HHS awarded $74.5M for flu vaccines, highlighting a significant investment in public health preparedness

Contract Overview

Contract Amount: $74,541,933 ($74.5M)

Contractor: Sanofi Vaccines US Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2006-04-13

End Date: 2007-02-28

Contract Duration: 321 days

Daily Burn Rate: $232.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FLU 2006

Place of Performance

Location: BROOKHAVEN, DEKALB County, GEORGIA, 30329, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $74.5 million to SANOFI VACCINES US INC. for work described as: FLU 2006 Key points: 1. The contract value represents a substantial commitment to securing essential medical supplies. 2. Competition dynamics for vaccine procurement can influence pricing and availability. 3. Performance history and contractor reliability are key indicators for public health contracts. 4. This award fits within the broader context of national efforts to combat seasonal and pandemic influenza. 5. The sector involves specialized manufacturing and stringent regulatory oversight.

Value Assessment

Rating: good

The $74.5 million award for flu vaccines appears reasonable given the critical nature of the product and the scale of procurement. Benchmarking against similar large-scale vaccine contracts would provide further context on value for money. The firm fixed-price structure offers cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while competition was sought, certain entities may have been excluded or specific circumstances led to a limited bidding pool. Understanding the reasons for exclusion is crucial for assessing the full competitive landscape.

Taxpayer Impact: A limited competition may result in less aggressive pricing compared to full and open competition, potentially impacting taxpayer value.

Public Impact

The primary beneficiaries are the general public, who receive access to essential flu vaccinations. The service delivered is the procurement of biological products critical for disease prevention. The geographic impact is national, ensuring vaccine availability across the United States. Workforce implications include support for the pharmaceutical manufacturing sector and public health infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition to impact price discovery.
Reliance on a single contractor for a critical public health commodity.
Need for robust quality assurance and supply chain monitoring.

Positive Signals

Secures a vital public health resource.
Firm fixed-price contract provides budget predictability.
Awarded by a key health agency (CDC) indicating strategic importance.

Sector Analysis

The pharmaceutical and biotechnology sector is characterized by high R&D costs, stringent regulatory requirements, and significant market concentration for specialized products like vaccines. This contract fits within the broader public health and biodefense spending category, which aims to ensure national security and public well-being through the availability of critical medical countermeasures. Comparable spending benchmarks would involve looking at other large-scale vaccine procurements by government agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). The focus is on large-scale procurement of a specialized product, likely requiring significant manufacturing capacity and regulatory compliance typically met by larger firms. Subcontracting opportunities for small businesses may exist within the supply chain, but are not explicitly detailed in this award.

Oversight & Accountability

Oversight is likely managed by the Centers for Disease Control and Prevention (CDC) program officials responsible for vaccine procurement and distribution. Accountability measures would include adherence to contract terms, delivery schedules, and product quality standards. Transparency is generally maintained through contract databases, though specific performance metrics may be internal.

Related Government Programs

National Vaccine Program
Strategic National Stockpile
Public Health Emergency Preparedness
Influenza Surveillance and Prevention

Risk Flags

Limited competition may impact price.
Supply chain vulnerability for critical medical products.
Dependence on specific vaccine strains and manufacturing processes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $74.5 million to SANOFI VACCINES US INC.. FLU 2006

Who is the contractor on this award?

The obligated recipient is SANOFI VACCINES US 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 $74.5 million.

What is the period of performance?

Start: 2006-04-13. End: 2007-02-28.

What is the historical spending trend for influenza vaccines by the CDC?

Historical spending data for influenza vaccines by the CDC reveals a consistent and significant investment, often fluctuating year-to-year based on anticipated demand, strain predictions, and public health initiatives. While the $74.5 million awarded in 2006 for FLU 2006 is a substantial figure, it should be viewed in the context of overall vaccine procurement budgets which can range from tens to hundreds of millions of dollars annually. Factors influencing these amounts include the number of doses required, the specific vaccine manufacturers contracted, and the evolving public health landscape, including pandemic preparedness efforts. Analyzing trends over a decade or more would show how the CDC adapts its procurement strategies to meet changing influenza threats and vaccine technologies.

How does the competition level for this contract compare to other vaccine procurements?

The competition level for this contract, noted as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests a limited bidding process. This is not uncommon for highly specialized products like vaccines, where only a few manufacturers possess the necessary technology, manufacturing capacity, and regulatory approvals. In contrast, other vaccine procurements might achieve broader competition if multiple firms can produce the required vaccine. However, even with limited bidders, the 'full and open' aspect indicates an attempt to solicit offers from all eligible sources. A more robust competition typically involves a larger number of bidders, which can drive down prices and increase innovation. Understanding the specific reasons for excluding certain sources is key to fully assessing the competitive dynamics.

What are the key performance indicators (KPIs) for this vaccine contract?

Key performance indicators for this vaccine contract would likely focus on ensuring the timely delivery of safe and effective influenza vaccines that meet all specified quality standards. Specific KPIs would include adherence to delivery schedules, maintaining the cold chain integrity throughout the supply process, and meeting lot release requirements from regulatory bodies like the FDA. Vaccine efficacy and safety monitoring post-distribution are also critical, though these extend beyond the direct contract performance. The contractor's ability to meet production targets and respond to potential supply chain disruptions would also be closely monitored by the CDC.

What is the track record of SANOFI VACCINES US INC. in fulfilling government vaccine contracts?

Sanofi Pasteur (the vaccines division of Sanofi) has a long-standing history as a major global vaccine manufacturer and has been a significant supplier to government agencies, including the U.S. Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). Their track record typically involves fulfilling large-scale contracts for seasonal influenza vaccines, as well as other critical vaccines. While specific performance details for individual contracts are often not publicly disclosed in granular detail, Sanofi is generally recognized as a reliable provider within the vaccine industry. Any government contract would undergo rigorous review of past performance, and issues would typically be addressed through contract management processes.

Are there any identified risks associated with this specific vaccine procurement?

Risks associated with this specific vaccine procurement, awarded in 2006, could include potential supply chain disruptions, manufacturing quality issues, or unforeseen changes in influenza strains that might affect vaccine effectiveness. Given the 'limited' competition noted, there's also a risk related to price escalation if market conditions shift unfavorably for the government. Furthermore, reliance on a single product for a specific flu season carries inherent risks if that product encounters unexpected challenges. The government's mitigation strategies would involve close monitoring of production, quality control, and maintaining strong communication channels with the contractor.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Biological Product (except Diagnostic) Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2006N08304

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sanofi Pasteur Vaxdesign Corp (UEI: 739980787)

Address: 1 DISCOVERY DR, SWIFTWATER, PA, 18370

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: $74,596,998

Exercised Options: $74,596,998

Current Obligation: $74,541,933

Contract Characteristics

Cost or Pricing Data: NO

Timeline