HHS awards $82.2M contract for atropine auto-injectors, with a 729-day performance period

Contract Overview

Contract Amount: $82,223,186 ($82.2M)

Contractor: Meridian Medical Technologies, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $112.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ATROPINE & PRALIDOXIME CHLORIDE INJECTOR, SINGLE DOSE AUTO-INJECTORS

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63146

State: Missouri Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $82.2 million to MERIDIAN MEDICAL TECHNOLOGIES, LLC for work described as: ATROPINE & PRALIDOXIME CHLORIDE INJECTOR, SINGLE DOSE AUTO-INJECTORS Key points: 1. The contract value represents a significant investment in critical medical countermeasures. 2. Competition dynamics for this essential pharmaceutical product warrant close examination. 3. Performance risk appears moderate given the established nature of the product. 4. This award supports national preparedness for potential public health emergencies. 5. The pharmaceutical manufacturing sector is characterized by high barriers to entry and stringent regulatory oversight. 6. The firm-fixed-price structure aims to provide cost certainty for the government.

Value Assessment

Rating: good

The contract value of $82.2 million for atropine and pralidoxime chloride auto-injectors appears reasonable for a definitive contract with a two-year performance period. Benchmarking against similar large-scale procurements of emergency medical supplies suggests this pricing is within expected ranges, considering factors like manufacturing complexity, raw material costs, and regulatory compliance. The firm-fixed-price contract type helps mitigate cost overruns, providing a degree of value certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. While the specific number of bidders is not provided, this competitive process is designed to foster price discovery and ensure the government receives the best value. A robust competition typically leads to more favorable pricing and encourages innovation among suppliers.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that public funds are used efficiently to acquire necessary medical supplies.

Public Impact

The primary beneficiaries are the U.S. population, who will have access to critical medical countermeasures during emergencies. The contract ensures the supply of atropine and pralidoxime chloride auto-injectors, vital for treating nerve agent exposure. The geographic impact is national, ensuring availability across the United States through strategic stockpiling. The contract supports the pharmaceutical manufacturing workforce involved in producing these life-saving devices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Reliance on a single manufacturer could pose risks if production capacity is strained.
Ensuring long-term product efficacy and shelf-life management requires diligent oversight.

Positive Signals

Awarded under full and open competition, suggesting a competitive market.
Firm-fixed-price contract provides cost predictability.
Long-term contract duration allows for sustained supply and planning.
Procurement by HHS indicates alignment with national health security priorities.

Sector Analysis

The pharmaceutical preparation manufacturing sector is highly specialized, characterized by significant research and development costs, stringent regulatory requirements (e.g., FDA approval), and complex supply chains. Contracts for critical medical countermeasures, such as atropine auto-injectors, are often awarded to a limited number of manufacturers with the necessary expertise and capacity. Spending in this area is driven by national security and public health preparedness initiatives, with government contracts forming a substantial portion of revenue for specialized pharmaceutical producers.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Meridian Medical Technologies, LLC is the prime contractor, the implications for small businesses would depend on their role as subcontractors. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem, though large prime contractors are often encouraged to engage small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Health and Human Services (HHS), specifically the Office of Assistant Secretary for Preparedness and Response (ASPR). Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Strategic National Stockpile
Biomedical Advanced Research and Development Authority (BARDA) procurements
Emergency Use Authorizations for medical countermeasures
Department of Defense medical supply contracts

Risk Flags

Supply Chain Vulnerability
Contractor Performance Risk
Product Shelf-Life Management
Regulatory Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $82.2 million to MERIDIAN MEDICAL TECHNOLOGIES, LLC. ATROPINE & PRALIDOXIME CHLORIDE INJECTOR, SINGLE DOSE AUTO-INJECTORS

Who is the contractor on this award?

The obligated recipient is MERIDIAN MEDICAL TECHNOLOGIES, 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 $82.2 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is the historical spending pattern for atropine and pralidoxime chloride auto-injectors by the Department of Health and Human Services?

Analyzing historical spending for atropine and pralidoxime chloride auto-injectors by HHS requires access to detailed procurement data over several fiscal years. Typically, such procurements are cyclical, driven by the need to replenish the Strategic National Stockpile (SNS) and respond to specific public health threats or exercises. Spending can fluctuate significantly based on contract renewals, changes in threat assessments, and the expiration of existing inventory. For instance, periods of heightened global tension or specific disease outbreaks might trigger increased procurement activity. Without specific historical data, it's challenging to provide exact figures, but these types of contracts are often awarded in multi-year increments to ensure a consistent supply, suggesting a sustained, albeit variable, level of investment.

How does the unit cost of these auto-injectors compare to similar products or previous contract awards?

A precise unit cost comparison is difficult without knowing the exact quantity of auto-injectors included in the $82.2 million award and comparing it to the unit price of previous awards or similar products. However, the firm-fixed-price nature of this contract suggests that the government has negotiated a set price per unit or per lot. Factors influencing unit cost include manufacturing scale, raw material prices, regulatory compliance overhead, and the specific features of the auto-injector (e.g., dosage, injector mechanism). If this contract represents a renewal, a comparison to the previous award's unit price would reveal whether costs have increased or decreased, potentially due to inflation, market competition, or changes in production efficiency. Generally, larger contract volumes tend to drive down unit costs.

What are the key performance indicators (KPIs) and quality assurance measures for this contract?

Key performance indicators (KPIs) for this contract would likely focus on timely delivery of the atropine and pralidoxime chloride auto-injectors, adherence to specified quantities, and maintaining product quality and efficacy throughout the contract period. Quality assurance measures would involve rigorous testing and inspection protocols, potentially including batch testing, verification of expiration dates, and compliance with Good Manufacturing Practices (GMP). The government would likely require detailed documentation, such as Certificates of Analysis (CoA), for each batch delivered. Failure to meet these KPIs or quality standards could result in contract penalties, withholding of payment, or termination, underscoring the importance of robust quality control by both the contractor and the contracting agency.

What is the contractor's track record in fulfilling similar government contracts, particularly for emergency medical supplies?

Meridian Medical Technologies, LLC has a history of producing auto-injectors, including those for the U.S. military and other government agencies. Their experience in manufacturing auto-injector devices, particularly for critical applications like nerve agent antidotes, suggests a capability to meet the demanding requirements of such contracts. Assessing their track record would involve reviewing past performance evaluations, any instances of contract disputes or terminations, and their ability to consistently meet delivery schedules and quality standards on previous awards. A positive performance history in similar procurements would indicate a lower risk for this current contract, while any past issues would warrant closer scrutiny of their operational capacity and management.

What are the potential risks associated with the supply chain for these critical medical countermeasures?

The supply chain for critical medical countermeasures like atropine and pralidoxime chloride auto-injectors faces several potential risks. These include the availability and cost of raw materials, which can be subject to global market fluctuations and geopolitical instability. Manufacturing disruptions, whether due to equipment failure, labor shortages, or unforeseen events like pandemics, can impact production capacity. Furthermore, complex logistics and transportation networks are vulnerable to delays, damage, or security issues. Dependence on a limited number of specialized suppliers for key components or active pharmaceutical ingredients (APIs) also presents a concentration risk. Ensuring supply chain resilience requires robust inventory management, diversification of suppliers where possible, and contingency planning for disruptions.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75A50324R00005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Meridian Medical Technologies LLC

Address: 1945 CRAIG RD, SAINT LOUIS, MO, 63146

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $129,680,170

Exercised Options: $82,223,186

Current Obligation: $82,223,186

Actual Outlays: $48,019,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline