HHS awarded Pfizer $683.6M for VFC vaccine in 2008 under full and open competition
Contract Overview
Contract Amount: $683,553,576 ($683.6M)
Contractor: Pfizer Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2008-04-01
End Date: 2009-05-09
Contract Duration: 403 days
Daily Burn Rate: $1.7M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: VACCINE FOR CHILDREN (VFC) 2008.
Place of Performance
Location: MALVERN, CHESTER County, PENNSYLVANIA, 19355
Plain-Language Summary
Department of Health and Human Services obligated $683.6 million to PFIZER INC. for work described as: VACCINE FOR CHILDREN (VFC) 2008. Key points: 1. The contract value of $683.6M for a vaccine program is substantial. 2. Pfizer Inc. is a major pharmaceutical player, indicating significant market competition. 3. The risk is moderate, primarily related to vaccine efficacy and public health outcomes. 4. The sector is Healthcare, specifically biological product manufacturing.
Value Assessment
Rating: good
The contract was awarded under a firm fixed-price structure, which is generally favorable for cost control. Benchmarking against similar large-scale vaccine procurements would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract utilized full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to sole-source or limited competition.
Taxpayer Impact: Full and open competition generally maximizes taxpayer value by ensuring the government receives the best possible price through market forces.
Public Impact
Ensures availability of essential vaccines for children nationwide. Supports public health initiatives by providing critical medical supplies. Impacts the pharmaceutical market and competition among vaccine manufacturers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in future vaccine procurements.
- Dependence on a single supplier for a critical public health product.
Positive Signals
- Successful procurement through a competitive process.
- Commitment to children's health through vaccine availability.
Sector Analysis
The healthcare sector, particularly biological product manufacturing, involves high R&D costs and stringent regulatory requirements. Spending benchmarks for vaccine procurements vary widely based on type, volume, and manufacturer.
Small Business Impact
This contract was awarded to a large corporation (Pfizer Inc.), with no indication of small business participation in this specific award. Large-scale pharmaceutical contracts often involve prime contractors who may subcontract, but direct small business involvement is not evident here.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services (HHS) through the Centers for Disease Control and Prevention (CDC), agencies with established oversight mechanisms for public health procurements. The firm fixed-price contract type provides a degree of cost accountability.
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 single-source dependency in future procurements.
- Market concentration in vaccine manufacturing.
- Public health reliance on timely vaccine delivery.
- Price volatility for biological products.
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, pa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $683.6 million to PFIZER INC.. VACCINE FOR CHILDREN (VFC) 2008.
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 $683.6 million.
What is the period of performance?
Start: 2008-04-01. End: 2009-05-09.
What was the specific vaccine procured and its intended use within the VFC program?
The data does not specify the exact vaccine. The Vaccines for Children (VFC) program provides vaccines for children aged 18 years or younger who are uninsured, underinsured, or eligible for Medicaid. The procurement likely covered a range of routine childhood immunizations essential for public health.
How did the awarded price compare to the government's cost estimate or other bids?
Without access to the bid data or cost estimates, a direct comparison is not possible. However, the use of 'full and open competition' and a 'firm fixed price' contract suggests that the government aimed to secure the best possible price through market mechanisms, implying a competitive bidding process.
What are the long-term implications of this contract on vaccine supply chain resilience?
A single large contract with one manufacturer, even if competitively awarded, can raise questions about supply chain resilience. Diversification of suppliers or ensuring robust contingency plans would be crucial for long-term stability, especially for critical public health needs like childhood immunizations.
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
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pfizer Inc (UEI: 001326495)
Address: 33 MOREHALL RD, MALVERN, PA, 19355
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $683,553,576
Exercised Options: $683,553,576
Current Obligation: $683,553,576
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2008-04-01
Current End Date: 2009-05-09
Potential End Date: 2009-05-09 00:00:00
Last Modified: 2017-07-27
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