HHS Awards $37.6M for Smallpox Vaccine Manufacturing to Emergent BioDefense
Contract Overview
Contract Amount: $37,620,000 ($37.6M)
Contractor: Emergent Biodefense Operations Lansing LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2014-09-23
End Date: 2018-08-31
Contract Duration: 1,438 days
Daily Burn Rate: $26.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: WARMBASE SMALLPOX VACCINE MANUFACTURING - TASK ORDER 0005
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139
Plain-Language Summary
Department of Health and Human Services obligated $37.6 million to EMERGENT BIODEFENSE OPERATIONS LANSING LLC for work described as: WARMBASE SMALLPOX VACCINE MANUFACTURING - TASK ORDER 0005 Key points: 1. Significant contract value for biological product manufacturing. 2. Sole-source award raises questions about competition and price discovery. 3. Potential risk associated with reliance on a single supplier for critical vaccine. 4. Sector focus on biodefense and public health preparedness.
Value Assessment
Rating: questionable
The contract value of $37.6 million for vaccine manufacturing is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for biological product manufacturing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to inflated prices, impacting the efficient use of taxpayer funds for critical public health supplies.
Public Impact
Ensures continued domestic manufacturing capacity for the smallpox vaccine. Addresses national biodefense and public health emergency preparedness needs. Potential for future task orders under this contract could increase total spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for price escalation without competitive pressure.
- Reliance on a single manufacturer for a critical vaccine.
Positive Signals
- Supports domestic vaccine manufacturing.
- Addresses biodefense needs.
Sector Analysis
This contract falls within the biodefense and public health sector, specifically focusing on the manufacturing of biological products. Spending in this area is often driven by national security and emergency preparedness requirements, which can sometimes lead to less competitive contracting.
Small Business Impact
The awardee, Emergent BioDefense Operations Lansing LLC, is a large business. There is no indication in the provided data that small businesses were involved in this specific task order.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government obtained the best possible value and that the justification for not competing is robust. Ongoing oversight is needed to monitor performance and costs.
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 price competition
- Potential supply chain risk
- Reliance on a single supplier
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 $37.6 million to EMERGENT BIODEFENSE OPERATIONS LANSING LLC. WARMBASE SMALLPOX VACCINE MANUFACTURING - TASK ORDER 0005
Who is the contractor on this award?
The obligated recipient is EMERGENT BIODEFENSE OPERATIONS LANSING 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 $37.6 million.
What is the period of performance?
Start: 2014-09-23. End: 2018-08-31.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. To ensure fair pricing, the government might rely on historical pricing data, independent cost estimates, or price negotiation techniques. However, without a competitive process, the inherent checks and balances on price discovery are reduced, making robust negotiation and justification critical.
What are the risks associated with relying on a single manufacturer for a critical vaccine like smallpox?
Sole reliance on one manufacturer for a critical vaccine poses significant risks. These include supply chain vulnerabilities, potential production disruptions due to unforeseen events (e.g., facility issues, raw material shortages), and limited options in case of increased demand or quality control problems. This concentration of production can impact national security and public health readiness.
How does this contract contribute to the overall effectiveness of the nation's biodefense strategy?
This contract directly contributes to the nation's biodefense strategy by ensuring the continued manufacturing of a critical vaccine. Maintaining domestic production capacity for the smallpox vaccine is essential for responding to potential bioterrorism threats or natural outbreaks. It supports stockpiling efforts and ensures availability when needed, bolstering overall public health security.
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: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 2006N08476
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Emergent Biosolutions Inc. (UEI: 173570271)
Address: 3500 N MARTIN LUTHER KING JR BLVD, LANSING, MI, 48906
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $37,620,000
Exercised Options: $37,620,000
Current Obligation: $37,620,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200824959I
IDV Type: IDC
Timeline
Start Date: 2014-09-23
Current End Date: 2018-08-31
Potential End Date: 2018-08-31 00:00:00
Last Modified: 2018-09-12
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