VA awards $19.4M contract to McKesson Corporation for drugs and sundries, highlighting full and open competition

Contract Overview

Contract Amount: $19,445,798 ($19.4M)

Contractor: Mckesson Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-03-01

End Date: 2010-03-31

Contract Duration: 30 days

Daily Burn Rate: $648.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TAS::36 0160::TAS

Place of Performance

Location: LANCASTER, DALLAS County, TEXAS, 75134

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.4 million to MCKESSON CORPORATION for work described as: TAS::36 0160::TAS Key points: 1. Contract awarded to McKesson Corporation for $19.4M. 2. Procurement covers drugs and druggists' sundries. 3. Full and open competition was utilized. 4. Contract duration was 30 days. 5. Awarded by the Department of Veterans Affairs.

Value Assessment

Rating: good

The contract value of $19.4M for a 30-day period suggests a significant volume of supplies. Without specific unit pricing or comparison data, it's difficult to definitively assess value, but the competitive nature of the award implies a reasonable price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited. This method generally promotes price discovery and ensures the government receives competitive pricing.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible prices through market forces.

Public Impact

Ensures access to essential medications and medical supplies for veterans. Supports the operational needs of the Department of Veterans Affairs. Demonstrates government commitment to competitive procurement practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (30 days) may indicate an urgent need or a bridge contract.
Lack of detailed performance metrics or specific product breakdown.

Positive Signals

Awarded through full and open competition.
Significant contract value suggests robust supply chain support.

Sector Analysis

The healthcare sector, particularly pharmaceutical and medical supply procurement, is a critical area for government spending. Benchmarks for similar contracts would depend on the specific drugs and sundries procured, but this award represents a substantial investment in supporting veteran healthcare.

Small Business Impact

The data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement oversight processes should be in place to ensure compliance and performance, though specific oversight details are not provided.

Related Government Programs

Drugs and Druggists' Sundries Merchant Wholesalers
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Short contract duration.
Lack of detailed itemization.
Limited performance data available.
Potential for price volatility in short-term procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.4 million to MCKESSON CORPORATION. TAS::36 0160::TAS

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 $19.4 million.

What is the period of performance?

Start: 2010-03-01. End: 2010-03-31.

What was the specific breakdown of drugs and sundries included in this contract, and how does the pricing compare to market rates for these items?

The provided data lacks the specific breakdown of drugs and sundries. To assess value accurately, a detailed list of procured items and their corresponding unit prices would be necessary. Comparing these unit prices against established market rates or benchmark data for similar pharmaceutical and medical supply contracts would reveal whether the $19.4M award represented a fair and reasonable price for the goods received.

Given the short 30-day duration, what was the strategic reason behind this contract, and were there any risks associated with a short-term procurement for essential medical supplies?

A 30-day contract duration often suggests an urgent requirement, a need to bridge a gap until a longer-term contract is in place, or a specific, time-limited project. The strategic reason could be to ensure immediate supply continuity. Risks associated with such short durations include potential price inflation due to urgency, limited vendor engagement, and the administrative burden of frequent re-procurement.

How effective was this contract in meeting the VA's needs for drugs and druggists' sundries during the specified period, and what metrics were used to evaluate its success?

The provided data does not include information on the contract's effectiveness or any performance metrics used for evaluation. To determine effectiveness, one would need to review post-award reports, delivery confirmations, quality assessments of the supplied items, and feedback from the end-users within the VA. Without these, assessing the contract's success in meeting the VA's needs is not possible.

Industry Classification

NAICS: Wholesale Trade › Drugs and Druggists' Sundries Merchant Wholesalers › Drugs and Druggists' Sundries Merchant Wholesalers

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 1 POST ST, SAN FRANCISCO, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,445,798

Exercised Options: $19,445,798

Current Obligation: $19,445,798

Parent Contract

Parent Award PIID: V797P1020

IDV Type: IDC

Timeline