Request for Proposal to develop a Pharmacy in Cumoto

By Maryam Williams

Abstract
There is a need to open an independent pharmacy in my community; Cumoto, as this place is not served with a major pharmacy. This project will firstly analyse the need for a pharmacy in that area by conducting a PEST (Political, Economical, Social and Technological) analysis and then using the Porter five forces model which is a framework for the industry analysis and business strategy development to try to understand where power lies in this business situation. After this, the RFP (Request for proposal) will be created and will outline the following: Statement of works Requirements Budget Deliverables List of supply items Terms of Contract Submission requirements Evaluation criteria Proposal Conditions

PEST Analysis1
Political

There is now growing political focus and pressure on healthcare authorities across the world. This means that governments will be looking for savings across the board. Causing loss of business as there is more pressure on pricing.

Patient surveys: cause increased emphasis on provision of information for patients/ carers. Actions to be taken are: more patient contact for counselling which leads to more information being provided.

Economic policy: debt reduction & economic growth

Economical

Social

There is an increased number of buying groups putting pressure on pricing. Therefore the need to introduce value adding processes is recommended. Low economic growth Investment and mortgage finance constrained High unemployment especially amongst the young Rising energy prices Cost improvements on medicines will need more time and staff Cost improvement in pharmacies

The increasing aging population offers a range of opportunities and threats to the pharmaceutical industry. There is also the problem of the increasing obesity amongst the population and its associated health risks. The market is therefore more likely to grow with increasing health concerns.

Falling living standards causing people not to take care of themselves Older generation relatively well off causing them to seek medical attention out of the country

Alan Shaw. A PESTLE Analysis for the Pharmaceutical Industry.[Internet].UK. STRATEGIC PLANET.JANUARY - 19 TH 2011 [CITED 2013 JUNE 8 ] AVAILABLE AT: http://www.strategic-planet.com/2011/01/a-pestle-analysis-for-thepharmaceutical-industry/

Inadequate supply of qualified pharmacy staff causes pressure on developing staff. An increase in the number of trained technicians is needed to make pharmacies a great place to work.

Technological

Technological advancements will create new business prospects both in terms of new therapy systems and service provisions. The online opportunities will see the growth in:

New info and Communications technologies. Social Media for Healthcare. Customized Treatments. Direct to Patient Advertising. Direct to patient communications.

Porter Five Forces Model

Threat of new Entrants

Threats of entry posed by new or potential competitors LOW Threat of New Entry: Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.2
Competitive rivalry

Degree of rivalry among existing firms HIGH Competitive Rivalry: If there are many competitors, and they offer equally attractive products and services, then you'll most likely have little power in the situation, because suppliers and buyers will go elsewhere if they don't get a good deal from you. On the other hand, if no-one else can do what you do, then you can often have tremendous strength.3
Bargaining power of suppliers

Bargaining power of suppliers LOW Supplier Power: this is where you can assess how easy it is for suppliers to drive up prices. This is caused by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another etc. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are.4

James Manktelow. Assessing the balance of power in a business situation with porter five forces. [Internet] US. Mind th Tools Ltd, 1996-2013 [cited 2013 June 8 ] Available from: http://www.mindtools.com/pages/article/newTMC_08.htm 3 James Manktelow. Assessing the balance of power in a business situation with porter five forces. [Internet] US. Mind th Tools Ltd, 1996-2013 [cited 2013 June 8 ] Available from: http://www.mindtools.com/pages/article/newTMC_08.htm
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James Manktelow. Assessing the balance of power in a business situation with porter five forces. [Internet] US. Mind th Tools Ltd, 1996-2013 [cited 2013 June 8 ] Available from: http://www.mindtools.com/pages/article/newTMC_08.htm

Bargaining power of buyers

Bargaining power of buyers LOW Buyer Power: tells us How easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost of buyers to switch from your products and services to those of someone else. If you deal with a few powerful buyers, then they are often able to dictate terms to you.5
Threat of substitutes

Closeness of substitute products MEDIUM

Threat of Substitution: This is affected by the ability of your customers to find a

different way of doing what you do for example, Customers can find substitute medicine if the original product has an expired patent If substitution is easy and substitution is viable, then this weakens your power. However, if it is a new product the consumer generally will have no choice for an alternative.6

