricopa County and the Arizona Department of
Corrections.

Diamond’s growth and industry reputation are the result of exceptional pharmaceutical
services, exceptional customer service, and exceptional reliability. We could not partner
with 1,800 correctional and juvenile facilities or be the preferred pharmacy vendor for
most correctional healthcare groups without setting and meeting exceptional standards.

By prioritizing the needs of our customers, we strive
to create an environment that promotes empathy
and understanding of what is most important to
you. By walking in your shoes, Diamond gains
valuable insights that shape our services to best
meet your expectations.

Innovation and adaptability are also essential for Diamond to succeed in an ever-evolving
correctional healthcare landscape. We support and encourage our employees to rise to
the challenge and create a culture of continuous improvement and growth. By thinking
big, taking calculated risks, and learning from mistakes, Diamond promotes exploring new
ideas and approaches, to the ultimate benefit of our customers.

Collaboration and teamwork are deeply ingrained in Diamond’s approach to service. We
emphasize working together with our clients to achieve common goals. Your four
Executive Consultant Pharmacists collaborate across teams and departments, and with
our external partners to deliver the best possible care and services to CHS.

Diamond offers Professional comprehensive pharmaceutical services for all prescription
and over the counter (OTC) medications, compounds, and intravenous (IV) solutions, as
ordered by your designated prescribers.

We label, package, and dispense all medications in full compliance with all current and
anticipated federal, state, and local laws, rules, regulations, and provisions, or in their
absence, trade and industry best practices and standards.

We will never take our industry status or client relationships for granted. We work
diligently every day to exceed the needs of our current customers while striving for
continued growth and renewing partnerships with clients such as Maricopa CHS.

Superior Customer Service & Support should be expected by Maricopa

Diamond takes pride in delivering the highest quality level of service for all customers and
patients. Simplicity is a critical aspect of our customer-centric approach, and we aim to
simplify processes and remove unnecessary complexities.

Diamond focuses on what matters most to our

SERIAL 260035-RFP

customers and continuously innovates to provide
streamlined solutions. By empowering colleagues
closest to the work to make informed decisions,
Diamond ensures our services are efficient and
tailored to customer needs. This value reinforces
Diamond’s commitment to delivering exceptional
customer experiences..

We simplify our service by:

•
Ensuring a managing pharmacist is available 24/7/365
•
Maintaining a fully staffed call center for immediate response to customer
calls
•
Surveying customers to continually improve quality of service
•
Providing proactive, routine consulting for our customers
•
Anticipating industry shifts and planning accordingly

At Diamond - We Care About Care. Much has changed since Diamond opened for
business in 1970, but one thing that has remained constant is our commitment to provide
our clients and patients with superior value, competitive pricing, unparalleled service, and
unsurpassed care.

We will always be upfront and honest regarding our capabilities and our limitations.
Through our honest approach to business and values you find only in a family-owned
business, we will deliver on our commitments and exceed your expectations.

Employees with a Wealth of Correctional Pharmacy Expertise

Diamond utilizes a team approach to provide exceptional value and help customers
achieve their medication dispensing and pharmacy program management goals. CHS will
always have Diamond experts available when you call for support.

Our department supervisors ensure the highest level of quality and accountability for our
correctional clients. Most Diamond supervisors have been with us for over 10 years, and
many have over 20-continuous years of employment with Diamond. Our team knows the
industry and that provides value for Maricopa County.

Legal Department

To help ensure regulatory compliance, Diamond has on-site legal counsel to monitor the
rules, regulations, and laws that govern the correctional pharmacy industry and the
customers we serve.

As industry leaders, we must keep our customers and ourselves current on industry
changes, such as federal, state, and local legislation and regulations. Diamond is
connected to these changes and their impact on the industry. In addition to in-house
counsel, we also have access to and retain the services of legal experts in several other

SERIAL 260035-RFP

pharmacy and regulatory disciplines (such as 340B) for consultation as needed.

In our relationship, CHS has not been fined nor subject to disciplinary actions regarding
your medication dispensing and pharmacy program management services provided by
Diamond.
Corporate IT Staff and Support

Diamond’s Information Technology (IT) Department provides the highest-quality support
and services to facilitate our mission as it applies to the management, delivery, and
furtherance of technology to our customers.

Capabilities and Strengths

Diamond currently employs an in-house IT department of 27 professionals. With these
available personnel resources, financial strength, 24/7/365 support, and high-level vendor
support contracts, Diamond efficiently and promptly addresses any technology issues.
We continually strive to incorporate the newest technologies for our staff and customers.
Network Administrators

Our experienced network administrators are very familiar with the many technologies
deployed by Diamond. They are Diamond's second level of defense for resolving issues
and providing support. Our network administrators provide ongoing systems analysis to
verify that all systems are running at their optimum level.

Systems Database Administrator

An in-house systems database administrator provides ongoing database tuning and
database analysis, ensures high availability via mirroring and clustering, and develops
and administers business intelligence warehouses.

Training Coordinators

Diamond’s training coordinator will ensure facility users of Diamond technologies are
capable and fluent. They analyze all training needs, write training documentation, design
training courses, and provide a ready-to-help attitude for any questions.

Systems Support Technicians

Finally, at the heart of the IT Help Desk are the systems support technicians. They
consistently put forth extra effort to resolve issues in a timely and efficient manner. They
are not afraid to take on new challenges as they are presented. They provide top-notch
communication and take pride in delivering a positive end user experience.

Key Personnel with Extensive Correctional Pharmacy Experience and Expertise

SERIAL 260035-RFP

For the full list of individuals and their experience, refer to the proposal.

2.1
Contract Qualifications

2.1.1 Experience

Diamond meets and exceeds the requirements outlined in Section 2.1.1. We
have more than 43 years of demonstrated successful experience providing
comprehensive correctional pharmacy services to large, multi-facility jail
and prison systems nationwide. Diamond currently services 12 state
Departments of Corrections that range from 1,400 to over 35,000 inmates
per system. We also have current and past experience with very large county
systems like Shelby County TN, Davidson County TN, Clark County NV, San
Diego County CA, Fresno County CA, Duval County FL, Franklin County OH,
and many more. Our extensive experience supporting high-volume, multi-
institutional environments—combined with our proven performance as
Maricopa County’s incumbent pharmacy provider—demonstrates our ability
to effectively manage complex correctional health systems comparable in
size and scope to the Maricopa County Jail facilities.

2.1.2 Interfacing Capabilities

Diamond has maintained a fully functional interface with Fusion since 2016
and has worked collaboratively with their platform for Maricopa County
since 2024. In addition, Diamond has supported Swisslog technology at
Maricopa since its initial implementation in 2021, ensuring seamless
dispensing workflows and reliable automation performance. Contracting
with Diamond is the only way to completely ensure the continuity of your
existing interface requirements.

Beyond Fusion and Swisslog, Diamond has existing interfaces in place with
all correctional EHR platforms including, but not limited to Sapphire,
TechCare, eClinicalWorks, Fusion, eOMIS, Pearl, CorEMR, NextGen, APS,
and many more.

With respect to Automated Dispensing Machines (ADMs), while they are not
commonly utilized in correctional settings, we were the first industry
provider to support Swisslog/Talyst automated dispensing at the 2,500 bed
Allegheny County Jail in Pittsburgh over 10 years ago. Diamond also brings
substantial experience with ADMs from our long-term care division. We
have partnered with Omnicell since 2007 and most recently integrated a
new automated dispensing interface with Advanced Pharmacy Solutions
(APS) in 2024. We also have a relationship with Capsa Healthcare who have
recently entered the industry with their proprietary automated dispensing
technology. This experience provides a solid foundation should Maricopa
County choose to expand or replace its automation capabilities in the
future.

SERIAL 260035-RFP

2.1.3 Fusion EHR and Swisslog/Talyst ADM

Diamond understands and fully supports the continued use of the Fusion
EHR and Swisslog/Talyst ADM systems as outlined in Section 2.1.3.

2.1.4 Letters of Intent

Diamond has provided a Letter of Intent from Fusion EHR. However, it is our
understanding that Swisslog has since ceased North American operations,
making it impossible to obtain a Letter of Intent from them at this time as
our current list of contacts are no longer employed by Swisslog or fail to
return phone calls and email correspondences.

2.1.5 Policy Compliance

Diamond has read, acknowledges and currently meets or exceeds all
applicable local, state, federal, and Boards of Pharmacy laws, rules,
regulations, along with accreditation and association standards including
those listed in Section.2.1.5

2.1.6 340B Program

Diamond provided guidance, consultation, and expertise regarding the
development of the current 340B program for CHS. As Maricopa County’s
existing pharmacy services provider, and the current Contract Pharmacy to
your 340B program, Diamond already collaborates with CHS on the
County’s 340B program and will continue to support its effective
management, optimization, and compliance into a new contract period.

2.1.7 340B Plan

Diamond is already an approved Office of Pharmacy Affairs Information
System (OPAIS) contracted pharmacy. All information regarding our 340B
program participation, including our detailed plan for drafting and executing
the 340B Contract Pharmacy Agreement, has been prepared.

2.1.8 340B Contracted Facilities

Diamond has provided the required list of facilities with designated contact
persons where 340B programs are currently managed. This information has
been submitted and contains confidential and proprietary details that
Diamond wishes to protect from release into the public domain.
We respectfully request that this information be treated as confidential and
not released.

SERIAL 260035-RFP

2.1.9 Returns and Credit

Diamond will continue to provide credits to CHS on eligible medications
returned in accordance with our very generous credit policy. A full
breakdown of our return and credit policy is included in our pricing package
under Section 2.2.10 - Pricing. It is important to note that we package, label,
and dispense medications in a manner that allows us to accept more
medications for return and reclamation while protecting the safety of your
patients and the integrity of all returned medications.

