HHS awards $7.79M for antigen storage, supporting biodefense R&D with a firm-fixed-price contract

Contract Overview

Contract Amount: $7,790,728 ($7.8M)

Contractor: Glaxosmithkline, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-02-21

End Date: 2027-05-21

Contract Duration: 1,185 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE STORAGE AND STABILITY FOR ANTIGENS AND ADJUVANTS FROM PRIOR CONTRACTS FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES UNDER IDIQ 75A50122D000002 DURING BASE PERIOD YR. 3. PERIOD OF PERFORMANCE: FEBRUARY

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27701

State: North Carolina Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.8 million to GLAXOSMITHKLINE, LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE STORAGE AND STABILITY FOR ANTIGENS AND ADJUVANTS FROM PRIOR CONTRACTS FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES UNDER IDIQ 75A50122D000002 DURING BASE PERIOD YR. 3. PERIOD OF PERFORMANCE: FEBRUARY Key points: 1. Contract focuses on essential storage and stability for critical antigens and adjuvants. 2. Procurement leverages existing IDIQ contract, indicating potential for streamlined acquisition. 3. Firm-fixed-price structure shifts cost risk to the contractor, promoting budget predictability. 4. Performance period spans nearly three years, suggesting a sustained need for these services. 5. The contract falls under R&D in Biotechnology, aligning with public health preparedness goals. 6. Awardee has a track record in the pharmaceutical and life sciences sector.

Value Assessment

Rating: good

The contract value of $7.79 million for antigen storage over approximately three years appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for biological material storage and stability testing is challenging without more specific details on quantities and duration of storage. However, the firm-fixed-price nature suggests that the contractor has assessed the risks and costs associated with maintaining the required conditions for these sensitive materials.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of an existing IDIQ contract suggests a pre-vetted pool of potential offerors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of potential suppliers to compete, driving down costs and improving the quality of services procured.

Public Impact

Ensures the availability and integrity of critical antigens and adjuvants for public health initiatives. Supports the Department of Health and Human Services' mission in preparedness and response. Contributes to ongoing research and development in biotechnology, particularly in vaccine and therapeutic development. Maintains essential components for potential future public health emergencies. The services are primarily conducted within the United States, supporting domestic biodefense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future task orders if market conditions change significantly.
Dependence on a single contractor for critical storage could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the performance period.
Award to a known entity like GlaxoSmithKline, LLC suggests a level of established capability.
Leveraging an existing IDIQ contract streamlines the acquisition process and potentially reduces administrative burden.

Sector Analysis

This contract falls within the Biotechnology Research and Development sector, a critical area for public health and national security. The market for specialized biological material storage and stability services is niche, often involving stringent regulatory compliance and specialized facilities. Spending in this area is driven by the need to maintain stockpiles of vaccines, therapeutics, and research materials, particularly for agencies like HHS focused on disease prevention and response. Comparable spending benchmarks are difficult to establish without more granular data on the specific types and quantities of antigens and adjuvants stored.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The prime contractor, GlaxoSmithKline, LLC, is a large pharmaceutical company, and its internal subcontracting practices would determine any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services, specifically the Office of Assistant Secretary for Preparedness and Response (ASPR). As a task order under an IDIQ, the base contract likely has established oversight mechanisms. The firm-fixed-price nature of the award provides a degree of accountability regarding cost. Transparency is generally maintained through federal contract databases, and the Inspector General's office would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Biotechnology Research and Development Contracts
Public Health Preparedness and Response Programs
Antigen and Adjuvant Procurement
Biological Material Storage Services
HHS IDIQ Contracts

Risk Flags

Long-term storage of sensitive biological materials requires robust environmental controls.
Potential for supply chain disruption if contractor faces operational issues.
Ensuring continued efficacy of stored antigens and adjuvants over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.8 million to GLAXOSMITHKLINE, LLC. THE PURPOSE OF THIS TASK ORDER IS TO PROCURE STORAGE AND STABILITY FOR ANTIGENS AND ADJUVANTS FROM PRIOR CONTRACTS FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES UNDER IDIQ 75A50122D000002 DURING BASE PERIOD YR. 3. PERIOD OF PERFORMANCE: FEBRUARY

Who is the contractor on this award?

The obligated recipient is GLAXOSMITHKLINE, 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 $7.8 million.

What is the period of performance?

Start: 2024-02-21. End: 2027-05-21.

What is the historical spending pattern for antigen and adjuvant storage by HHS?

Analyzing historical spending patterns for antigen and adjuvant storage by the Department of Health and Human Services (HHS) requires examining contract data over several fiscal years. While this specific task order represents $7.79 million for a period ending in May 2027, broader trends can be observed by looking at similar procurements. Agencies like the Centers for Disease Control and Prevention (CDC) and the Biomedical Advanced Research and Development Authority (BARDA), which fall under HHS, frequently procure services related to vaccine development, disease surveillance, and emergency preparedness. These often include requirements for the long-term storage and stability testing of biological materials. Spending in this area can fluctuate based on emerging public health threats, national stockpiling initiatives, and ongoing research priorities. Without access to a comprehensive database of all HHS contracts related to biological material storage, a precise historical spending figure is difficult to ascertain. However, it is reasonable to infer that consistent, multi-million dollar annual investments are made to ensure the readiness and efficacy of critical medical countermeasures and research samples.

How does the awarded price compare to market rates for similar storage services?

Determining the precise market rate for specialized antigen and adjuvant storage is complex due to the highly specific nature of the requirements, including temperature control, security, regulatory compliance (e.g., Good Manufacturing Practices - GMP), and the specific biological materials involved. The $7.79 million contract awarded to GlaxoSmithKline, LLC, covers a period of approximately 3 years and 3 months (February 2024 to May 2027). This breaks down to roughly $2.36 million per year. Given that this involves specialized storage for potentially sensitive biological agents, and considering the overhead associated with maintaining such facilities and ensuring stability, this annual figure appears to be within a plausible range for government contracts of this nature. However, a definitive comparison would require access to proprietary pricing data from commercial storage providers or a broader dataset of government contracts for identical or highly similar services, including the volume and types of materials stored, and the exact environmental controls required.

What are the key performance indicators (KPIs) for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this specific task order. However, for a contract focused on 'storage and stability for antigens and adjuvants,' typical KPIs would likely revolve around maintaining the required environmental conditions (e.g., temperature, humidity) within specified tolerances for the duration of the storage period. Other critical KPIs could include: successful completion of periodic stability testing to confirm the integrity of the stored materials, adherence to security protocols to prevent unauthorized access or tampering, timely reporting of inventory status and any deviations, and compliance with all relevant regulatory and safety standards. The firm-fixed-price nature of the contract implies that meeting these performance standards is a condition of payment, and failure to do so could result in penalties or contract termination.

What is the contractor's track record with similar HHS contracts?

GlaxoSmithKline, LLC (GSK) is a major global pharmaceutical company with extensive experience in vaccine development, manufacturing, and distribution, which inherently involves the handling and storage of antigens and adjuvants. While specific details on GSK's prior contracts solely for 'storage and stability' under HHS are not provided in the summary data, their broader portfolio suggests a strong capability in managing biological materials under stringent conditions. HHS, through various agencies like BARDA and CDC, frequently engages with large pharmaceutical firms for R&D, procurement, and stockpiling of medical countermeasures. GSK's history likely includes numerous contracts related to vaccine components, requiring sophisticated cold chain logistics and stability assessments. Therefore, their track record in managing complex biological products for government entities, including HHS, is presumed to be substantial, aligning with the requirements of this task order.

What are the potential risks associated with this contract?

Several potential risks are associated with this contract. Firstly, the long-term storage of biological materials like antigens and adjuvants carries inherent risks of degradation or contamination if environmental controls fail, potentially rendering them unusable for their intended purpose. Secondly, dependence on a single contractor, even one as established as GlaxoSmithKline, LLC, for critical supplies could pose a supply chain risk if the contractor experiences unforeseen operational disruptions (e.g., facility issues, labor disputes, or financial instability). Thirdly, while the contract is firm-fixed-price, unforeseen scientific challenges in maintaining stability over the extended period could lead to increased costs for the contractor, potentially impacting their willingness or ability to perform optimally. Finally, changes in public health priorities or the emergence of new threats could alter the specific requirements for these stored materials, necessitating contract modifications or new procurements.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5 MOORE DR RESEARCH TRIANGLE PK, DURHAM, NC, 27709

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

Financial Breakdown

Contract Ceiling: $7,790,728

Exercised Options: $7,790,728

Current Obligation: $7,790,728

Actual Outlays: $4,134,922

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75A50122D00002

IDV Type: IDC

Timeline