DoD awards $3.66M for pharmaceuticals to AmerisourceBergen Drug Corp under full and open competition
Contract Overview
Contract Amount: $3,661,804 ($3.7M)
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: $3.7M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 4570419846!PV PHARM BRANCH, VENDOR, CAGE 0U9U0
Place of Performance
Location: CONSHOHOCKEN, MONTGOMERY County, PENNSYLVANIA, 19428
Plain-Language Summary
Department of Defense obligated $3.7 million to AMERISOURCEBERGEN DRUG CORP for work described as: 4570419846!PV PHARM BRANCH, VENDOR, CAGE 0U9U0 Key points: 1. Significant award to a major pharmaceutical distributor. 2. Competition method indicates potential for fair pricing. 3. Contract duration is very short, suggesting a specific, immediate need. 4. Sector is critical for military readiness and personnel health.
Value Assessment
Rating: good
The award amount of $3.66M for a single delivery order appears reasonable for pharmaceutical supplies. Benchmarking against similar large-scale drug distribution 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, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The use of full and open competition is taxpayer-favorable as it drives down costs through market forces.
Public Impact
Ensures continued availability of essential medicines for military personnel and their families. Supports the Defense Logistics Agency's mission to provide medical materiel. Impacts the pharmaceutical supply chain and distribution network.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration may lead to future re-competition and potential price fluctuations.
- Reliance on a single vendor for this critical need.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
Sector Analysis
The pharmaceutical manufacturing and distribution sector is vital for national security, ensuring the health and readiness of armed forces. Spending in this area is consistently high due to the essential nature of medical supplies.
Small Business Impact
While the vendor is a large corporation, the nature of pharmaceutical distribution often involves complex supply chains. It's unclear if small businesses were involved as subcontractors or suppliers in this specific award.
Oversight & Accountability
The award is a delivery order against a larger contract vehicle. Oversight would focus on timely delivery, quality of pharmaceuticals, and adherence to contract terms.
Related Government Programs
- Medicinal and Botanical Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Short contract duration
- Potential for price volatility
- Critical supply chain reliance
- Limited visibility into subcontractor participation
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 $3.7 million to AMERISOURCEBERGEN DRUG CORP. 4570419846!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 $3.7 million.
What is the period of performance?
Start: 2026-01-07. End: 2026-01-08.
What is the historical pricing trend for similar pharmaceutical delivery orders from this vendor or competitors?
Analyzing historical pricing data for comparable pharmaceutical delivery orders is crucial. This would involve comparing the per-unit costs and overall contract value against previous awards to AmerisourceBergen Drug Corp and other major distributors. Understanding these trends helps determine if the current $3.66M award represents a fair market price or if there's potential for cost savings in future solicitations.
What are the risks associated with a very short contract duration (1 day) for essential pharmaceuticals?
A one-day duration for a pharmaceutical delivery order suggests an urgent, immediate need, potentially for a specific event or to bridge a gap. The primary risk is the potential for price gouging due to urgency and the limited time for competitive bidding. It also necessitates rapid procurement processes, which could increase administrative costs and the chance of errors. Ensuring supply chain continuity beyond this short period requires proactive planning.
How effectively does full and open competition ensure value for money in the pharmaceutical supply sector?
Full and open competition is generally effective in driving value for money by encouraging multiple vendors to offer competitive bids, leading to lower prices and better terms. In the pharmaceutical sector, however, the complexity of drug manufacturing, regulatory hurdles, and established distribution networks can sometimes limit the number of truly competitive bidders. While it remains the preferred method, agencies must ensure solicitations are structured to maximize meaningful competition.
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: $3,661,804
Exercised Options: $3,661,804
Current Obligation: $3,661,804
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DX22D0089
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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