; and (ii) complete such negotiations 30 days before the first day of the application review process for the first plan year during such negotiated price period for new contracts or expanding existing contracts with PDP sponsors and MA organizations to offer prescription drug plans or MA–PD plans, respectively. (B) Use of fallback if negotiations fail If, after attempting to negotiate the price during a negotiation year for a covered part D drug that is identified as included within the negotiation drug grouping for such negotiation year, the Secretary is not successful in obtaining an appropriate price (as determined by the Secretary in accordance with guidance described in subparagraph (E)), the price that may be charged during each plan year during the negotiated price period, with respect to such negotiation year, to PDP sponsors and MA organizations for such covered part D drugs for part D eligible individuals who are enrolled under a prescription drug plan or under an MA–PD plan shall be the lowest of— (i) the contract price applied pursuant to section 8126 of title 38, United States Code, for such drug for the contract year (as defined in such section 8126) beginning during the first plan year of such negotiated price period; (ii) the average of the prices available, during the most recent 12-month period for which data is available prior to the beginning of such negotiated price period, from the manufacturer to any wholesaler, retailer, provider, health maintenance organization, nonprofit entity, or governmental entity in the ten OECD (Organization for Economic Cooperation and Development) countries that have the largest gross domestic product with a per capita income that is not less than half the per capita income of the United States, as reported by the manufacturer to the Secretary