Bureau of Prisons awards $540K for inmate medication at FCC Yazoo City, McKesson Corp. to supply
Contract Overview
Contract Amount: $540,000 ($540.0K)
Contractor: Mckesson Corporation
Awarding Agency: Department of Justice
Start Date: 2023-10-01
End Date: 2026-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $493/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: MEDICATION FOR THE INMATE POPULATION AT FCC YAZOO CITY FOR THE PERIOD OF PERFORMANCE: OCTOBER 1, 2025 - SEPTEMBER 30, 2026 CONTRACT# 36W79720D0001 INTERAGENCY AGREEMENT 943
Place of Performance
Location: IRVING, DALLAS County, TEXAS, 75039
State: Texas Government Spending
Plain-Language Summary
Department of Justice obligated $540,000 to MCKESSON CORPORATION for work described as: MEDICATION FOR THE INMATE POPULATION AT FCC YAZOO CITY FOR THE PERIOD OF PERFORMANCE: OCTOBER 1, 2025 - SEPTEMBER 30, 2026 CONTRACT# 36W79720D0001 INTERAGENCY AGREEMENT 943 Key points: 1. The contract is for essential inmate medication, a recurring need for correctional facilities. 2. McKesson Corporation, a major pharmaceutical distributor, is the incumbent contractor. 3. Potential risks include supply chain disruptions and price fluctuations for pharmaceuticals. 4. The sector is healthcare, specifically pharmaceutical supply for government institutions.
Value Assessment
Rating: good
The $540,000 award for a one-year period appears reasonable given the nature of pharmaceutical supply for a federal prison. Benchmarking against similar contracts for inmate healthcare 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, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for essential inmate healthcare services.
Public Impact
Ensures continuity of care for inmates, a critical component of prison operations. Supports the health and well-being of a vulnerable population. Maintains operational readiness of FCC Yazoo City by providing necessary medical supplies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in subsequent years.
- Reliance on a single large distributor could pose supply chain risks.
- Ensuring adequate stock levels for diverse inmate medical needs.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical and ongoing need for inmate health.
- Incumbent contractor has established distribution channels.
Sector Analysis
This contract falls within the healthcare sector, specifically pharmaceutical procurement for federal correctional facilities. Spending benchmarks for inmate healthcare supplies can vary significantly based on inmate population size and specific medical needs.
Small Business Impact
While McKesson Corporation is a large business, the procurement process under full and open competition allows for participation by various suppliers. However, the nature of pharmaceutical distribution often favors established large players.
Oversight & Accountability
The Department of Justice, through the Federal Prison System, is responsible for overseeing this contract. Accountability is maintained through contract performance monitoring and adherence to federal procurement regulations.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Pharmaceutical price volatility
- Supply chain disruptions
- Dependence on a single large supplier
- Ensuring availability of specialized medications
Tags
pharmaceutical-preparation-manufacturing, department-of-justice, tx, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $540,000 to MCKESSON CORPORATION. MEDICATION FOR THE INMATE POPULATION AT FCC YAZOO CITY FOR THE PERIOD OF PERFORMANCE: OCTOBER 1, 2025 - SEPTEMBER 30, 2026 CONTRACT# 36W79720D0001 INTERAGENCY AGREEMENT 943
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 $540,000.
What is the period of performance?
Start: 2023-10-01. End: 2026-09-30.
What is the historical pricing trend for these medications with McKesson Corporation?
Analyzing historical pricing data from previous contracts with McKesson Corporation is crucial. This would reveal any significant price escalations or reductions over time, providing a baseline for assessing the current award's value and identifying potential cost-saving opportunities or areas of concern for future negotiations.
What are the specific risks associated with pharmaceutical supply chain disruptions for this facility?
Risks include shortages of critical medications due to manufacturing issues, natural disasters, or geopolitical events impacting global supply chains. For a correctional facility, such disruptions could lead to compromised inmate health, increased unrest, and potential legal challenges related to healthcare provision.
How effectively does the current contract ensure the availability of a wide range of necessary pharmaceuticals?
The effectiveness hinges on the contract's specifications regarding the breadth of medications covered and the supplier's ability to consistently meet demand. Regular performance reviews and inventory management assessments are necessary to ensure the contract adequately supports the diverse and evolving medical needs of the inmate population.
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: $540,000
Exercised Options: $540,000
Current Obligation: $540,000
Actual Outlays: $209,991
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
Start Date: 2023-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-09
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