A true unit-dose packaging system has the back of each individual bubble
of the blister card (on those medications eligible for reclamation) labeled
with the medication’s name, strength, lot number, expiration date, and
manufacturer. Otherwise, medication integrity cannot be guaranteed as
required by CHS in this RFP requirement.

2.2
Contractor Requirements

2.2.1 Medication and Pharmacy Equipment

Diamond has reviewed, acknowledges, and will continue to provide all items
outlined in Section 2.2.1, Medication and Pharmacy Equipment. This
includes generic medications, over-the-counter products, pill-crushing and
pill-cutting devices, handheld scanners on loan, and medication carts on
loan. Diamond will also continue to provide routine cart maintenance at no
additional cost to CHS.

2.2.2 Delivery, Packaging, and Repackaging

Diamond has reviewed, acknowledges, and will continue to provide all items
stipulated in Section 2.2.2 without any deviations or exceptions., Unit-Dose
Advantage is a key safety benefit that we believe is unique to Diamond as
we label the individual foil backing of each bubble of the blister card with
the drug name and strength, lot number, expiration date, NDC, and
manufacturer.

2.2.3 Prescription and Program Management

Diamond has reviewed, acknowledges, and will continue to provide all items
stipulated in Section 2.2.3 or as modified in responses to RFP questions
without any deviations or exceptions., Jeff DiGiorgio, Tammy Conroy, Matt
Catanzaro, and Cindy Gray will continue to serve as Maricopa County’s
Executive Consultant Pharmacists (ECPs) and primary points of contact for
issue resolution and clinical concerns. They will continue to maintain
oversight of prescribing practices and actively monitor patient profiles to
ensure safe, appropriate, and therapeutic medication management. They
will also continue to work promptly on resolving all cut date and interface

SERIAL 260035-RFP

issues provided by the MRA team.

Unique to Diamond is 24/7/365 access to a regularly scheduled licensed
pharmacist in our corporate pharmacy (that is not on call via pager or
answering service). Diamond will also maintain contracts with your current
local pharmacies to ensure emergency prescriptions remain readily
available when needed.

2.2.4 Audit and Reporting

Diamond has reviewed, acknowledges, and will continue to provide all items
stipulated in Section 2.2.4 without any deviations or exceptions. Diamond
will continue to conduct in-person-on-site quarterly inspections at all CHS
clinics and will provide comprehensive documentation following each visit
to the CHS Pharmacy Director.

2.2.5 Scope of Data Access

Diamond has reviewed, acknowledges, and takes exception to a few
subcategories within stipulation 2.2.5 with explanations provided in Section
5.6.1.3 – Exceptions to the Solicitation. Unless otherwise noted in Section
5.6.1.3, Diamond will continue to provide all items stipulated in Section
2.2.5 without any deviations or exceptions.

Most notably, due to the architecture of our dispensing infrastructure,
Diamond is not in a position to provide direct query access or interaction
with our raw database. This would not only be a HIPAA violation, but it will
endanger our company’s ability to maintain security standards, productivity,
and system integrity. We are willing to meet a data export obligation by
providing the ORP program portal (discussed earlier) which can then allow
for queries and exports to be directed and encapsulated so as to mitigate the
aforementioned risks and concerns.

We are willing to allow exportation of data elements that are within our
systems and not deemed a liability risk to the company. If the values
requested are in such a category, we will propose alternative options to help
the county reach their long-term goals and have done so in the past.

We can certainly include financial transactional data as part of an export. It
must be noted that transactions which involve 340B or Swisslog dispensing
may have incorrect data due to the nature of those programs and processes
until actual billing is generated. We can certainly work with the county to
find reasonable solutions to meet the desired goals.

Unfortunately, we are not in a position to provide medication administration
details as we no longer have access to the Fusion eMAR which is the legal
document associated with such activity. We are able to provide fill and refill

SERIAL 260035-RFP

data as desires as well as patient dispense information. True utilization at
the patient level can only be assessed by data from the eMAR.

We confirm shipment and fulfillment dates via software integration and feed
such data back to the county EMR of choice. We also denote these
designations on the delivery manifest, and such information can be
accessed via our RECON applicate if the county so wishes to employ that
system. Email alerts and notifications can be directed to select or specific
staff for any given institution so that it is known what products are being
shipped as well as what products are owed and for what reason. This type
of notification can also be done as a fax-based report if desired to a given
institution or group of institutions.

2.2.6 Electronic/Online Access

Diamond has reviewed, acknowledges, and will continue to provide all items
stipulated in Section 2.2.6 without any deviations or exceptions. Order
renewals and refills will continue to be submitted via Fusion or Diamond’s
RECON program. Informational updates and requested statistics are
provided routinely to the CHS Pharmacy Director and during quarterly P&T
and Executive meetings. For those times where Fusion is offline, orders can
be faxed to Diamond on a designated toll free fax line or for urgent requests
those can be phoned directly into one of our pharmacists.

2.2.7 Formulary Development

Diamond has reviewed, acknowledges, and will continue to provide all items
stipulated in Section 2.2.7 without any deviations or exceptions., Diamond
and Maricopa have already established a formulary designed to promote
safe, appropriate, and effective drug therapy that was updated this year.

Regarding Stipulation 2.2.7.4 and additional offerings, Diamond will
continue to be an active member of the quarterly P&T committee, Diamond
will continue to support the use of Tivicay and generic Truvada for eligible
clinical patients in place of Biktarvy (approx. savings of $1,500 per
treatment), we will continue to provide the Pharmacy Director with our
OPTICS monthly clinical updates and quarterly clinical newsletter, Diamond
will continue to provide the Pharmacy Director with eight monthly cost-
avoidance and clinical management reports, we will continue dispensing a
15-day supply only on Biktarvy new and refill prescriptions to help mitigate
those expenditures. In 2024, Diamond provided CHS with over $540,000
dollars in credit on returned medications.

2.2.8 Non-formulary Request System

Diamond will continue to ensure the formulary control system with the
established CHS system. For additional cost control, enhanced formulary

SERIAL 260035-RFP

management, and to optimize patient medication program management,
Diamond can provide first-line pharmacist reviews of all non-formulary
medication orders and provider Alternative Treatment Recommendations
(ATRs).

ATRs are provided by Diamond’s clinical pharmacists on non-formulary
medication orders that best meet your clinical and cost-avoidance goals.
Should CHS wish to have a Diamond clinical pharmacist provide routine
ATRs, this is a higher-level clinical review and professional service at a
separate negotiable price.

Our clinical team at Diamond focuses on comprehensive medication
management (CMM) which is a patient-centered approach to optimizing
medication use and improving patient health outcomes. As your team
evaluates proposals, we encourage you to pay attention to other potential
Offerors and their narratives on MTM (medication therapy management),
which differs from CMM. At Diamond, we are not in the business of simply
quoting a high number of interventions per month to impress you; instead,
our focus is always on the patient and an optimal outcome.

Our approach to formulary management and patient care processes ensure
that each patient’s medications are individually assessed to determine
whether they have an appropriate indication, are effective for the medical
condition and achieving defined patient and/or clinical goals, are safe given
the comorbidities and other medications being taken, and that the patient
can take the medication as intended and adhere to the prescribed regimen.

We provide ATRs for non-formulary medication orders Monday through
Friday from 9:00
a.m. to 5:00 p.m. EST/EDT (on non-holidays), where a clinical pharmacist
review module is contained within the current Electronic Health Record
(EHR) system. The preference is for access to an EHR that will initially
provide as much information as possible to our clinical pharmacist team for
them to make cost-effective and educated decisions regarding proper
medication utilization.

Our policy is that a Diamond PharmD Clinical Pharmacist will not be the final
authority to deny or change any medication therapy. We embrace our role
and expertise as medication experts; ultimately the healthcare decisions,
including medication therapy, are at the discretion of your medical team and
clinicians. For our team, the Clinical PharmD Pharmacist must educate your
prescribing clinicians on possible cost-effective or safer alternative
medications for the individual patient that foster positive outcomes.

Our last extensive study ATR study was in 2023 and the results were
meaningful. Ninety (90%) percent of ATRs provided by Diamond
pharmacists and OPTICS team were accepted by facility-level prescribers.

SERIAL 260035-RFP

The average savings was a very significant $422.80 per pharmacist
intervention.

Meaningful P&T meetings are very important to the formulary process, and
we will continue to lead those meetings and agendas. We have consistently
provided quarterly P&T meetings for 20 consecutive years. If sample P&T
agendas are desired during the evaluation process, please let us know and
we will provide.

We believe in a proactive approach to saving money for our clients by
focusing on cost-avoidance. We reduce anticipated costs before they occur
by targeting issues that would negatively affect your financial bottom line.

Our efforts have resulted in managing prescription and clinician ordering
trends while providing medically necessary, cost-effective patient care. We
collaborate with our customers through participation in P&T meetings,
policy and procedures meetings, routine business reviews, daily price
change alerts, daily high-cost medication reports, and protocol support
discussions.

Below are key areas we focus on regarding cost-avoidance:

•
Polypharmacy Reporting is Essential to Minimize Waste
•
Diamond Clinical Pharmacists Make a Real Difference in Lowering
Costs
•
Hourly High-Cost Medication Reports to CHS’ Pharmacy Director
•
Diamond’s Commitment to True-Unit Dose Blister Card
Packaging Ensures Patient Safety During the Medication Return
and Reclamation Process and Cost-Avoidance
•
Buying Groups and Direct Purchasing from Manufacturers Lowers
Diamond’s
Medication Costs
•
Diamond Believes that Our Customers Receive the Greatest
Cost-avoidance when Medications are Invoiced at the time of
Dispensing that we detailed earlier
•
Diamond invoices are based on a medication’s acquisition cost
at the time of dispensing. Surprisingly, and more so
disappointingly, some industry providers that will being
providing a proposal to CHS invoice a medication acquisition
cost (for all medications dispensed in each calendar month) on
the last calendar day of the month. The latter practice typically
results in the customer being invoiced at a higher cost as
medications tend to increase over the course of a month rather
than decrease.

•
For example, suppose in January of 2025, Diamond dispenses
2,000 capsules of Medication ABC to CHS. The price of

SERIAL 260035-RFP

Medication ABC was
$2.00 per capsule from January 1st through January 25th
during this time Diamond dispensed 1,500 units. Then, on
January 26th , the price increased to $4.00 per capsule and
Diamond dispensed another 500 capsules until the end of the
month.
•
In this example, Diamond would invoice CHS the acquisition
cost of the medication at the time of dispensing; that would be
a total cost to you in this example of $5,000 (1,500 x $2.00 plus
500 x $4.00).
•
Using the same example, a pharmacy that routinely bills its
customers the acquisition cost of all medications on the last
calendar day of the month will invoice these same 2,000
capsules to CHS at a price of $8,000 (2,000 x $4.00) which is
60% higher than the cost of those same medications from
Diamond. Can CHS routinely afford to pay 60% more for the
same 2,000 capsules?
•
Pricing integrity and transparency should be a given. We highly
encourage your evaluation team to have a conversation with
all respondents to your solicitation regarding their invoicing
practices.

•
Your Diamond Executive Consultant Pharmacist Provides
Routine Business Reviews
•
Opportunity Buys - Sometimes, manufacturers and suppliers will
temporarily lower pricing to move products or to capture additional
market share. This is where you need a pharmacy partner with the
financial resources to take advantage of these opportunity buys and
reduce your medication spend.
•
Continued support and expansion of the 340B program beyond STD
medications

2.2.9 Credits/Current Inventory

As your pharmacy provider, existing drug inventory and returns of
unused medications/supplies will not be impacted.

We will provide credit on oral solid medications in full and partial blister
cards at one hundred percent (100%) of the actual acquisition cost of
the medication at the time of dispensing less a one dollar and twenty-five
cents ($1.25) processing fee per returned card.

When and where permitted by the State Board of Pharmacy and the U.S.
Food and Drug Administration (FDA), we offer credit on oral solid
medications in full and partial blister cards returned to us, provided the
medications:

•
Were originally purchased from Diamond

SERIAL 260035-RFP

•
Remain in their original sealed blister packs
•
Have been stored under proper conditions
•
Are not defaced or have been adulterated
•
Are not within 120 days of expiration
•
Are returned and received by Diamond within 180 days of the
date dispensed by Diamond
•
Are packed as a single dose full tablet or capsule per blister
•
Have not been released to the inmate population or
labeled/dispensed as Keep-on-Person
•
Are not controlled substance medications
•
Are not refrigerated items
•
Are not dispensed in strip packaging
•
Are not specialty, REM’s, or limited distribution medications
•
Have not been billed to a private insurance, third party, USM, ICE, 340B,
or Medicaid

We are responsible for ground shipping costs for all returned
medications and provide your facility(ies) with prepaid, preaddressed
FedEx or UPS return labels. These labels are simply affixed to the return
box and handed to the FedEx or UPS delivery driver during their normal
pickup/delivery to your facility(ies). All return procedures are reviewed
during facility orientation and transition.

Controlled
substance
medications
and
opened
partial
stock
medications cannot be credited per federal regulations. Credits are
issued on medications based upon the professional judgment of our
pharmacist and do not exceed the current market value of the
medication. Liquids, injections, topicals, medications dispensed in vials,
medications dispensed in strip packaging, medications dispensed in
original manufacturer unit dose packaging, and inhalers are not eligible
for credit. Blister cards that are dispensed with half tablets or with more
than one single unit per individual bubble of the blister card are not
eligible for return. Oral solid medications dispensed as Brand Medically
Necessary or Dispense as Written will be credited at the actual
acquisition cost of the generic equivalent. Brand name medications will
not be eligible for credit upon return to Diamond once a generic
equivalent has come to market or has been approved by the FDA.

Oral solid medications returned in sealed manufacturer bottles will be
eligible for credit in accordance with the policy above. Credit will only be
issued on medications that we currently stock and can be redistributed
to other clients for administration prior to expiring. We will abide by all
current and future Board of Pharmacy and Federal provisions regarding
medication reuse and will only credit medications that are permitted per
reuse, these regulations will automatically amend what is proposed in
this agreement. Returns received at Diamond, during the term of the
contract, by the 15th of each month will be credited on the next invoice

SERIAL 260035-RFP

for that calendar month. Credit memos will be deducted from the
payment of the oldest outstanding invoices. Medications ineligible for
credit will not be returned. If at any point CHS’ service with Diamond
ends, returns received within 15 days after the service end date will be
credited according to product eligibility requirements and our credit
policy herein.

2.2.10 Pricing

Diamond has submitted Attachment D, including our full pricing formula.
Please refer to our proposed pricing package below, which outlines all
costs, price adjustments, credits, and additional pricing details.

Each prescription and stock piece are billed as follows: Actual Acquisition
Cost (AAC) plus a dispensing fee of $3.40. Canister medications for the
ADMs are billed a stocking-fee that is equivalent to the medication AAC for
each canister.

Regarding the Above Price

Our proposed dispensing fee is a 5% reduction from the current dispensing fee of $3.58
that we project will provide a savings of over $40,000 annually and lowers the
dispensing fee to what it was two years ago. Diamond is prepared to offer this reduction
retroactive to the first calendar day of the month in which a new contract is signed and
we will hold this dispensing fee firm for the first two contract years of a new agreement
that will provide CHS with a static dispensing fee for 24 consecutive months into a new
contract period.

Actual Acquisition Cost (AAC) is Diamond's direct upfront wholesaler medication cost
at the time of dispensing on patient specific prescriptions and stock medications

Maintenance medications are dispensed in a routine 30-day supply

Acute medications are dispensed in the quantity as written by the prescriber up to a 30-
day supply

Patient specific prescriptions and prescription stock oral solids are dispensed in 30-
count blister cards with one (1) unit per bubble whenever possible and not
contraindicated by the manufacturer. OTC stock may be purchased in the original
manufacturer bottle. Non-oral solid stock medications are distributed as the individual
purchase quantity

All rates are based on Diamond being the exclusive pharmacy provider (other than those
medications sourced locally for urgent needs) for medication dispensing and
pharmacy program management services

The Above Bid Rate Includes

SERIAL 260035-RFP

Patient specific prescription dispensing, pharmacy benefit management, stock
distribution services, canister replenishment, and standard delivery of medication to
the designated FedEx hub from Diamond.

Diamond absorbing a very significant amount of cost in our $3.40 dispensing fee specific
to the automated dispensing process that potential competing bidders offering a very
aggressive dispensing fee may not account for regarding the resources needed to properly
support automated dispensing. Built into what we believe is an aggressive $3,40 dispensing
fee to CHS is: the cost of 3 FTEs to process, clean, and restock returned canisters, all
shipping, custom sized shipping boxes and dividers, cardboard canister locks, the annual
maintenance agreement of required Swisslog equipment to support the ADM process at
Diamond, and other consumables. As Steve and the MRA team can attest, Diamond
provides many hours of pharmacist and technical support to CHS that goes unbilled and
absorbed by Diamond each month along with participation in any scheduled or impromptu
meeting requests with Fusion and/or Swisslog.

Four Diamond pharmacists serving as the primary contacts and account managers

An Arizona-licensed pharmacist for quarterly on-site inspections of each CHS clinic. Any
additional inspections are billed as a pass-through cost for time and travel if provided by
Diamond; or as billed to Diamond if provided by a local pharmacist.

Pharmacist participation in quarterly P&T and Executive meetings via teleconference or
webinar or in person if during a regularly scheduled inspection visit

24-hour a day, 7-day a week, and 365-day a year (24/7/365) telephone consulting

Medication cart(s) are provided on loan for the duration of the contract (when all
medications are purchased from Diamond). The model, type, and number of carts will be
based on the facility census and at the discretion of Diamond. Routine cart maintenance
will be provided bi-annually and emergency repairs will be provided when needed and
coordinated through Diamond. Routine and emergency services are at Diamond’s
expense and built into our proposed dispensing fee.

Access to Diamond’s free web-based electronic reconciliation (medication check-in and
credit) program

Access to Diamond’s free web-based Online Reporting Program (ORP) and utilization
dashboard

One handheld tethered scanner provided on loan at no charge to each facility be used for
electronic medication reconciliation (check-in) and medication return processing, if
requested

Should the state Board of Pharmacy or other regulatory agencies prohibit Diamond from
providing any products or services at no charge, we will provide these services as a pass-

SERIAL 260035-RFP

through charge and renegotiate the bid rate, if necessary

Additionally

For any pharmacy interfaces, including those for prescription transmission, with
EMRs/EHRs other than Sapphire, or third-party vendors, Diamond will be responsible only
for standard interface charges and standard programming required on Diamond’s end of
the interface provided the requirements are in HL7 version 2.3 or NCPDP XML accepted
standards. Any other interfaces or requirements beyond these and other currently
established specifications and transmission fee charges will be mutually agreed upon
and billed as a pass-through charge. Interfacing as well as any other costs with automated
dispensing machines are outside the scope of this agreement and will be negotiated
separately.

