The California Department of General Services (DGS) today announced a
new statewide pharmaceutical contract that will save the state nearly
$18 million by leveraging the buying power of several state agencies
acting as a single buyer.
The contract will be used by state prisons, state hospitals, and state
developmental centers, including the California Correctional Health Care
Services, California Department of Developmental Services, California
Department of State Hospitals, California Department of Juvenile
Justice, California State University System, and other state and local
"The various state entities that purchase phamaceuticals are working as
partners on the procurement process in order to leverage their
collective buying power," said DGS Director Fred Klass. "DGS initiated
the Pharmacy Procurement Collaborative that has resulted in better
pricing, better accountability, and will save the state millions of
dollars in drug costs."
California state agencies purchase upwards of $300 million worth of
pharmaceuticals a year. Prior to the Pharmacy Procurement Collaborative,
some agencies negotiated separate pharmaceutical contracts, instead of
leveraging the state's collective buying power as a single buyer.
The new pharmaceutical wholesaler contract, awarded by DGS to
AmerisourceBergen Drug Corporation following a competitive bidding
process, is projected to save $17.4 million over the life of the
The Department of General Services acts as the business manager for
the State of California. DGS helps state government better serve the
public by providing services to state agencies including procurement and
acquisition solutions, real estate management, leasing and design
services, environmentally friendly transportation, and architectural
oversight and funding for the construction of safe schools.
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