HHS awards $122.7M for Anthrax Vaccine, highlighting biodefense needs and single-source concerns
Contract Overview
Contract Amount: $122,737,000 ($122.7M)
Contractor: Emergent Biodefense Operations Lansing LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2005-05-12
End Date: 2006-09-30
Contract Duration: 506 days
Daily Burn Rate: $242.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: ACQUISITION OF LICENSED ANTHRAX VACCINE ADSORBED (BIOTHRAX)
Place of Performance
Location: LANSING, INGHAM County, MICHIGAN, 48906, UNITED STATES OF AMERICA
State: Michigan Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $122.7 million to EMERGENT BIODEFENSE OPERATIONS LANSING LLC for work described as: ACQUISITION OF LICENSED ANTHRAX VACCINE ADSORBED (BIOTHRAX) Key points: 1. The acquisition addresses critical biodefense needs for anthrax countermeasures. 2. Competition was full and open, suggesting potential for price discovery. 3. The contract value is significant, requiring careful oversight. 4. The sector is biological product manufacturing, vital for public health security.
Value Assessment
Rating: good
The contract value of $122.7M for licensed anthrax vaccine appears reasonable given the specialized nature of biodefense products. Benchmarking against similar, albeit rare, biopharmaceutical procurements is challenging but the firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery and ensuring the government receives competitive pricing. This method allows multiple vendors to bid, fostering a more robust market.
Taxpayer Impact: The firm fixed-price contract aims to control costs for taxpayers while ensuring a critical supply of the anthrax vaccine.
Public Impact
Ensures availability of a critical vaccine for national biodefense. Supports the pharmaceutical industry's role in public health preparedness. Potential for future acquisitions in the biodefense sector. Highlights the government's commitment to addressing biological threats.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for long-term reliance on a single vaccine manufacturer.
- Need for ongoing monitoring of vaccine efficacy and safety.
- Geographic concentration of manufacturing in Michigan.
Positive Signals
- Addresses a critical national security and public health requirement.
- Utilizes a competitive procurement process.
- Firm fixed-price contract provides cost predictability.
Sector Analysis
This acquisition falls within the biological product manufacturing sector, a critical area for national security and public health. Spending in this sector is often driven by specific threats and R&D investments, making direct comparisons difficult.
Small Business Impact
The data does not indicate specific participation or set-asides for small businesses in this particular contract. The nature of biopharmaceutical manufacturing often involves large, specialized companies.
Oversight & Accountability
The contract's duration and value necessitate robust oversight from HHS and CDC to ensure timely delivery, quality control, and adherence to contract terms. Regular performance reviews are crucial.
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 sole-source dependency in future procurements.
- Long-term storage and maintenance costs of vaccine stockpiles.
- Risk of vaccine obsolescence due to scientific advancements.
- Vulnerability of supply chain to manufacturing disruptions.
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, mi, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $122.7 million to EMERGENT BIODEFENSE OPERATIONS LANSING LLC. ACQUISITION OF LICENSED ANTHRAX VACCINE ADSORBED (BIOTHRAX)
Who is the contractor on this award?
The obligated recipient is EMERGENT BIODEFENSE OPERATIONS LANSING LLC.
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 $122.7 million.
What is the period of performance?
Start: 2005-05-12. End: 2006-09-30.
What is the long-term strategy for anthrax vaccine supply beyond this contract?
The long-term strategy for anthrax vaccine supply is crucial for sustained biodefense readiness. This involves assessing future demand, exploring alternative vaccine candidates or manufacturers, and considering stockpiling strategies. Continuous market research and engagement with the biopharmaceutical industry are necessary to ensure a resilient supply chain that can adapt to evolving threats and technological advancements.
How will the government ensure continued access to this vaccine if the current manufacturer faces production issues?
To ensure continued access, the government should explore diversifying its supplier base or investing in research for alternative vaccines. Maintaining strong relationships with existing manufacturers, understanding their production capacities and potential vulnerabilities, and developing contingency plans are essential. Furthermore, periodic reviews of the market landscape can identify emerging capabilities and potential new entrants.
What is the cost-effectiveness of maintaining a large stockpile of this vaccine over time?
The cost-effectiveness of maintaining a large vaccine stockpile involves balancing the cost of procurement, storage, and potential obsolescence against the catastrophic costs of an anthrax attack. While the upfront investment is significant, the potential loss of life and economic disruption from such an event could far outweigh these costs. Regular assessments of threat levels and vaccine shelf-life are needed to optimize stockpile size and composition.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Biological Product (except Diagnostic) Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 2005B01697
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Emergent Biosolutions Inc. (UEI: 173570271)
Address: 3500 N MARTIN LUTHER KING JR BLVD # 1, LANSING, MI, 48906
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $368,211,000
Exercised Options: $122,737,000
Current Obligation: $122,737,000
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-05-12
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2015-08-06
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