BOP Program Statement 6360.03 § 17

a. Electronic Inventory Management. All institutions will utilize the designated electronic

inventory management system as directed by the Bureau Chief Pharmacist for all medication

inventory and procurement activities. In order to maintain optimal inventory levels that minimize

waste, periodic automatic replacement (PAR) levels will be utilized.

b. Necessity of Timely and Consistent Medication Procurement. The provision of

medically-necessary treatment may not be prevented or delayed due to administrative reasons.

6360.03 5/7/2026 PROPERTY OF US GOVERNMENT 23

The Cost-Center Manager over medication procurement and Chief Pharmacist will collaborate

with the institution’s Business Office to develop and implement an institution supplement that

supports seamless inventory management and medication procurement.

c. Pharmaceutical Prime Vendor Contract (PPV). The national contracts for medications

and pharmaceutical products are mandatory. All institutions will order from these contracts,

which are applicable for FSS, General Services Administration (GSA), and Blanket Purchase

Agreement (BPA) contract pharmaceutical items. If the items are identified on the computer

database as non-contract items, normal procurement procedures will be used, e.g., purchase from

FSS, mandatory source, or open market.

 The Institution Chief Pharmacist will implement the Prime Vendor Contract at the

institution. An institution supplement for delivery and receipt of medications will be

developed locally in conjunction with the warehouse. Questions that cannot be resolved

by the Prime Vendor regarding the contract will be directed to the Bureau Chief

Pharmacist.

 Mandatory national contracts exist for selected medications listed in the National

Formulary. In these cases, institutions must use only the specified brand of the product

under contract, when available. To receive the beneficial contracted price, no institution is

authorized to vary from this requirement.

 All medications purchased from a vendor other than the Prime Vendor must utilize the

current project code as directed by the Administration Division and HSD.

d. Annual Inventory. Unless otherwise authorized by the Bureau Chief Pharmacist, all

pharmacies will complete a full inventory of all main stock medications in August of each year.

 Pharmacies will be given adequate time, staff, and equipment to complete this inventory.

Inventory will generally require at least one eight-hour day during the regular work hours

without interruption.

 Additional hours or days may be required to complete the inventory, however, overtime

or off-shift work should not be utilized.

 During inventory, pharmacies must pause all other pharmacy operations. Urgent or

medically necessary medications may be accessed via night stock or AMDC.

 For sites without a pharmacist due to vacancy, the authority responsible for pharmacy

operations (generally the HSA), is responsible for ensuring the inventory is completed.

 Certification of inventory completion will be sent to the Regional Chief Pharmacist.