VA awards $39.6M contract to McKesson Corporation for Drugs and Druggists' Sundries
Contract Overview
Contract Amount: $39,626,465 ($39.6M)
Contractor: Mckesson Corporation
Awarding Agency: Department of Veterans Affairs
Start Date: 2010-03-01
End Date: 2010-03-31
Contract Duration: 30 days
Daily Burn Rate: $1.3M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: TAS::36 0160::TAS
Place of Performance
Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29407
Plain-Language Summary
Department of Veterans Affairs obligated $39.6 million to MCKESSON CORPORATION for work described as: TAS::36 0160::TAS Key points: 1. Contract awarded to McKesson Corporation for $39.6 million. 2. Full and open competition was utilized for this award. 3. The contract is for Drugs and Druggists' Sundries. 4. The contract duration was 30 days. 5. The award was made by the Department of Veterans Affairs.
Value Assessment
Rating: fair
The contract value of $39.6 million for a 30-day period suggests a high per-unit cost or a significant volume of goods. Without specific unit pricing or comparison data, it's difficult to definitively assess value.
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 market value.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible prices through market forces.
Public Impact
Ensures availability of essential medical supplies for veterans. Supports the Department of Veterans Affairs' healthcare mission. Potential for significant cost savings through competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short contract duration may indicate a specific, urgent need or a temporary solution.
- Lack of detailed cost breakdown makes value assessment challenging.
Positive Signals
- Full and open competition utilized.
- Awarded by a major federal agency (VA).
Sector Analysis
The healthcare sector, particularly pharmaceutical and medical supply procurement, is a significant area of federal spending. Benchmarks for similar contracts would be needed to assess if $39.6 million for 30 days is within expected ranges.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement oversight processes should be in place to ensure compliance and performance.
Related Government Programs
- Drugs and Druggists' Sundries Merchant Wholesalers
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- High contract value for a short duration.
- Lack of detailed cost and pricing information.
- Potential for recurring, short-term contracts.
- Need for further analysis on competitive landscape.
Tags
drugs-and-druggists-sundries-merchant-wh, department-of-veterans-affairs, sc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $39.6 million to MCKESSON CORPORATION. TAS::36 0160::TAS
Who is the contractor on this award?
The obligated recipient is MCKESSON CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $39.6 million.
What is the period of performance?
Start: 2010-03-01. End: 2010-03-31.
What was the specific nature of the drugs and sundries procured, and was the quantity commensurate with the $39.6 million award for a 30-day period?
The specific drugs and sundries are not detailed in the provided data. The substantial award amount for a short duration suggests either a very high volume of essential items or specialized, high-cost pharmaceuticals. A detailed breakdown of the items and quantities would be necessary to confirm if the expenditure aligns with typical needs and market prices for a 30-day supply.
Given the full and open competition, what was the range of bids received, and how did McKesson Corporation's price compare to other offers?
The provided data confirms 'FULL AND OPEN COMPETITION' but does not include the number of bids received or the specific pricing from competing vendors. To assess the effectiveness of the competition and the value obtained, information on the bid range and McKesson's comparative pricing would be crucial. This would help determine if the award truly reflects the most advantageous offer for the government.
What is the typical duration for contracts of this nature (Drugs and Druggists' Sundries Merchant Wholesalers) within the VA, and why was this contract only for 30 days?
The 30-day duration is unusually short for a contract of this magnitude, especially for recurring needs like pharmaceuticals. This could indicate an emergency procurement, a bridge contract to cover a gap until a longer-term contract is awarded, or a specific, limited-time requirement. Understanding the reason for the short term is key to assessing the overall procurement strategy and potential future spending.
Industry Classification
NAICS: Wholesale Trade › Drugs and Druggists' Sundries Merchant Wholesalers › Drugs and Druggists' Sundries Merchant Wholesalers
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 1 POST ST, SAN FRANCISCO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $39,626,465
Exercised Options: $39,626,465
Current Obligation: $39,626,465
Parent Contract
Parent Award PIID: V797P1020
IDV Type: IDC
Timeline
Start Date: 2010-03-01
Current End Date: 2010-03-31
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2010-04-26
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