DLA Awards $3.4B in Medical Supply Contract Options to Cardinal Health, Owens & Minor

Cardinal Health and Owens & Minor have received separate contract modifications potentially worth $3.38 billion combined from the Defense Logistics Agency to continue providing medical-surgical products to military and federal civilian customers.

DLA exercised the second 30-month option period of indefinite-delivery/indefinite-quantity contracts previously awarded to the two health care supplies distribution companies, the Department of Defense said Wednesday.

The modifications are valued at $2.25 billion for Cardinal Health and $1.13 billion for Owens and Minor Distribution, and DLA will finance orders with defense working capital funds for fiscal year 2022 through fiscal 2025.

The suppliers will perform tasks in various locations throughout the U.S. through December 2024.

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