DOJ awards McKesson Corp. $750K contract for inmate pharmaceuticals at MDC Brooklyn

Contract Overview

Contract Amount: $750,000 ($750.0K)

Contractor: Mckesson Corporation

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-08-09

Contract Duration: 312 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PRIME VENDOR PHARMACEUTICAL FOR THE MDC BROOKLYN INMATE POPULATION

Place of Performance

Location: IRVING, DALLAS County, TEXAS, 75039

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $750,000 to MCKESSON CORPORATION for work described as: PRIME VENDOR PHARMACEUTICAL FOR THE MDC BROOKLYN INMATE POPULATION Key points: 1. Contract awarded to McKesson Corporation for pharmaceutical supplies. 2. Competition method was full and open, suggesting potential for competitive pricing. 3. The contract duration is 312 days. 4. The PSC code is missing, hindering detailed sector benchmarking. 5. No small business participation noted.

Value Assessment

Rating: fair

The contract value of $750,000 for a 312-day period appears reasonable for pharmaceutical supplies to a correctional facility. Benchmarking against similar contracts for inmate healthcare is difficult without specific product details or PSC codes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to better price discovery. The award type is a delivery order, indicating it's likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a pre-competed vehicle.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for the procurement of essential inmate pharmaceuticals.

Public Impact

Ensures essential pharmaceutical supplies for inmates at MDC Brooklyn. Potential for cost savings due to full and open competition. Reliable access to medications for a vulnerable population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Missing PSC code hinders detailed analysis.
No small business participation.

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.

Sector Analysis

The pharmaceutical preparation manufacturing sector is critical for government healthcare and correctional facilities. Benchmarking is challenging without a specific PSC code, but government contracts for pharmaceuticals often involve significant volume and require strict adherence to quality and delivery standards.

Small Business Impact

The data indicates no small business participation in this contract. Further investigation into the prime contract vehicle or solicitation may reveal if opportunities were available or if specific set-asides were considered.

Oversight & Accountability

The Department of Justice, through the Federal Prison System/Bureau of Prisons, is responsible for overseeing this contract. Standard oversight mechanisms for pharmaceutical procurement and delivery would apply to ensure compliance and quality.

Related Government Programs

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

Risk Flags

Missing PSC code.
Lack of small business participation.
No bid range data provided.
Specific pharmaceutical types not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $750,000 to MCKESSON CORPORATION. PRIME VENDOR PHARMACEUTICAL FOR THE MDC BROOKLYN INMATE POPULATION

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 $750,000.

What is the period of performance?

Start: 2025-10-01. End: 2026-08-09.

What is the specific Pharmaceutical Service Code (PSC) for this contract, and how does the unit cost compare to government benchmarks for similar inmate pharmaceutical needs?

The provided data does not include a specific Pharmaceutical Service Code (PSC). Without this, a precise comparison to government benchmarks for inmate pharmaceutical needs is not possible. The total award value of $750,000 over 312 days suggests a significant volume, but unit cost analysis requires detailed product information and the relevant PSC for accurate benchmarking.

Given the full and open competition, what was the range of bids received, and how did McKesson Corporation's price compare to the next lowest bidder to ensure optimal value?

The data indicates the contract was awarded under full and open competition, which is a positive sign for price discovery. However, specific bid ranges and the comparison of McKesson's price to other bidders are not provided. Understanding the competitive landscape and the final negotiated price relative to other offers is crucial for assessing the true value achieved for taxpayer funds.

What specific types of pharmaceuticals are covered under this contract, and are there any provisions for emergency supply or formulary adjustments to ensure effective inmate healthcare?

The contract specifies 'Pharmaceutical Preparation Manufacturing' but does not detail the specific types of pharmaceuticals. Effective inmate healthcare relies on a comprehensive formulary and reliable supply chain. Provisions for emergency supplies and flexibility for formulary adjustments are critical to address changing medical needs and ensure continuity of care for 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: $750,000

Exercised Options: $750,000

Current Obligation: $750,000

Actual Outlays: $324,723

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