In the event an EHR/EMR, JMS company, switch company, or any other company charges
a transmission, submission, or other fee or charge, it will be billed as a pass-through
charge.

Diamond will retain and reserves all rights, title, use, control, interest in and ownership of
its assets including, but not limited to, its software, reporting, packages, and user
documentation; operations, procedures, and strategies; formulary and clinical services;
manufacturer, wholesaler, group purchase, and vendor contracts and resultant data and
information; patient, drug dispensing claims, and drug utilization information; trademarks
and service marks.

If CHS requires fewer days in your routine supply of maintenance medications, or if you
transition to a model where greater than 25% of medications are administered from a
stock supply, or if you require packaging other than blister cards for patient specific or
stock medications, a new rate will be negotiated

If ever needed, durable medical equipment (DME) and medical supplies are billed at
Diamond’s correctional pricing, and prices will be quoted on a case-by-case basis, when
requested and maybe require shipping to be billed as a pass-through cost on select items

When needed, specialty pharmaceutical items - those items that are not available through
normal wholesale channels without manufacturer or FDA program authorization or that
must be ordered through specialty channels, drop shipped, and/or that require pharmacist
or other intervention to procure, such as, but not limited to plasma products, factor
products, specialty vaccines, medications with REMS requirements, limited distribution
medications, and chemotherapy agents are invoiced at the price charged to Diamond by
our wholesaler or from the specialty pharmacy plus two-hundred and fifty ($250) dollars
per prescription

SERIAL 260035-RFP

When needed, compounded IV Medications – those medications that are compounded
by a Diamond IV Specialist or that are prepared by a Diamond IV Specialist in kits (with
dry powder vials and reconstitution liquids) for infusion at the facility are billed at the
Average Wholesale Price (AWP) per ingredient as published by Medi-Span, plus five-
dollars ($5.00) per piece

When needed, stock IV medications are billed at Diamond’s AAC at the time of dispensing
plus the then current dispensing fee per piece

When needed, non-sterile compounded medications will be billed at Diamond’s Actual
Acquisition Cost per ingredient plus compounding labor plus twenty-five dollars (25.00)
per piece

Optional Baggie Cycle-fill Strip Packaging: Strip packaging dispensed from Diamond is
an optional solution provided by Diamond at a separately negotiated rate based on
project specifications

Diamond will work with CHS to continue the existing 340B program under a separate
340B contract agreement and pricing. Any medications moved to a 340B program during
the term of this agreement must be mutually agreed upon by both parties and may result
in a higher base dispensing fee.

If any medications are requested to be moved off contract from a source other than
Diamond during term of this agreement, it will be upon mutual agreement of CHS and
Diamond and a higher base dispensing fee will be negotiated

If the services of a reverse distributor are needed for the disposition of controlled
substances or other medications or drug devices, those charges are at CHS’ expense
through a direct contract with CHS and the reverse distributor

SERIAL 260035-RFP

If the services of a waste company become necessary for the disposition of hazardous
and non-hazardous pharmaceutical waste, those charges are at CHS’ expense a through
direct contract with CHS and the waste company

Shipping costs are included as part of our bid rate. Diamond utilizes a preferred shipping
partner, if a common carrier other than our preferred shipping partner is requested, or if
deliveries are required to multiple locations within a correctional complex, or if
medications are shipped to correctional institutions other than to CHS managed clinics,
those shipping costs are billed a pass-through charge.

Any common carrier or courier fuel charges billed to Diamond will be invoiced to CHS as
a pass-through cost, without any additional markup from Diamond, on that month's billing
cycle.

CHS is responsible for damaged or lost Diamond equipment provided on loan

In addition to maintaining a drug formulary, Diamond shall manage all pharmaceutical
expenditures, be in control of the prescription claims, and exclusively receive any
subsequent discounts, incentives, and remunerations generated due to these services
provided. As such, CHS shall not receive, directly or indirectly, any rebates, discounts,
price concessions, or other remunerations for any pharmaceuticals or products supplied
by Diamond or its partners under this Agreement or any other providers.

Payment Terms

Invoicing will occur monthly. Payment shall be made by check or EFT (Electronic Funds
Transfer in the form of ACH or Wire) from CHS to Diamond within thirty days of receipt of
invoice by CHS.

CHS is responsible for all applicable sales, use, lease, ad valorem, and any other tax that
may be levied or assessed by reason of this transaction, unless CHS provides a tax
exemption certificate (blanket or transaction specific) to Diamond in a timely manner

Payment by credit card or purchase card will be assessed a three percent (3%) convenience
fee

Diamond’s dispensing fees (base, specialty, compounds, IV, ATRs, etc.),and return
processing fee will remain fixed and firm for the first 24 contract months (TBD by date of
contract signing).

Billing disputes must be requested within fifteen days from the time the invoice was
received by CHS. Any items not in dispute are required to be paid and are not to be
withheld.

If local, state, or federal laws, rules, or regulations change that affect the services offered
either operationally or financially, the parties shall work together in good faith to negotiate
new rates

SERIAL 260035-RFP

Services and programs outside the specifications of this document, including, but not
limited to, prescriptions billed via Medicaid, 340B, etc., will have any additional costs,
management fees, or dispensing fees, negotiated in good faith between CHS and Diamond
for the provision of those unique services that are not listed herein.

Prompt Payment Discount: Diamond is offering a 2% 30-day net 31 days prompt payment
discount. If any monthly invoice is paid within 30 calendar days of receipt by CHS of that
month’s invoice, then Diamond will provide a credit memo to CHS which can be immediately
applied by CHS, in the amount of 2% of the net of the total gross Diamond dispensed
prescription charges less total return credits, less medical supplies, less specialty and
limited distribution medications, and excluding any separately billed backup pharmacy or
delivery fees or other items Diamond does not directly dispense to which no prompt pay
discount shall apply

Additional notes:

Eighty-five to ninety percent of your pharmacy spend is directly tied to your acquisition cost
of medications, and not to the dispensing fee.

Historically, when assessing actual competitor invoices that Diamond obtains through
FOIA requests, Diamond’s actual acquisition cost on brand name medications is typically
between 2% and 5% lower than other industry providers. For generic medications, we have
been up to 20% lower in acquisition costs than other industry providers.

As CHS knows first-hand, our value and benefit to client partners is found in the delivery of
superior products and services, responsive pharmacist account managers, pharmacist
accessibility 24 hours per day and every day of the year, innovative solutions, low
medication acquisition costs, strong formulary management, and the multitude of key
differentiators that we highlighted in our proposal’s executive summary. And all at a very
fair price.

2.3
Implementation

Diamond has reviewed and fully acknowledges Section 2.3. Our
longstanding familiarity with Maricopa’s operations uniquely positions
us to facilitate a seamless transition that completely eliminates
operational and interface disruption, maintains continuity of patient
care, maintains 340B and LAI programs, averts facility level stress and
anxiety, and ensures all pharmacy services remain fully operational
throughout the process. If a detailed plan is still required with a
continued award to Diamond, such plan will be provided within 30 days
of award.

SERIAL 260035-RFP

EXHIBIT C – 340B Contract Pharmacy Service Agreement

This 340B Contract Pharmacy Service Agreement (the “Agreement”) is entered into
effective October 1, 2026 (“Effective Date”) by and between Maricopa
County(“Covered Entity”) and Diamond Drugs, Inc. d/b/a Diamond Pharmacy Services
(“Pharmacy”).

Whereas Covered Entity participates in a federal drug discount program
established under Section 340B of the Public Health Service Act (“340B Program”) at
HRSA Registered Locations identified in Attachment A;

Whereas Covered Entity desires to engage the services of a contract pharmacy
to serve patients eligible to receive 340B-discounted drugs (“Covered Entity Patients”),
as permitted under 75 Fed. Reg. 10272 (March 5, 2010);

Whereas Covered Entity Patients are justice-involved individuals for whom
Pharmacy provides pharmacy services at the correctional facilities described in
Attachment B;

Whereas, pursuant to 75 Fed. Reg. 10272, in addition to contracting with a
single pharmacy for each eligible parent site as defined on the OPAIS database,
Covered Entities may pursue arrangements that include multiple pharmacies,
provided that (1) there is a written agreement in place that meets 340B program
requirements, as articulated in 340B multiple contract pharmacy guidance; (2) the
written agreement includes and addresses all of the elements outlined in Sections 2
and 3 of this Agreement; (3) the operation of the arrangement continues to meet all
340B program requirements and does not create diversion of 340B Drugs or duplicate
discounts;
(4) the arrangements are one of the following models either individually or in
combination: (i) the use of multiple contract pharmacy service sites and/or (ii) the
utilization of a contract pharmacy/pharmacies to supplement in-house pharmacy
services; and (5) the arrangement involves a single identifiable 340B Covered Entity
and does not include a network;

Whereas, Pharmacy is a licensed mail order pharmacy, as specified on
Attachment C, authorized to do business in all jurisdictions contemplated under this
Agreement and willing to provide contract pharmacy services to Covered Entity
Patients;

Whereas Covered Entity desires to engage Pharmacy to provide contract
pharmacy services to Covered Entity Patients with respect to outpatient drugs
purchased through the 340B Program listed in Attachment D (“340B Preferred
Medication List”);

Now, therefore, the Parties agree as follows:

1. Definitions. The following definitions shall apply to this Agreement.

SERIAL 260035-RFP

1.1
“340B Drugs” are hereby defined as drugs that meet the definition of a
covered outpatient drug set forth at 42 U.S.C. § 256b(b) and 59 Fed. Reg.
25,110 (May 13, 1994) and that are either purchased through the 340B
Program or eligible to be replenished with drugs purchased through the
340B Program.

