HHS awards $28.8M for Biological Product Manufacturing to Pfizer Inc. under full and open competition
Contract Overview
Contract Amount: $28,795,000 ($28.8M)
Contractor: Pfizer Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2003-09-11
End Date: 2004-03-31
Contract Duration: 202 days
Daily Burn Rate: $142.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIXED PRICE
Sector: Healthcare
Official Description: VFC 2003
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $28.8 million to PFIZER INC. for work described as: VFC 2003 Key points: 1. Pfizer Inc. secured a significant contract for biological product manufacturing. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs for the government. 4. The spending is categorized under Biological Product (except Diagnostic) Manufacturing.
Value Assessment
Rating: good
The contract value of $28.8 million for biological product manufacturing appears reasonable given the nature of the goods. Benchmarking against similar large-scale biological product contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive bidding process likely resulted in a fair price, maximizing taxpayer value for the procured biological products.
Public Impact
Ensures supply of critical biological products for public health initiatives. Supports the pharmaceutical manufacturing sector and related jobs. Government procurement through competitive means can drive innovation in product development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals.
- Dependence on a single supplier for critical biological products.
Positive Signals
- Awarded under full and open competition.
- Fixed-price contract type helps control costs.
- Supports a key sector within the Department of Health and Human Services.
Sector Analysis
This contract falls within the healthcare and pharmaceutical manufacturing sector, a critical area for public health. Spending benchmarks for biological product manufacturing can vary widely based on product complexity and scale.
Small Business Impact
The data indicates this contract was awarded to a large corporation (Pfizer Inc.) and does not specify any set-asides for small businesses. Therefore, the direct impact on small businesses is likely minimal for this specific award.
Oversight & Accountability
The award was made by the Centers for Disease Control and Prevention (CDC), a component of HHS. Standard procurement oversight processes would apply to ensure compliance and accountability throughout the contract lifecycle.
Related Government Programs
- Biological Product (except Diagnostic) Manufacturing
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for price escalation in future procurements.
- Dependence on a single large manufacturer.
- Lack of specific product details limits full risk assessment.
- No indication of small business participation.
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $28.8 million to PFIZER INC.. VFC 2003
Who is the contractor on this award?
The obligated recipient is PFIZER INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $28.8 million.
What is the period of performance?
Start: 2003-09-11. End: 2004-03-31.
What is the specific biological product being manufactured, and what is its criticality to public health?
The specific biological product is not detailed in the provided data. However, given the awarding agency (CDC), it is likely a vaccine, therapeutic, or diagnostic component crucial for disease prevention, treatment, or monitoring. Its criticality would depend on the specific public health program it supports, such as pandemic response or routine immunization schedules.
What were the key factors considered in the price negotiation, and how do they compare to market rates for similar products?
As the contract was awarded under full and open competition with a fixed-price structure, the price negotiation likely focused on the vendor's ability to meet specifications at a competitive rate. Key factors would include production costs, overhead, profit margins, and the overall market value of comparable biological products. A detailed price analysis would have been conducted by the agency to ensure the price was fair and reasonable.
What is the long-term strategy for ensuring the supply of this biological product beyond the current contract duration?
The long-term strategy for ensuring supply would involve ongoing market research, potential for contract extensions or re-competition, and possibly fostering relationships with multiple qualified manufacturers. The agency would need to monitor market dynamics, technological advancements, and potential supply chain risks to proactively plan for future needs and avoid sole-source dependencies.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Biological Product (except Diagnostic) Manufacturing
Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pfizer Inc (UEI: 001326495)
Address: 500 ARCOLA RD, COLLEGEVILLE, PA, 19426
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $105,090,000
Exercised Options: $105,090,000
Current Obligation: $28,795,000
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200301123I
IDV Type: IDC
Timeline
Start Date: 2003-09-11
Current End Date: 2004-03-31
Potential End Date: 2004-03-31 00:00:00
Last Modified: 2018-09-28
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