USDA awards $3.9M for oral rabies vaccine baits to Boehringer Ingelheim Animal Health USA Inc

Contract Overview

Contract Amount: $3,938,515 ($3.9M)

Contractor: Boehringer Ingelheim Animal Health USA Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-05-21

End Date: 2026-05-30

Contract Duration: 374 days

Daily Burn Rate: $10.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY ORDER FOR ORAL RABIES VACCINE (ORV) BAITS

Place of Performance

Location: DULUTH, GWINNETT County, GEORGIA, 30096

State: Georgia Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.9 million to BOEHRINGER INGELHEIM ANIMAL HEALTH USA INC for work described as: DELIVERY ORDER FOR ORAL RABIES VACCINE (ORV) BAITS Key points: 1. The contract value represents a significant investment in disease prevention for wildlife. 2. Sole-source award suggests limited market options or specific contractor capabilities. 3. The duration of the contract indicates a sustained need for these critical supplies. 4. Geographic focus on Georgia (GA) highlights a specific regional disease control effort. 5. The biological product manufacturing sector is vital for public health and agricultural security.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without comparable sole-source awards for oral rabies vaccine baits. The fixed-price nature provides some cost certainty. However, the lack of competition raises questions about whether the government secured the best possible price. Further analysis would require comparing this unit price to historical sole-source awards or, if available, to prices from competitively awarded contracts for similar biological products.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This typically occurs when a unique capability or product is required, or when only one responsible source is available. The lack of competition means that price discovery through market forces was not utilized, potentially leading to a higher cost than if multiple vendors had bid.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without competing the requirement, there is less assurance that the price reflects the lowest possible cost for these essential vaccine baits.

Public Impact

Wildlife populations, particularly those susceptible to rabies, will benefit from the availability of vaccine baits. The primary service delivered is the provision of biological products for disease control. The contract has a geographic focus on Georgia (GA), indicating a targeted rabies control program. This contract supports the agricultural sector by helping to prevent the spread of zoonotic diseases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases cost to taxpayers.
Lack of transparency in the sole-source justification requires careful review.
Dependence on a single supplier could pose supply chain risks.
Limited public information on the specific product and its efficacy in this context.

Positive Signals

Addresses a critical public health need for rabies prevention in wildlife.
Contract awarded to a known entity in animal health (Boehringer Ingelheim).
Fixed-price contract provides cost predictability for the government.
Contract duration suggests a commitment to ongoing disease management.

Sector Analysis

The market for veterinary biological products, including vaccines and disease control agents, is a specialized segment within the broader pharmaceutical and biotechnology industry. This contract falls under the 'Biological Product (except Diagnostic) Manufacturing' category. The federal government is a significant purchaser of such products for public health initiatives, agricultural protection, and defense purposes. Spending in this area is often driven by disease outbreaks, eradication programs, and biosecurity concerns. Comparable spending benchmarks would typically involve other federal procurements of animal vaccines or disease control agents.

Small Business Impact

This contract was not competed and there is no indication of small business set-aside or subcontracting requirements. Therefore, this award does not directly benefit small businesses through set-asides. The prime contractor, Boehringer Ingelheim Animal Health USA Inc., is a large corporation, and the nature of the product suggests specialized manufacturing capabilities unlikely to be met by small businesses without significant subcontracting, which is not specified here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Animal and Plant Health Inspection Service (APHIS). As a delivery order under a larger contract vehicle, the initial award process and justification for sole-sourcing would have undergone review. Ongoing oversight would focus on delivery, quality, and adherence to contract terms. Transparency is limited due to the sole-source nature, but contract modifications and performance reports, if publicly available, would offer further insight.

Related Government Programs

Animal Disease Prevention and Control Programs
Wildlife Services
Public Health Preparedness
Biological Defense Programs

Risk Flags

Sole-source award
Potential lack of price competition
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.9 million to BOEHRINGER INGELHEIM ANIMAL HEALTH USA INC. DELIVERY ORDER FOR ORAL RABIES VACCINE (ORV) BAITS

Who is the contractor on this award?

