DoD awards $2.7M for pharmaceuticals to AmerisourceBergen Drug Corp under full and open competition
Contract Overview
Contract Amount: $2,719,401 ($2.7M)
Contractor: Amerisourcebergen Drug Corp
Awarding Agency: Department of Defense
Start Date: 2026-01-07
End Date: 2026-01-08
Contract Duration: 1 days
Daily Burn Rate: $2.7M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 4570419842!PV PHARM BRANCH, VENDOR, CAGE 0U9U0
Place of Performance
Location: CONSHOHOCKEN, MONTGOMERY County, PENNSYLVANIA, 19428
Plain-Language Summary
Department of Defense obligated $2.7 million to AMERISOURCEBERGEN DRUG CORP for work described as: 4570419842!PV PHARM BRANCH, VENDOR, CAGE 0U9U0 Key points: 1. The contract is for medicinal and botanical manufacturing, a critical component of healthcare supply chains. 2. AmerisourceBergen Drug Corp is a major player in pharmaceutical distribution, indicating significant market presence. 3. The award is a delivery order, suggesting it's part of a larger contract vehicle. 4. The fixed-price contract type aims to control costs for the government.
Value Assessment
Rating: good
The award amount of $2.7M appears reasonable for pharmaceutical supplies, especially given the vendor's market position. Benchmarking against similar large-scale pharmaceutical contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust process for price discovery and vendor selection. This method typically leads to more competitive pricing.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple bids, potentially lowering the overall cost of goods.
Public Impact
Ensures continued availability of essential pharmaceuticals for military personnel and operations. Supports the broader healthcare ecosystem by engaging a key pharmaceutical distributor. The fixed-price nature protects against cost overruns for this specific order.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in the pharmaceutical market impacting long-term value.
- Dependence on a single vendor for this specific delivery order.
Positive Signals
- Awarded under full and open competition.
- Fixed-price contract type.
- Vendor has established market presence.
Sector Analysis
The pharmaceutical manufacturing sector is highly regulated and characterized by significant R&D investment and complex supply chains. Government spending in this area is crucial for national health security and defense readiness.
Small Business Impact
While AmerisourceBergen Drug Corp is a large corporation, the contract's nature and scale may limit direct participation opportunities for small businesses in this specific award. Subcontracting opportunities, if any, would need further investigation.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for ensuring the timely and cost-effective procurement of medical supplies. Oversight mechanisms should be in place to monitor contract performance and vendor compliance.
Related Government Programs
- Medicinal and Botanical Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for supply chain disruption.
- Dependence on a single vendor for this order.
- Market volatility in pharmaceutical pricing.
- Contract duration is short (delivery order).
Tags
medicinal-and-botanical-manufacturing, department-of-defense, pa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.7 million to AMERISOURCEBERGEN DRUG CORP. 4570419842!PV PHARM BRANCH, VENDOR, CAGE 0U9U0
Who is the contractor on this award?
The obligated recipient is AMERISOURCEBERGEN DRUG CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $2.7 million.
What is the period of performance?
Start: 2026-01-07. End: 2026-01-08.
What is the historical pricing trend for similar pharmaceutical products procured by the DoD?
Analyzing historical pricing data for comparable pharmaceutical products procured by the Department of Defense is crucial for assessing the value of this $2.7M award. Understanding past price fluctuations, bulk discounts, and the impact of different contract types (e.g., fixed-price vs. cost-plus) will provide a benchmark to determine if AmerisourceBergen's pricing is competitive and reflects fair market value.
What are the potential risks associated with relying on a single vendor for this specific pharmaceutical delivery order?
Relying on a single vendor for this delivery order, even if part of a larger framework, introduces risks such as supply chain disruptions, potential price increases in future orders, and limited leverage for negotiation. If AmerisourceBergen faces unforeseen issues (e.g., manufacturing problems, distribution delays, or regulatory changes), it could impact the availability of critical pharmaceuticals for the Department of Defense.
How effectively does the fixed-price contract type mitigate cost risks for this pharmaceutical procurement?
The firm fixed-price contract type is designed to provide cost certainty for the government by establishing a set price before performance begins. This effectively mitigates the risk of cost overruns for this specific $2.7M delivery order. However, it shifts the risk of unexpected cost increases to the contractor, AmerisourceBergen, which may be factored into their initial pricing.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Medicinal and Botanical 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
Parent Company: Cencora, Inc.
Address: 1 W 1ST AVE, CONSHOHOCKEN, PA, 19428
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,719,401
Exercised Options: $2,719,401
Current Obligation: $2,719,401
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DX22D0069
IDV Type: IDC
Timeline
Start Date: 2026-01-07
Current End Date: 2026-01-08
Potential End Date: 2026-01-08 00:00:00
Last Modified: 2026-01-07
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