HHS awards $40.6M for Biological Product Manufacturing in FY18 to GlaxoSmithKline
Contract Overview
Contract Amount: $40,551,654 ($40.6M)
Contractor: Glaxosmithkline, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2018-09-19
End Date: 2019-09-18
Contract Duration: 364 days
Daily Burn Rate: $111.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: FY18 PRODUCT PROCUREMENT
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709
Plain-Language Summary
Department of Health and Human Services obligated $40.6 million to GLAXOSMITHKLINE, LLC for work described as: FY18 PRODUCT PROCUREMENT Key points: 1. Significant contract value for biological product manufacturing. 2. GlaxoSmithKline, LLC is the sole awardee. 3. Contract duration is one year. 4. The award falls under the 'Biological Product (except Diagnostic) Manufacturing' NAICS code.
Value Assessment
Rating: fair
The award amount of $40.6M for a one-year contract for biological product manufacturing appears to be within a reasonable range for specialized production. Benchmarking against similar, highly specialized procurements is difficult without more detailed cost breakdowns.
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. However, the data indicates a single awardee, GlaxoSmithKline, LLC, which may warrant further investigation into the specific reasons for only one bid being selected.
Taxpayer Impact: Taxpayer funds are being used for essential biological product manufacturing, contributing to public health preparedness. The competitive nature of the award aims to ensure reasonable pricing.
Public Impact
Ensures supply of critical biological products. Supports national health security and preparedness. Funds advanced manufacturing capabilities. Potential impact on pharmaceutical market dynamics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single awardee despite full and open competition.
- Limited transparency on specific product procured.
- Potential for price escalation in future renewals.
Positive Signals
- Supports critical national health infrastructure.
- Utilizes established manufacturing capabilities.
- Contract awarded under competitive procedures.
Sector Analysis
This contract falls within the pharmaceutical and biotechnology manufacturing sector, which is characterized by high R&D costs, stringent regulatory requirements, and specialized production facilities. Spending in this area is often driven by public health needs and national security.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Given the specialized nature of biological product manufacturing, it is likely that large, established firms like GlaxoSmithKline are best positioned to meet the contract requirements.
Oversight & Accountability
The Department of Health and Human Services, through the Office of Assistant Secretary for Preparedness and Response, is responsible for this procurement. Standard federal procurement oversight processes should apply, including contract performance monitoring and financial accountability.
Related Government Programs
- Biological Product (except Diagnostic) Manufacturing
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Lack of detail on specific products procured.
- Sole awardee despite full and open competition.
- Potential for vendor lock-in if follow-on contracts are awarded.
- Limited duration may necessitate future competitive procurements.
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $40.6 million to GLAXOSMITHKLINE, LLC. FY18 PRODUCT PROCUREMENT
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 $40.6 million.
What is the period of performance?
Start: 2018-09-19. End: 2019-09-18.
What specific biological products were procured under this contract, and how do they align with current public health priorities?
The specific biological products are not detailed in the provided data. Understanding the exact nature of these products is crucial for assessing their alignment with current public health priorities, such as pandemic preparedness or treatment of specific diseases. Further investigation into contract line items or related documentation would be necessary to determine the precise products and their strategic importance.
Given the full and open competition, why was GlaxoSmithKline, LLC the sole awardee, and were alternative proposals evaluated?
While the contract was advertised under full and open competition, the sole award to GlaxoSmithKline, LLC suggests that either only one proposal was received, or only one met the technical and cost requirements. Agencies typically evaluate all submitted proposals; however, the specific reasons for disqualifying other potential bidders or the lack of further submissions would require reviewing the source selection documentation.
How does the $40.6 million award compare to industry benchmarks for similar biological product manufacturing contracts of one-year duration?
Benchmarking this $40.6 million award against similar one-year contracts for biological product manufacturing is challenging without more specific details on the product type, volume, and complexity. The pharmaceutical manufacturing sector is highly variable. However, for specialized, high-demand biological products, this figure could be considered reasonable, but a detailed cost-benefit analysis against comparable procurements is recommended.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Biological Product (except Diagnostic) Manufacturing
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
Parent Company: Glaxosmithkline PLC (UEI: 238980408)
Address: 5 MOORE DR, RESEARCH TRIANGLE PARK, NC, 27709
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,551,654
Exercised Options: $40,551,654
Current Obligation: $40,551,654
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: HHSD200201460289I
IDV Type: IDC
Timeline
Start Date: 2018-09-19
Current End Date: 2019-09-18
Potential End Date: 2019-09-18 00:00:00
Last Modified: 2018-10-30
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