HHS awards $74M for Oseltamivir Phosphate capsules, with Exelan Pharmaceuticals Inc. as the contractor

Contract Overview

Contract Amount: $74,055,620 ($74.1M)

Contractor: Exelan Pharmaceuticals Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-06-28

End Date: 2027-06-29

Contract Duration: 731 days

Daily Burn Rate: $101.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: OSELTAMIVIR PHOSPHATE 75MG CAPSULES (NDC: 76282-0704-45); 10 CT. BLISTERS PACKS AND OSELTAMIVIR PHOSPHATE 30MG CAPSULES (NDC: 76282-0702-45); 10 CT. BLISTERS PACKS.

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33432

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $74.1 million to EXELAN PHARMACEUTICALS INC for work described as: OSELTAMIVIR PHOSPHATE 75MG CAPSULES (NDC: 76282-0704-45); 10 CT. BLISTERS PACKS AND OSELTAMIVIR PHOSPHATE 30MG CAPSULES (NDC: 76282-0702-45); 10 CT. BLISTERS PACKS. Key points: 1. The contract value of $74 million over two years suggests a significant demand for Oseltamivir Phosphate. 2. The award was made under full and open competition, indicating a potentially competitive bidding process. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The contract duration of 731 days allows for sustained supply chain management. 5. The geographic focus on Florida (ST: FL, SN: FLORIDA) may indicate specific regional needs or distribution hubs.

Value Assessment

Rating: good

The total award of $74,055,620 for Oseltamivir Phosphate capsules over approximately two years appears to be within a reasonable range for pharmaceutical supply contracts of this nature. Benchmarking against similar government procurements for antiviral medications would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. Without specific per-unit pricing data or comparison to commercial market rates for the same dosage and packaging, a definitive value assessment is challenging, but the overall award size is substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified vendors were solicited and had the opportunity to bid. The presence of three bidders (no: 3) indicates a degree of competition, which typically drives more favorable pricing for the government. A higher number of bidders generally correlates with better price discovery and a stronger likelihood of securing competitive pricing.

Taxpayer Impact: Full and open competition, with three bidders, suggests that taxpayers are likely benefiting from a more competitive price than would be expected in a sole-source or limited-competition scenario.

Public Impact

The primary beneficiaries are likely public health initiatives and individuals requiring Oseltamivir Phosphate for influenza treatment or prophylaxis. The contract ensures the supply of Oseltamivir Phosphate capsules (75mg and 30mg) in 10-count blister packs. The geographic impact is noted as Florida, suggesting this region may be a primary distribution point or target for these pharmaceutical supplies. Workforce implications are minimal, primarily related to the manufacturing and distribution of the pharmaceutical product by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if Exelan Pharmaceuticals Inc. faces manufacturing or distribution issues.
Dependence on a single contractor for a critical medication could pose a risk if alternative suppliers are not readily available.
The fixed-price nature, while beneficial for cost control, could incentivize the contractor to minimize quality if not adequately monitored.

Positive Signals

Award under full and open competition suggests a robust vetting process for potential suppliers.
The firm fixed-price contract type provides cost certainty for the government.
The contract duration allows for consistent availability of a critical medication.
The specified packaging (10 ct. blister packs) indicates a standardized and manageable product format.

Sector Analysis

The pharmaceutical preparation manufacturing sector is highly regulated and characterized by significant research and development costs, stringent quality control, and complex supply chains. This contract falls within the broader healthcare and pharmaceutical industry, specifically focusing on the manufacturing and supply of antiviral medications. Government procurements in this sector often aim to ensure national stockpiles or meet specific public health needs, such as pandemic preparedness. Comparable spending benchmarks would involve analyzing other government contracts for similar antiviral drugs or large-volume pharmaceutical orders.

Small Business Impact

There is no indication in the provided data that this contract includes a small business set-aside. Exelan Pharmaceuticals Inc. is the prime contractor. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the pharmaceutical manufacturing or distribution network associated with this award.

