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Medical Readiness Division

Medical’s Strategic Materiel Sourcing Group (SMSG) Readiness Division contracts for access to medical consumable supplies in support of deploying and deployed forces. Support for surge and sustainment is provided through contingency contracts awarded to manufacturers and distributors. The main objective is to maximize coverage against readiness requirements using minimal investment dollars. The preference is to buy guaranteed access to material rather than to purchase or own material outright. Funding for this approach to readiness is provided through annual DLA Warstopper program appropriations. 

Requirements are derived from the Services’ annual Medical Contingency File (MCF) submission, which identifies joint time phased “go-to-war” medical materiel shortfalls. In order to ensure that the healthcare industry and the industrial base can support contingency operations, Medical attempts to place the National Stock Number (NSN) based items under contingency contract to improve planning and sustainment operations. These contracts require that manufacturers and distributors use existing commercial inventories to support the critical go-to-war requirements. The manufacturers and distributors are responsible to rotate the inventories to ensure a fresh supply of materiel. This materiel could be utilized to support military operations such as contingencies or humanitarian assistance and/or disaster relief (HADR) efforts. Combatant Commands also have the option of submitting MCFs to cover requirements associated with their various plans.

The primary types of contingency contract vehicles are Prime Vendor War Readiness Materiel (PVWRM), Vendor Managed Inventory (VMI) contracts, and Corporate Exigency (CEC) contracts.

 

PVWRM allows for pre-negotiated access to prime vendor stocks. It is designed to provide contractual coverage of prime vendor materiel in support of all Services’ identified shortfalls while at the same time utilizing the nationwide inventory maintained by the prime vendors. Participation in the PVWRM program is mandatory for all prime vendor contractors.

VMI contracts are long-term partnerships with distributors providing guaranteed product availability.  This type of contract consists of both Government Purchased Materiel (GPM) and guaranteed access to agreed-upon products and quantities held by a distributor.

CECs are long-term partnerships with manufacturers providing guaranteed product availability. This type of contract provides guaranteed access to agreed-upon products and quantities held by a manufacturer.