HHS awards $158.8M contract for Ebola vaccine production to Sabin Institute, spanning 8 years

Contract Overview

Contract Amount: $158,810,481 ($158.8M)

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

Awarding Agency: Department of Health and Human Services

Start Date: 2022-12-29

End Date: 2030-09-30

Contract Duration: 2,832 days

Daily Burn Rate: $56.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THE SCOPE OF THE PROPOSED PROGRAM INCLUDES MANUFACTURE OF SABIN?S SUDAN EBOLAVIRUS VACCINE (BULK DRUG SUBSTANCE (BDS) AND FINAL DRUG PRODUCT (FDP)) TO PROVIDE DOSES THAT MAY BE USED IN THE EVENT OF AN OUTBREAK SCENARIO. THE PROPOSED EFFORT WILL UTILI

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20037

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $158.8 million to ALBERT B. SABIN VACCINE INSTITUTE, INC. (THE) for work described as: THE SCOPE OF THE PROPOSED PROGRAM INCLUDES MANUFACTURE OF SABIN?S SUDAN EBOLAVIRUS VACCINE (BULK DRUG SUBSTANCE (BDS) AND FINAL DRUG PRODUCT (FDP)) TO PROVIDE DOSES THAT MAY BE USED IN THE EVENT OF AN OUTBREAK SCENARIO. THE PROPOSED EFFORT WILL UTILI Key points: 1. Contract aims to ensure vaccine availability for potential outbreaks, focusing on bulk drug substance and final drug product. 2. Long-term nature of the contract suggests a strategic investment in biodefense preparedness. 3. The award is a definitive contract, indicating a commitment to a specific vendor for a defined period. 4. Research and Development in Biotechnology is the sector, highlighting the specialized nature of the work. 5. The contract's duration and scope point to significant resource allocation for vaccine manufacturing capabilities. 6. Focus on a specific vaccine (Sabin's Sudan Ebolavirus) indicates targeted public health security measures.

Value Assessment

Rating: good

The contract value of $158.8 million over approximately 8 years for vaccine manufacturing is substantial. Benchmarking this against similar large-scale biopharmaceutical production contracts is challenging without more specific details on the vaccine type and production volume. However, the cost-plus-fixed-fee structure suggests that costs are monitored, with a fixed fee providing incentive for efficiency. The value proposition lies in securing a critical public health asset.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster competitive pricing and ensure the government receives the best value. The specific number of bidders is not provided, but the open competition suggests a robust market engagement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring that public funds are used efficiently to secure essential goods and services like vaccine production.

Public Impact

The primary beneficiaries are the public, through enhanced preparedness for potential Ebola outbreaks. The contract ensures the manufacturing of critical vaccine components (BDS and FDP) for Sabin's Sudan Ebolavirus vaccine. Geographic impact is national, focusing on U.S. public health security, though the vaccine could be deployed globally. Workforce implications include specialized jobs in biotechnology manufacturing, research, and quality control.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus contracts if not rigorously managed.
Long-term reliance on a single contractor for a critical vaccine could pose supply chain risks if the contractor faces operational issues.

Positive Signals

Secures a critical public health asset for outbreak response.
Long-term commitment provides stability for manufacturing and supply chain development.
Full and open competition suggests a competitive process was used to select the contractor.

Sector Analysis

This contract falls within the Biotechnology Research and Development sector, a critical area for national security and public health. The market for vaccine manufacturing is highly specialized, with significant barriers to entry due to regulatory requirements and technical expertise. Comparable spending benchmarks would likely involve other government contracts for pandemic preparedness, biodefense, or specialized pharmaceutical production, which often run into hundreds of millions of dollars over several years.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. Given the specialized nature of vaccine manufacturing and the scale of this contract, it is unlikely that small businesses would be the primary awardees. However, the prime contractor may engage small businesses for subcontracting opportunities in areas such as logistics, specialized materials, or support services.