James Manktelow. Assessing the balance of power in a business situation with porter five forces. [Internet] US. Mind th Tools Ltd, 1996-2013 [cited 2013 June 8 ] Available from: http://www.mindtools.com/pages/article/newTMC_08.htm 6 James Manktelow. Assessing the balance of power in a business situation with porter five forces. [Internet] US. Mind th Tools Ltd, 1996-2013 [cited 2013 June 8 ] Available from: http://www.mindtools.com/pages/article/newTMC_08.htm

Background
Our company wishes to help the community in Cumoto to stay as healthy as possible by providing easy access to a pharmacy within the neighbourhood, as convenient retail pharmacies with trusted staff could play an important part in expanding access to healthcare. The purpose of this project is to produce a local pharmacy that is easily accessible and is available 16 hours a day without an appointment needed is our main goal. The opportunities of the pharmaceutical industry provide a chance for the industry to grow in capacity or gain a competitive edge.

Scope of Works7
A plot of land was already purchased on the main road in Cumoto. The land is approximately 15, 000 sq ft, where 5000 sq ft will be used for parking. There will be one main entrance and one exit to the car park which will be in front the proposed pharmacy. The scope includes: To construct a modern pharmacy To adhere to building codes To allow users to be served quickly To use modern equipment to better serve customers To cater for drive in customers

Internal premises requirements

This applies to all relevant areas within a pharmacy, including the dispensary, patient consultation area and public areas of the pharmacy. Adequate heating, lighting and air conditioning should be provided to ensure correct storage and safe dispensing of products.
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Cumin Cogaiseoiri na heireann.Draft guidelines for public consultation [Internet].US:The pharmacy regulator. May 2012 th [cited 2013 june 8 ] Available from: http://www.thepsi.ie/Libraries/Consultations/PSI_PREMISES_AND_EQUIPMENT_GUIDELINES_FOR_PUBLIC_CONSULTATIO N_29_05_2012.sflb.ashx

Suitable waiting area with seats provided for patients, giving consideration to the privacy of others. All fixtures, fittings, floors, decor within the pharmacy must be of sound construction, professional, free from dampness and mould, clean, even surface, no slippery floors, free of obstacles and compliant with health and safety requirements All areas of the pharmacy should be kept clean, including the dispensary and public areas and such records maintained for inspection upon request. Provision should be made for toilet and hand washing facilities for both the staff and customers, with both hot and cold water.

Storage areas within the pharmacy

All storage areas and facilities including fixtures and fittings, walls, ceiling and paintwork must be in keeping with that expected from a health care facility and maintained to high standard. Sufficient storage space should be allocated to allow the orderly management of stock and effective stock rotation.

Deliverables
The following are the deliverables for the pharmacy: EXTERIOR WALLS: walls with a 160 mm ISOVER wool insulation + 100 mm expanded polystyrene (U=0.135 W/mk) elevation ready for plastering anti-humidity protections preparation for an electric and plumbing installation inside the walls Aluminium outer sills PCV windows, 5-chamber REHAU with a low emissivity glass external GERDA SX20 class C doors

ROOF: 200 mm-thick roof insulation + 80 mm isover (Insulation) and high-quality membranes steel profile framing for g-k boards in the attic (without assembly) g-k boards for ceilings and the attic after performing the installation (without assembly) Brass roof tile with flashing PCV gutters and downpipes

CEILINGS: covered from the bottom with a framing ready for fixing g-k boards g-k boards (without assembly)

INTERNAL WALLS preparation for electric and plumbing installation inside the walls double OSB 3 sheeting sound insulation inside the walls

ADDITIONAL ELEMENTS: thermally insulated attic stairs external wooden elements painted olive green and white labor, transport to the construction site (depending on the location) porcelain tiles to be fitted on the floor

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List of supply items

Material Compressed earth, mud brick, rammed earth Concrete Composites Thermal protection; building insulation Moisture protection; building envelope, conformal coating, damp (structural), housewrap, waterproofing Doors; stile and rail, raised panel, wood clad, sliding glass doors, door hardware, folding doors Electrical systems and equiptment; AC power plugs and sockets, circuit breaker, electrical connector, electrical wiring, switches Surface finishing; plaster and gypsum board, cement render, ceramic tiles,pavers, mosaics, dropped ceiling, floring- wide plank, wall covering, acoustic wallpaper, paint, woodstain, fauz finishing, wood finishing Fire suppression equipment Heating, ventilation and air conditioning Masonary; adobe, brick and brickwork, terra cotta, artificial stone, concrete block, mortar set, urbanite. Metals; structural steel, rebar, wire rope and cables, metal joist, decking, framing, trusses, metal fabrications,decorative metal Openings; doors and windows Plastics Plumbing fixtures and equipment Specialities (architectural design) Telecommunication equipment Windows; casement, double hung, bay window, curtain wall, skylight, dormer

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Project budget
The total budget for this project is not to exceed $1,200,000 including all eligible taxes, disbursements and contingencies. Terms and timelines for payment will be negotiated in the contract for services, but based on receipt of written invoices from the Consultant for services completed.

