Acquisition: Pricing of Pharmaceutical Items in the Medical Prime Vendor Program

摘要

The Defense Criminal Investigative Service requested that we evaluate management controls over the pricing of pharmaceutical items sold through the Defense Supply Center Philadelphia (DSCP) medical prime vendor program. The Defense Logistics Agency initiated the medical prime vendor program in 1992. The Directorate of Medical Materiel, DSCP developed the program and is responsible for its management and operation. The program is designed to use industry's production capability and commercial distribution system to satisfy DoD requirements for medical items (pharmaceutical items and medical and surgical equipment) instead of buying stock and holding it in inventory. Pharmaceutical sales through the program during FY 2001 were approximately $1.3 billion.