HHS awards $34.6M for Peramivir/Rapivab flu treatment to BioCryst Pharmaceuticals
Contract Overview
Contract Amount: $34,660,000 ($34.7M)
Contractor: Biocryst Pharmaceuticals Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2018-09-01
End Date: 2023-08-31
Contract Duration: 1,825 days
Daily Burn Rate: $19.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: PERAMIVIR, RAPIVAB FLU TREATMENT
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703
Plain-Language Summary
Department of Health and Human Services obligated $34.7 million to BIOCRYST PHARMACEUTICALS INC for work described as: PERAMIVIR, RAPIVAB FLU TREATMENT Key points: 1. Contract awarded for a critical pharmaceutical product, Peramivir/Rapivab, for flu treatment. 2. Sole-source award to BioCryst Pharmaceuticals Inc. raises questions about price discovery. 3. Long-term contract duration (5 years) suggests a sustained need for the product. 4. The award falls under the Pharmaceutical Preparation Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $34.6 million over five years is difficult to assess without specific unit pricing or historical data. Benchmarking against similar antiviral drug contracts would be necessary for a comprehensive valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Ensures availability of a flu treatment option for public health preparedness. Potential for higher costs due to sole-source nature impacts taxpayer funds. Long-term commitment may reflect strategic importance of the drug.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of detailed cost breakdown makes value assessment challenging.
- Long contract duration without clear performance metrics could be a risk.
Positive Signals
- Secures a necessary pharmaceutical for public health.
- Award to an established manufacturer suggests product reliability.
Sector Analysis
The pharmaceutical preparation manufacturing sector is characterized by high R&D costs, stringent regulatory requirements, and significant intellectual property considerations. Government contracts in this area often focus on ensuring supply chain security and access to critical medicines.
Small Business Impact
This contract was awarded directly to BioCryst Pharmaceuticals Inc. and does not indicate any subcontracting or set-aside provisions for small businesses. The nature of pharmaceutical manufacturing often involves large, established companies.
Oversight & Accountability
The sole-source nature of this award warrants careful oversight to ensure fair pricing and effective delivery. Regular reviews of contract performance and market conditions are crucial for 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
- Sole-source award
- Lack of competitive bidding
- Limited transparency on pricing
- Potential for overpayment
- Long-term commitment without clear performance metrics
Tags
pharmaceutical-preparation-manufacturing, department-of-health-and-human-services, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $34.7 million to BIOCRYST PHARMACEUTICALS INC. PERAMIVIR, RAPIVAB FLU TREATMENT
Who is the contractor on this award?
The obligated recipient is BIOCRYST 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 $34.7 million.
What is the period of performance?
Start: 2018-09-01. End: 2023-08-31.
What is the per-unit cost of Peramivir/Rapivab under this contract, and how does it compare to market prices or previous contracts?
The provided data does not include per-unit cost information for Peramivir/Rapivab. To assess value, a comparison with publicly available market prices, prices from other government agencies, or historical contract data would be necessary. Without this, it's difficult to determine if the $34.6 million award represents a fair price.
What are the specific justifications for awarding this contract on a sole-source basis, and what steps were taken to mitigate potential price inflation?
The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent need where competition is not feasible. For this contract, the agency should have documented these reasons. Mitigation strategies might include negotiating specific price points, volume discounts, or incorporating clauses for future price reviews based on market changes.
How does the long-term nature of this contract (5 years) align with the projected demand and shelf-life of Peramivir/Rapivab, and what are the implications for inventory management and potential obsol
A five-year contract suggests a long-term strategic need for the flu treatment. However, it's crucial to consider the drug's shelf-life and evolving influenza strains. The agency must have robust inventory management protocols to avoid waste due to expiration and contingency plans if the drug becomes less effective or obsolete due to new strains or treatments.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation Manufacturing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 75D30118R67850
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4505 EMPEROR BLVD STE 200, DURHAM, NC, 27703
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,660,000
Exercised Options: $34,660,000
Current Obligation: $34,660,000
Actual Outlays: $13,864,000
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2018-09-01
Current End Date: 2023-08-31
Potential End Date: 2023-08-31 00:00:00
Last Modified: 2024-04-26
More Contracts from Biocryst Pharmaceuticals Inc
- Advance Development of NEW Antiviral Agent for Influenza — $205.0M (Department of Health and Human Services)
- - Development of Medical Countermeasures for Biodefense and Emerging Infectious Diseases, Base, Option 1 and Option 2 Award, 09/16/2013 - 09/15/2017 — $47.8M (Department of Health and Human Services)
- Peramivir (rapivab 200mg/20ml (10mg/Ml INJ Soln)) — $13.9M (Department of Health and Human Services)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →