The 1-year base economic-price-adjustment, indefinite-delivery/indefinite-quantity contract will come with 4 1-year option periods, with the $46.5 million representing the maximum dollar amount for the life of the contract. A total of 18 companies were vying for the contract.
Through the contract,Dublin, Ohio.-based Cardinal Health will supply the equipment to the Army, Navy, Air Force, Marine Corps and federal civilian agencies, according to the DoD release, and has a completion date of April 12, 2022.
Earlier this month, a report claimed that Cardinal Health was closing in on a deal to pay $6 billion to acquire the medical supplies business that Medtronic (NYSE:MDT) picked up when it paid $50 billion for Covidien in January 2015.
Citing “people familiar with the matter,” Reuters reported that exclusive talks between the companies could result in an announcement later this month. Medtronic and Cardinal Health declined to comment to the wire service. The division makes general medical equipment including monitoring equipment, medical instrumentation, needles and other basic supplies.
Rumors that the Fridley, Minn.-based company wanted to divest the supplies business, gained as part of the Covidien deal, 1st emerged in early February. In March several companies were said to be interested, Cardinal Health among them. The medical supplies business threw off earnings before interest, taxes, depreciation and amortization of approximately $500 million last year.