HHS awarded $590M for childhood vaccines, with Sanofi Vaccines US Inc. as the primary contractor

Contract Overview

Contract Amount: $590,455,581 ($590.5M)

Contractor: Sanofi Vaccines US Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-04-01

End Date: 2009-03-31

Contract Duration: 364 days

Daily Burn Rate: $1.6M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VACCCINE FOR CHILDREN 2008 CONTRACT

Place of Performance

Location: SWIFTWATER, MONROE County, PENNSYLVANIA, 18370, UNITED STATES OF AMERICA

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $590.5 million to SANOFI VACCINES US INC. for work described as: VACCCINE FOR CHILDREN 2008 CONTRACT Key points: 1. The contract value of $590 million represents a significant investment in public health, specifically for childhood immunization programs. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The contract duration of one year indicates a need for timely vaccine delivery and potential for future re-competition. 4. The fixed-price contract type likely provides cost certainty for the government. 5. The award to a single contractor, Sanofi Vaccines US Inc., highlights their established role in vaccine supply. 6. The contract's focus on pharmaceutical preparation manufacturing places it within a critical sector for national health security.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging without more granular data on the exact vaccines procured and their market prices at the time. However, the scale of the award suggests a substantial quantity of vaccines, likely reflecting a significant public health need. The fixed-price nature of the contract offers a degree of predictability in spending. Further analysis would require comparing the per-unit cost of the vaccines against contemporaneous market rates and other government procurements for similar products.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of four bidders (no: 4) suggests a competitive environment, which typically drives better pricing and value for the government. This level of competition is generally favorable for ensuring that the government receives competitive offers and avoids potential overpayment.

Taxpayer Impact: A competitive bidding process for essential childhood vaccines helps ensure that taxpayer dollars are used efficiently, leading to potentially lower costs per unit and greater availability of critical medical supplies.

Public Impact

Children across the nation benefit from access to essential vaccines, contributing to disease prevention and public health. The contract ensures the supply of pharmaceutical preparations, specifically vaccines, crucial for maintaining immunization schedules. The geographic impact is national, covering the United States, ensuring widespread availability of vaccines. The contract supports the pharmaceutical manufacturing workforce and related supply chain industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in subsequent contract periods if not locked in.
Dependence on a single supplier could pose risks if supply chain disruptions occur.
Ensuring the long-term availability and affordability of vaccines beyond this contract period.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Fixed-price contract provides cost predictability for the government.
Contract addresses a critical public health need for childhood immunization.

Sector Analysis

This contract falls within the Pharmaceutical Preparation Manufacturing sector, a vital part of the healthcare industry. This sector is characterized by high research and development costs, stringent regulatory requirements, and significant market demand driven by public health needs. The global pharmaceutical market is substantial, and government contracts play a crucial role in ensuring access to essential medicines and vaccines. Comparable spending benchmarks would involve looking at other large-scale vaccine procurements by federal agencies like HHS or the Department of Defense.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. As this is a large-value contract likely awarded to an established pharmaceutical manufacturer, the primary focus may not have been on small business participation. Further investigation would be needed to determine if any subcontracting opportunities were mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Centers for Disease Control and Prevention (CDC) within HHS. Accountability measures would include monitoring vaccine quality, delivery schedules, and adherence to contract terms. Transparency is generally maintained through contract award databases and public reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

National Vaccine Injury Compensation Program
HHS Strategic National Stockpile
CDC Immunization Services Division
FDA Vaccine and Biologics Regulation

Risk Flags

Potential supply chain vulnerability
Long-term affordability concerns
Dependence on single contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $590.5 million to SANOFI VACCINES US INC.. VACCCINE FOR CHILDREN 2008 CONTRACT

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 $590.5 million.

What is the period of performance?

Start: 2008-04-01. End: 2009-03-31.

What was the specific type and quantity of vaccines procured under this contract?

The provided data does not specify the exact types or quantities of vaccines procured under the 'VACCCINE FOR CHILDREN 2008 CONTRACT'. The contract number '325412' and the description 'Pharmaceutical Preparation Manufacturing' indicate a broad scope within vaccine production. To determine the specific vaccines, one would need to access the detailed contract line item information or associated procurement documentation. This level of detail is crucial for understanding the precise public health impact and for conducting accurate cost-effectiveness analyses against market prices for specific vaccine products.

How does the awarded amount of $590 million compare to historical spending on childhood vaccines by the CDC?

Comparing the $590 million award to historical spending requires access to historical budget and procurement data for the CDC's vaccine programs. Without that data, a direct comparison is difficult. However, $590 million represents a substantial investment, suggesting a significant procurement volume or the inclusion of high-cost vaccines. To provide context, one would need to analyze CDC's annual expenditures on vaccines for children over several years leading up to and following 2008. This would reveal trends, identify periods of increased or decreased spending, and help determine if this contract represented a typical, elevated, or reduced level of investment for that fiscal year.

What is Sanofi Vaccines US Inc.'s track record with federal vaccine contracts prior to and following this award?

Sanofi Vaccines US Inc. (and its predecessors/affiliates) has a long-standing history of supplying vaccines to government entities, including the U.S. government. Prior to this 2008 contract, Sanofi was a known major vaccine manufacturer involved in numerous federal procurements. Following this award, the company has continued to be a significant player in the vaccine market, securing contracts for various influenza vaccines, pediatric vaccines, and more recently, COVID-19 vaccines. A comprehensive analysis would involve reviewing contract databases for all federal awards to Sanofi related to vaccines, examining performance history, and assessing any past performance issues or commendations.

Were there any specific performance metrics or quality control standards outlined in the contract for vaccine delivery and efficacy?

While the provided summary does not detail specific performance metrics, federal contracts for pharmaceutical preparations, especially vaccines, invariably include stringent quality control standards and performance requirements. These typically encompass adherence to Good Manufacturing Practices (GMP), specific purity and potency standards, temperature control during transport (cold chain management), and timely delivery schedules. The contract would likely reference FDA regulations and potentially include clauses for penalties or remedies in case of non-compliance with quality or delivery terms. Verification of these specific metrics would require reviewing the full contract document.

What is the typical duration for federal contracts of this nature, and how does this one-year term compare?

Federal contracts for the procurement of vaccines can vary significantly in duration. Some may be for a single year with options for renewal, while others might be multi-year base contracts with options. A one-year term, as seen here (364 days), is common for procurements where market conditions, vaccine needs, or funding appropriations might change annually, or to allow for regular re-competition. Longer-term contracts (e.g., 3-5 years) might be used for more stable, predictable needs or to incentivize long-term supply commitments. This one-year duration suggests a need for flexibility or a standard procurement cycle for this particular vaccine category at that time.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation 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: Sanofi Pasteur Vaxdesign Corp (UEI: 739980787)

Address: 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: $790,855,971

Exercised Options: $790,855,971

Current Obligation: $590,455,581

Timeline