U.S. Military Buys Drugs in Bulk - $3 Billion Worth of Them

MED Pills

Troops require medication of all kinds as a way of managing chronic conditions, handling the wear and ills that are a constant risk on military deployments, et. al. Unsurprisingly, militaries tend to buy in bulk, often through middle-men offering wholesale margins on a wide variety of treatments. Recent days have seen over $3 billion in contracts issued, many of which are option periods from an original award. AmerisourceBergen seems to be the big winner.

Unless otherwise noted, the Defense Supply Center Philadelphia in Philadelphia, PA issued the contracts.

Oct 1/07: Woman-owned small business qualifier DMS Pharmaceutical Group, Inc. in Park Ridge, IL received a $16.2 million firm-fixed-price, prime-vendor secondary contract for pharmaceuticals, on behalf of the US Army, Navy, Air Force, Marine Corps, and Coast Guard.

This contract has a base ordering period of 30 months, and 3 term options of 30-months each for a potential maximum contract term of 120 months, or 10 years. This is the first of 3 option periods being exercised. The original proposal was web solicited with 5 responses. Date of performance completion is March 31, 2010 (SPM200-05-D-0901).

Oct 1/07: AmerisourceBergen Drug Corp. in Chesterbrook, PA won a $105.6 million firm-fixed-price, prime-vendor contract for pharmaceuticals, on behalf of the US regions under DSCP Medical’s Generation III Pharmaceutical Prime Vendor Program including non-DoD, and non-U.S. Coast Guard, such as National Institute of Health, Department of Justice, District of Columbia Government, etc. Work will be performed in Florida, Alabama, Georgia, Mississippi, Texas, and Puerto Rico.

This contract has a base ordering period of 30 months, and 3 term options of 30-months each for a potential maximum contract term of 120 months, or 10 years. This is the first of 3 option periods being exercised. The original proposal was web solicited with 5 responses. Date of performance completion is March 31, 2010 (SPM200-05-D-0925).

Oct 1/07: AmerisourceBergen Drug Corp., Chesterbrook, Pa. won a $149.3 million firm-fixed-price with economic price adjustment, prime vendor contract for pharmaceuticals. It covers US Designated Providers Region under DSCP Medical’s Generation III Pharmaceutical Prime Vendor Program, including all Designated Providers that are part of the Uniformed Services Family Health Plan (USFHP) program. Work will be performed in Texas, Virginia, Massachusetts, and North Carolina.

This contract has a base ordering period of 30 months, and 3 term options of 30-months each for a potential maximum contract term of 120 months, or 10 years. This is the first of 3 option periods being exercised. The original proposal was web solicited with 5 responses. Date of performance completion is March 31, 2010 (SPM200-05-D-0950).

Oct 1/07: Small business qualifier Dakota Drug, Inc. in Minot, ND received a $17.9 million firm-fixed-price, prime-vendor contract for pharmaceuticals, on behalf of the US Army, Navy, and Air Force. The contract has a 30 month option period. There were 6 proposals originally solicited with 4 responses. Date of performance completion is March 31, 2010 (SPM200-05-D-0976).

Oct 1/07: AmerisourceBergen Drug Corp. in Chesterbrook, PA won a $413.6 million firm-fixed-price, prime-vendor contract for pharmaceuticals, on behalf of the US Army, Navy, Air Force, and Marine Corps in Texas, Massachusetts, Virginia, and North Carolina.

This contract has a base ordering period of 30 months, and 3 term options of 30-months each for a potential maximum contract term of 120 months, or 10 years. This is the first of 3 option periods being exercised. The original proposal was web solicited with 5 responses. Date of performance completion is March 31, 2010 (SPM200-05-D-1000).

Oct 1/07: Bindley Western Drug Co. in Indianapolis, IN won a $413.6 million firm-fixed-price, prime vendor contract for pharmaceuticals, on behalf of the US Army, Navy, Air Force, and Marine Corps in North Carolina.

This contract has a base ordering period of 24 months, and 3 term options of 24 months each. The potential maximum contract term is 96 months or 8 years. This is the 3ird option period being exercised. The original proposal was web solicited with 5 responses. Date of performance completion is September 29, 2009 (SPM200-05-D-1606).

Oct 1/07: AmerisourceBergen Drug Corp. in Chesterbrook, PA won a $1.76 billion firm-fixed-price, prime-vendor contract for pharmaceuticals, on behalf of the US Army, Navy, Air Force, Marine Corps, and Coast Guard in Florida, Alabama, Georgia, Mississippi, Texas and Puerto Rico.

This contract has a base ordering period of 30 months, and 3 term options of 30-months each for a potential maximum contract term of 120 months, or 10 years. This is the first of 3 option periods being exercised. The original proposal was web solicited with 5 responses. Date of performance completion is March 31, 2010 (SPM200-05-D-2000).

Oct 1/07: Cardinal Health, Inc. in Dublin, OH won a $315.6 million firm-fixed-price, prime-vendor contract for pharmaceutical distribution on behalf of the US Army, Navy, and Air Force in Minnesota, Missouri, Arizona, California, Colorado, Utah, and Washington.

The contract has a 30 month option period There were 6 proposals originally solicited with 4 responses. Date of performance completion is March 31, 2010 (SPM200-05-D-3000).

Oct 1/07: AmericourceBergen Drug Co. in Wayne, PA won a $20 million firm-fixed-price, prime vendor contract for pharmaceuticals, on behalf of the US Army, Navy, and Air Force in Hawaii. The contract has a 30 month option period. There were 6 proposals originally solicited, with 4 responses. Date of performance completion is March 31, 2010 (SPM200-05-D-3500).

October 3, 2007 Related topics: Contract Awards, Pharmaceuticals, Group purchasing & GPOs, Cost savings

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