1.2
“340B Program” is hereby defined as part of the 1992 Veteran’s Health
Care Act, which created Section 340B of the Public Health Service Act.
This Act allows certain “Covered Entities” to purchase outpatient
prescription drugs for their patients at favorable discounts from drug
manufacturers who enter into drug purchasing agreements with the
United States Department of Health and Human Services

1.3
“Agreement” is hereby defined as this 340B Contract Pharmacy
Services Agreement and accompanying attachments, if any.

1.4
“Covered Entity” is hereby defined as the legal entity identified in this
Agreement. If there is more than one Covered Entity site that this
Agreement shall encompass, each site shall be identified in Attachment
A attached hereto and incorporated herein by reference.

1.5
“Covered Entity Patients” are hereby defined as those individuals who
satisfy HRSA’s patient definition criteria at 61 Fed. Reg. 55,156-58 (Oct.
24, 1996), as may be amended from time to time. All Covered Entity
patients who are Medicaid beneficiaries and for whom claims for
pharmaceuticals are reimbursable by a state fee-for-service Medicaid
program are expressly excluded from this definition. “Department” is
hereby defined as the Department of Health and Human Services.

1.6
“HRSA” is hereby defined as the Health Resources and Services
Administration, which is the agency within the Department that oversees
the activities of the Office of Pharmacy Affairs. If responsibility for
administering the 340B Program is vested in an agency other than HRSA,
all references to HRSA shall be deemed references to the successor
agency.

1.7
“Non-340B Price” is hereby defined as the Pharmacy’s Usual and
Customary Price at the time of dispensing.

1.8
“OPA” is hereby defined as the Office of Pharmacy Affairs, which is the
federal agency within HRSA that administers the 340B Program. If
responsibility for administering the 340B Program is vested in a unit
other than OPA, all references to OPA shall be deemed references to the
successor unit.

SERIAL 260035-RFP

1.9
“Parties” are hereby defined as the signatories to this agreement, which
are the Covered Entity and Pharmacy.

1.10 “Pharmacy” is hereby defined as the legal entity identified in this
Agreement.

1.11 “Preferred Medication List” is hereby defined as the list of medications
the Covered Entity wishes the pharmacy to dispense included on the
340B price file. Such list shall be attached hereto as Attachment D and
may be modified from time to time based on the mutual agreement of
the Parties.

1.12 “Tracking System” is hereby defined as a system for identifying and
monitoring the use of both 340B Drugs and non-340B drugs through all
phases of the Parties’ involvement with such drugs, including the
ordering of 340B Drugs, the receipt of 340B Drugs, Covered Entity’s
payment for 340B Drugs, internal transfers of 340B Drugs within the
Pharmacy, Pharmacy’s preparation and dispensing of 340B Drugs, and
Pharmacy’s billing of the Covered Entity Patient on behalf of Covered
Entity.

2. Essential Compliance Elements. The Parties agree to comply with the
following essential compliance elements specified by HRSA.

2.1
“Ship To - Bill To” Arrangement. Covered Entity shall purchase and
maintain title to the 340B Drugs until after Pharmacy has dispensed a
quantity for a given 340B equating to a full manufacturer package size
to a qualified Covered Entity Patient(s), to which Covered Entity’s
wholesaler shall ship replenished stock or arrange a credit to the
Pharmacy’s main wholesaler account for the same NDC-11 level in
accordance with Section 4 of this Agreement. Covered Entity shall
assume all responsibility for establishing the price of the 340B Drugs
subject to applicable Federal, State, and local laws. A “ship to, bill to”
procedure shall be used by the Parties, pursuant to which the Covered
Entity, a 340B third party administrator on Covered Entity’s behalf or
Pharmacy shall order on Covered Entity’s behalf 340B Drugs directly
from the drug manufacturer, a designated sales representative, or a drug
wholesaler. Covered Entity, 340B third party administrator on Covered
Entity’s behalf, or Pharmacy on Covered Entity’s behalf, shall arrange for
Covered Entity to be billed directly for purchased 340B Drugs from the
Covered Entity’s wholesaler. Covered Entity will designate a single billing
address for all 340B drug purchases.

2.2
Comprehensive Pharmacy Services. The Parties agree to provide
comprehensive pharmacy services to Covered Entity Patients. The
respective responsibilities of Contract Pharmacy in providing
comprehensive pharmacy service are set forth in Section 4. Certain

SERIAL 260035-RFP

Pharmacy Services may be outsourced to a third party, subject to the
express written agreement by both the Covered Entity and Pharmacy.
Covered Entity is not limited to providing comprehensive pharmacy
services to any particular location; and may choose to provide them at
multiple locations.

2.3
Patient Choice Limitations. The Covered Entity Patients described in
this Agreement are justice-involved individuals who do not have the
freedom to choose their pharmacy provider. Pharmacy will be the
exclusive dispensing pharmacy for all sites listed in Attachment B,
unless pharmacy does not have the ability to procure a specific
medication that has been deemed a qualified 340B prescription by
Covered Entity. Thus, at its discretion, Covered Entity reserves the right
to outsource 340B prescription dispensing for patients qualified in
Attachment B that Pharmacy does not have the ability to obtain and or
dispense.

2.4
Other Services. Pharmacy may provide other services to Covered Entity
or Covered Entity Patients at the option of Covered Entity. Such services
are set forth in Sections 4.8 and 4.9. Regardless of the services provided
by Pharmacy, access to 340B pricing shall be restricted to Covered
Entity Patients.

2.5
Adherence to All Applicable Laws. Covered Entity and Pharmacy shall
adhere to all applicable Federal, State, and local laws, regulations, and
requirements, including but not limited to Federal and State anti-kickback
laws, self-referral laws, and false claims laws. Both Covered Entity and
Pharmacy are aware of the potential for civil or criminal penalties if they
violate Federal, State, or local laws and requirements.

2.6
Reports. Pharmacy will provide Covered Entity with reports consistent
with customary business practices. The reports that Pharmacy shall
provide are set forth in Section 4.

2.7
Tracking System. Pharmacy, with the assistance of Covered Entity, shall
establish and maintain a Tracking System suitable to prevent the
diversion of 340B Drugs to individuals who are not Covered Entity
Patients. The Tracking System shall include periodic comparisons of
Covered Entity prescribing records with Pharmacy dispensing records
to detect potential irregularities.

2.8
Patient Verification. The Parties shall develop a system to verify patient
eligibility, as defined by HRSA guidelines. The patient verification system
is described in Section 4. The system shall be subject to modification in
the event of a change in such guidelines. The Parties agree that they will
not resell or transfer a 340B Drug to an individual who is not a Covered
Entity Patient. Covered Entity understands that it may be removed from

SERIAL 260035-RFP

the 340B Program if it participates in drug diversion.

2.9
Prohibition Against Duplicate Discounts. Neither Party shall use 340B
Drugs to fill prescriptions for Covered Entity Patients payable by
Medicaid on a fee-for-service basis or MCO unless Covered Entity,
Pharmacy, and the State Medicaid program have established an
arrangement to prevent duplicate discounts. Any such arrangement
shall be reported to HRSA by the Covered Entity.

2.10 Maintaining Compliance. Covered Entity and Pharmacy will identify the
necessary information for the Covered Entity to meet its ongoing
obligations of ensuring that the requirements listed herein are being
complied with and establish mechanisms to ensure availability of that
information for periodic independent audits performed by the Covered
Entity.

2.11 Outside Audits. Covered Entity and Pharmacy understand that they are
subject to audits by outside parties (the Department and participating
manufacturers) of records that directly pertain to the Covered Entity’s
compliance with the drug resale or transfer prohibition and the
prohibition against duplicate discounts. Pharmacy assures that all
pertinent reimbursement accounts and dispensing records maintained
by Pharmacy will be accessible separately from Pharmacy’s own
operations and will be made available to Covered Entity, HRSA, and the
manufacturer in the case of an audit. Such auditable records shall be
maintained for at least six (6) years or a longer period of time if required
by applicable Federal, State, and local laws or regulations.

2.12 Access to Agreement. The Covered Entity will maintain a fully executed
copy of this agreement, and upon written request to the Covered Entity,
a copy of this Agreement will be provided to OPA.

3. Ongoing Responsibility of Covered Entity to Ensure Compliance. Covered
Entity is responsible for ensuring that the process for distribution of 340B
Drugs complies with 340B statutory obligations to ensure against the
diversion of 340B Drugs and to prevent duplicate discounts.

3.1
Annual Independent Audits. In accordance with 340B program
guidance, Covered Entity shall, at its discretion, undertake annual
independent audits for the purpose of ensuring that the prohibitions
against diversion and duplicate discounts are not breached.

3.1.1 Selection. Covered Entity shall maintain sole discretion over the
selection of an independent outside auditor to perform the audit.

3.1.2 Methodology. Covered Entity shall determine, in consultation

SERIAL 260035-RFP

with the independent auditor, the methodology to be utilized in
performing the
audit
in-line
by
HRSA
guidelines
and
recommended practices.

3.1.3 Business Practices. The auditor shall follow standard business
practices for audits, including audit trails provided by Covered
Entity to the auditor, use of standard reports, and non-standard
supplemental reporting at the discretion of the Covered Entity.

3.2
Remedial Action. In the event that Covered Entity determines that 340B
Drug diversion or duplicate discounts have occurred at the Pharmacy or
that it is otherwise unable to comply with its responsibility to ensure
reasonable compliance, it shall take immediate remedial action in
accordance with 340B Program requirements and the Covered Entity’s
internal policies and procedures.

3.3
Use of a 340B Administrator. Pharmacy agrees that Covered Entity may
utilize the services of a 340B Administrator to assist it in the
management of its 340B utilization. Pharmacy agrees to cooperate with
340B Administrator to the extent such cooperation would not interfere
with the independence of Pharmacy’s practice of pharmacy.

