DMS Pharmaceutical loses its challenge to the VA

DMS Pharmaceutical Group Inc lost a challenge to a decision by the United States Department of Veterans Affairs to exclude small businesses from a drug supply contract valued at as much as $32 billion.

The closely held Park Ridge, Illinois company had filed a protest with the Government Accountability Office, which arbitrates contract disputes, after the VA canceled a plan to reserve some work in the contract for small businesses.

VA officials "reasonably determined" that DMS's bid was unacceptable because the company didn't meet several of the agency's requirements for the work, such as having an online inventory system, the GAO found.