In support of Prime Vendor, DPSC negotiates Distribution and Pricing Agreements (DAPAs) with manufacturers of pharmaceutical and medical/surgical items. DAPAs establish prices to be paid for these items. DPSC then awards a single Prime Vendor pharmaceutical and Prime Vendor medical/surgical contract for each geographical region. The number and type of products stocked and distributed by each prime vendor are determined by demand factors from the MTFs and DAPAs.

For the past two years, Prime Vendor has been deployed to MTFs and other ordering sites world wide. When deployment is complete in fiscal year 1996, Prime Vendor will be deployed to 160 pharmacy and medical/surgical sites.

Benefits associated with implementation of Prime Vendor are substantial. For fiscal years 1991 - 1995, benefits attributable to Prime Vendor include: $382 million reduction in wholesale inventory, $71 million reduction in retail inventory, and $92 million reduction in the cost of drugs. Delivery took only 24 hours which resulted in a 95 percent level of availability for pharmaceutical and medical/surgical items at medical treatment facilities.

NPR Home Page Search the NPR Site NPR Initiatives Site Index Calendar Comments Awards Links Tools Frequently Asked Questions Speeches News Releases Library Navigation Bar For NPR site