HHS awards $37.9M for ACAM 2000 vaccines to Emergent BioDefense, raising questions on competition
Contract Overview
Contract Amount: $37,890,000 ($37.9M)
Contractor: Emergent Biodefense Operations Lansing LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2015-09-30
End Date: 2019-03-31
Contract Duration: 1,278 days
Daily Burn Rate: $29.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: IGF::OT::IGF FOR ACAM 2000 VACCINES
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02139
Plain-Language Summary
Department of Health and Human Services obligated $37.9 million to EMERGENT BIODEFENSE OPERATIONS LANSING LLC for work described as: IGF::OT::IGF FOR ACAM 2000 VACCINES Key points: 1. Significant contract value for a critical biodefense product. 2. Sole-source award limits price discovery and competitive innovation. 3. Potential risk associated with reliance on a single supplier for essential vaccines. 4. Focus on biodefense highlights sector's importance and specialized nature.
Value Assessment
Rating: questionable
The contract value of $37.9 million for ACAM 2000 vaccines appears substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or previous procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and may prevent the government from obtaining the best possible value.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these vaccines, as there was no market pressure to drive down costs.
Public Impact
Ensures availability of a critical vaccine for biodefense preparedness. Potential for higher costs due to lack of competitive bidding. Reliance on a single vendor could pose supply chain risks. Highlights government's role in maintaining strategic medical stockpiles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Ensures supply of critical vaccine
- Supports biodefense readiness
Sector Analysis
This contract falls within the Healthcare sector, specifically concerning biodefense and vaccine manufacturing. Spending in this area is often driven by national security needs and public health emergencies, leading to specialized and sometimes non-competitive procurements.
Small Business Impact
The awardee, Emergent BioDefense Operations Lansing LLC, is a large business. There is no indication that small businesses were involved in this specific sole-source procurement, limiting opportunities for them.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price is justified and that future procurements explore competitive options where feasible to maximize taxpayer value and encourage innovation.
Related Government Programs
- Biological Product (except Diagnostic) Manufacturing
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price justification.
- Reliance on a single supplier for critical medical supplies.
- Limited opportunity for small business participation.
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 $37.9 million to EMERGENT BIODEFENSE OPERATIONS LANSING LLC. IGF::OT::IGF FOR ACAM 2000 VACCINES
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 (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $37.9 million.
What is the period of performance?
Start: 2015-09-30. End: 2019-03-31.
What is the justification for the sole-source award, and has the government explored options for competitive bidding in the past or for future needs?
The justification for a sole-source award typically involves unique capabilities, critical national security needs, or lack of viable alternatives. For this contract, the specific rationale for not competing it needs to be clearly documented by HHS. It's crucial to understand if this is a recurring need and if competitive strategies have been considered for future acquisitions to ensure long-term value and security.
How does the unit cost of these ACAM 2000 vaccines compare to industry benchmarks or previous government purchases, if available?
Without access to specific unit cost data and comparable market prices, a precise benchmark is difficult. However, the absence of competition in a sole-source award often suggests a higher potential cost than if multiple vendors had vied for the contract. Further analysis would require access to historical pricing data or industry cost information for similar biological products.
What are the contingency plans if Emergent BioDefense Operations Lansing LLC faces production issues or supply chain disruptions for these critical vaccines?
Given the sole-source nature and the critical importance of ACAM 2000 vaccines for biodefense, contingency planning is paramount. The government should have robust plans in place, potentially including maintaining safety stock, identifying alternative suppliers for raw materials, or having pre-negotiated backup arrangements, to mitigate risks associated with a single point of failure in the supply chain.
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: $37,890,000
Exercised Options: $37,890,000
Current Obligation: $37,890,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200824959I
IDV Type: IDC
Timeline
Start Date: 2015-09-30
Current End Date: 2019-03-31
Potential End Date: 2019-03-31 00:00:00
Last Modified: 2018-10-30
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