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). Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified pharmaceutical products. Transparency is facilitated through federal procurement databases where contract awards are published. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Strategic National Stockpile
Influenza Antiviral Medications
Department of Health and Human Services Pharmaceutical Procurements
Antiviral Drug Manufacturing Contracts

Risk Flags

Contractor Performance Risk
Supply Chain Vulnerability
Drug Quality Assurance
Market Concentration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $74.1 million to EXELAN PHARMACEUTICALS INC. OSELTAMIVIR PHOSPHATE 75MG CAPSULES (NDC: 76282-0704-45); 10 CT. BLISTERS PACKS AND OSELTAMIVIR PHOSPHATE 30MG CAPSULES (NDC: 76282-0702-45); 10 CT. BLISTERS PACKS.

Who is the contractor on this award?

The obligated recipient is EXELAN PHARMACEUTICALS 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 $74.1 million.

What is the period of performance?

Start: 2025-06-28. End: 2027-06-29.

What is Exelan Pharmaceuticals Inc.'s track record with government contracts, particularly for pharmaceuticals?

Exelan Pharmaceuticals Inc. has a history of receiving federal contracts, primarily through the Department of Health and Human Services. Their contract history indicates involvement in supplying various pharmaceutical products. A deeper dive into their past performance, including any issues related to delivery, quality, or compliance, would be necessary for a comprehensive assessment. Analyzing past contract awards, their values, and completion success rates can provide insights into their reliability as a government supplier. For instance, examining if they have previously supplied Oseltamivir or similar antiviral medications under government contracts would be relevant.

How does the per-unit cost of Oseltamivir Phosphate under this contract compare to commercial market rates or other government contracts?

The provided data does not include specific per-unit cost information, making a direct comparison difficult. The total award of $74 million for approximately two years of supply for Oseltamivir Phosphate capsules (75mg and 30mg) needs to be broken down into per-unit costs based on the quantity of units procured. Once this per-unit cost is calculated, it can be benchmarked against publicly available commercial pricing for the same drug and dosage, as well as against historical government contract data for similar antiviral medications. Without this granular data, assessing the value for money on a per-unit basis remains speculative.

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

Key risks include potential supply chain disruptions, contractor performance issues (e.g., quality control, delivery delays), and the potential for price increases in future contract renewals. Mitigation strategies include the firm fixed-price contract type, which shifts some cost risk to the contractor, and the requirement for full and open competition, which encourages multiple bidders. The government's oversight mechanisms, including contract monitoring and the potential involvement of the Inspector General, also serve as risk mitigation tools. Ensuring robust quality assurance protocols and maintaining contingency plans for supply chain interruptions are crucial.

What is the intended use and strategic importance of this Oseltamivir Phosphate procurement for the government?

Oseltamivir Phosphate is a critical antiviral medication primarily used for the treatment and prophylaxis of influenza. This procurement by the Department of Health and Human Services, specifically the Office of Assistant Secretary for Preparedness and Response (ASPR), strongly suggests its inclusion in national health security stockpiles, such as the Strategic National Stockpile (SNS). The strategic importance lies in ensuring the availability of this medication to combat seasonal influenza outbreaks or to respond effectively to pandemic influenza events, thereby protecting public health and minimizing societal disruption.

How has federal spending on Oseltamivir Phosphate or similar antiviral medications trended over the past five years?

Analyzing historical spending trends for Oseltamivir Phosphate and comparable antiviral medications requires access to detailed federal procurement databases. Generally, spending on such critical pharmaceuticals can fluctuate based on factors like the severity of influenza seasons, public health emergencies (e.g., pandemics), and government initiatives to bolster stockpiles. A review of past contracts awarded by HHS and other relevant agencies (like the Department of Defense for its personnel) would reveal patterns. Increased spending might be observed during or in anticipation of heightened influenza activity or pandemic threats.

Industry Classification

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

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75A50325Q00001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 370 W CAMINO GARDENS BLVD STE 204, BOCA RATON, FL, 33432

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: $74,055,620

Exercised Options: $74,055,620

Current Obligation: $74,055,620

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36F79720D0227

IDV Type: FSS

Timeline