Drug Deals: DLA Awards up to $807M for Pharmaceuticals Delivery
Military meds are big business. In March 2010 the US DLA’s Defense Supply Center Philadelphia awarded a pair of 5-year contracts worth up to $807.1 million to Cardinal Health in Dublin, OH, for drug distribution to US military medical facilities.
For these contracts, the European region encompasses all US military medical treatment facilities (MTFs) located on the Continent of Europe, including Turkey plus the surrounding seas and oceans as well as Oman and Bahrain. The Pacific region encompasses all MTFs located in the Pacific including Guam, Diego Garcia and the surrounding seas and oceans. Another 5-year contract with wider reach involves deliveries to American ships.
March 17/10: Under a firm-fixed-price, indefinite-quantity prime vendor contract, Cardinal Health will distribute drugs to medical facilities onboard US Navy ships. The contract has a 20-month base period with two 20-month option periods and a maximum value of $150 million, according to a DefenseLink announcement (SPM2DX-10-D-0001). See also FBO.gov
Europe & Pacific
The prime pharmaceutical vendor Generation III primary supplier contract for Europe and the Pacific region were awarded under the TRICARE Management Activity program. There were 4 responses to the original web solicitation. Work will be performed in Ohio, California and North Carolina.
Jan 26/12: Cardinal Health, Inc. in Dublin, OH was issued a contract modification exercising the 1st 20-month option period on the contract. The requirements type contract authorizes a maximum $206.4 million, estimated based on sales in the Europe and Pacific regions. The contract runs to the end of FY 2013, on Sept 30/13 (SPM2DX-10-D-0027, PO 0036).
March 17/10: Under a requirements-type prime vendor contract, the company will also distribute pharmaceuticals to US military medical facilities in Europe and the Pacific. That contract has a 20-month base period worth $206.4 million and two 20-month option periods, with a maximum value of $657.1 million (SPM2DX-10-D-0027). See also FBO.gov
March 17/10: The DLA also selected a separate small business qualifier as a secondary drug supplier to Europe and the Pacific. DMS Pharmaceutical Group in Park Ridge, IL, received a contract worth up to $2.2 million (SPM2DX-10-D-0130).