Owner contract
Scope of Contract Provide all labor, materials, tools and equipment, and design-build services necessary for design and construction of a project described here in other specific tasks as further defined by this request for proposal (RFP).

Definitions 8 Design-Build (DB) as defined by the Joint Consultative Council (JCC) is the procurement by the Government, under one contract, with one firm or joint venture (JV) for both design and construction services for a specific project. Contracting Officer: The services to be performed under this contract are subject to the general supervision, direction, control and approval of the Contracting Officer. Resident Engineer: The Contracting Officer's authorized representative at the construction site. When more than one Resident Engineer is assigned to a construction project one is designated as being in-charge and is called the "Senior Resident Engineer". The Resident Engineer is responsible for protecting the Company's interest in the execution of the construction contract work. His duties include surveillance of all construction work to assure compliance with the contract documents, interpretation of the contract documents, approval of changed work, approval of all submittals, samples, shop drawings, etc. The Resident Engineer may issue change orders to the Contractor within the limitations set forth in his delegation of authority from the Contracting Officer.

Joint consultive council for the construction industry.[Internet].TnT. JCC. 2011-2012 [cited 2013 June 8 ]. Available at: http://www.jcc.org.tt/

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 Design Build Contract: This term, as used herein, refers to the Contract(s) to perform the design and construction of the project. Contractor: This term, as used herein, refers to the contractor under this contract.

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Submission requirements
RFP responses must be submitted both via hard copy and scanned e-mail copy sent to Marianne_Jones@hotmail.com. Each respondent shall submit one (1) original and two (2) copies of the following documents in a clear, legible, 12 point font, and 8.5 by 11 inch format. Responses not submitted both via hard copy and e-mail will not be considered. Respondents are advised to adhere to the Submittal Requirements. Failure to comply with the instructions of this RFP will be cause for rejection of submittals. The company reserves the right to seek additional information to clarify responses to this RFP.

Main Proposal
Please provide the following information (this information is the main substance for the selection criteria stated above in Selection Criteria): Years of experience and detailed qualifications in performing the range of construction services on various property types in compliance JCC standards, including teams resumes. Please provide the number of full-time and part-time employees. Respondents should provide narrative examples of three (3) projects that are similar in nature to projects described in the RFQ. Capacity to complete the construction of the structure within a short period of time. Please provide the number of properties your company has boarded in the past year. Pricing proposal. This should include the mobilization (base) charge and cost per demolition of each property. Labor will include payments of prevailing wage rates as determined by the Department of Labor and Industries. The Contractor will sign a fixed price contract to include all work and services.

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Evaluation criteria
The Selection Committee comprised of company staff will review qualifications in accordance with the evaluation criteria set forth herein and our objectives and policies. Proposals that are submitted timely and comply with the mandatory requirements of the RFP will be evaluated in accordance with the terms of the RFP. Selection Criteria: General proposals will be evaluated and award will be made on the basis of both cost and technical considerations most advantageous to the company. In descending order of importance evaluations will be based on cost, construction management, past performance, schedule and (small disadvantage business participation).

Technical Evaluations: All technical factors when combined are approximately equal in importance to cost or price. Evaluations will be based on the following technical weightings in descending order of importance: 60% - construction management including corporate project experience, personnel experience, technical/management approach 20% - past performance 10% - schedule 10% - small disadvantaged business participation**

Cost Proposal: Offers are advised that if the technical proposals are essentially equal, award will be made on the basis of the lowest cost.

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Proposal Conditions
Responses to this RFP are due by 2.00pm on 3rd August 2013. Responses to this RFP must be e-mailed to: Moe Jones, Moe_Jones@hotmail.com Each Respondent is responsible for labeling the exterior of the sealed envelope containing the proposal response with the proposal number, proposal name, proposal due date and time, and your firms name.

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