DOJ's Bureau of Prisons awards $534K for FY26 MAT/MOUD Pharmaceuticals to McKesson Corporation

Contract Overview

Contract Amount: $534,233 ($534.2K)

Contractor: Mckesson Corporation

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FY 2026 MAT/MOUD PHARMACEUTICALS

Place of Performance

Location: IRVING, DALLAS County, TEXAS, 75039

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $534,233.2 to MCKESSON CORPORATION for work described as: FY 2026 MAT/MOUD PHARMACEUTICALS Key points: 1. McKesson Corporation, a major player, secures a significant contract. 2. The contract focuses on pharmaceuticals for Medication-Assisted Treatment (MAT) and Opioid Use Disorder (MOUD). 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is one year, aligning with the fiscal year. 5. The award is a Delivery Order under an existing contract.

Value Assessment

Rating: good

The contract value of $534,233.20 for a one-year period appears reasonable for pharmaceutical supplies. Benchmarking against similar federal contracts for MAT/MOUD medications would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of full and open competition is expected to result in cost savings for taxpayers by fostering a competitive environment among pharmaceutical suppliers.

Public Impact

Ensures availability of critical medications for inmates with substance use disorders. Supports the Bureau of Prisons' efforts in rehabilitation and public health. Potential impact on the supply chain for MAT/MOUD medications within federal facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Dependence on a single large supplier (McKesson) for a critical need.
Potential for price fluctuations in pharmaceutical markets impacting future contracts.

Positive Signals

Contract awarded via full and open competition.
Addresses a critical public health need within the correctional system.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on pharmaceutical procurement for correctional facilities. Spending benchmarks for MAT/MOUD pharmaceuticals in federal prisons can vary based on inmate population and specific treatment protocols.

Small Business Impact

While McKesson Corporation is a large business, the contract's structure as a delivery order under a potentially larger contract may have allowed for subcontracting opportunities for small businesses in logistics or related services, though this is not explicitly stated.

Oversight & Accountability

The Bureau of Prisons is responsible for overseeing this contract to ensure timely delivery and quality of pharmaceuticals. The use of a firm fixed-price contract provides cost certainty, but requires diligent oversight to ensure compliance with terms.

Related Government Programs

Pharmaceutical Preparation Manufacturing
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Sole-source supplier risk (McKesson Corporation).
Potential for price increases in pharmaceutical markets.
Dependence on delivery orders may indicate a lack of long-term strategic sourcing.
Limited transparency on specific drug pricing within the total award amount.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $534,233.2 to MCKESSON CORPORATION. FY 2026 MAT/MOUD PHARMACEUTICALS

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 $534,233.2.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical pricing trend for MAT/MOUD pharmaceuticals procured by the Bureau of Prisons?

Analyzing historical pricing data for MAT/MOUD pharmaceuticals procured by the Bureau of Prisons is crucial for assessing the current contract's value. Trends can reveal inflationary pressures, the impact of generic drug availability, and the effectiveness of past competitive bidding strategies. Understanding these trends helps determine if the current $534,233.20 award represents a fair market price or if there are opportunities for cost reduction in future solicitations.

What are the specific MAT/MOUD medications included in this contract and their respective unit costs?

Identifying the specific MAT/MOUD medications and their unit costs is essential for a granular risk assessment. This allows for comparison against market prices for individual drugs, identification of potential supply chain vulnerabilities for specific medications, and evaluation of whether the chosen formulary aligns with current treatment best practices. Without this detail, assessing the true value and potential risks associated with this pharmaceutical procurement is challenging.

How does the Bureau of Prisons measure the effectiveness of MAT/MOUD pharmaceutical programs in reducing recidivism and improving inmate health outcomes?

The effectiveness of MAT/MOUD pharmaceutical programs is typically measured through key performance indicators (KPIs) such as reduced rates of opioid relapse, decreased overdose incidents, improved inmate health status, and potentially lower recidivism rates post-release. The Bureau of Prisons should have established metrics and data collection processes to evaluate the impact of these medications. Understanding these measures is vital to determine if the significant investment in pharmaceuticals is yielding the desired public health and safety benefits.

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: $534,233

Exercised Options: $534,233

Current Obligation: $534,233

Actual Outlays: $87,562

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