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DLH Lands $202M Follow-On Award to Continue VA Medical Logistics Support

DLH Holdings (Nasdaq: DLHC) will continue to help the Department of Veterans Affairs deliver prescriptions to former soldiers under a contract worth potentially $202 million over five years.

The follow-on contract entails medical logistics support to the VA’s Consolidated Mail Outpatient Pharmacy locations using automated processing and delivery platforms, DLH said Friday.

The CMOP system processed more than 120 million prescription medicines for military veterans across seven geographical areas last year, according to the company.

Kevin Wilson, president of DLH’s health and logistics services operating unit, said the award continues a two-decade business relationship with the department.

“The COVID-19 pandemic demonstrated the indispensable value of mail order as an additional care tool, and DLH is thrilled to continue in the development of innovative health solutions,” Wilson added.

Prior to the award decision, the department initially considered proposals from the small business community for the new CMOP contract and later decided to exclude set-aside tiers from the sourcing process to evaluate offers among larger vendors, DLH noted.

The contract has one base year and four option years.

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