Medical Supply Chain

Defense Logistics Agency Troop Support Medical, a sub-agency of the Defense Logistics Agency within the Department of Defense, procures and distributes medical supplies, pharmaceuticals, surgical equipment, and related items to military medical treatment facilities and federal healthcare customers worldwide. The agency operates as the primary vendor-managed-inventory and catalog-based procurement arm for DoD hospital and clinic supply chains, leveraging both direct manufacturer relationships and pharmaceutical wholesaler networks.

DLA Troop Support Medical is highly active in contract procurement, with 13.1 million awards across its entire portfolio history since 1997 and $116.48 billion in combined potential value. Recent activity has declined: 931,693 awards in 2022, 823,179 in 2023, 754,922 in 2024, 605,219 in 2025, and 350,973 year-to-date in 2026. The latest recorded award date is July 23, 2026. The decline reflects the agency's heavy reliance on standing agreements and Schedule task orders rather than new solicitations; combined dollars obligated ($123.28 billion) exceed combined potential value by six percent, indicating substantial prior-year exercised options and modifications against existing vehicles.

The contract base is moderately concentrated among prime contractors. Over the last five years, Amerisourcebergen Drug Corp dominates by award count with 925,574 awards and $18.76 billion in combined potential value, followed by Cardinal Health 200, LLC (561,815 awards, $1.13 billion) and Owens & Minor Distribution Inc. (252,140 awards, $394.6 million). By potential value, McKesson Corporation ranks second with $3.35 billion across 53,497 awards. The top five primes collectively hold 55 percent of recent awards by count and 21 percent by combined potential value—reflecting the portfolio's heavy transaction volume through high-award-count, lower-unit-value vendor relationships. The agency has awarded 3,130 distinct prime contractors cumulatively.

Set-asides are minimal. Approximately 100 percent of awards carry no set-aside designation; small-business, 8(a), service-disabled veteran-owned, HUBZone, and women-owned small-business awards represent less than one percent combined and are largely absent from the active award stream.

Current contract opportunities reflect the agency's core medical supply purchasing. Recent solicitations include an RFQ for Medtronic cardiovascular procedural packages (sources-sought pre-solicitation, due November 20, 2026), a five-year IDIQ for Johnson & Johnson Health Care Systems DePuy Synthes orthopedic procedural packages estimated at $1.6 million to $1.7 million per ordering period (sources-sought, due October 28, 2026), a Digital Imaging Network—Picture Archiving and Communication Systems (DIN-PACS) Generation V RFP with acceptance through October 14, 2031, and numerous RFQs for routine medical consumables including bandages, dressings, infusion sets, hand sanitizer, headlamps, and surgical instruments. Most RFQs carry tight turnaround (5–10 days) and small quantities. Several opportunities are set-aside for small business, service-disabled veteran-owned businesses, or women-owned small businesses, though these remain exceptions rather than the rule.