65--Pharmaceutical Prime Vendor

The Department of Veterans Affairs, National Acquisition Center (VA NAC) Pharmaceutical Prime Vendor (PPV) contract has been awarded to McKesson Corporation based at One Post Street, San Francisco, CA 94104. Contract performance will start on May 10, 2012. The PPV contract (VA797P-12-D-0001) is the result of VA National Acquisition Center solicitation VA-797-11-RP-0069. The PPV contract has a base performance period of two years and three option periods of two years each for a total of eight years. The exercise of each option period is at the discretion of the Government. The contract was awarded with negative distribution fees and will provide an overall savings to the Government of approximately $ 3.26 billion through the life of the contract. The PPV contract was awarded with the following distribution fees for the base performance period: Fast Pay Accounts (including CMOP) -8.65% Net 15 Accounts -8.15% Medical/Surgical Items -8.65% WAC Based Priced Generics (WBPG) (including CMOP) -8.65%