HHS awards $16.6M for Ciprofloxacin Injection to Sagent Pharmaceuticals, Inc
Contract Overview
Contract Amount: $16,638,758 ($16.6M)
Contractor: Sagent Pharmaceuticals, Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2025-09-30
End Date: 2026-09-29
Contract Duration: 364 days
Daily Burn Rate: $45.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: CIPROFLOXACIN SOLUTION FOR INJECTION, 400MG/ 200ML FLEXI-BAG
Place of Performance
Location: HINES, COOK County, ILLINOIS, 60141
State: Illinois Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $16.6 million to SAGENT PHARMACEUTICALS, INC for work described as: CIPROFLOXACIN SOLUTION FOR INJECTION, 400MG/ 200ML FLEXI-BAG Key points: 1. The contract is for a critical pharmaceutical product, Ciprofloxacin Injection. 2. Sagent Pharmaceuticals, Inc. is the sole awardee for this delivery order. 3. The contract duration is one year, with a firm fixed price. 4. The award falls under the Pharmaceutical Preparation Manufacturing sector.
Value Assessment
Rating: good
The award amount of $16.6M for 400mg/200ml flexi-bags of Ciprofloxacin Injection appears reasonable given the product's nature and the contract duration. Benchmarking against similar pharmaceutical contracts 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, suggesting a competitive bidding process. This method is expected to yield fair market prices and ensure value for taxpayer dollars.
Taxpayer Impact: The competitive award process aims to secure the best possible price for this essential medication, maximizing the value of taxpayer funds.
Public Impact
Ensures availability of a critical antibiotic for public health needs. Supports the Department of Health and Human Services' preparedness and response capabilities. Provides a stable supply chain for a vital pharmaceutical product.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in future contract renewals.
- Dependence on a single supplier for this specific delivery order.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports critical public health preparedness.
Sector Analysis
This award is within the Pharmaceutical Preparation Manufacturing sector, which is crucial for national health security. Spending benchmarks in this sector can vary significantly based on drug type, volume, and contract terms.
Small Business Impact
The data does not indicate any specific set-asides for small businesses in this award. Further analysis would be needed to determine the extent of small business participation in the broader pharmaceutical supply chain.
Oversight & Accountability
The contract is managed by the Office of Assistant Secretary for Preparedness and Response (ASPR) within HHS, indicating oversight for critical medical supplies. Regular performance reviews and audits would ensure accountability.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Potential for single-source dependency in future
- Price volatility in pharmaceutical markets
- Supply chain vulnerability
- Limited visibility into competitor pricing
Tags
pharmaceutical-preparation-manufacturing, department-of-health-and-human-services, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $16.6 million to SAGENT PHARMACEUTICALS, INC. CIPROFLOXACIN SOLUTION FOR INJECTION, 400MG/ 200ML FLEXI-BAG
Who is the contractor on this award?
The obligated recipient is SAGENT 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 $16.6 million.
What is the period of performance?
Start: 2025-09-30. End: 2026-09-29.
What is the historical pricing trend for this specific Ciprofloxacin formulation and packaging?
Analyzing historical pricing data for this exact Ciprofloxacin formulation (400mg/200ml flexi-bag) is crucial. Without it, it's difficult to definitively assess if the current $16.6M award represents a favorable price point compared to previous procurements or market trends. Understanding past price variations can highlight potential cost efficiencies or identify areas where prices may have increased.
What are the risks associated with relying on a single supplier for this critical medication?
Reliance on a single supplier, Sagent Pharmaceuticals, Inc., for this delivery order presents risks such as supply chain disruptions due to unforeseen events (e.g., manufacturing issues, natural disasters, geopolitical instability). This could lead to shortages of a critical medication. Mitigation strategies might include maintaining strategic stockpiles or identifying alternative suppliers for future contracts.
How effectively does this contract contribute to the ASPR's mission of national health security?
This contract directly supports the ASPR's mission by ensuring the availability of Ciprofloxacin, a vital antibiotic used in various public health emergencies and treatments. By securing a year's supply through a competitive process, ASPR enhances its preparedness and response capabilities, contributing to national health security and the ability to manage critical medical needs.
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
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Nichi-Iko Pharmaceutical CO.,Ltd.
Address: 1901 N ROSELLE RD STE 450, SCHAUMBURG, IL, 60195
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,638,758
Exercised Options: $16,638,758
Current Obligation: $16,638,758
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 36F79724D0107
IDV Type: FSS
Timeline
Start Date: 2025-09-30
Current End Date: 2026-09-29
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-09-26
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