HHS Awards $29M for Smallpox Vaccine to Sanofi Pasteur, Limited Competition
Contract Overview
Contract Amount: $29,070,000 ($29.1M)
Contractor: Sanofi Pasteur Biologics, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2011-09-12
End Date: 2014-05-12
Contract Duration: 973 days
Daily Burn Rate: $29.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: LICENSED SMALLPOX VACCINE
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Health and Human Services obligated $29.1 million to SANOFI PASTEUR BIOLOGICS, LLC for work described as: LICENSED SMALLPOX VACCINE Key points: 1. Significant contract value of $29.07 million for a critical public health product. 2. Sole-source award suggests limited market options or specific vendor capabilities. 3. Potential risk associated with reliance on a single supplier for essential vaccines. 4. The healthcare sector relies on such procurements for national health security.
Value Assessment
Rating: good
The contract value of $29.07 million for licensed smallpox vaccine appears reasonable given the specialized nature of biological product manufacturing. Benchmarking against similar public health vaccine procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that only one vendor, Sanofi Pasteur Biologics, LLC, was considered capable of fulfilling the requirement. This limits price discovery and competitive pressure.
Taxpayer Impact: Taxpayer funds are used for essential public health preparedness, ensuring vaccine availability. The lack of competition may lead to a higher price than if multiple vendors were involved.
Public Impact
Ensures availability of a critical vaccine for public health emergencies. Supports national biodefense and pandemic preparedness initiatives. Impacts the pharmaceutical supply chain for specialized biological products.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for price escalation without competitive bidding.
- Reliance on a single supplier for a critical vaccine.
Positive Signals
- Secures a vital public health resource.
- Supports a key biopharmaceutical manufacturer.
Sector Analysis
This procurement falls within the healthcare and biopharmaceutical sector, specifically for biological product manufacturing. Spending benchmarks for specialized vaccines can vary widely based on production complexity and market demand.
Small Business Impact
The contract was awarded to Sanofi Pasteur Biologics, LLC, a large business. There is no indication of small business participation in this specific sole-source award.
Oversight & Accountability
The Centers for Disease Control and Prevention (CDC) is responsible for this procurement. Oversight would focus on ensuring the vaccine meets quality standards and is delivered on time, especially given the sole-source nature.
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
- Lack of competitive pricing
- Potential supply chain vulnerability
- Dependence on a single manufacturer
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, ma, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $29.1 million to SANOFI PASTEUR BIOLOGICS, LLC. 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 $29.1 million.
What is the period of performance?
Start: 2011-09-12. End: 2014-05-12.
What is the justification for the sole-source award, and were alternative options explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of other responsible sources. Agencies must document thorough market research to confirm no other vendors can meet the requirement. Exploring alternatives, even if ultimately deemed unsuitable, is crucial for demonstrating due diligence and ensuring the best value for taxpayers.
How does the pricing compare to historical contracts or market rates for similar vaccines?
A comprehensive price comparison is essential. Analyzing historical contract data for smallpox vaccines, if available, and benchmarking against current market rates for comparable biological products would reveal if the $29.07 million award represents fair and reasonable pricing. Without this, it's difficult to assess the value for money achieved.
What are the contingency plans if Sanofi Pasteur Biologics, LLC faces production issues or supply chain disruptions?
Given the sole-source nature, contingency planning is paramount. The agency should have robust plans in place to mitigate risks associated with a single supplier, such as maintaining strategic stockpiles, identifying potential backup manufacturers (even if not currently contracted), and closely monitoring the supplier's operational stability and supply chain resilience.
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
Financial Breakdown
Contract Ceiling: $29,070,000
Exercised Options: $29,070,000
Current Obligation: $29,070,000
Parent Contract
Parent Award PIID: HHSD200200824959I
IDV Type: IDC
Timeline
Start Date: 2011-09-12
Current End Date: 2014-05-12
Potential End Date: 2014-05-12 00:00:00
Last Modified: 2015-08-07
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