The obligated recipient is BOEHRINGER INGELHEIM ANIMAL HEALTH USA INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2025-05-21. End: 2026-05-30.

What is the specific type of oral rabies vaccine bait being procured, and what is its intended application?

The contract specifies 'DELIVERY ORDER FOR ORAL RABIES VACCINE (ORV) BAITS'. While the exact formulation is not detailed in the provided data, oral rabies vaccines are typically bait-like substances containing the vaccine, designed to be consumed by target wildlife species such as foxes, raccoons, and coyotes. Their primary application is to immunize these animals against the rabies virus, thereby preventing its transmission to other wildlife, domestic animals, and humans. This is a crucial component of rabies control programs, especially in areas where the virus is endemic or poses a significant risk. The specific product likely targets particular species and geographic regions based on APHIS's rabies surveillance and control strategies.

Why was this contract awarded on a sole-source basis, and what is the justification provided by the agency?

The provided data indicates the contract was awarded as 'NOT COMPETED', which typically signifies a sole-source or limited-source justification. Agencies pursue sole-source contracts when only one responsible source is available or capable of meeting the requirement. For specialized biological products like rabies vaccine baits, this could be due to proprietary technology, unique manufacturing capabilities, specific efficacy data required by the agency, or existing government familiarity and investment in a particular product line. The specific justification would be detailed in the agency's contract file, often involving a Justification and Approval (J&A) document that outlines why full and open competition is not feasible or not in the government's best interest. Without access to this J&A, the precise reasons remain speculative but likely relate to the specialized nature of the product.

How does the awarded price of $3.9 million compare to historical spending on similar rabies vaccine bait procurements?

Direct comparison of the $3.9 million total award value to historical spending is difficult without knowing the quantity of baits procured and the unit price. However, the contract duration of 374 days (approximately one year) suggests this is an annual or near-annual procurement. To assess value, one would need to compare the per-unit cost of these baits to previous awards, especially if those were also sole-source or if competitive bids were solicited. If previous procurements were for similar quantities and specifications, and the unit price has increased significantly, it could indicate a decline in value. Conversely, if the price is consistent or lower, it suggests stable or improved value. The sole-source nature inherently limits the ability to definitively benchmark against market rates.

What are the potential risks associated with awarding a contract for critical biological products on a sole-source basis?

Awarding a contract for critical biological products like rabies vaccine baits on a sole-source basis carries several potential risks. Firstly, it eliminates the benefit of price competition, potentially leading to higher costs for the government and taxpayers. Secondly, it can foster vendor lock-in, making it difficult to switch to alternative suppliers even if better options emerge later. Thirdly, it may reduce the incentive for the sole-source provider to innovate or maintain competitive pricing, as they face no direct market pressure. Lastly, it can create supply chain vulnerabilities if the single supplier experiences production issues, financial instability, or geopolitical disruptions, potentially jeopardizing the continuity of essential public health programs.

What is the track record of Boehringer Ingelheim Animal Health USA Inc. in supplying biological products to the federal government?

Boehringer Ingelheim Animal Health USA Inc. is a well-established global pharmaceutical company with a significant presence in the animal health sector. They have a history of supplying a wide range of veterinary products, including vaccines, to various markets. While specific details of their federal contracting history are not provided here, large pharmaceutical and animal health companies frequently engage with government agencies like the Department of Agriculture (USDA) and the Department of Defense (DoD) for disease control, research, and preparedness initiatives. Their track record would generally be considered strong, given their industry standing and product portfolio, but a thorough review would involve examining past performance evaluations and any documented issues on prior government contracts.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Biological Product (except Diagnostic) Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: C.H. Boehringer Sohn AG & CO. KG

Address: 3239 SATELLITE BLVD, DULUTH, GA, 30096

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,938,515

Exercised Options: $3,938,515

Current Obligation: $3,938,515

Actual Outlays: $1,281,760

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12639524D0046

IDV Type: IDC

Timeline