DoD awards $2.6M contract for pharmaceuticals to Amerisourcebergen Drug Corp
Contract Overview
Contract Amount: $2,635,657 ($2.6M)
Contractor: Amerisourcebergen Drug Corp
Awarding Agency: Department of Defense
Start Date: 2026-01-12
End Date: 2026-01-13
Contract Duration: 1 days
Daily Burn Rate: $2.6M/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: 4570466762!PV PHARM BRANCH, VENDOR, CAGE 0U9U0
Place of Performance
Location: CONSHOHOCKEN, MONTGOMERY County, PENNSYLVANIA, 19428
Plain-Language Summary
Department of Defense obligated $2.6 million to AMERISOURCEBERGEN DRUG CORP for work described as: 4570466762!PV PHARM BRANCH, VENDOR, CAGE 0U9U0 Key points: 1. Contract awarded to a single, large vendor. 2. Focus on essential pharmaceutical supplies. 3. Potential for price fluctuations in the pharmaceutical market. 4. Spending falls within the broader healthcare and defense logistics sectors.
Value Assessment
Rating: good
The contract value of $2.6M appears reasonable for pharmaceutical supplies, especially considering the fixed-price nature. Benchmarking against similar large-scale pharmaceutical procurements would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally effective in achieving fair market prices.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing competitive pricing for necessary pharmaceutical goods.
Public Impact
Ensures continued availability of critical medicinal supplies for the Department of Defense. Supports the operational readiness of military personnel by providing necessary pharmaceuticals. The award to a major drug distributor highlights the reliance on established supply chains for government needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor for a critical supply chain.
- Potential for price increases in future contract renewals due to market volatility.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
- Contract duration is short, allowing for re-evaluation.
Sector Analysis
This contract falls within the pharmaceutical manufacturing and distribution sector, a critical component of both healthcare and defense logistics. Spending benchmarks for similar pharmaceutical procurements by government agencies can vary widely based on drug type and quantity.
Small Business Impact
The contract was awarded to Amerisourcebergen Drug Corp, a large corporation, and there is no indication of small business participation in this specific award. Future solicitations could explore opportunities for small business set-asides if applicable.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. Standard procurement oversight processes are expected to be in place to ensure compliance and performance.
Related Government Programs
- Medicinal and Botanical Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source vendor reliance (potential for future)
- Pharmaceutical market price volatility
- Dependence on established large distributors
- Limited visibility into specific drug pricing
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 $2.6 million to AMERISOURCEBERGEN DRUG CORP. 4570466762!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 $2.6 million.
What is the period of performance?
Start: 2026-01-12. End: 2026-01-13.
What is the historical pricing trend for the specific pharmaceuticals covered under this contract?
Analyzing historical pricing data for the specific pharmaceuticals procured would reveal any significant price escalations or reductions over time. This insight is crucial for assessing the long-term value and identifying potential cost-saving opportunities or risks associated with market fluctuations.
Are there alternative suppliers or therapeutic equivalents that could be considered in future solicitations to enhance competition?
Exploring alternative suppliers or therapeutically equivalent drugs is essential for future contract planning. This proactive approach can foster greater competition, potentially drive down costs, and reduce reliance on a single source, thereby mitigating supply chain risks.
How does the unit cost of these pharmaceuticals compare to those purchased by other federal agencies or commercial entities?
Benchmarking the unit cost against similar purchases by other federal agencies or the commercial sector provides a critical measure of cost-effectiveness. Significant deviations could indicate either exceptional value or potential overpayment, necessitating further investigation.
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: $2,635,657
Exercised Options: $2,635,657
Current Obligation: $2,635,657
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE2DX22D0049
IDV Type: IDC
Timeline
Start Date: 2026-01-12
Current End Date: 2026-01-13
Potential End Date: 2026-01-13 00:00:00
Last Modified: 2026-01-12
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