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News | July 29, 2022

Next generation pharmaceutical contract provides major benefits for military customers

By Janeen Hayes DLA Troop Support Public Affairs

A Defense Logistics Agency Troop Support Medical team awarded a next generation pharmaceuticals prime vendor contract, on July 14, that will provide additional benefits to military customers and their dependents.

“This next generation contract supports the Defense Health Agency mail-order pharmacy program,” said Ruth Herman, DLA Troop Support pharmaceuticals prime vendor division chief.  “The biggest benefit is the increased cost avoidance on this generation of the contract.”

The contract was awarded to AmerisourceBergen Corp with a value of $28.9 billion, one of the largest single contracts issued by DLA, according to DLA Troop Support Commander Army Brig. Gen. Eric P. Shirley.

“The successful award of a contract of this magnitude is a substantial undertaking,” Herman said.  “The Troop Support Medical team worked for more than a year to ensure it obtained and included every DHA requirement and met every acquisition law, regulation, and policy in making the award at an extremely favorable price to the government in a very unforgiving acquisition environment. 

Awarding a contract this size takes communication and coordination not just within Troop Support but across the agency. DLA Acquisition Procurement Analyst John Dempsey, worked with the Medical team to bring this award to fruition.

“Coordinating with the team at Troop Support in Philadelphia was seamless,” Dempsey said.

Together with the Dempsey and the DLA Acquisition team, Troop Support Medical held Integrated Acquisition Review Boards as part of the contract review process.

The IARB, brings together senior leaders throughout DLA to discuss the contract and identify any possible concerns, Dempsey said.

“This level of coordination helps to identify any strengths, weaknesses, and pitfalls with the action and ensures the Troop Support team hears a wider Agency perspective on the acquisition,” he added. “Coordination like this benefits DLA leaders by giving them insight into significant contract actions and the opportunity to shape how DLA supports its customers through its contracts.”

An additional benefit is the improved customer access to medications that may have been previously difficult to acquire.

“This contract will expand product availability to specialty pharmaceuticals,” Herman said. “Specialty pharmaceuticals are medications which treat chronic, complex, or rare diseases, and which have restrictions related to the distribution, care, delivery as well as generally have a higher cost.”

The work done to get this contract awarded shows the commitment DLA has to its customers.

“The Troop Support Medical team certainly demonstrated their understanding of the pharmaceutical market and how to continue to provide excellent support to DLA customers through the program,” Dempsey said.