Justice Department contract for medications to Federal Prisons, awarded to McKesson Corporation
Contract Overview
Contract Amount: $200,000 ($200.0K)
Contractor: Mckesson Corporation
Awarding Agency: Department of Justice
Start Date: 2026-04-01
End Date: 2026-08-09
Sector: Healthcare
Official Description: MCKESSON FY26 MEDICATIONS
Plain-Language Summary
Department of Justice obligated $200,000 to MCKESSON CORPORATION for work described as: MCKESSON FY26 MEDICATIONS Key points: 1. Significant contract value for essential pharmaceutical supplies. 2. Sole provider McKesson Corporation faces no direct competition for this award. 3. Risk of supply chain disruption or price increases due to single-source award.
Value Assessment
Rating: good
The contract value is substantial, indicating a significant need for pharmaceutical supplies within the Federal Prison System. The award appears to be for a critical service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award to McKesson Corporation, suggesting a lack of competitive bidding for these specific medications. This could be due to specialized needs or existing relationships.
Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competition.
Public Impact
Ensures a consistent supply of necessary medications for inmates. Potential for higher costs passed on to taxpayers without competitive pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Potential for price escalation from McKesson Corporation.
- Dependence on a single supplier for critical medications.
Positive Signals
- Ensures availability of essential medications.
- Award supports a large federal agency's operational needs.
Sector Analysis
This contract falls within the healthcare sector, specifically focusing on pharmaceutical supply chain management for federal correctional facilities. It highlights the government's role in providing healthcare services to incarcerated individuals.
Small Business Impact
There is no indication that small businesses were involved in this award, nor does it appear to be a set-aside contract. The award is directly to a large corporation.
Oversight & Accountability
Oversight would focus on McKesson's adherence to delivery schedules, medication quality, and pricing compared to market rates, especially given the sole-source nature of the award.
Related Government Programs
- Federal Prison System Medications
- Pharmaceutical Supply Contracts
Risk Flags
- Sole-source award
- Lack of competition
Tags
federal-spending, healthcare, pharmaceuticals, department-of-justice, bureau-of-prisons, mckesson, sole-source, contract-award
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $200,000 to MCKESSON CORPORATION. MCKESSON FY26 MEDICATIONS
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 $200,000.
What is the period of performance?
Start: 2026-04-01. End: 2026-08-09.
Analysis insight 1
The contract value of $200,000 is for a specific period, and the total spending on medications for the Federal Prison System may be significantly higher.
Analysis insight 2
Further analysis would be needed to determine if this sole-source award was justified or if competitive options were explored.
Analysis insight 3
The duration of the contract is relatively short, suggesting it might be a delivery order against a larger indefinite-delivery contract.