Oversight & Accountability

Oversight will likely be managed by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS. Contract performance, cost reporting, and adherence to quality standards will be key areas of scrutiny. Transparency is facilitated through the contract award process and potential public reporting on preparedness initiatives. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Biodefense Programs
Strategic National Stockpile
Vaccine Research and Development Initiatives
Public Health Emergency Preparedness

Risk Flags

Long-term contract duration may increase exposure to evolving technological or scientific advancements.
Cost-plus contract type requires diligent oversight to manage potential cost escalations.
Reliance on a single contractor for critical vaccine production could pose supply chain risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $158.8 million to ALBERT B. SABIN VACCINE INSTITUTE, INC. (THE). THE SCOPE OF THE PROPOSED PROGRAM INCLUDES MANUFACTURE OF SABIN?S SUDAN EBOLAVIRUS VACCINE (BULK DRUG SUBSTANCE (BDS) AND FINAL DRUG PRODUCT (FDP)) TO PROVIDE DOSES THAT MAY BE USED IN THE EVENT OF AN OUTBREAK SCENARIO. THE PROPOSED EFFORT WILL UTILI

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 $158.8 million.

What is the period of performance?

Start: 2022-12-29. End: 2030-09-30.

What is the historical track record of Albert B. Sabin Vaccine Institute, Inc. with government contracts, particularly in vaccine manufacturing?

Albert B. Sabin Vaccine Institute, Inc. has a history of engaging in vaccine research and development, often in collaboration with government agencies and academic institutions. While specific details on their prior government contract values and performance metrics for large-scale manufacturing are not readily available in this context, their established role in the vaccine community suggests a level of expertise. Further investigation into their past performance ratings, previous contract awards (especially those involving bulk drug substance and final drug product manufacturing), and any reported issues would provide a more comprehensive understanding of their capabilities and reliability for this significant award.

How does the $158.8 million cost compare to similar government contracts for vaccine manufacturing or biodefense preparedness?

The $158.8 million awarded to Albert B. Sabin Vaccine Institute, Inc. for Ebola vaccine production is a substantial investment, typical for long-term biopharmaceutical manufacturing contracts aimed at national security and public health preparedness. Comparing it directly requires identifying contracts with similar scope (bulk drug substance and final drug product), vaccine type (e.g., viral vaccines), and duration (8 years). Contracts for pandemic influenza vaccines, other biodefense countermeasures, or large-scale production of complex biologics often fall within this multi-million dollar range over several years. The cost-plus-fixed-fee structure means the final expenditure could vary, but the initial award indicates a significant commitment to securing this specific vaccine capability.

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

Key risks include potential manufacturing delays, quality control issues, cost overruns (inherent in cost-plus contracts), and the long-term viability of the contractor. Mitigation strategies likely involve rigorous oversight by HHS, including performance monitoring, quality assurance protocols, and financial audits. The fixed-fee component incentivizes the contractor to manage costs effectively. Furthermore, the full and open competition process aims to select a capable vendor, and the contract's duration allows for building a robust manufacturing process. Contingency planning for supply chain disruptions and potential scientific or regulatory hurdles would also be crucial.

How effective is the cost-plus-fixed-fee (CPFF) contract type for ensuring value for money in vaccine manufacturing?

The Cost-Plus-Fixed-Fee (CPFF) contract type is often used for research and development or complex manufacturing where the final costs are uncertain. It allows the government to reimburse the contractor for allowable costs plus a predetermined fixed fee, which represents the contractor's profit. This structure can be effective in encouraging innovation and ensuring that critical projects proceed even with cost uncertainties. For taxpayers, the value for money depends heavily on the government's ability to effectively monitor and control the allowable costs. The fixed fee provides a predictable profit margin, but the overall cost can still escalate if direct costs are higher than anticipated. Robust oversight is essential to ensure that costs are reasonable and allocable.

What is the historical spending pattern for similar Ebola vaccine development or manufacturing contracts by HHS or other agencies?

Historical spending on Ebola vaccine development and manufacturing by HHS and other agencies has varied significantly based on the stage of development (research vs. manufacturing), scale, and specific vaccine platform. Agencies like the National Institutes of Health (NIH) and the Biomedical Advanced Research and Development Authority (BARDA) have funded numerous projects, often through grants, cooperative agreements, and contracts, ranging from early-stage research to late-stage clinical trials and manufacturing scale-up. Large-scale manufacturing contracts, especially those involving long-term supply agreements for potential deployment, can easily reach tens to hundreds of millions of dollars, similar to the $158.8 million awarded here. Tracking specific historical spending requires detailed analysis of past contract awards for Ebola countermeasures.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: BAA18100SOL00003

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $238,381,726

Exercised Options: $158,810,481

Current Obligation: $158,810,481

Actual Outlays: $59,169,251

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline