DOJ's Bureau of Prisons awards $460K for inmate medication in FY26 to McKesson Corporation

Contract Overview

Contract Amount: $460,000 ($460.0K)

Contractor: Mckesson Corporation

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: INMATE MEDICATION FY26

Place of Performance

Location: IRVING, DALLAS County, TEXAS, 75039

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $460,000 to MCKESSON CORPORATION for work described as: INMATE MEDICATION FY26 Key points: 1. The contract focuses on pharmaceutical preparation manufacturing for federal prisons. 2. McKesson Corporation is a major player in the pharmaceutical distribution market. 3. Potential risks include supply chain disruptions and medication price fluctuations. 4. The healthcare sector is a significant area of federal spending.

Value Assessment

Rating: fair

The award amount of $460,000 for a 364-day contract appears reasonable for specialized inmate medication. However, without specific unit cost data or comparison to similar federal or state prison contracts, a precise pricing assessment is difficult.

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 generally promotes price discovery and aims for the best value for the government.

Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently for essential inmate healthcare services.

Public Impact

Ensures essential medication access for federal inmates. Supports the operational needs of the Federal Prison System. Impacts the pharmaceutical supply chain serving correctional facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in subsequent years.
Dependence on a single supplier for critical medication.

Positive Signals

Awarded through full and open competition.
Addresses a critical need for inmate healthcare.

Sector Analysis

This contract falls within the healthcare sector, specifically focusing on pharmaceutical supplies for correctional facilities. Federal spending on healthcare, including inmate medical services, is substantial and subject to ongoing scrutiny.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The prime contractor, McKesson Corporation, is a large corporation, suggesting limited direct opportunities for small businesses in this specific award.

Oversight & Accountability

The Bureau of Prisons is responsible for managing inmate healthcare, including medication procurement. Oversight would involve monitoring contract performance, adherence to quality standards, and cost-effectiveness.

Related Government Programs

Pharmaceutical Preparation Manufacturing
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Potential for price escalation.
Sole-source supplier risk for specific medications.
Dependence on pharmaceutical supply chain stability.
Limited transparency on specific drug pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $460,000 to MCKESSON CORPORATION. INMATE MEDICATION FY26

Who is the contractor on this award?

The obligated recipient is MCKESSON CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $460,000.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical cost trend for inmate medications procured by the Bureau of Prisons?

Analyzing historical cost trends for inmate medications is crucial for understanding price volatility and identifying potential cost-saving opportunities. Without this data, it's challenging to determine if the current $460,000 award represents a favorable or unfavorable price point compared to previous years or similar contracts.

What are the specific medications included in this contract and their unit costs?

Knowing the specific medications and their unit costs is essential for a thorough value assessment. This level of detail allows for benchmarking against market prices and identifying any potential overpricing or cost efficiencies. The provided data lacks this granular information, limiting a precise value analysis.

Are there any identified risks associated with McKesson Corporation's ability to supply these medications reliably to federal prisons?

Assessing McKesson Corporation's reliability involves examining their supply chain resilience, past performance, and any potential disruptions. While McKesson is a large entity, factors like manufacturing delays, distribution issues, or regulatory changes could impact supply. Further due diligence on their track record is warranted.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation 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

Address: 6555 STATE HIGHWAY 161, IRVING, TX, 75039

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $690,000

Exercised Options: $690,000

Current Obligation: $460,000

Actual Outlays: $158,914

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36W79720D0001

IDV Type: IDC

Timeline