JA_Redacted.pdf

This Justification Review Document details a follow-on contract for radiopharmaceuticals and cold kits for William Beaumont Army Medical Center in Fort Bliss, Texas. The one-year firm-fixed-price (FFP) contract will be awarded to Cardinal Health 414 LLC, the sole source vendor capable of providing specific isotopes with required dose measurements and calibrations for the Department of Nuclear Medicine. The contract includes approximately 45 different radiopharmaceutical and diagnostic items such as Tc-99m variants, I-123 and I-131 products, xenon gas, and various blood kits, with delivery scheduled on or before 9/30/2026.

Market research conducted from 10-15 September 2025 confirmed Cardinal Health 414 LLC as the only vendor meeting the precise technical specifications. Two interested sources were identified: Cardinal Health (the incumbent) and Begini Howard Private Equity (BHPE) LLC. The contract will be fully funded using Defense Health Program (DHP) funds, with the critical justification being the vendor's unique capability to provide one-time delivery, specific isotope measurements, and just-in-time logistics for radiopharmaceuticals with short half-lives. If not approved, the Department of Nuclear Medicine would need to stop patient treatment and potentially outsource patients at increased government cost.