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PHILADELPHIA - A program that’s on track to save customers $42 million on prescription drugs during its first year has earned a Strategic Goal Award for a Defense Logistics Agency Troop Support contracting team.
DLA Troop Support Medical’s Defense Department national contract team “employed their exceptional planning and contracting skills” to craft a program that will reduce the cost of pharmaceuticals by about $548 million over six years, according to DLA Director Navy Vice Adm. Mark Harnitchek’s March 27 announcement of Strategic Goal Award winners for the first quarter of fiscal 2014.
The announcement also stated the team’s innovative contracting aligns with one of Harnitchek’s “Big Ideas,” decreasing material costs.
Six pharmaceutical contracts have been awarded so far through the program since August, saving $3.9 million, said Alexander Quiñones, DLA Troop Support Medical DoD national contract team chief. Two more contracts are expected to be awarded in April.
To decrease costs, a commitment to purchase a certain quantity of drugs for federal customers is made to the vendors, said Quiñones. The national contracts save an average of 20 percent compared to previous pricing through the Veterans Affairs Federal Supply Schedule and the DoD Distribution and Pricing Agreement.
The team works with the Defense Health Agency to identify drugs that can generate sufficient competition to warrant a national contract. They also work with DHA and the VA to determine how many drugs they can commit to buying each year.
“I’m extremely proud of the work the Medical national contracts team is doing to partner with the Defense Health Agency and offer our customers the best prices and service anywhere,” DLA Troop Support Commander Army Brig. Gen. Steven Shapiro said. “They’ve already saved our customers millions of dollars, and they’re poised to increase that exponentially over the years in the contracts. I’m looking forward to thanking each of them personally this week.”
The contracts in place are for drugs used to treat digestive problems, depression, diabetes, herpes, enlarged prostate and hypertension.
| Date Taken: | 04.10.2014 |
| Date Posted: | 04.16.2014 08:37 |
| Story ID: | 126169 |
| Location: | PHILADELPHIA, PA, US |
| Web Views: | 81 |
| Downloads: | 0 |
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