Page:United States Statutes at Large Volume 120.djvu/88

 PUBLIC LAW 109–171—FEB. 8, 2006

120 STAT. 57

‘‘(IV) The number of other facilities or entities eligible to purchase at nominal prices in the same service area. ‘‘(iii) NONAPPLICATION.—Clause (i) shall not apply with respect to sales by a manufacturer at a nominal price of covered outpatient drugs pursuant to a master agreement under section 8126 of title 38, United States Code.’’. (e) RETAIL SURVEY PRICES; STATE PAYMENT AND UTILIZATION RATES; AND PERFORMANCE RANKINGS.—Such section is further amended by inserting after subsection (e) the following new subsection: ‘‘(f) SURVEY OF RETAIL PRICES; STATE PAYMENT AND UTILIZATION RATES; AND PERFORMANCE RANKINGS.— ‘‘(1) SURVEY OF RETAIL PRICES.— ‘‘(A) USE OF VENDOR.—The Secretary may contract services for— ‘‘(i) the determination on a monthly basis of retail survey prices for covered outpatient drugs that represent a nationwide average of consumer purchase prices for such drugs, net of all discounts and rebates (to the extent any information with respect to such discounts and rebates is available); and ‘‘(ii) the notification of the Secretary when a drug product that is therapeutically and pharmaceutically equivalent and bioequivalent becomes generally available. ‘‘(B) SECRETARY RESPONSE TO NOTIFICATION OF AVAILABILITY OF MULTIPLE SOURCE PRODUCTS.—If contractor notifies the Secretary under subparagraph (A)(ii) that a drug product described in such subparagraph has become generally available, the Secretary shall make a determination, within 7 days after receiving such notification, as to whether the product is now described in subsection (e)(4). ‘‘(C) USE OF COMPETITIVE BIDDING.—In contracting for such services, the Secretary shall competitively bid for an outside vendor that has a demonstrated history in— ‘‘(i) surveying and determining, on a representative nationwide basis, retail prices for ingredient costs of prescription drugs; ‘‘(ii) working with retail pharmacies, commercial payers, and States in obtaining and disseminating such price information; and ‘‘(iii) collecting and reporting such price information on at least a monthly basis. In contracting for such services, the Secretary may waive such provisions of the Federal Acquisition Regulation as are necessary for the efficient implementation of this subsection, other than provisions relating to confidentiality of information and such other provisions as the Secretary determines appropriate. ‘‘(D) ADDITIONAL PROVISIONS.—A contract with a vendor under this paragraph shall include such terms and conditions as the Secretary shall specify, including the following:

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