HHS awards $147M contract for Marburg and Sudan ebolavirus vaccine development

Contract Overview

Contract Amount: $147,062,009 ($147.1M)

Contractor: Albert B. Sabin Vaccine Institute, Inc. (THE)

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-26

End Date: 2026-09-30

Contract Duration: 2,561 days

Daily Burn Rate: $57.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: R&D

Official Description: THIS CONTRACT IS TO ADVANCE THE DEVELOPMENT OF MONOVALENT VACCINES FOR PREVENTION OF MARBURG VIRUS (MARV) AND SUDAN EBOLAVIRUS (SUDV) DISEASE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20515

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $147.1 million to ALBERT B. SABIN VACCINE INSTITUTE, INC. (THE) for work described as: THIS CONTRACT IS TO ADVANCE THE DEVELOPMENT OF MONOVALENT VACCINES FOR PREVENTION OF MARBURG VIRUS (MARV) AND SUDAN EBOLAVIRUS (SUDV) DISEASE. Key points: 1. Contract focuses on critical biodefense research and development. 2. Significant investment in preparedness against emerging infectious diseases. 3. Long-term contract duration suggests complex research and development pathway. 4. Research and Development in Biotechnology sector is a key area for federal investment. 5. Contractor has a history of vaccine development, indicating relevant expertise. 6. Geographic focus on District of Columbia for contract performance.

Value Assessment

Rating: good

The contract's value of $147 million for advanced vaccine development appears reasonable given the complexity and critical nature of the research. Benchmarking against similar R&D contracts for novel vaccines, especially those targeting high-consequence pathogens, suggests this is within an expected range. The 'Cost No Fee' (Cost Plus Fixed Fee) contract type indicates that the government will reimburse allowable costs plus a fixed fee, which is common for R&D where final costs can be uncertain. However, detailed cost breakdowns and comparisons to specific R&D milestones would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while competition was sought, certain sources were excluded, potentially due to specific capabilities or prior work. The exact reasons for exclusion and the number of proposals received are not detailed, making it difficult to fully assess the breadth of competition. Limited competition can sometimes lead to higher prices if the pool of qualified bidders is small.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the most aggressive pricing possible, as fewer entities were eligible to bid.

Public Impact

The primary beneficiaries are public health and national security, through the development of countermeasures against deadly viruses. Services delivered include advanced research and development for monovalent vaccines against Marburg and Sudan ebolaviruses. Geographic impact is national, focusing on preparedness for potential outbreaks, with contract performance in Washington D.C. Workforce implications include specialized jobs in biotechnology research, development, and manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could potentially increase costs for taxpayers.
The long contract duration (2561 days) introduces risk related to changing scientific landscapes or project feasibility.
Lack of detailed cost breakdown makes precise value-for-money assessment challenging.

Positive Signals

Focus on critical biodefense research addresses a significant public health threat.
Contractor's expertise in vaccine development is a positive signal for project success.
The contract aims to advance development of vaccines for high-consequence pathogens, a crucial area for national security.

Sector Analysis

This contract falls within the Biotechnology Research and Development sector, a critical area for public health and national security. The market for vaccine development, particularly for emerging and re-emerging infectious diseases, is characterized by high R&D costs, long development cycles, and significant regulatory hurdles. Federal investment in this sector is crucial for maintaining a robust biodefense capability. Comparable spending benchmarks would typically involve other government contracts for vaccine development against high-consequence pathogens, which often run into tens or hundreds of millions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, there are no direct implications for small business subcontracting goals or set-asides related to this specific award. The primary contractor, Albert B. Sabin Vaccine Institute, Inc., is likely a large entity, and its engagement with small businesses would depend on its own procurement practices for materials, services, or specialized research support.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of Health and Human Services (HHS), specifically the Office of Assistant Secretary for Preparedness and Response (ASPR). Mechanisms would include regular progress reports from the contractor, financial audits, and potentially site visits. Accountability is tied to meeting research milestones and adhering to the contract terms. Transparency is facilitated through contract award databases, though detailed research progress and specific cost justifications may be considered sensitive or proprietary.

Related Government Programs

Biodefense Advanced Research Projects Agency (BARDA) funding
National Institutes of Health (NIH) research grants
Centers for Disease Control and Prevention (CDC) infectious disease programs
Department of Defense (DoD) biosecurity initiatives

Risk Flags

Limited competition may impact price discovery.
Long contract duration introduces risk of scientific obsolescence or changing priorities.
Specific details on excluded sources are not publicly available.
Potential for cost overruns in complex R&D projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $147.1 million to ALBERT B. SABIN VACCINE INSTITUTE, INC. (THE). THIS CONTRACT IS TO ADVANCE THE DEVELOPMENT OF MONOVALENT VACCINES FOR PREVENTION OF MARBURG VIRUS (MARV) AND SUDAN EBOLAVIRUS (SUDV) DISEASE.

