HHS Awards $18.2M Task Order to GlaxoSmithKline for Pandemic Readiness and Medical Countermeasures

Contract Overview

Contract Amount: $18,193,095 ($18.2M)

Contractor: Glaxosmithkline, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-05-10

End Date: 2026-10-09

Contract Duration: 882 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

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 CONTRACT 75A50122D00002.

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 $18.2 million to GLAXOSMITHKLINE, LLC 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 CONTRACT 75A50122D00002. Key points: 1. Significant investment in pandemic preparedness, focusing on medical countermeasures. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk is moderate, given the critical nature of pandemic response and reliance on a single vendor for this task order. 4. Sector is R&D in Biotechnology, crucial for developing advanced medical solutions.

Value Assessment

Rating: good

The award amount of $18.2 million for a 2.4-year period appears reasonable for specialized R&D in biotechnology for pandemic preparedness. Benchmarking against similar large-scale R&D contracts for medical countermeasures would provide a more precise assessment.

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 price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for critical national security and public health infrastructure, aiming for long-term preparedness benefits.

Public Impact

Enhances national capacity to respond to future pandemics and emerging diseases. Supports the development and acquisition of vital medical countermeasures. Strengthens the Department of Health and Human Services' preparedness initiatives. Potential for advancements in biotechnology research with public health applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Vendor lock-in for critical pandemic response capabilities.
Potential for cost overruns in R&D projects.
Dependence on specific technological advancements.

Positive Signals

Proactive investment in national health security.
Utilizes a competitive bidding process.
Focus on critical medical countermeasures.

Sector Analysis

This award falls within the Research and Development in Biotechnology sector, a critical area for developing advanced medical solutions. Spending benchmarks in this specialized field are highly variable, depending on the scope and novelty of the research.

Small Business Impact

The data indicates this award was made to GlaxoSmithKline, LLC, a large business. There is no explicit information on small business participation in this specific task order, but large contracts often involve subcontracting opportunities.

Oversight & Accountability

The Department of Health and Human Services, through the Office of Assistant Secretary for Preparedness and Response, is responsible for overseeing this task order. Standard contract oversight mechanisms should be in place to ensure performance and accountability.

Related Government Programs

Research and Development in Biotechnology (except Nanobiotechnology)
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Reliance on a single vendor for critical MCM development.
Potential for R&D project delays or failures.
Uncertainty in future pandemic threat evolution.
Long-term funding sustainability for preparedness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.2 million to GLAXOSMITHKLINE, LLC. 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 CONTRACT 75A50122D00002.

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 $18.2 million.

What is the period of performance?

Start: 2024-05-10. End: 2026-10-09.

What specific medical countermeasures are being developed or acquired under this task order, and how do they align with current public health threat assessments?

The task order focuses on services for H5 pandemic readiness and acquisition of Medical Countermeasures (MCMs) for pandemic influenza and emerging diseases. While specific MCMs are not detailed, the objective is to bolster preparedness and response capabilities against known and potential future viral threats, aligning with ongoing public health surveillance and risk assessments for influenza and novel pathogens.

What are the key performance indicators (KPIs) and milestones for this task order, and how will their achievement be measured to ensure effective use of funds?

Key performance indicators and milestones would typically include successful development, testing, and readiness for acquisition of specific MCMs, adherence to project timelines, and meeting defined quality standards. The effectiveness of fund utilization will be measured through regular progress reports, milestone achievement tracking, and potentially independent verification of research outcomes by the agency.

Given the long-term nature of pandemic preparedness, what is the strategy for ensuring the sustainability and scalability of the developed countermeasures beyond the contract period?

The strategy for sustainability and scalability likely involves phased development, potential technology transfer agreements, and planning for follow-on contracts or integration into broader public health stockpiles. The agency aims to ensure that the acquired or developed countermeasures can be readily deployed and replenished as needed, maintaining readiness beyond the initial contract's duration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)

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: 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: $94,368,875

Exercised Options: $18,193,095

Current Obligation: $18,193,095

Actual Outlays: $8,753,115

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