HHS awards $14.8M for pandemic preparedness medical countermeasures to Seqirus Inc

Contract Overview

Contract Amount: $14,848,415 ($14.8M)

Contractor: Seqirus Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-02-22

End Date: 2026-05-21

Contract Duration: 819 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE MEDICAL COUNTERMEASURES (MCMS), SUCH AS VACCINES AND ADJUVANTS, FOR PANDEMIC PREPAREDNESS AND RESPONSE OR AS REQUIRED IN RESPONSE TO A HHS DESIGNATED

Place of Performance

Location: HOLLY SPRINGS, WAKE County, NORTH CAROLINA, 27540

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $14.8 million to SEQIRUS INC for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE MEDICAL COUNTERMEASURES (MCMS), SUCH AS VACCINES AND ADJUVANTS, FOR PANDEMIC PREPAREDNESS AND RESPONSE OR AS REQUIRED IN RESPONSE TO A HHS DESIGNATED Key points: 1. Contract focuses on essential medical countermeasures for pandemic preparedness and response. 2. The firm-fixed-price contract structure aims to control costs for biological product manufacturing. 3. Competition was full and open, suggesting a potentially competitive bidding process. 4. Performance period spans over two years, indicating a medium-term commitment. 5. The award is a delivery order under a larger contract vehicle. 6. North Carolina is the specified state for contract performance. 7. The contract is not set aside for small businesses.

Value Assessment

Rating: good

The contract value of $14.8 million for biological product manufacturing appears reasonable given the critical nature of pandemic preparedness. Benchmarking against similar contracts for vaccine or adjuvant production would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government in managing cost certainty for defined deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lowering the overall cost of the procured goods or services.

Public Impact

The primary beneficiaries are the public, through enhanced national security against biological threats. Services delivered include the manufacturing of critical medical countermeasures like vaccines and adjuvants. Geographic impact is national, focusing on preparedness and response capabilities across the United States. Workforce implications may include specialized manufacturing roles within the biological products sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits assessment of competitive intensity.
Details on the specific types and quantities of medical countermeasures are not provided.
Performance metrics and quality assurance standards are not detailed in the provided data.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Focus on pandemic preparedness addresses a critical national security need.
Contract duration of over two years allows for sustained supply chain development.

Sector Analysis

This contract falls within the Healthcare and Life Sciences sector, specifically focusing on biological product manufacturing. The market for pandemic preparedness and response is a critical, albeit often fluctuating, segment driven by government funding and public health needs. Comparable spending benchmarks would involve analyzing other government contracts for vaccine development, adjuvant production, and other critical medical supplies, which can range from millions to billions depending on the scale and scope of the threat.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor, Seqirus Inc., may still engage small businesses as subcontractors based on their own procurement strategies and capabilities needed for fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS), specifically the Office of Assistant Secretary for Preparedness and Response (ASPR). As a delivery order under a larger contract, the existing oversight mechanisms of the parent contract would apply. Transparency is facilitated by public contract databases, and accountability would be managed through contract performance reviews and adherence to the firm-fixed-price terms.

Related Government Programs

Biomedical Advanced Research and Development Authority (BARDA) contracts
Strategic National Stockpile procurements
Vaccine and therapeutic development programs
National Institutes of Health (NIH) research grants

Risk Flags

Potential for obsolescence of countermeasures
Supply chain vulnerability
Manufacturing delays
Uncertainty of pandemic threat realization

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $14.8 million to SEQIRUS INC. THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE MEDICAL COUNTERMEASURES (MCMS), SUCH AS VACCINES AND ADJUVANTS, FOR PANDEMIC PREPAREDNESS AND RESPONSE OR AS REQUIRED IN RESPONSE TO A HHS DESIGNATED

Who is the contractor on this award?

The obligated recipient is SEQIRUS INC.

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 $14.8 million.

What is the period of performance?

Start: 2024-02-22. End: 2026-05-21.

What is Seqirus Inc.'s track record with federal contracts, particularly in biological product manufacturing and pandemic preparedness?

