DoD Awards $15M Pharmaceutical Contract to DLA Troop Support for National Institutes of Health

Contract Overview

Contract Amount: $15,000,000 ($15.0M)

Contractor: DLA Troop Support

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-10

End Date: 2027-04-09

Contract Duration: 364 days

Daily Burn Rate: $41.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PHARMACEUTICALS AND RELATED SUPPLIES UNITED STATES DEPARTMENT OF DEFENSE:1133869 [26-003472]

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19111

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.0 million to DLA TROOP SUPPORT for work described as: PHARMACEUTICALS AND RELATED SUPPLIES UNITED STATES DEPARTMENT OF DEFENSE:1133869 [26-003472] Key points: 1. Contract awarded for pharmaceutical preparations, a critical sector for national health and defense. 2. Limited competition raises questions about price discovery and potential value for taxpayers. 3. The contract duration of one year with a firm fixed price suggests moderate risk. 4. Spending in the pharmaceutical sector is substantial, requiring careful oversight.

Value Assessment

Rating: fair

The contract value of $15 million is significant. Without specific product details or benchmarks, it's difficult to assess if this price is competitive. The lack of competition suggests potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited source selection. This method may not yield the best price for the government, as competitive pressures are absent.

Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a fully competed contract.

Public Impact

Ensures supply of essential pharmaceutical preparations for national health initiatives. Potential for increased costs due to non-competitive award impacts taxpayer funds. Highlights the government's reliance on specific suppliers for critical medical needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing

Positive Signals

Ensures supply of critical pharmaceuticals

Sector Analysis

The pharmaceutical sector is a high-value, high-risk area for government spending. Benchmarks for pharmaceutical preparation manufacturing vary widely based on product complexity and volume.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract or had an opportunity to compete.

Oversight & Accountability

The non-competitive nature of this award warrants further review by oversight bodies to ensure fair pricing and justification for the limited competition.

Related Government Programs

Pharmaceutical Preparation Manufacturing
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Non-competitive award
Potential for inflated pricing
Lack of transparency in price justification
Dependence on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.0 million to DLA TROOP SUPPORT. PHARMACEUTICALS AND RELATED SUPPLIES UNITED STATES DEPARTMENT OF DEFENSE:1133869 [26-003472]

Who is the contractor on this award?

The obligated recipient is DLA TROOP SUPPORT.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2026-04-10. End: 2027-04-09.

What is the justification for not competing this pharmaceutical contract, and how was the $15 million price determined to be fair and reasonable?

The justification for a non-competitive award typically involves factors like urgency, lack of available sources, or specific technical requirements. The determination of a fair and reasonable price in such cases often relies on historical pricing data, cost analysis, or comparison with similar commercial items, though without transparency, it's hard to verify.

What are the specific pharmaceutical preparations covered under this contract, and what is the risk associated with their supply chain?

The data does not specify the exact pharmaceutical preparations. The risk associated with the supply chain could range from raw material shortages and manufacturing disruptions to geopolitical factors affecting global supply. Dependence on a single source for critical medications amplifies these risks.

How does this $15 million contract compare to similar pharmaceutical supply contracts awarded by the DoD or other federal agencies?

Without access to a comprehensive database of similar contracts, a direct comparison is challenging. However, $15 million for a one-year definitive contract for pharmaceutical preparations is a substantial sum, underscoring the need for competitive bidding to ensure value for money.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Government of the United States

Address: 700 ROBBINS AVENUE, PHILADELPHIA, PA, 19111

Business Categories: Category Business, Federally Funded Research and Development Corp, Government, U.S. Interstate Government Entity, U.S. National Government, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $15,000,000

Exercised Options: $15,000,000

Current Obligation: $15,000,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline