McKesson Corporation is a premier pharmaceutical and healthcare company in the United States. The company has provided medical supplies, pharmaceutical equipment, and health defense information systems for the federal government and private companies worldwide. Learn more about the top McKesson government contracts here.

1. DLA Awarded Digital Imaging Network Picture Archiving Communications System (DIN-PACS)

• Federal agency: Defense Logistics Agency
• Contract type: Indefinite-delivery/indefinite-quantity contract
• Value: $400 million
• Contract period: 10 years (until December 15, 2027)
• Contract date: December 15, 2017

The Defense Logistics Agency made a contract with McKesson Technologies LLC to produce, develop, and maintain the digital imaging network picture archiving communications systems for the U.S. military and federal civilian agencies. The contract has a five-year base with an option for another five-year period.

DIN-PACS is medical imaging technology to store and to transmit electronic images and clinical reports. It is an open system network of digital devices for imaging studies, providing diagnostic x-ray images that can be sent for analysis around the world.

The appropriation type for the McKesson contract comes from the defense working capital funds of fiscal 2018-2028. The work occurs mainly in Georgia and other locations outside the continental United States.

2. DHA Signed a Deal Providing Patient Engagement and Interoperable Secure Messaging (SM)

• Federal agency: Defense Health Agency
• Contract type: Fixed-price contract
• Value: $139.05 million
• Contract date: March 24, 2016

McKesson subsidiary, Relay Health, won the contract to provide 11,725 patient engagement and interoperable secure messaging solutions for the Military Health System (MHS). The contract has four 12-month operation periods with a 9-month base transition period.

The MS subscriptions were developed for physicians, physician assistants, nurses, and other medical staff. Part of the contract’s mission is to provide related account management services, SM training resources, report preparation, and cybersecurity requirements.

McKesson’s contract has optional Federal Risk and Authorization Management Program requirements. It’s a sole-source acquisition with obligations of $13.40 million from the fiscal 2016 operations and maintenance funds at the time of the award.

3. DLA Contracted for Tricare Pharmaceutical Services and Replenishments

• Federal agency: Defense Logistics Agency
• Contract type: Fixed-price contract modification
• Value: $6.13 billion
• Contract period: 2 years
• Contract date: June 11, 2015

McKesson Corporation in San Francisco, California replenishes the pharmaceuticals and pharmaceutical-related supplies of the Tricare Pharmacy—a program that provides transcription drugs to over 9.5 million active-duty service members, retirees and dependents.

Contracted to McKesson by the Defense Logistics Agency, the company is selected to perform the first of the three 30-month option periods held in several locations in California and Arizona. The contract award is valued at $6.13 billion from the defense working capital funds, slated to conclude by December 16, 2017.

4. VA Healthcare System Designated Prime Pharmaceutical Supplier

• Federal agency: Department of Veterans Affairs (VA)
• Value: Undisclosed
• Contract period: 2 years
• Contract date: August 2020

McKesson Corporation won the award as the prime pharmaceutical provider for VA’s integrated healthcare system. The contract includes offering medical supplies to all VA medical centers, outpatient clinics, and Consolidated Mail Outpatient Pharmacies (CMOPs).

The contract has an initial period of two years, with options for three 2-year extensions totaling a potential eight years. McKesson has been supporting VA as the prime pharmaceutical supplier since 2004.

A part of the contract also includes supplying medical supplies to more than 750 locations across the United States, including 270 medical centers and seven CMPOs.

5. CDC Requested Support Operation Warp Speed Team for COVID-19 Vaccine Distribution

McKesson has expanded its partnership with the U.S. federal government, under the leadership of the Centers for Disease Control (CDC), to support the Operation Warp Speed (OWS) team in COVID-19 vaccines and medical supplies distribution. Since the outbreak, McKesson has been supporting the federal government through the Moderna vaccine and ancillary supply kit distribution.

Four years ago, the company also won the contract to support the government’s Vaccines for Children Program. At the height of the 2009 flu pandemic, the company also worked with the agency for vaccine distribution.

Frequently Asked Questions:

What is McKesson Corporation?

McKesson Corporation was established in 1883 as a pharmaceutical importer and wholesaler. The company built the first-ever nationwide wholesale drug distribution network in the United States and has since played an important role in developing medicines, beverages, and chemicals in the country.

McKesson has 75,000 employees across 16 countries, including Canada, the U.K., France, Portugal, Italy, Germany, and more. The corporate headquarters were located in San Francisco, California, before moving to Irving, Texas in 2019. As of 2022, McKesson ranks 9th out on Fortune 500 list.

What companies does McKesson own?

McKesson operates several businesses focused on different sectors of the healthcare industry. These businesses offer innovative solutions for specialized patient care and illness treatments.

• McKesson Pharmaceutical is a distribution network of medical supplies in national, retail, and independent pharmacies.
• McKesson Medical-Surgical provides innovative medical supplies, equipment, and tools to healthcare facilities across the U.S.
• McKesson Pharmacy Systems partners with pharmacies to provide IT and management systems software for more efficient operations.
• McKesson Prescription Automation provides a software suite to reduce dispensing errors, deliver accurate prescriptions, improve operational efficiency, and more.
• Specialty Practice Solutions offers a specialized treatment approach to illnesses such as cancer, and digestive, bone, eye, and brain diseases.
• CoverMyMeds improves the access for people to get their medical supplies and prescription needs with the help of technology.

Does McKesson own pharmacies?

Health Mart is an independent pharmacy franchise owned by McKesson. It offers programs for the nationwide distribution of medical supplies, drugs, health defense information, and more. Health Mart is available for both established pharmaceutical chains and community-owned drugstores.

McKesson launched Health Mart to improve successes through an improved retail supply chain of clinical equipment. Serving more than 5,000 neighborhood pharmacies, it now serves quality healthcare close to people’s homes and workplaces.

Is McKesson a government contractor?

McKesson Corporation is the largest healthcare and non-defense contractor for the U.S. federal government. Some of the biggest public sectors where the company provides services include the Department of Defense (DoD), the Department of Veterans Affairs (VA), the Department of Health and Human Services (HHS), and the State Departments of Health and Education.

Advancing health outcomes in every setting

McKesson government contracts have provided advanced outcomes in every setting for over 135 years. The company’s range of health services and solutions has played an important role in solving the world’s toughest medical challenges.

Northrop Grumman has received contract awards from multiple United States federal government agencies and has been a top Pentagon contractor since the early 2000s. With the Department of Defense and the intelligence community being the company’s primary clients, it has leveraged its expertise and technology to create numerous solutions for the nation’s military forces. Here’s a look at the top Northrop Grumman government contracts!

1. Long-Range Strike Bomber, $80 Billion Contract

In October 2015, the Pentagon awarded Northrop Grumman an estimated $80 billion contract. It was a high-stakes competition against aerospace giants, Boeing and Lockheed Martin, to build the Air Force’s next-generation long-range strike bomber.

Northrop’s advantage lies in its B-2 Spirit stealth bomber, the world’s most survivable aircraft. This is one of the most significant contracts since Lockheed’s  F-35 Joint Strike Fighter contract in 2001. Under the contract, Northrop was to build 100 planes for the Air Force to replace the aging bombers fleet by 2020.

2. Replacement of the U.S. Ballistic Missiles, $13 Billion Contract

In September 2020, the U.S. Air Force awarded Northrop Grumman a $13 billion contract for the Ground Based Strategic Deterrent (GBSD) program’s engineering and manufacturing development (EMD) phase.

Under the contract, Northrop will replace and modernize the aging stock of intercontinental ballistic missiles (ICBMs), a part of the nation’s efforts to replace the crumbling nuclear missile infrastructure. The nuclear warhead stock was also prepared to deter aggression from warring countries, such as China and Russia.

The effort will run for 8.5 years with weapon system design, qualification, evaluation, testing, and nuclear certification. After completing the EMD phase, the defense giant’s team will produce and deliver the newly produced weapon system to meet the Air Force’s initial operational capability, dated 2029.

3. Global Hawk Unmanned Surveillance Plane Variants, $3.2 Billion Contract

In September 2015, Northrop Grumman Corporation was awarded a $3.2. billion contract for the Air Force’s continued modernization, development, and maintenance of Global Hawk unmanned surveillance plane variants.

The expected delivery date is on September 2025. Under the contract, Northrop will build multiple variants of high-altitude surveillance drones for the U.S. Air Force. The senior U.S. Air Force general stated that technology upgrades would be incorporated into the Global Hawk plane and a new electro-optical sensor that can cost approximately $4 billion.

The RQ-4 unmanned aerial vehicle will provide broad-area surveillance using long-range infrared sensors and high-resolution synthetic aperture radar (SAR), operate for days and survey about 40,000 square miles per day. Northrop should carry out these upgrades before removing its aging fleet of manned U-2 spy planes from Lockheed Martin.

4. Homeland Ballistic Missile Defense, $3.29 Billion Contract

In 2022, the Missile Defense Agency awarded a potential $3.2 billion contract to Northrop Grumman to manage and integrate weapon systems to defend the country from Iran and North Korea’s potential intercontinental ballistic missiles.

Under this new contract, the defense contractor will design, develop, test, verify, and sustain the next Ground-Based Midcourse Defense (GMD) Weapon System Program. The program includes upgrading and modernizing the GMD system’s ground components to better defend against evolving threats and deliver advanced capabilities for warfighters.

5. Support and Maintenance for Intercontinental Ballistic Missiles (Minuteman III), $2.3 Billion Contract

In April 2021, Northrop Grumman received a Department of Defense contract award worth up to $2.3 billion to support propulsion substems for the Air Force intercontinental ballistic missiles. Under the contract, Northrop provides engineering support and management services to help the government maintain its aging Minuteman III (LGM-30G) weapon system. The work is expected to end on November 2040.

6. Production of the U.S. Army’s Advanced Wartime Control System, $1.4 Billion Contract

In December 2021, Northrop Grumman Systems Corporation in Huntsville won a $1.4 billion contract award from the U.S. Army. Under the contract, Northrop will produce 160 Integrated Air and Missile Defense Battle Command Systems for the Army.

These will link shooters and sensors across the battlefield, enabling the Pentagon to connect all sensors on the battlefield to troops for a faster transfer of information, data, communication, and intelligence. Production commenced in January 2021, and the program’s development has cost more than $2.7 billion to date. The work is expected to finish in five years, with the U.S. Army Contracting Command at Huntsville’s Redstone Arsenal as the director.

7. Production of the Integrated Battle Command System, $1.3 Billion Contract

In December 2021, Northrop Grumman received a $1.38 billion 5-year contract award from U.S. Army Contracting Command to produce the Integrated Battle Command System (IBCS). It is a system that uses software, hardware, sensors, and systems to track, identify, and neutralize airborne threats. It will also enable soldiers to manage integrated and increase battlefield awareness. The defense contractor will produce at least 160 units for the Army and its allies until December 2026.

8. Production of Prototype Engine for the Next-Generation Adaptive Propulsion Program, $975 Million Contract

In August 2022, the U.S. Air Force selected Northrop Grumman as one of the companies individually awarded $975 million for the USAF Next Generation Adaptive Propulsion (NGAP) program. It is a 10-year 5 billion effort to produce a prototype engine for a next-generation fighter.

The IDIQ contract includes delivering risk reduction and technology maturation activities through rig and prototype engine testing, design, analysis, and weapon system integration. The work is expected to end by July 2032.

9. Space Development Agency’s Internet-in-Space Constellation, $692 Million Contract

In February 2022, the DOD’s Space Development Agency (SDA) selected Northrop Grumman as one of the contract awardees of the $1.8 billion contract to manufacture 126 satellites (42 each) for global communication in the low Earth rabbit. Northrop received $692 million for the Transport Layer Tranche 1 mesh satellite communications network.

This supports SDA’s effort to build the Pentagon’s first-ever internet in space. It comprises a small satellite network with secure connectivity to aid military surveillance, enemy and missile tracking, and communications.

10. Production of Three E-2D Advanced Hawkeye Airborne Aircraft Variants for France, $354 Million Contract

In December 2021, the U.S. Navy awarded a $354 million contract modification to Northrop Grumman to manufacture three E-2D Advanced Hawkeye airborne early warning and control aircraft for the French Navy (Marine Nationale) as part of a foreign military sales deal. By 2024, The French E-2D Advanced Hawkeyes will begin production at the Northrop Grumman plant in St Augustine, Florida.

The U.S. Navy will then deliver the aircraft in 2028 to France. It will serve as a replacement for the French Navy’s existing E-2C Hawkeye. The Navy stated that E-2D features an  APY-9 radar system capable of detecting cruise missile and aircraft threats across the open ocean, littoral, and overland environments.

About Northrop Grumman

Headquartered in West Falls Church, Virginia, Northrop Grumman is a prime contractor for the government. CEO Kathy J. Warden, along with other members of Northrop Grumman’s executive team leads over 90,000 employees working together to provide a full spectrum of protection, making Northrop Grumman one of the largest weapons manufacturer and military technology providers to date.