4. Operational Responsibilities. In addition to the responsibilities described in
Sections 2 and 3, Covered Entity and Pharmacy agree to operationalize the
contract pharmacy arrangement established under this Agreement by
performing the following tasks.

4.1
Replenishment. The Parties agree to establish and utilize a stock
replacement system whereby the ordering and receipt of 340B Drugs
occurs after Pharmacy has filled a prescription for a qualified Covered
Entity Patient. If the Covered Entity’s wholesaler provides a program that
automates and virtualizes replenishment of 340B product via credit to
the Pharmacy versus physical bottle replenishment in the contract
pharmacy setting, the Parties will establish an alternative simultaneous
virtual replenishment credit program agreement with the Covered
Entity’s wholesaler.

4.2
Ordering. Covered Entity shall arrange for Pharmacy or 340B third party
administrator to place replenishment orders for 340B Drugs on Covered
Entity’s behalf. Covered Entity 340B medications will not be ordered
from Covered Entity’s 340b Wholesaler account and subsequently
housed at the Pharmacy as separate physical inventory for the shipment
of said stock to a Covered Entity location. Pharmacy will utilize a virtual
replenishment model and not a separate physical inventory model for
dispensing of 340B medications to Covered Entity patients. However in
specific circumstances agreed upon by both the Covered Entity and
Pharmacy, Pharmacy may request from Covered Entity to approve a

SERIAL 260035-RFP

specific NDC that Pharmacy does not have currently in stock to be drop
shipped to pharmacy in anticipation of immediate dispensation to an
eligible 340B patient if Covered Entity’s wholesaler has access to said
drug. NDC’s will be accounted for in overstock within the virtual
accumulation system until dispensed to an eligible patient. Pharmacy
shall accept all inventory replenishment or credit for 340B Covered
Drugs dispensed by Pharmacy to Covered Entity Eligible Patients from
the Covered Entity or its wholesaler, provided that such Covered Drugs
have the same eleven-digit national drug code number (NDC-11) as
those dispensed by Pharmacy. In discussion with Covered Entity,
Pharmacy will assess its internal inventory management needs to
determine the best frequency of how often Pharmacy requires any
replenishment orders to be placed. Should a 340B third party
administrator be utilized to place replenishment orders on behalf of
Covered Entity, Covered Entity is required to provide Pharmacy prior
written notice and approval as such if the 340B Third Party
Administrator is required to halt replenishments for any reason technical
or otherwise to which order replenishment could be impacted for an
extended duration of greater than one week.

4.2.1 Shipment - Credit. Covered Entity shall arrange for shipment of
the
340B
Drugs directly to Pharmacy.
Covered Entity
acknowledges that Pharmacy’s wholesaler may permit the use of
a credit replenishment model in which a prior Pharmacy non-
340B drug purchase is credited back to Pharmacy and the prior
purchase is instead deemed the 340B Drug replenishment
purchase. Regardless of the method used, Pharmacy shall
maintain auditable records of 340B Drugs it receives from
Covered Entity.

4.2.2 Receipt of 340B Drugs. Pharmacy is responsible for the receipt
of replenished 340B Drugs purchased by Covered Entity. Upon
receipt of inventory replenished 340B Drugs, Pharmacy shall
confirm via the wholesaler or Covered Entity’s invoice/manifest
that all 340B Drugs in each shipment are accounted for. If
Pharmacy should find a discrepancy relating to the 340B Drugs
replenished, Pharmacy shall inform Covered Entity and
wholesaler.

4.2.3 NDC-by-NDC Replacement. Drugs dispensed to Covered Entity
Patients shall be replenished at the NDC-11 level. In the event the
drug cannot be replenished at the NDC-11 level, the Parties agree
to follow the procedures described in Section 4.2.5.

4.2.4 Billing. When Pharmacy fills a prescription subject to 340B
replenishment under this subsection, Pharmacy shall bill Covered
Entity the compensation fee set forth under Sections 4.9 and

SERIAL 260035-RFP

4.10. Invoicing shall occur monthly. Payment shall be made by
ACH or wire from Covered Entity to Pharmacy by the last day of
the following month. Such payment shall be sent to:

Diamond
Pharmacy
Services Attn:
Accounts
Receivable 645
Kolter Drive
Indiana, PA 15701-3570

Pharmacy shall only dispense, bill compensation fee, or replenish
those medications listed on Attachment D, the 340B Preferred
Medication List. Such a list may be modified from time to time
based on the Parties' mutual agreement. The Parties agree to
negotiate any changes to the 340B Preferred Medication List in
good faith, and neither Party shall unreasonably withhold their
consent to modify the 340B Preferred Medication List.

4.2.5 Out-of-Stock – Unavailable or Discontinued Drugs. When a
replenishment order is for a drug that is out-of-stock, the out-of-
stock drug will be re-ordered in the next inventory replenishment
order. If, however, after 30 days of Pharmacy attempting to
replenish a 340B drug and the drug(s) remain out-of-stock or it is
determined to be completely unavailable, the Parties agree that
the prescription(s) will not be replenished with 340B Drugs, and
the Pharmacy will bill the Covered Entity its Non-340B Price for
said prescriptions the following invoice period. This practice is
known as a true-up or buyout and will be scheduled to occur and
facilitated by Pharmacy. In the event that the drug is in stock, but
its package size has been discontinued, the Parties agree that the
drug shall be replenished in the next available package size (at
the NDC-9 level).

4.2.6 Slow Moving Drugs. Pharmacy will assist Covered Entity or the
Covered Entity’s 340B program management partner in
identifying all drugs that have been dispensed to Covered Entity
Patients but do not qualify for a 340B replenishment order
because the quantity of such drugs falls short of the NDC-11
package size necessary to trigger replenishment with 340B
Drugs. If more than 30 days have passed since the original date
of the unreplenished drugs have been dispensed, the Parties
agree that Pharmacy will determine at its in good faith if they no
longer wish to seek replenishment of the drugs and, therefore, will
use Pharmacy’s non-340B drugs instead. If replenishment is no
longer sought, Pharmacy will bill the Covered Entity Pharmacy’s

SERIAL 260035-RFP

Non-340B Price for said prescriptions the following invoice
period.

4.2.7 Reconciliation. Pharmacy will assist Covered Entity or the
Covered Entity’s 340B Administrator in conducting a monthly
reconciliation of 340B Drugs dispensed against those 340B
Drugs received by Pharmacy. If Pharmacy uncovers a
discrepancy as a result of the dispensed drugs being out-of-
stock, discontinued, or slow-moving, the Parties will resolve such
discrepancies in accordance with Sections 4.2.5 and 4.2.6 above.
In the event the discrepancies are the result of other factors and
the Parties determine that the quantity of 340B Drugs provided to
Pharmacy exceeds the quantity of drugs dispensed to Covered
Entity Patients hereunder, Pharmacy will return the excess
quantity to the Covered Entity’s wholesaler under the 340B
account for a credit to be issued by the wholesaler to the Covered
Entity. In the event the Parties determine that the quantity of 340B
Drugs provided to Pharmacy is less than the quantity of drugs
dispensed to Covered Entity Patients hereunder, Pharmacy will
notify Covered Entity of the shortfall, and the Covered Entity or the
Covered Entity’s 340B program manager will order replacement
340B Drugs sufficient to eliminate the shortfall up to the bottle
size of the NDC dispensed and have it shipped to Pharmacy.

4.2.8 Unused Drugs. In the event a drug dispensed by Pharmacy is
unused, since a replenishment method is being utilized, the drug
cannot be returned to the Pharmacy for re-dispensing. However,
it is permissible for the Covered Entity to use a reverse distributor
for 340B products under the following conditions: (1) Auditable
records are maintained by the entity of the transaction, (2) A
licensed reverse distributor is used, (3) All state laws are followed
(4) All 340B statute and guidelines are followed (5) The entity is
not attempting to use the reverse distribution with the
expectations of generating profit on 340B purchased drugs. (6) If
the entity has questions, we recommend working with the
manufacturer directly.

4.2.9 Modifications. Modification or addition of medications to the
program shall be mutually agreed upon by both Parties. Such
addition shall require 30 days’ notice to ensure adequate time to
accommodate said modifications to business processes for the
covered entity as well as the pharmacy.

4.3
Provider File. Covered Entity’s or its 340B Administrator shall furnish a
list to Pharmacy of all health care providers qualified to prescribe 340B
Drugs to Covered Entity Patients. Covered Entity authorizes Pharmacy to
use 340B Drugs to fill any prescription from an individual identified in the

SERIAL 260035-RFP

list pursuant to this Agreement. The list shall be updated at a minimum
each quarter with any immediate additions or deletions communicated
to the Pharmacy as they occur. Pharmacy will not dispense 340B Drugs
to non-incarcerated (public) covered entity patients to the best of the
Pharmacy’s ability.

4.4
Preferred Medication List.

4.4.1 Both Parties agree that the following criteria will be applicable for
the inclusion of drugs on Covered Entity’s Preferred Medication
List being physically replenished and shipped from Covered
Entity’s 340B wholesaler:

4.4.1.1 The drug is replenishable (NDC is listed as an
orderable/eligible item in stock) on the Covered Entity’s
340B wholesaler account.

4.4.1.2 The drug is eligible to be returned to Pharmacy’s main
wholesaler source that Pharmacy originally purchases
the medication from for full credit within Pharmacy’s
main wholesaler’s return policy. This criterion may be
waived if the drug has historical and recent non-340B
high dispensing usage across the Pharmacy’s book of
business or is predicted to have increased usage and is
agreed upon by both Parties.