Seqirus Inc., a subsidiary of CSL Limited, has a significant history of federal contracting, particularly with agencies like the Department of Health and Human Services (HHS) and the Department of Defense (DoD). They are known for their work in influenza vaccines and other biological products. Their experience includes manufacturing and supplying vaccines, which directly aligns with the purpose of this contract for pandemic preparedness. Past federal awards to Seqirus have often been related to vaccine production for public health initiatives and stockpiling efforts. A review of their contract history would likely reveal numerous awards for similar biological products, demonstrating a consistent capability in this specialized manufacturing area. The scale and nature of previous contracts would offer insights into their capacity and reliability in meeting large-scale government demands for critical medical countermeasures.

How does the $14.8 million contract value compare to similar government procurements for medical countermeasures?

The $14.8 million contract value for medical countermeasures (MCMs) like vaccines and adjuvants is a moderate-sized award. Government procurements in this space can vary dramatically in scale, from smaller research and development grants in the millions to large-scale manufacturing and stockpiling contracts that can reach hundreds of millions or even billions of dollars, especially during active public health emergencies. For instance, contracts for broad-spectrum antivirals or large-scale vaccine production campaigns during a pandemic could dwarf this amount. However, for specific MCMs intended for preparedness or targeted response, $14.8 million represents a substantial investment. To provide a precise comparison, one would need to identify contracts for similar biological products (e.g., specific vaccine types, adjuvants) with comparable delivery timelines and quantities, procured by agencies like HHS/ASPR or DoD over the last few years.

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

Key risks for this contract include potential supply chain disruptions for raw materials, manufacturing delays impacting delivery schedules, and the possibility of the specific medical countermeasures becoming obsolete or less effective due to evolving scientific understanding or pathogen mutations. Additionally, there's a risk that the anticipated pandemic threat may not materialize, leading to questions about the value of the procured countermeasures. Mitigation strategies likely involve robust contract management by HHS/ASPR, including close monitoring of Seqirus's production timelines and quality control processes. The firm-fixed-price structure incentivizes the contractor to meet delivery schedules. Furthermore, the 'preparedness' nature of the contract implies a focus on versatile or broadly applicable countermeasures, and the government likely maintains options for contract modification or termination if circumstances change significantly. The full and open competition also mitigates risk by ensuring a competitive landscape.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for pandemic preparedness supplies?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work and specifications are well-defined, as is often the case for manufacturing specific biological products. Under an FFP contract, the contractor assumes the risk of cost overruns, which incentivizes them to manage their costs efficiently and deliver the product at the agreed-upon price. This provides significant cost certainty for the government, making budgeting more predictable. For pandemic preparedness supplies, where the product requirements are often based on established scientific knowledge (e.g., existing vaccine platforms), FFP is suitable. It shifts the financial risk from the government to the contractor, encouraging timely delivery and adherence to quality standards to avoid penalties or loss of profit. The government's primary role becomes ensuring the specifications are accurate and monitoring performance.

What are the historical spending patterns for pandemic preparedness medical countermeasures by HHS?

HHS, particularly through the Office of the Assistant Secretary for Preparedness and Response (ASPR) and its predecessor agencies, has a history of significant spending on pandemic preparedness medical countermeasures. This spending fluctuates based on perceived threats and national priorities. Historically, major investments have been made in areas such as influenza vaccines, antiviral drugs, and broad-spectrum antibiotics. Spending often surges during or in anticipation of specific outbreaks (e.g., H1N1, Ebola, COVID-19). Contracts can range from early-stage research and development to large-scale manufacturing agreements and stockpiling initiatives. The Biomedical Advanced Research and Development Authority (BARDA) within ASPR is a key entity responsible for managing many of these contracts. Analyzing historical HHS budgets and contract awards related to BARDA and the Strategic National Stockpile (SNS) would reveal trends in investment priorities and the types of countermeasures being procured over time.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 475 GREEN OAKS PKWY, HOLLY SPRINGS, NC, 27540

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

Financial Breakdown

Contract Ceiling: $23,270,752

Exercised Options: $23,270,752

Current Obligation: $14,848,415

Actual Outlays: $8,037,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75A50122D00004

IDV Type: IDC

Timeline