DoD awards $2.39M for pharmaceuticals to AmerisourceBergen Drug Corp under full and open competition
Contract Overview
Contract Amount: $2,391,446 ($2.4M)
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: $2.4M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 4570419836!PV PHARM BRANCH, VENDOR, CAGE 0U9U0
Place of Performance
Location: CONSHOHOCKEN, MONTGOMERY County, PENNSYLVANIA, 19428
Plain-Language Summary
Department of Defense obligated $2.4 million to AMERISOURCEBERGEN DRUG CORP for work described as: 4570419836!PV PHARM BRANCH, VENDOR, CAGE 0U9U0 Key points: 1. Significant contract value for pharmaceutical manufacturing. 2. AmerisourceBergen is a major player in drug distribution. 3. Risk is moderate, given the essential nature of pharmaceuticals. 4. Spending falls within the broad 'Medicinal and Botanical Manufacturing' sector.
Value Assessment
Rating: good
The award amount of $2,391,445.84 appears reasonable for a one-year contract for pharmaceutical supplies. Benchmarking against similar contracts for medicinal and botanical manufacturing would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.
Taxpayer Impact: Full and open competition is expected to yield fair market prices, maximizing taxpayer value for essential pharmaceutical supplies.
Public Impact
Ensures continued supply of critical pharmaceuticals for military personnel and operations. Supports the Defense Logistics Agency's mission to provide medical materiel. Impacts the pharmaceutical supply chain and potentially patient access to medications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in the pharmaceutical market.
- Dependence on a single vendor for this specific delivery order.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Long-term vendor relationship may ensure supply chain stability.
Sector Analysis
This contract falls under the Medicinal and Botanical Manufacturing sector (NAICS 325411), which includes establishments primarily engaged in manufacturing pharmaceutical preparations. Spending in this sector is critical for national health and defense readiness.
Small Business Impact
While the vendor is AmerisourceBergen Drug Corp, a large corporation, the contract was awarded under full and open competition. There is no specific indication of small business participation in this particular award, but the competitive nature allows for potential subcontracting opportunities.
Oversight & Accountability
The contract is a delivery order under a larger agreement, suggesting prior review and oversight. The firm fixed price and full and open competition indicate a degree of accountability in pricing.
Related Government Programs
- Medicinal and Botanical Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for supply chain disruption.
- Price volatility in pharmaceutical markets.
- Limited vendor options for this specific order.
- Dependence on vendor's manufacturing capacity.
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 $2.4 million to AMERISOURCEBERGEN DRUG CORP. 4570419836!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 $2.4 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. This involves comparing unit costs, contract volumes, and delivery terms over time. Understanding these trends helps determine if the current award represents a fair market price and identifies any significant deviations that might warrant further investigation into market dynamics or vendor pricing strategies.
What are the potential risks associated with relying on a single vendor for this specific pharmaceutical delivery order?
Relying on a single vendor for a specific pharmaceutical delivery order introduces risks such as supply chain disruptions due to unforeseen events (e.g., manufacturing issues, natural disasters, geopolitical instability). It also limits negotiating leverage for future contracts. Mitigation strategies could include identifying alternative suppliers, maintaining strategic stockpiles, or ensuring robust contingency plans are in place with the current vendor.
How effectively does this contract support the DLA's mission to ensure medical materiel readiness?
This contract directly supports the Defense Logistics Agency's (DLA) mission by securing a supply of essential pharmaceuticals. The firm fixed price and full and open competition suggest a cost-effective procurement. However, effectiveness is ultimately measured by the reliability of supply, quality of the pharmaceuticals, and timely delivery to meet the needs of military personnel and operations.
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: $2,391,446
Exercised Options: $2,391,446
Current Obligation: $2,391,446
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DX22D0129
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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