4.4.1.3 Intravenous medications will not be included without
both Parties’ agreement.

4.4.2 Both Parties agree that the following criteria will be applicable for
inclusion of drugs on Covered Entity’s Preferred Medication List
in the event Covered Entity’s 340B wholesaler has a credit
replenishment
program
resulting
in
no
physical
340B
replenishment drugs being shipped, either in lieu of or running
simultaneously with Section 4.4.1:

4.4.2.1 The drug has to be replenishable (NDC is listed as an
orderable eligible in stock item) on the Covered Entity’s
340B wholesaler account.

4.4.2.2 The drug has been ordered historically from the same
wholesaler on Pharmacy’s main retail wholesaler
account for the same NDC and quantity.

4.4.2.3 If 4.4.2.2 is not satisfied, then Section 4.4.1 applies.

4.4.3 Covered Entity will be responsible for any fees incurred from its

SERIAL 260035-RFP

wholesaler as the result of additional processing costs for
correcting erroneous billings and credits resulting from orders
placed in error, unless Pharmacy’s actions, whether intentional or
negligent, caused the erroneous billings or credits.

4.4.4 Intravenous medications will not be included without both
Parties’ agreement.

4.5
Tracking System. Pharmacy shall establish a Tracking System to
protect against diversion and duplicate discounts throughout the
process by which 340B Drugs are ordered, received, dispensed, and
billed.

4.5.1 Records. Pharmacy shall maintain readily retrievable customary
business records including prescription files, records of ordering
and receipt, dispensing records, any third-party reimbursement
claims.

4.5.2 Inspection. Covered Entity shall have the opportunity, upon
reasonable notice and during business hours, to examine
Pharmacy’s records, claims, and other information relevant to the
Tracking System.

4.5.3 Modification. Pharmacy shall make any and all adjustments to
the Tracking System that Covered Entity determines are
reasonably necessary to prevent the diversion of 340B Drugs to
non-eligible patients or to ensure compliance with any future
guidance issued by HRSA or the Department.

4.5.4 Periodic Comparisons. The Tracking System shall include
periodic comparisons of Covered Entity prescribing records with
Pharmacy dispensing records to detect any discrepancies or
irregularities.

4.5.5 Notification. In the event either Party determines that 340B
Drugs were dispensed to: (1) individuals who did not qualify as
Covered Entity Patients; or (2) for which Pharmacy submitted a
claim on a fee-for-service basis to a State Medicaid agency or its
agent, the other Party will be notified immediately. The
notification will identify the prescription dispensed, the reason
that the prescription was dispensed in contravention of this
Agreement, and any corrective action taken by the Party. Each
Party will also notify the other of any irregularities or other issues
that it identifies that may lead to a violation of 340B Program
requirements and/or are contrary to the requirements of this
Agreement.

SERIAL 260035-RFP

4.5.6 340B Third Party Management Software. Pharmacy utilizes its
own proprietary 340B inventory management system. If Covered
Entity desires to also utilize and maintain its own 340B third-party
software or use a 340B Administrator, Pharmacy agrees to work
with Covered Entity or the 340B Administrator to establish and
maintain an electronic tracking system that is capable of tracking
340B Drug replacement inventory ordered and received from
wholesalers or manufacturers, as well as 340B Drugs dispensed,
preventing the diversion of 340B Drugs to individuals who are not
Eligible Patients. Covered Entity shall be responsible for payment
of any upfront and ongoing network access, switch, interface,
and/or programming fees associated with the acceptance or
submission of any data, be it prescription, patient, or otherwise
necessary to fulfill contract duties going to or from any third-party
vendor or switch.

4.6
Recordkeeping. The Parties agree to maintain auditable records
relating to the purchase, dispensing, and billing of 340B Drugs under the
contract pharmacy arrangement described in this Agreement.

4.6.1 Maintenance of Pharmacy Services Records. On behalf of
Covered Entity, Pharmacy shall maintain all relevant records
relating to its services provided under this Agreement, in
accordance with applicable Federal, State, and local laws and
regulations, including but not limited to the Federal standards for
the privacy of individually identifiable health information.
Pharmacy shall maintain all auditable records for a period of time
that complies with all applicable Federal, State, and local
requirements, in any event not less than a period of ten (10) years.

4.6.2 Access to Business Records. Pharmacy shall provide Covered
Entity, its auditors, or designated third-party representatives with
reasonable access to Pharmacy records systems and personnel,
as is deemed necessary by Covered Entity in order to ensure that
Pharmacy is in compliance with applicable Federal, State, and
local laws, regulations, and requirements.

4.6.3 Separation of Records.
Pharmacy shall ensure that all
reimbursement accounts, dispensing records, and any and all
other pertinent records relating to Pharmacy’s responsibilities
and duties under the Agreement, are maintained by Pharmacy
separately from Pharmacy’s own operations.

4.7
Other Covered Entity Responsibilities. In addition to those described
above, the Covered Entity shall perform the following tasks and
functions.

SERIAL 260035-RFP

4.7.1 OPA Database. Covered Entity shall ensure that its enrollment in
OPA’s database is accurate and up to date. Covered Entity shall
notify Pharmacy of any 340B enrollment status changes
pertinent to this Agreement.

4.7.2 Electronic Wholesaler Invoice File. Covered Entity shall ensure its
wholesaler will supply Pharmacy with a parsable electronic
invoice file of 340B replenishment orders placed by Pharmacy on
Covered Entity’s wholesaler account in order to complete the
tracking process in their inventory management system per
Section 4.4 of this Agreement. Covered Entity will determine at its
discretion if it allows its wholesaler to include 340B pricing in the
EDI that the pharmacy receives.

4.7.3 Wholesaler Change. Covered Entity must notify Pharmacy of any
proposed change in wholesaler and supply Pharmacy with the
new wholesaler’s name and account number 90 days before
transitioning to the new vendor. The new wholesaler vendor must
also comply with Section 4.7.2.

4.7.4 e-Prescribing/eMAR. If the correctional facility(ies) utilize an
electronic health record or electronic CPOE/EMAR system,
Covered Entity will work with Pharmacy to ensure the facility’s
current
e-prescribing/EMAR
operational/provider
process
remains intact.

4.7.5 DSCSA Compliance. Covered Entity acknowledges that it is
required to fulfill certain obligations under the Drug Supply Chain
Security Act (the “DSCSA”), and Covered Entity shall take all steps
to fulfill such obligations with respect to 340B Drugs. Additionally,
in conjunction with the shipment of 340B Drugs to Pharmacy as
described in Section 4.2.1, Covered Entity shall take all necessary
steps to ensure Pharmacy receives all information to needed for
it to achieve compliance with the DSCSA.

4.7.6 Health Industry Number (HIN). Covered Entity will be responsible
for any initial and renewal fees ensued by having to obtain HIN(s)
from the Health Industry Business Communications Council
(HIBCC) for any of their registered locations that have a 340B ID
number as well as any initial and renewal fees ensued from
having to obtain HIN(s) for any of their contract dispensing
pharmacies
resulting
from
wholesaler
–
manufacturer
requirements.

4.8
Other Pharmacy Responsibilities.
Pharmacy shall perform the
following tasks and functions in addition to those described above.

SERIAL 260035-RFP

4.8.1 Practice of Pharmacy. Pharmacy agrees to render its services as
herein provided in accordance with the rules and regulations of
the Pennsylvania Board of Pharmacy, the Board of Pharmacy in
the state where medication is being dispensed, and all applicable
Federal and State laws and regulations. The relations between
an Eligible Patient and Pharmacy shall be subject to the rules,
limitations, and privileges incident to the pharmacy-patient
relationship. Pharmacy shall be responsible to said Eligible
Patient for pharmaceutical advice and service, including the right
to refuse to service any individual where such service would
violate pharmacy ethics or any pharmacy laws or regulations.

4.8.2 Drug Utilization Review. Pharmacy shall perform drug utilization
review for Covered Entity Patients.

4.8.3 340B Preferred Medication List. Pharmacy shall assist the
Covered Entity in establishing, updating and maintaining the
Covered Entity’s 340B Preferred Medication List in accordance
with Section 4.4 and Attachment D.

4.8.4 Erroneous Prescriptions. Any prescription erroneously identified
as 340B eligible, regardless of reason, shall not be the financial
responsibility of the Covered Entity. It will be the responsibility of
Pharmacy to reverse the 340B claim, credit the dispensing fee
charged to the Covered Entity, and rebill the claim to the
appropriate stakeholder. Pharmacy shall be responsible for
finding a financial cure from an appropriate source.

4.9
Optional Pharmacy Services.

4.9.1 Covered Entity may utilize Pharmacy for an additional
compensation fee for service administrative functions including
but not limited to:

4.9.1.1 Additional required pharmacy personal tasks related to
Covered Entity’s 340B Administrator functionality and or
initial
or
ongoing
Pharmacy
personnel
required
involvement in 340B Administrator’s application. Fees
for these optional services and any required Pharmacy
programming upgrade compensation are defined in
Section 4.10.

4.9.1.2 Detailed analytics, data exports and or assistance
regarding 340B ESP (Second Sight Solutions), Kalderos
Turzo, and or Beacon Channel Management (340B
Rebate Model) manufacturer program compliance
which supports manufacturers’ contract pharmacy

SERIAL 260035-RFP

policies by enabling covered entities to make contract
pharmacy designations, apply for wholly owned contract
pharmacy exemptions and if required, submit 340B
claims data. Fees for these optional services and any
required
Pharmacy
programming
upgrade
compensation are defined in Section 4.10.

