HHS awards $737M for pediatric vaccines to Sanofi, highlighting pharmaceutical prep manufacturing

Contract Overview

Contract Amount: $737,348,871 ($737.3M)

Contractor: Sanofi Vaccines US Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2009-04-01

End Date: 2010-03-31

Contract Duration: 364 days

Daily Burn Rate: $2.0M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: 00HCVGBC-2009-68767 - SANOFI VFC PEDIATRIC VACCINE 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 $737.3 million to SANOFI VACCINES US INC. for work described as: 00HCVGBC-2009-68767 - SANOFI VFC PEDIATRIC VACCINE CONTRACT Key points: 1. Contract awarded to Sanofi Vaccines US Inc. for pediatric vaccines. 2. The contract value is substantial at $737,348,870.9. 3. Competition method was 'FULL AND OPEN COMPETITION'. 4. The period of performance is from April 1, 2009, to March 31, 2010. 5. The contract type is FIRM FIXED PRICE.

Value Assessment

Rating: good

The contract value of $737M for pediatric vaccines appears reasonable given the scale and nature of vaccine procurement. Benchmarking against similar large-scale vaccine contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', suggesting a robust process to solicit bids and achieve competitive pricing. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible prices for essential goods like vaccines.

Public Impact

Ensures supply of critical pediatric vaccines for public health. Supports the Department of Health and Human Services' mission. Impacts pharmaceutical manufacturing sector and supply chains. Potential for long-term health benefits through vaccination programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively short (364 days).
No specific mention of small business participation.

Positive Signals

Full and open competition utilized.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Pharmaceutical Preparation Manufacturing sector, a critical area for public health. Spending in this sector is often driven by demand for essential medicines and vaccines, with significant government investment.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The contract was awarded by the Centers for Disease Control and Prevention (CDC), a key agency within HHS. Oversight would typically involve monitoring contract performance, delivery, and adherence to terms.

Related Government Programs

Pharmaceutical Preparation Manufacturing
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Lack of detail on specific vaccine type.
No information on small business participation.
Short contract duration may indicate a need for follow-on contracts.
Potential for price fluctuations in pharmaceutical markets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $737.3 million to SANOFI VACCINES US INC.. 00HCVGBC-2009-68767 - SANOFI VFC PEDIATRIC VACCINE 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 $737.3 million.

What is the period of performance?

Start: 2009-04-01. End: 2010-03-31.

What was the specific type of pediatric vaccine procured under this contract?

The provided data does not specify the exact type of pediatric vaccine. Further investigation into contract details or associated documentation would be required to identify the specific vaccine, such as those for influenza, polio, or other common childhood illnesses.

Were there any performance issues or deviations from the firm fixed price during the contract period?

The data does not contain information on contract performance issues or price deviations. A review of contract performance reports, payment histories, and any modification records would be necessary to determine if the firm fixed price was maintained or if adjustments were made.

How did the awarded price compare to the government's independent cost estimate or market research?

The data does not include the government's independent cost estimate or market research findings. To assess this, one would need to access procurement documentation, including source selection criteria and cost analysis reports, to compare the awarded price against pre-negotiation objectives.

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

Solicitation ID: 2009N11074

Offers Received: 5

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: $28,312,345,500

Exercised Options: $25,887,444,192

Current Obligation: $737,348,871

Timeline