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Our Commitment to Our Government Customers

McKesson is committed to delivering its products and services in a manner that fully satisfies both its legal obligations to its government customers and its own high standards of integrity and quality. McKesson provides pharmaceutical distribution services to numerous federal agencies, including the Centers for Disease Control (CDC). McKesson Specialty Health recently commenced performance of its third 5-year contract with the CDC for distribution of vaccines as part of the CDC’s vaccines for children program.

During an internal review McKesson discovered problems relating to satisfaction of Service Contract Act (SCA) requirements under its contracts with the CDC. The initial and second CDC contracts were not updated to include the most recent wage determinations as required under the SCA. McKesson also failed to include SCA requirements and associated wage determinations in its subcontracts under the contracts. The wages and fringe benefits required by the SCA were not always paid to McKesson employees and subcontractor employees working on the contracts, even though the applicability and substance of the SCA and its regulations were clear. Upon discovering these facts, McKesson notified the CDC and the U.S. Department of Labor (USDOL), which has administrative oversight of contractors under the SCA. McKesson is in the process of coordinating an appropriate payment plan with the USDOL under which McKesson intends to make agreed payments to certain current and former employees and subcontract employees. McKesson has implemented procedures to ensure it satisfies its wage and fringe benefit requirements under the current CDC contract.

If you have additional questions, please contact Kristin Chasen at or 415-983-8974.