HHS Awards $18.8M for Pandemic Readiness MCMs to Seqirus Inc
Contract Overview
Contract Amount: $18,790,750 ($18.8M)
Contractor: Seqirus Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2024-05-03
End Date: 2026-05-02
Contract Duration: 729 days
Daily Burn Rate: $25.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: THIS TASK ORDER ESTABLISHES SERVICES FOR H5 PANDEMIC READINESS FOR ACQUISITION OF MEDICAL COUNTERMEASURES (MCMS) FOR PANDEMIC INFLUENZA AND EMERGING DISEASES PREPAREDNESS AND RESPONSE, UNDER IDIQ 75A50122D00004.
Place of Performance
Location: HOLLY SPRINGS, WAKE County, NORTH CAROLINA, 27540
Plain-Language Summary
Department of Health and Human Services obligated $18.8 million to SEQIRUS INC for work described as: THIS TASK ORDER ESTABLISHES SERVICES FOR H5 PANDEMIC READINESS FOR ACQUISITION OF MEDICAL COUNTERMEASURES (MCMS) FOR PANDEMIC INFLUENZA AND EMERGING DISEASES PREPAREDNESS AND RESPONSE, UNDER IDIQ 75A50122D00004. Key points: 1. Contract supports critical pandemic influenza and emerging disease preparedness. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is firm-fixed-price, providing cost certainty for the government. 4. This award falls within the Biological Product manufacturing sector.
Value Assessment
Rating: good
The $18.8 million award for a 2-year period appears reasonable given the specialized nature of medical countermeasures for pandemic preparedness. Benchmarking against similar contracts for vaccine development or manufacturing services would provide further context.
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 method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The firm-fixed-price structure helps control costs, and the competitive award process aims to ensure taxpayer funds are used efficiently for essential pandemic preparedness.
Public Impact
Enhances national security by bolstering defenses against biological threats. Supports the development and acquisition of vital medical countermeasures. Contributes to public health resilience in the face of pandemics. Ensures readiness for emerging infectious diseases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope expands beyond initial requirements.
- Dependence on a single vendor for critical countermeasures could pose supply chain risks.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Full and open competition suggests a robust market evaluation.
- Supports a critical national health security objective.
Sector Analysis
This contract falls under the Biological Product (except Diagnostic) Manufacturing sector, which is crucial for national health security. Spending in this sector is often driven by public health emergencies and long-term preparedness initiatives.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or if opportunities were missed.
Oversight & Accountability
The contract is managed by the Department of Health and Human Services, Office of Assistant Secretary for Preparedness and Response, a key agency for public health emergencies. Oversight will be crucial to ensure timely delivery and adherence to quality standards.
Related Government Programs
- Biological Product (except Diagnostic) Manufacturing
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Potential supply chain disruptions for critical MCMs.
- Risk of vendor lock-in if future needs are highly specialized.
- Ensuring long-term viability and manufacturing capacity of the vendor.
- Effectiveness of MCMs against rapidly evolving pathogens.
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $18.8 million to SEQIRUS INC. THIS TASK ORDER ESTABLISHES SERVICES FOR H5 PANDEMIC READINESS FOR ACQUISITION OF MEDICAL COUNTERMEASURES (MCMS) FOR PANDEMIC INFLUENZA AND EMERGING DISEASES PREPAREDNESS AND RESPONSE, UNDER IDIQ 75A50122D00004.
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 $18.8 million.
What is the period of performance?
Start: 2024-05-03. End: 2026-05-02.
What is the specific nature of the 'medical countermeasures' being acquired, and how do they differ from standard pharmaceutical products?
The medical countermeasures (MCMs) likely refer to specialized vaccines, therapeutics, or diagnostic tools designed to prevent, treat, or diagnose conditions caused by specific biological threats, such as pandemic influenza or emerging infectious diseases. Unlike standard pharmaceuticals, MCMs are often developed under accelerated timelines and may target novel pathogens or require specific stockpiling and distribution strategies.
What are the key performance indicators (KPIs) for this task order, and how will Seqirus Inc.'s performance be measured against them?
Key performance indicators for this task order would likely include adherence to delivery schedules for the MCMs, meeting stringent quality control standards for biological products, and potentially demonstrating manufacturing capacity or scalability. Performance will be measured through regular reporting, government inspections, and milestone achievement reviews conducted by the Department of Health and Human Services.
How does the $18.8 million award compare to historical spending on similar pandemic preparedness initiatives by HHS?
Comparing this $18.8 million award to historical spending requires access to detailed budget data for past pandemic preparedness initiatives. However, given the increasing frequency and severity of global health threats, it is plausible that such investments are rising. The firm-fixed-price nature and full and open competition suggest an effort to manage this spending effectively.
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
Solicitation ID: RTOR 2024-00012
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: $349,282,851
Exercised Options: $18,790,750
Current Obligation: $18,790,750
Actual Outlays: $16,729,570
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
Start Date: 2024-05-03
Current End Date: 2026-05-02
Potential End Date: 2026-05-02 00:00:00
Last Modified: 2025-04-18
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