DOJ's $450K McKesson Contract for Prison Medications Awarded via Full and Open Competition
Contract Overview
Contract Amount: $450,000 ($450.0K)
Contractor: Mckesson Corporation
Awarding Agency: Department of Justice
Start Date: 2026-04-01
End Date: 2026-04-30
Contract Duration: 29 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FY26 B1 MCKESSON REGULAR MEDICATION APR26
Place of Performance
Location: IRVING, DALLAS County, TEXAS, 75039
State: Texas Government Spending
Plain-Language Summary
Department of Justice obligated $450,000 to MCKESSON CORPORATION for work described as: FY26 B1 MCKESSON REGULAR MEDICATION APR26 Key points: 1. Contract awarded to McKesson Corporation for essential medications. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is $450,000 for a one-month period. 4. Spending is within the pharmaceutical preparation manufacturing sector.
Value Assessment
Rating: good
The contract value of $450,000 for a one-month supply of regular medications appears reasonable given the scale of federal prison systems. Benchmarking against similar pharmaceutical supply contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified vendors to bid, driving competitive pricing and potentially securing better value for the government.
Taxpayer Impact: The competitive nature of the award is expected to result in fair pricing, minimizing unnecessary taxpayer expenditure for essential medical supplies.
Public Impact
Ensures a consistent supply of necessary medications for inmates. Supports the health and well-being of individuals within federal correctional facilities. Maintains operational readiness of the Federal Prison System by addressing healthcare needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration (29 days) may indicate a need for frequent re-solicitation or a specific, immediate requirement.
- Lack of small business participation noted.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract type helps control costs.
Sector Analysis
This contract falls within the Pharmaceutical Preparation Manufacturing sector, which is critical for government healthcare and correctional facilities. Spending benchmarks in this area are often influenced by drug pricing regulations and bulk purchasing agreements.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were solicited or had the opportunity to compete for this specific requirement.
Oversight & Accountability
The Department of Justice, through the Federal Prison System, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance and performance.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for supply chain disruption.
- Limited duration may indicate recurring need or specific urgency.
- No small business participation identified.
- Dependence on a single awardee for a critical need.
Tags
pharmaceutical-preparation-manufacturing, department-of-justice, tx, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $450,000 to MCKESSON CORPORATION. FY26 B1 MCKESSON REGULAR MEDICATION APR26
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 $450,000.
What is the period of performance?
Start: 2026-04-01. End: 2026-04-30.
What is the typical cost per inmate for regular medications within the Federal Prison System?
Determining the typical cost per inmate requires access to detailed historical spending data and inmate population figures. Without this granular information, a precise benchmark is difficult to establish. However, the current contract's value relative to the inmate population served by the Bureau of Prisons in Texas would be a key factor in assessing value for money.
Are there any potential risks associated with relying on a single vendor for regular medications, even with open competition?
While open competition mitigates some risks, over-reliance on a single vendor for essential medications can still pose risks. These include potential supply chain disruptions, price increases in future solicitations if competition dwindles, or quality control issues. Diversifying suppliers or establishing robust contingency plans can help mitigate these risks.
How does the firm fixed price contract type impact the effectiveness of this medication procurement?
A firm fixed price contract is effective in controlling costs for the government, as the price is set regardless of the contractor's actual costs. This shifts the risk of cost overruns to McKesson. For regular medications, where demand is relatively predictable, this contract type is generally effective in ensuring budget certainty and preventing unexpected price escalations.
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: $450,000
Exercised Options: $450,000
Current Obligation: $450,000
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: 2026-04-01
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-04-03
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