Pharmaceutical Prime Vendor 2020
This Award Notice from the Department of Veterans Affairs awarded a contract to McKesson Corporation to serve as a pharmaceutical prime vendor through August 2022, with three additional two-year option periods. McKesson will provide just-in-time distribution of government-contracted pharmaceuticals, medical supplies, and specialty products to VA facilities, other government agencies, and state veterans homes located in the United States and its territories. With negative distribution fees ranging from -14.5% to -5.5% depending on the product category, the contract is estimated to save the government approximately $10 billion over its potential eight-year period of performance.
36W79719R0001 Department of Veterans Affairs
12/12/19, 10:19 AM Pharmaceutical Prime Vendor 2020
The Department of Veterans Affairs intends to award an indefinite-delivery, requirements-type contract through solicitation number 36W79719R0001 to provide just-in-time distribution of government contracted pharmaceuticals to VA facilities, other government agencies, and state veterans homes. Offerors must propose a distribution fee and demonstrate the ability to provide next-day deliveries of thousands of pharmaceutical items to approximately 750 customers through a web-based ordering system with inventory management capabilities, consolidated paperless invoicing, barcoding, and reporting. Proposals are due October 29, 2019 and will be evaluated based on price and technical factors.
The NAICS code is 325412 for pharmaceutical preparation manufacturing with a small business size standard of 1,250 employees. No set-aside designation will be used. McKesson is the incumbent contractor. The contract has a potential value of over $3 billion annually and involves distribution of pharmaceuticals to locations across the United States, Puerto Rico, various territories, and the Philippines over a five-year period consisting of a two-year base and three two-year options exercisable by the government. The PSC code is 6515 for drugs and biologicals.
36W79719R0001 Department of Veterans Affairs Veterans Health Administration Veterans Integrated Service Network 12
8/28/19, 2:54 PM