USAID Spends $89M on Pfizer's Depo-Provera Contraceptive Kits via Full and Open Competition
Contract Overview
Contract Amount: $89,136,880 ($89.1M)
Contractor: Pfizer Inc
Awarding Agency: Agency for International Development
Start Date: 2004-09-30
End Date: 2010-12-31
Contract Duration: 2,283 days
Daily Burn Rate: $39.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: Healthcare
Official Description: DEPO-PROVERA CONTRACEPTIVE INJECTION KITS
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10017
State: New York Government Spending
Plain-Language Summary
Agency for International Development obligated $89.1 million to PFIZER INC for work described as: DEPO-PROVERA CONTRACEPTIVE INJECTION KITS Key points: 1. Significant expenditure on a critical public health product. 2. Pfizer Inc. is the sole supplier identified, raising potential concentration risk. 3. Contract duration is substantial, spanning over 7 years. 4. Fixed Price Level of Effort contract type suggests cost control focus.
Value Assessment
Rating: fair
The total award amount of $89.1 million over 7 years averages to approximately $12.7 million annually. Benchmarking against similar large-scale pharmaceutical procurements would be necessary to definitively assess value, but the scale suggests significant volume discounts may have been negotiated.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government obtains the best value.
Taxpayer Impact: The substantial investment in contraceptive kits aims to support global health initiatives, potentially impacting millions of lives and contributing to public health goals.
Public Impact
Ensures access to essential reproductive health services globally. Supports family planning programs and population management efforts. Contributes to maternal and child health outcomes. Potential for long-term supply chain stability for a critical medication.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole identified supplier (Pfizer Inc.)
- Long contract duration (7+ years)
- Fixed Price Level of Effort contract type can sometimes lead to less incentive for cost reduction if effort is not closely monitored.
Positive Signals
- Full and open competition utilized
- Essential public health product
- Significant award amount indicates large-scale procurement
Sector Analysis
This contract falls under the broader category of healthcare and pharmaceutical procurement. Spending benchmarks for similar large-scale, long-term contracts for essential medicines can vary widely based on drug type, volume, and global market conditions.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Given the nature of pharmaceutical manufacturing and large-scale distribution, it is less likely that small businesses would be primary contractors, though they might be involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Agency for International Development (USAID), a federal agency responsible for overseeing foreign aid and development programs. Oversight would focus on delivery, quality, and adherence to contract terms to ensure program effectiveness.
Related Government Programs
- Commodity Contracts Dealing
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Sole source supplier risk
- Long-term contract dependency
- Potential for price increases in future renewals
- Lack of unit cost transparency in provided data
Tags
commodity-contracts-dealing, agency-for-international-development, ny, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $89.1 million to PFIZER INC. DEPO-PROVERA CONTRACEPTIVE INJECTION KITS
Who is the contractor on this award?
The obligated recipient is PFIZER INC.
Which agency awarded this contract?
Awarding agency: Agency for International Development (Agency for International Development).
What is the total obligated amount?
The obligated amount is $89.1 million.
What is the period of performance?
Start: 2004-09-30. End: 2010-12-31.
What was the average annual cost per unit of Depo-Provera, and how does it compare to market benchmarks?
The provided data does not include unit cost information, only the total award amount and duration. To assess value, a detailed breakdown of units procured and their corresponding prices would be needed. Comparing this to other government contracts or commercial pricing for Depo-Provera would reveal if the negotiated price was competitive.
What are the risks associated with having a single identified supplier (Pfizer Inc.) for such a critical and long-term contract?
The primary risk is supply chain vulnerability. If Pfizer faces production issues, regulatory problems, or decides to discontinue the product, USAID could face significant shortages. This also reduces leverage in future negotiations, potentially leading to higher prices if competition is not re-established.
How effectively has this contract supported USAID's global health and family planning objectives over its duration?
The effectiveness hinges on the consistent availability and distribution of the contraceptive kits to target populations. While the contract ensured supply, its ultimate effectiveness is measured by its contribution to reduced unintended pregnancies, improved maternal health, and achievement of broader public health goals in the regions served.
Industry Classification
NAICS: Finance and Insurance › Securities and Commodity Contracts Intermediation and Brokerage › Commodity Contracts Dealing
Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Offers Received: 2
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Address: 235 E 42ND STREET, NEW YORK, NY, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $749,748,089
Exercised Options: $324,668,089
Current Obligation: $89,136,880
Timeline
Start Date: 2004-09-30
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2014-07-18
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