DOJ's $438K McKesson Contract for Pharmaceuticals Supports Federal Prisons in Texas
Contract Overview
Contract Amount: $438,825 ($438.8K)
Contractor: Mckesson Corporation
Awarding Agency: Department of Justice
Start Date: 2025-07-31
End Date: 2025-07-31
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FY25 B1 MCKESSON BT - PRIME VENDOR JUL 25 PR 0247
Place of Performance
Location: IRVING, DALLAS County, TEXAS, 75039
State: Texas Government Spending
Plain-Language Summary
Department of Justice obligated $438,824.7 to MCKESSON CORPORATION for work described as: FY25 B1 MCKESSON BT - PRIME VENDOR JUL 25 PR 0247 Key points: 1. The contract is for pharmaceutical preparations, a critical need for the Federal Prison System. 2. McKesson Corporation, a large established vendor, is the prime contractor. 3. The contract utilizes a firm fixed-price structure, providing cost certainty. 4. Competition was full and open, suggesting a competitive bidding process.
Value Assessment
Rating: good
The contract value of $438,824.70 appears reasonable for pharmaceutical supplies to a federal facility. Benchmarking against similar contracts for bulk pharmaceutical procurement 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, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential pharmaceutical supplies.
Public Impact
Ensures a steady supply of necessary medications for inmates within the Federal Prison System. Supports the operational readiness of correctional facilities by providing essential health services. The contract contributes to the broader pharmaceutical supply chain within the United States.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract periods.
- Reliance on a single prime vendor for critical supplies.
Positive Signals
- Firm fixed-price contract provides budget predictability.
- Full and open competition suggests potential for good pricing.
Sector Analysis
The Federal Prison System requires a consistent supply of pharmaceuticals. Spending in this sector is driven by inmate health needs and is subject to regulatory compliance and supply chain stability.
Small Business Impact
This contract was awarded to McKesson Corporation, a large business. There is no indication of specific provisions or set-asides for small businesses in this particular award.
Oversight & Accountability
The Department of Justice, specifically the Bureau of Prisons, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure compliance and performance.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for price increases in future contract periods.
- Reliance on a single prime vendor.
- Need for ongoing monitoring of supply chain reliability.
- Ensuring compliance with pharmaceutical quality standards.
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 $438,824.7 to MCKESSON CORPORATION. FY25 B1 MCKESSON BT - PRIME VENDOR JUL 25 PR 0247
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 $438,824.7.
What is the period of performance?
Start: 2025-07-31. End: 2025-07-31.
What is the historical pricing trend for similar pharmaceutical procurements by the Bureau of Prisons?
Analyzing historical pricing data for comparable pharmaceutical contracts awarded by the Bureau of Prisons is crucial. This would involve examining contract values, quantities, and specific drug formulations over several fiscal years to identify any significant price escalations or reductions. Understanding these trends helps assess whether the current $438,824.70 award represents a fair market price or if there's potential for cost savings through negotiation or alternative sourcing.
What are the potential risks associated with relying on McKesson Corporation as the sole prime vendor for this contract?
Reliance on a single prime vendor like McKesson Corporation carries risks such as supply chain disruptions, potential price increases in future solicitations, and limited leverage for the government if performance issues arise. While McKesson is a large, established company, unforeseen events like manufacturing delays, distribution challenges, or shifts in market dynamics could impact the consistent availability of pharmaceuticals, potentially affecting inmate care.
How effectively does this contract ensure the timely and appropriate availability of essential medications for federal inmates?
The effectiveness of this contract in ensuring timely medication availability hinges on McKesson's performance and the Bureau of Prisons' oversight. The firm fixed-price structure and full and open competition suggest a framework for reliable procurement. However, ongoing monitoring of delivery schedules, drug quality, and adherence to formulary requirements is essential to confirm that inmates receive the necessary medications without delay or compromise.
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: $438,825
Exercised Options: $438,825
Current Obligation: $438,825
Actual Outlays: $438,597
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: 2025-07-31
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2026-04-09
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