The US Defense Logistics Agency (DLA) has awarded a $30.3-billion pharmaceutical prime vendor (PPV) contract to support medicinal supplies for warfighters.
The PPV program, established in the early 1990s, covers approximately $2.6 billion in cost avoidance passed to customers by partnering with the country’s largest pharmaceutical industry partners.
DLA said it had invested another $1.3 billion for similar services in collaboration with a small business entity.
The US Department of Veterans Affairs said that the PPV encompasses people in the United States, the Philippines, Puerto Rico, Saipan, and the Virgin Islands.
Selected companies will work on the initiative for 10 years.
“The contract provides worldwide support to Defense Health Agency, Department of Defense customers, the United States Coast Guard, designated providers, other government agencies, and the US Naval Fleet,” DLA Medical Contracting Officer Medical Catherine Gilbert stated.
“[DLA] uses the prime vendor model, a standard commercial practice, to provide pharmaceuticals to military treatment facilities such as hospitals and pharmacies.”
Evolving Medical Support
DLA noted that its latest PPV deal consists of “planned and unplanned direct support to the military.”
“The industry has shown that specialty drugs need to be distributed differently, and the pricing model must be adjusted accordingly to align with commercial practices,” Gilbert explained. “This generation of the PPV program has evolved alongside the pharmaceutical marketplace.”
DLA Medical’s Commodity Support Liaison Lead Andrea Del Collo added that the PPV program advocates options to further sustain the preparedness of troops.
“In addition to normal day-to-day operations, the program supports readiness, which is the rapid acquisition of pharmaceutical requirements to respond to contingency operations for pre-planned and emergent disaster relief,” Del Collo said.
