The Government Accountability Office (GAO) has upheld the decision made by the Department of Veterans Affairs, Health Administration Center (HAC) in Denver, to award a multi-year PBM and pharmacy network services contract to SXC Health Solutions. The agreement has a provision for a one-year base-period term and options that, if all are exercised, would extend the contract to 60 months and generate approximately $6.9 million in revenue over that period.

In February, SXC announced that it had been awarded the contract; however, in March a protest was filed with the GAO by a competitor also bidding for the contract. The GAO rejected this protest and upheld the HAC decision to award the contract to SXC.

SXC will provide PBM services that include program administration, claims transactions processing, drug utilization review, beneficiary and pharmacy call centers, retail pharmacy network administration, Medicare Part D claims transactions support, and ad hoc and standard reporting systems.