The Department of General Services (DGS) Procurement Division, Pharmaceutical Acquisitions Section was awarded an Honorable Mention by the National Association of State Procurement Officials (NASPO) for their 2013 George Cronin Award submission. The NASPO-Cronin Award provides national recognition to state procurement programs who demonstrate ground-breaking procurement strategies for innovation, cost reduction, service improvement, and transferability to other programs and states.
DGS received this acknowledgement for their innovative use of the California Pharmaceutical Procurement Collaborative (CPPC) to develop, evaluate, and award a pharmaceutical wholesaler agreement. The size and scope of this solicitation was unprecedented and epitomizes what can be accomplished when state agencies and local governmental entities unite effectively. Forcing the pharmaceutical industry to recognize over 90 individual entities as a single purchaser allowed DGS and CPPC representatives to negotiate for significant cost reductions, obtain guaranteed service levels, and improve reporting functions. The State of California, with an annual pharmaceutical spend of $185 million, was able to obtain discounts rivaled only by those offered to the Veterans Association with an annual pharmaceutical spend of $3.95 billion. The new pharmaceutical wholesaler contract, awarded to AmerisourceBergen Drug Corporation, is projected to save $17.4 million over the term of the 3-year contract.