HHS Awards $28.17M for Smallpox Vaccine, Sole-Source Contract Raises Concerns
Contract Overview
Contract Amount: $28,170,000 ($28.2M)
Contractor: Sanofi Pasteur Biologics, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2010-08-02
End Date: 2018-04-21
Contract Duration: 2,819 days
Daily Burn Rate: $10.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: TAS::75 0943::TAS LICENSED SMALLPOX VACCINE
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139
Plain-Language Summary
Department of Health and Human Services obligated $28.2 million to SANOFI PASTEUR BIOLOGICS, LLC for work described as: TAS::75 0943::TAS LICENSED SMALLPOX VACCINE Key points: 1. Significant investment in a critical public health resource. 2. Sole-source award limits competitive pricing and innovation. 3. Long contract duration (2010-2018) may not reflect current market value. 4. Biological product manufacturing is a specialized sector.
Value Assessment
Rating: questionable
The award of $28.17 million for a licensed smallpox vaccine appears high given the lack of competition. Without market comparisons or competitive bids, it's difficult to ascertain if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no opportunity for vendors to bid against each other.
Taxpayer Impact: The lack of competition in this sole-source award likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Ensures availability of a critical vaccine for public health emergencies. Potential for overpayment due to lack of competitive bidding. Long-term reliance on a single supplier could pose supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Potential for price inflation
Positive Signals
- Secures essential public health resource
- Awarded to a known supplier
Sector Analysis
The procurement falls within the Biological Product Manufacturing sector, which is highly specialized and regulated. Spending benchmarks for such critical medical supplies can vary widely based on demand, research, and development costs.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the supplier is listed as SANOFI PASTEUR BIOLOGICS, LLC. There is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price paid was justified and that future procurements explore competitive options to maximize value for taxpayers.
Related Government Programs
- Biological Product (except Diagnostic) Manufacturing
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated pricing due to lack of bids.
- Long contract duration may not reflect current market value.
- Limited transparency on justification for sole-source.
- No small business participation noted.
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $28.2 million to SANOFI PASTEUR BIOLOGICS, LLC. TAS::75 0943::TAS LICENSED SMALLPOX VACCINE
Who is the contractor on this award?
The obligated recipient is SANOFI PASTEUR BIOLOGICS, 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 $28.2 million.
What is the period of performance?
Start: 2010-08-02. End: 2018-04-21.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without specific documentation, it's unclear why competitive bidding was bypassed. Future procurements should prioritize exploring all possible avenues for competition to ensure fair pricing and leverage market dynamics.
How does the per-unit cost of this smallpox vaccine compare to similar products or historical pricing, considering the lack of competition?
Benchmarking the per-unit cost is challenging due to the sole-source nature of this award. Without competitive bids or access to pricing for comparable vaccines, it's difficult to determine if the $28.17 million represents a fair market price. Further analysis would require access to proprietary pricing data or market research.
What measures were in place to ensure the effectiveness and quality of the vaccine supplied under this long-term contract?
Government contracts for pharmaceuticals typically include stringent quality control and effectiveness standards. The Centers for Disease Control and Prevention (CDC) would have oversight mechanisms, including inspections and adherence to regulatory requirements, to ensure the vaccine met all necessary specifications throughout the contract period.
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: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 2006N08476
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sanofi Pasteur Vaxdesign Corp (UEI: 739980787)
Address: 38 SIDNEY ST, CAMBRIDGE, MA, 02139
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,170,000
Exercised Options: $28,170,000
Current Obligation: $28,170,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200824959I
IDV Type: IDC
Timeline
Start Date: 2010-08-02
Current End Date: 2018-04-21
Potential End Date: 2018-04-21 00:00:00
Last Modified: 2018-06-22
More Contracts from Sanofi Pasteur Biologics, LLC
- TAS::75 0140::TAS Acambis, 200-2002-00004 — $348.9M (Department of Health and Human Services)
- Production and Testing of a Modified Vaccinia Ankara (MVA) Vaccine — $55.1M (Department of Health and Human Services)
- Licensed Smallpox Vaccine — $36.6M (Department of Health and Human Services)
- Warmbase Smallpox Vaccine Manufacturing — $35.4M (Department of Health and Human Services)
- TAS::75 0943::TAS Acambis, 200-2002-00004 — $29.8M (Department of Health and Human Services)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →