Big Pharma: US Orders $3B+ for the Troops

$442 million in follow-on US military pharma contracts. (March 31/10)

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, etc. Unsurprisingly, militaries tend to buy in bulk, often through middle-men offering wholesale margins on a wide variety of treatments.

In 2007, US DoD issued $3 billion in contracts for bulk pharmaceutical purchases, many of which are option periods from an original award…

Contracts & Key Events

Note that this article does not cover all pharmaceutical orders for the US military, just a particular set of contracts over their lifetimes. Unless otherwise noted, the Defense Supply Center Philadelphia in Philadelphia, PA issued the contracts.

March 31/10: AmerisourceBergen Drug Corp. in Wayne, PA received a $20 million firm-fixed-price, prime vendor contract for pharmaceuticals on behalf of the US Army, Navy and Air Force in Hawaii (see Oct 1/07 entry). The original proposal was Web solicited with 4 responses. This contract is exercising the 2nd option year. The date of performance completion is Sept 30/12 (SPM200-05-D-3500).

March 31/10: Cardinal Health Inc. in Dublin, OH received a maximum $315.6 million firm-fixed-price, prime vendor contract for pharmaceuticals distribution on behalf of the US Army, Navy, and Air Force in Missouri, California, Utah, Arizona, Colorado, and Washington (see Oct 1/07 entry). This contract is exercising the 2nd option year. The date of performance completion is Sept 30/12 (SPM200-05-D-3000).

March 31/10: Cardinal Health, Inc. in Dublin, OH received a maximum $20 million firm-fixed-price, prime vendor contract for pharmaceutical items on behalf of the DoD in North Carolina. The original proposal was Web solicited with 3 responses. The date of performance completion is May 31, 2010 (SPM200-01-D-1606).

March 31/10: Small business qualifier Dakota Drug, Inc. in Minot, ND is being awarded a maximum $17.9 million firm-fixed-price, prime vendor contract for pharmaceuticals on behalf of the USAF (see Oct 1/07 entry). The original proposal was Web solicited with 4 responses. This contract is exercising the 2nd option year. The date of performance completion is Sept 30/12 (SPM200-05-D-0976).

March 31/10: Woman-owned small business qualifier DMS Pharmaceutical Group Inc. in Park Ridge, IL received a maximum $35.1 million firm-fixed-price, total set-aside, prime vendor secondary contract for pharmaceuticals on behalf of the US Army, Navy, and Air Force (see Oct 1/07 entry). The original proposal was Web solicited with 4 responses. The date of performance completion is Sept 30/12 (SPM200-05-D-0901).

March 31/10: Woman-owned small business qualifier DMS Pharmaceutical Group Inc. in Park Ridge, IL won a maximum $34.1 million firm-fixed-price, total set-aside, prime vendor secondary contract for pharmaceuticals on behalf of the US Army, Navy and Air Force. The original proposal was Web solicited with 4 responses. This contract is exercising the 2nd option year. The date of performance completion is Sept 30/12(SPM200-05-D-0900).

March 19/10: AmerisourceBergen Drug Corp., Chesterbrook, Pa. received a $177.5 million modification to a firm-fixed-price prime vendor contract for pharmaceuticals (see Oct 1/07 entry). 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 modification is exercising the 2nd option of three 30-month option periods. The original proposal was web solicited with 5 responses. Date of performance completion is Sept 30/12 (SPM200-05-D-0950).

March 19/10: AmerisourceBergen Drug Corp. in Chesterbrook, PA received a $110 million modification to a firm-fixed-price prime-vendor contract for pharmaceuticals (see Oct 1/07 entry). It covers 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 Texas, Massachusetts, Virginia, and Washington.

This contract modification is exercising the 2nd option of three 30-month option periods. The original proposal was web solicited with 5 responses. Date of performance completion is Sept 30/12 (SPM200-05-D-0925).

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).