Indefinite Delivery Contract SPE2DR25D3022

The Defense Logistics Agency (DLA) Troop Support Medical Supply Chain has awarded an Indefinite Delivery Contract (IDC) valued at $9,999,999,999 to AmerisourceBergen Drug Corp to provide a comprehensive range of pharmaceutical and medical supply products to support military healthcare programs globally. The IDC has a period of performance through December 2036 and serves as a prime contracting vehicle for the DLA to procure essential medical commodities including specialty medications, brand-name and generic drugs, vaccines, syringes, vials, and test kits across multiple therapeutic areas. This unrestricted, fully competitive acquisition was awarded on a lowest price technically acceptable basis, with the intent to make multiple regional awards to ensure resiliency and access to vital pharmaceuticals during contingency operations. The scope of the contract encompasses worldwide pharmaceutical support to various DoD customers, the U.S. Coast Guard, and other government agencies, covering both normal day-to-day operations and planned/unplanned contingency requirements.

The original solicitation, expected to be issued in March 2024, will establish Pharmaceutical Prime Vendor Global Program Generation V contracts to replace the current DLA Troop Support Pharmaceutical Prime Vendor program. The $30.3 billion procurement will award multiple primary suppliers for regional line items (North/EUCOM, West/PACOM, South/SOUTHCOM, and Fleet) as well as a separate backup supplier. This diversified approach aims to mitigate supply chain risks and ensure the Department of Defense's ability to access essential pharmaceuticals during emergencies. The contract will utilize a firm-fixed price, requirements-type structure with a 30-month base period and three 30-month option periods.