VA awards $54.8M for Pharmaceutical Prep Mfg to McKesson Corp, full and open competition

Contract Overview

Contract Amount: $54,818,677 ($54.8M)

Contractor: Mckesson Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-12-01

End Date: 2018-04-30

Contract Duration: 150 days

Daily Burn Rate: $365.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: EXPRESS REPORT: PPV, DEC-APR FY18 NCO 21

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94104

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $54.8 million to MCKESSON CORPORATION for work described as: EXPRESS REPORT: PPV, DEC-APR FY18 NCO 21 Key points: 1. Significant contract value of $54.8M for pharmaceutical preparations. 2. Competition was full and open, suggesting market-driven pricing. 3. Risk appears moderate given the established nature of pharmaceutical supply. 4. Sector is Pharmaceutical Preparation Manufacturing, a critical healthcare area.

Value Assessment

Rating: good

The award amount of $54.8M for a 5-month period seems reasonable for pharmaceutical supplies. Benchmarking against similar large-scale pharmaceutical contracts 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, which typically leads to competitive pricing. The delivery order structure suggests a need for specific pharmaceutical products within a defined timeframe.

Taxpayer Impact: Taxpayer funds are utilized efficiently through competitive bidding, ensuring value for money in essential pharmaceutical procurement.

Public Impact

Ensures supply of critical pharmaceuticals to veterans. Supports a major corporation in the healthcare supply chain. Impacts patient care by providing necessary medications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in pharmaceutical markets.
Dependence on a single large supplier for a period.

Positive Signals

Competitive award process.
Ensures availability of essential medicines.

Sector Analysis

This contract falls within the Pharmaceutical Preparation Manufacturing sector, which is vital for healthcare systems. Spending in this sector is consistently high due to the ongoing demand for medications.

Small Business Impact

While McKesson Corporation is a large business, the competitive nature of the award may have allowed for subcontracting opportunities for smaller businesses within the pharmaceutical supply chain.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The delivery order structure allows for monitoring of specific needs and performance against the contract.

Related Government Programs

Pharmaceutical Preparation Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for supply chain disruptions.
Price volatility of pharmaceutical ingredients.
Dependence on a single awardee for a critical need.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $54.8 million to MCKESSON CORPORATION. EXPRESS REPORT: PPV, DEC-APR FY18 NCO 21

Who is the contractor on this award?

The obligated recipient is MCKESSON CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $54.8 million.

What is the period of performance?

Start: 2017-12-01. End: 2018-04-30.

What is the specific breakdown of pharmaceutical products included in this contract and their respective quantities?

The provided data does not detail the specific pharmaceutical products or their quantities. Further analysis would require access to the contract's statement of work or line item details to understand the exact nature of the procurement and its value proposition.

How does the unit cost of key pharmaceuticals in this award compare to market benchmarks or other government contracts?

A direct unit cost comparison is not possible without specific product information. However, the 'full and open competition' suggests pricing should be competitive. Benchmarking against GSA schedules or other VA pharmaceutical contracts for similar items would be necessary.

What are the performance metrics and quality assurance measures in place for this delivery order?

Performance metrics and quality assurance details are not specified in the provided summary. Typically, VA contracts include clauses for timely delivery, product quality, and adherence to specifications, with potential penalties for non-compliance.

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: ONE POST ST, SAN FRANCISCO, CA, 94104

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,818,677

Exercised Options: $54,818,677

Current Obligation: $54,818,677

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797P12D0001

IDV Type: IDC

Timeline