DOJ's Bureau of Prisons to Spend $5.3M on Pharmaceuticals in FY25 with McKesson
Contract Overview
Contract Amount: $5,306,603 ($5.3M)
Contractor: Mckesson Corporation
Awarding Agency: Department of Justice
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $14.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: PPV PHARMACEUTICAL ITEMS - FISCAL YEAR 25 PROCUREMENT OF PHARMACEUTICALS ON THE PPV
Place of Performance
Location: IRVING, DALLAS County, TEXAS, 75039
State: Texas Government Spending
Plain-Language Summary
Department of Justice obligated $5.3 million to MCKESSON CORPORATION for work described as: PPV PHARMACEUTICAL ITEMS - FISCAL YEAR 25 PROCUREMENT OF PHARMACEUTICALS ON THE PPV Key points: 1. Spending focuses on pharmaceutical preparation manufacturing for the Federal Prison System. 2. McKesson Corporation is the sole awardee for this delivery order. 3. The contract is a firm-fixed-price agreement, providing cost certainty. 4. This procurement falls under the Pharmaceutical Preparation Manufacturing sector.
Value Assessment
Rating: good
The award amount of $5.3M for FY25 appears reasonable for pharmaceutical supplies to the Federal Prison System. Benchmarking against similar large-scale pharmaceutical procurements for correctional facilities would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair market prices for the required pharmaceuticals.
Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive process for essential pharmaceutical supplies.
Public Impact
Ensures a consistent supply of necessary medications for inmates within the Federal Prison System. Supports the health and well-being of incarcerated individuals. Contributes to the operational stability of correctional facilities by securing essential medical supplies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Clear delivery period for FY25.
Sector Analysis
This procurement is within the Pharmaceutical Preparation Manufacturing sector, which is critical for healthcare services, especially within government institutions like prisons. Spending benchmarks for this sector vary widely based on scale and specific product needs.
Small Business Impact
The data does not indicate any specific set-asides for small businesses in this procurement. Further analysis would be needed to determine if small businesses had an opportunity to participate or if this was a large-scale award to a major supplier.
Oversight & Accountability
The Department of Justice's Bureau of Prisons is responsible for this procurement. Oversight would involve monitoring contract performance, delivery schedules, and adherence to quality standards to ensure taxpayer value.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for supply chain disruptions affecting pharmaceutical availability.
- Reliance on a single large supplier could pose risks if performance issues arise.
- Need for ongoing price monitoring to ensure continued cost-effectiveness.
Tags
pharmaceutical-preparation-manufacturing, department-of-justice, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $5.3 million to MCKESSON CORPORATION. PPV PHARMACEUTICAL ITEMS - FISCAL YEAR 25 PROCUREMENT OF PHARMACEUTICALS ON THE PPV
Who is the contractor on this award?
The obligated recipient is MCKESSON CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $5.3 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the historical spending trend for pharmaceuticals by the Federal Prison System?
Analyzing historical spending data for pharmaceuticals by the Federal Prison System is crucial for understanding cost trends and identifying potential anomalies. This context helps determine if the current $5.3M FY25 procurement represents an increase, decrease, or stable expenditure compared to previous years, informing budget planning and cost-effectiveness assessments.
Are there any identified risks associated with McKesson Corporation's ability to fulfill this contract?
While McKesson Corporation is a large, established supplier, potential risks could include supply chain disruptions, quality control issues, or price fluctuations not fully captured by the firm-fixed-price agreement if unforeseen circumstances arise. Monitoring performance and maintaining open communication channels are key to mitigating these risks.
How does the pricing of these pharmaceuticals compare to the open market or other government agencies?
Benchmarking the pricing of these pharmaceuticals against the open market and similar procurements by other government agencies is essential for assessing value. Even with full and open competition, variations in pricing can occur due to volume, specific formulations, and contract terms. This comparison ensures the Federal Prison System is obtaining a competitive price.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6555 STATE HIGHWAY 161, IRVING, TX, 75039
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,306,603
Exercised Options: $5,306,603
Current Obligation: $5,306,603
Actual Outlays: $5,307,720
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36W79720D0001
IDV Type: IDC
Timeline
Start Date: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-12-22
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