4.9.2 Covered Entity may also utilize Pharmacy’s Licensed Repackager
to repackage Covered Entity 340B Drugs shipped from Covered
Entity or Covered Entity’s 340B wholesaler in accordance with
state and federal law. Fees for this service optional service are
defined in Section 4.10.

4.9.3 Medication Disposal. Covered Entity allows Pharmacy to
appropriately dispose of 340B dispensed medications of a
qualified Covered Entity patient, which may include the use of a
Hazardous Waste Company that have been returned to the
Pharmacy. Pharmacy will notify Covered Entity in order to receive
prior approval to dispose of said medications prior to disposal.
Any 340B dispensed Controlled Substances that need disposed of
will not be returned to the Pharmacy and will be properly disposed
of by the facility which will be determined by state and federal law
and the facility's pharmacy policy and procedures. Fees for this
service optional service are defined in Section 4.10

4.10 The Parties agree to the following compensation arrangement.

4.10.1 Covered Entity agrees to pay Pharmacy $35.00 per dispensing for
medications dispensed in a 15-day supply or up to a 30-day supply per
dispensing (mutually agreed upon by Covered Entity and Pharmacy) for
its services under this Agreement, due within thirty (30) days of the date
of the invoice. In no cases will medications be dispensed in greater than
a 30-day supply per dispensing. If both parties agree to add any
intravenous medications on Covered Entity’s Preferred Medication List,
Covered Entity agrees to pay Pharmacy a Dispensing Fee of $250 per
prescription for its services under this Agreement due within thirty (30)
days of the invoice date. During the Term of this Agreement,

4.10.2 Should Covered Entity wish for Pharmacy to dispense 340B Limited
Distribution Medications that Pharmacy can procure through an
alternate wholesaler other than Pharmacy’s Primary Wholesaler, that
Covered Entity also establishes and utilizes a separate 340B wholesaler
account with other than the Covered Entity’s primary 340B wholesaler
Account(s), Covered Entity agrees to pay Pharmacy a Dispensing Fee
of $250 per prescription for its services under this Agreement due
within thirty (30) days of the invoice date. During the Term of this
Agreement, Dispensing Fees increases must be requested 60 calendar

SERIAL 260035-RFP

days prior to the anniversary of the Effective Date starting in year 3.

4.10.3 Covered Entity and Pharmacy have freely negotiated the payment
terms provided herein, and neither has offered or received any
inducement or other consideration from the other Party for entering into
this Agreement. The compensation paid to Pharmacy is consistent with
fair market value in arms-length transactions for Pharmacy services. It
is not determined in a manner that takes into account the volume or
value of any referrals or business otherwise generated between the
Parties for which payment may be made in whole or in part under
Medicare or a State health care program.

4.10.4 Covered Entity agrees to pay Pharmacy monthly Administrative Fee(s)
for any elected and agreed upon Optional Pharmacy Services by both
parties in accordance with 4.9. Monthly fee (s) for any elected and agreed
upon Optional Pharmacy Services will be negotiated between Pharmacy
and Covered Entity in an amendment to this agreement. Monthly fee (s) for
any elected and agreed upon Optional Pharmacy Services will be due within
thirty (30) days of invoice. Increases on fees for any elected and agreed
upon Optional Pharmacy Services must be requested 60 calendar days prior
to the anniversary of the Effective Date. Required pharmacy programming
changes required to implement Optional Pharmacy Services will be billed
as a pass-through cost to Covered Entity.

5. Term and Termination.

5.1
The term of this Agreement shall be for five (5) years commencing on the
Effective Date (the “Initial Term”). At the end of the Initial Term, this
Agreement
shall
renew
concurrently
with
Serial
260035-RFP
Pharmaceutical Services for Correctional Health Notwithstanding the
foregoing, this Agreement may be terminated early under the following
circumstances.

5.1.1 Covered Entity or Pharmacy may terminate this Agreement
immediately upon written notice to Covered Entity or Pharmacy of
any breach of the terms of this Agreement, which is not cured to the
reasonable satisfaction of the non-breaching Party within thirty (30)
days.

5.1.2 The Parties may terminate this Agreement immediately by mutual
consent.

5.2
Upon termination or expiration of this Agreement, Covered Entity is entitled
to receive copies of files or other materials related to Covered Entity Patients
that may be in Pharmacy’s possession or under Pharmacy’s control.

5.3
Upon termination or expiration of this Agreement, Pharmacy will conduct a

SERIAL 260035-RFP

final reconciliation of Covered Entity’s 340B inventory based on Pharmacy’s
records in their inventory management program. In the event Pharmacy
determines that the quantity of 340B Drugs provided to Pharmacy is less
than the quantity of drugs dispensed to Covered Entity Patients hereunder,
Pharmacy shall attempt to order replacement 340B Drugs sufficient to
eliminate the shortfall up to the bottle size of the 11-digit NDC number
dispensed. If any remaining 340B medications that have been dispensed
and subsequently have not reached a full bottle size based on the 11-digit
NDC number, both Parties agree Pharmacy will immediately bill the Covered
Entity the Pharmacy’s Non-340B Price for said prescriptions. Payment will
be made to Pharmacy within thirty (30) days of said invoice.

6. Insurance. Covered Entity and Pharmacy shall each maintain general liability
insurance with, at a minimum, coverage in the amount of One Million Dollars
($1,000,000.00) per occurrence and Three Million Dollars ($3,000,000.00) in the
annual aggregate. Upon request, Covered Entity and Pharmacy will provide the
other with a certificate or certificates of insurance certifying the existence of the
coverage required hereunder. Covered Entity and Pharmacy will notify the other
promptly in the event of termination or material change with respect to such
insurance.

7. Governing Law. The Agreement shall be governed by and construed in
accordance with the laws of the State of Arizona. The Parties agree to attempt to
resolve in good faith any controversy or claim arising out of or relating to this
Agreement, or the breach thereof, through informal discussions between the
Parties. In the event the Parties cannot resolve any dispute, any claim shall be
brought only in a court of appropriate jurisdiction in or nearest to Maricopa
County, Arizona.

8. Force Majeure. Each Party’s delay in, or failure of, performance under this
Agreement shall be excused where such delay or failure is caused by an act of
nature, fire, or other catastrophe, electrical, computer, software, transmissions,
communications, or mechanical failure, work stoppage, or delays or failure to act
of any carrier or agent, or any other cause beyond such Party’s direct control.

9. HIPAA Compliance. Pharmacy shall comply with all applicable privacy and
security requirements under the Health Insurance Portability and Accountability
Act of 1996 (HIPAA).

10. Entire Agreement. This Agreement represents the Parties' entire understanding
of the subject matter hereof. Any amendments to this Agreement shall be in
writing and signed by both Parties hereto.

11. Survival. The provisions of this Agreement that by their nature are intended to
continue in their effect following the expiration or termination of this Agreement,
including all payment obligations, shall survive any such expiration or termination
of this Agreement.

SERIAL 260035-RFP

12. Counterparts. This Agreement may be executed in one or more counterparts,
each of which will be considered an original. All of which, taken together, will
constitute one and the same instrument and will be effective as of the Effective
Date. Signature execution by facsimile or other electronic means shall be
considered binding.

13. Notice. Any notice required to be given pursuant to the terms and provisions of
this Agreement shall be in writing and sent by certified or registered mail, return
receipt requested, or by overnight delivery by a nationally recognized courier to the
Parties at the addresses set forth on the signature pages hereto. Notice shall be
effective on the day it is received.

(Signatures on the Following Page)

SERIAL 260035-RFP

ATTACHMENT A

ELIGIBLE COVERED ENTITY SITES WITH HRSA REGISTERED ID#

COVERED ENTITY:
Maricopa County Correctional Health Services (CHS)

HRSA ID Number:
STD85003

GRANT Number:
NH25PS005157

ADDRESS:
3250 West Lower Buckeye
Road Phoenix, AZ 85009

SERIAL 260035-RFP

ATTACHMENT B

CORRECTIONAL INSTITUTIONS

1. 4th Ave Jail (4THO) 201 South 4th Avenue Phoenix, AZ 85003

2. Estrella Jail (ESMA) 2939 West Durango Street Phoenix, AZ 85009

3. Intake Transfer Release Facility (ITRF) 2670 South 28th Drive Phoenix, AZ 85009

4. LBJ Infirmary (LBJI) 3250 West Lower Buckeye Road Phoenix, AZ 85009

5. LBJ Out Patient (LBJO) 3250 West Lower Buckeye Road Phoenix, AZ 85009

6. LBJ Psych (LBJP) 3250 West Lower Buckeye Road Phoenix, AZ 85009

7. Watkins Jail (SAGU) 2680 South 28th Drive Phoenix, AZ 85009

8. Towers Jail Out Patient (TOWR) 3127 West Gibson Lane Phoenix, AZ 85009

SERIAL 260035-RFP

ATTACHMENT C

PHARMACY LOCATIONS

Pharmacy Name
NPI
Address
Diamond Pharmacy Services
1639130347
645 Kolter Drive
Indiana, PA 15701

SERIAL 260035-RFP

ATTACHMENT D

COVERED ENTITY 340B PREFERRED MEDICATION LIST

1. Brand Name HIV Medications

2. Brand Name and Generic Hepatitis C Medications

3. Bi-cillin LA Injections (if needed)

4. Other STD medications mutually agreed upon by Covered Entity and Pharmacy

SERIAL 260035-RFP

DIAMOND DRUGS INC DBA: DIAMOND PHARMACY SERVICES, 645 KOLTER DR,
INDIANA, PA 15701

PRICING SHEET: 94872

Terms:
2% 30 DAYS

Vendor Number
VC0000002402

Certificates of Insurance
Required

Contract Period:
To cover the period ending September 30, 2031.