Who is the contractor on this award?

The obligated recipient is ALBERT B. SABIN VACCINE INSTITUTE, INC. (THE).

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $147.1 million.

What is the period of performance?

Start: 2019-09-26. End: 2026-09-30.

What is the track record of Albert B. Sabin Vaccine Institute, Inc. in developing vaccines for high-consequence pathogens?

Albert B. Sabin Vaccine Institute, Inc. has a notable history in vaccine research and development. While specific details on their success rate for high-consequence pathogens like Marburg or Sudan ebolavirus would require deeper investigation into their project portfolio and publications, the institute is generally recognized for its contributions to vaccine science. Their work often involves complex biological research, preclinical testing, and navigating regulatory pathways. The award of this significant contract by HHS suggests that the agency has assessed the contractor's capabilities and past performance as adequate for the demanding task of developing vaccines against these specific, dangerous viruses. Further analysis would involve reviewing their published research, previous government contracts, and any independent evaluations of their R&D pipeline.

How does the $147 million contract value compare to similar federal investments in ebolavirus vaccine development?

The $147 million contract value for developing monovalent vaccines against Marburg and Sudan ebolaviruses is substantial but falls within the expected range for advanced vaccine R&D targeting high-consequence pathogens. Federal agencies like HHS (through ASPR/BARDA) and the Department of Defense have invested significantly in countermeasures for Ebola and related filoviruses. Previous contracts and funding awards for Ebola vaccine development have often ranged from tens to hundreds of millions of dollars, reflecting the lengthy, complex, and high-risk nature of such research. For instance, development of vaccines against Zaire ebolavirus has seen substantial investment over many years. The specific value here is influenced by factors such as the stage of development, the number of vaccine candidates pursued, the scope of preclinical and clinical testing required, and the specific requirements of the monovalent approach for these particular viruses.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include scientific and technical challenges inherent in vaccine development, potential for project delays, and the possibility of the contractor failing to meet performance milestones. Developing effective vaccines against novel or less-studied viruses like Marburg and Sudan ebolavirus is scientifically complex, with no guarantee of success. The long contract duration (over 7 years) increases the risk of scientific obsolescence or shifts in public health priorities. Mitigation strategies likely include rigorous oversight by HHS, phased funding tied to achievable milestones, regular technical reviews, and potentially requiring the contractor to maintain contingency plans. The 'Cost No Fee' contract type also allows for flexibility in adjusting research approaches as challenges arise, while ensuring the government only reimburses allowable costs.

What is the expected impact of this contract on the preparedness of the United States against Marburg and Sudan ebolavirus outbreaks?

This contract is expected to significantly enhance U.S. preparedness by advancing the development of specific vaccines against Marburg virus (MARV) and Sudan ebolavirus (SUDV). These viruses, while less common than Zaire ebolavirus, can cause severe hemorrhagic fevers with high fatality rates. Having effective, licensed vaccines available would provide a critical tool for preventing or mitigating outbreaks, protecting both the civilian population and military personnel. This investment supports the broader national biodefense strategy by ensuring that countermeasures are available for a wider range of potential biological threats, reducing the potential impact of future outbreaks on public health and national security.

How does the contract's 'Full and Open Competition After Exclusion of Sources' classification affect potential cost savings for taxpayers?

The classification 'Full and Open Competition After Exclusion of Sources' suggests that while the initial solicitation was broadly advertised, certain potential offerors were subsequently excluded from the final competition. The reasons for exclusion are not specified but could relate to unique capabilities, prior development work, or specific intellectual property. This limited competition, compared to true full and open competition where all qualified sources can bid, may reduce the pressure on pricing. When the number of bidders is restricted, the potential for aggressive price negotiation is diminished. Therefore, taxpayers may not benefit from the lowest possible price that might have been achieved if a wider range of competitors had been involved in the final evaluation stages.

What is the significance of the 'Cost No Fee' contract type for this R&D effort?

The 'Cost No Fee' (Cost Plus Fixed Fee - CPFF) contract type is common for research and development efforts where the scope of work is well-defined but the final costs are uncertain. In this arrangement, the government reimburses the contractor for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing the contractor's profit. The 'No Fee' aspect might be a misinterpretation or a specific clause within the contract; typically, CPFF contracts include a fee. If it truly means no fee, it would be highly unusual for a private entity and might indicate a non-profit or specific government-funded research institute structure. Assuming it's a standard CPFF, it allows flexibility to adapt research strategies as challenges arise without requiring contract modifications for cost overruns, while the fixed fee incentivizes efficient performance within the estimated cost.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: BAA18100SOL00003

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 2175 K STREET NW SUITE 400, WASHINGTON, DC, 20037

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

Financial Breakdown

Contract Ceiling: $149,747,956

Exercised Options: $147,062,009

Current Obligation: $147,062,009

Actual Outlays: $87,564,795

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline