Tags: mckesson | drug | veterans

McKesson Wins $31.6 Billion Veterans Agency Contract

Wednesday, 11 April 2012 07:01 PM

McKesson Corp. won a Department of Veterans Affairs drug contract valued at as much as $31.6 billion over as many as eight years, the agency said in a statement Wednesday.

The San Francisco-based company has been the VA’s primary medicine supplier for veterans’ hospitals and the department’s mail-order pharmacy since 2004. McKesson, the largest U.S. drug distributor based on revenue, has received as much as $27 billion in orders under the current contract.

It beat Cardinal Health Inc., based in Dublin, Ohio, and the Valley Forge, Pennsylvania-based AmerisourceBergen Corp. for the new contract.

Kris Fortner, a McKesson spokesman, didn’t immediately respond to an e-mail and phone call seeking comment. Josh Taylor, a VA spokesman, didn’t immediately respond to an e-mail seeking comment.

Congress and the VA’s inspector general are investigating illegal spending through the current contract with McKesson, which is also used by other agencies, including the U.S. Bureau of Prisons and the Indian Health Service.

VA officials have said the McKesson contract was used to make as much as $1.2 billion in unauthorized and potentially illegal purchases that weren’t explicitly covered by the agreement. The items bought included generic drugs, condoms and sunscreen.

W. Scott Gould, a deputy VA secretary, told lawmakers at a February hearing that some of the spending was illegal. Agency staff didn’t always seek competitive bids for some items bought from McKesson, as required by federal acquisition regulations, he said.

McKesson abided by the terms of the contract, Gould said.

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Wednesday, 11 April 2012 07:01 PM
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