HHS Awards $471M for CIADM Manufacturing Capacity Expansion to Emergent BioSolutions

Contract Overview

Contract Amount: $470,891,540 ($470.9M)

Contractor: Emergent Manufacturing Operations Baltimore LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2020-05-24

End Date: 2021-11-01

Contract Duration: 526 days

Daily Burn Rate: $895.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EMERGENT CIADM MANUFACTURING CAPACITY RESERVATION AND EXPANSION

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21224

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $470.9 million to EMERGENT MANUFACTURING OPERATIONS BALTIMORE LLC for work described as: EMERGENT CIADM MANUFACTURING CAPACITY RESERVATION AND EXPANSION Key points: 1. Significant investment in domestic biodefense manufacturing capacity. 2. Sole awardee Emergent BioSolutions is a key player in this niche. 3. Potential risks include reliance on a single supplier and manufacturing challenges. 4. Spending falls within the broad category of industrial building construction for critical infrastructure.

Value Assessment

Rating: fair

The contract value of $470.9 million for manufacturing capacity reservation and expansion is substantial. Benchmarking against similar large-scale industrial construction projects is difficult due to the specialized nature of biodefense manufacturing, but the price appears to reflect the unique requirements and urgency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting an effort to find the best value. However, the specific nature of CIADM manufacturing may limit the pool of qualified bidders, potentially impacting price discovery.

Taxpayer Impact: Taxpayers are funding the expansion of critical biodefense manufacturing capabilities, aiming to ensure national security and public health preparedness.

Public Impact

Enhances national security by increasing domestic production of critical medical countermeasures. Supports the biopharmaceutical manufacturing sector and associated jobs. Aims to reduce reliance on foreign manufacturing for essential defense materials. Could lead to faster response times during public health emergencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single source awardee for critical manufacturing capacity.
Potential for cost overruns in complex manufacturing build-out.
Dependence on Emergent BioSolutions' operational success.

Positive Signals

Addresses a critical national security need.
Investment in domestic industrial base.
Supports preparedness for biological threats.

Sector Analysis

This contract falls under industrial building construction, specifically for specialized biopharmaceutical manufacturing facilities. Spending benchmarks for such niche infrastructure are hard to establish, but the investment is significant for ensuring domestic capacity for critical medical countermeasures.

Small Business Impact

The contract was awarded to Emergent Manufacturing Operations Baltimore LLC, a large business. There is no explicit indication of small business subcontracting goals within the provided data, suggesting limited direct impact on small businesses from this specific award.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services, Office of Assistant Secretary for Preparedness and Response, indicating oversight from a relevant agency focused on public health emergencies. Further details on specific oversight mechanisms for this manufacturing expansion would be needed.

Related Government Programs

Industrial Building Construction
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Sole source awardee for critical manufacturing.
Potential for manufacturing delays or quality issues.
High contract value increases financial risk.
Dependence on a single company's capabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $470.9 million to EMERGENT MANUFACTURING OPERATIONS BALTIMORE LLC. EMERGENT CIADM MANUFACTURING CAPACITY RESERVATION AND EXPANSION

Who is the contractor on this award?

The obligated recipient is EMERGENT MANUFACTURING OPERATIONS BALTIMORE LLC.

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 $470.9 million.

What is the period of performance?

Start: 2020-05-24. End: 2021-11-01.

What is the projected cost per unit of CIADM produced once this manufacturing capacity is fully operational?

The provided data focuses on the capital investment for manufacturing capacity expansion, not the operational cost per unit of the final product (CIADM). Determining the per-unit cost would require detailed production data, yield rates, and ongoing operational expenses, which are not included in this contract award information.

What are the key performance indicators (KPIs) for Emergent BioSolutions to meet regarding manufacturing output and quality?

The contract details likely contain specific performance standards, milestones, and quality control requirements for Emergent BioSolutions. These would typically include targets for production volume, adherence to Good Manufacturing Practices (GMP), and timely delivery of the CIADM product to ensure readiness.

How does this investment align with broader national strategies for biodefense and pandemic preparedness?

This investment directly supports national strategies by bolstering domestic manufacturing capabilities for critical medical countermeasures, reducing reliance on foreign sources, and ensuring a more robust supply chain for biodefense. It is a tangible step towards enhancing preparedness for biological threats and pandemics.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Emergent Biosolutions Inc.

Address: 5901 E LOMBARD ST, BALTIMORE, MD, 21224

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: $470,891,540

Exercised Options: $470,891,540

Current Obligation: $470,891,540

Actual Outlays: $470,891,540

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSO100201200004I

IDV Type: IDC

Timeline