HHS Awarded $709M for Childhood Vaccines in 2010 to Sanofi Pasteur

Contract Overview

Contract Amount: $709,203,249 ($709.2M)

Contractor: Sanofi Vaccines US Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2010-04-01

End Date: 2011-09-30

Contract Duration: 547 days

Daily Burn Rate: $1.3M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VACCINCE FOR CHILDREN 2010

Place of Performance

Location: SWIFTWATER, MONROE County, PENNSYLVANIA, 18370

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $709.2 million to SANOFI VACCINES US INC. for work described as: VACCINCE FOR CHILDREN 2010 Key points: 1. Significant investment in public health through vaccine procurement. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract awarded as a definitive contract, indicating a long-term commitment. 4. Focus on biological product manufacturing highlights a critical healthcare sector.

Value Assessment

Rating: good

The contract value of $709 million for childhood vaccines appears substantial. Benchmarking against similar large-scale vaccine procurements would be necessary for a precise value assessment, but the scale suggests a significant public health investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can drive competitive pricing. The use of a definitive contract suggests a structured procurement process.

Taxpayer Impact: The substantial investment in vaccines directly benefits public health by increasing immunization rates, potentially reducing long-term healthcare costs associated with preventable diseases.

Public Impact

Ensures availability of critical vaccines for children, supporting national immunization programs. Supports the domestic pharmaceutical manufacturing sector, contributing to economic activity. Addresses a key public health need, aiming to prevent widespread childhood illnesses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 547 days may require monitoring for potential cost overruns or scope creep.
Lack of specific small business participation noted, though not mandated for this contract type.

Positive Signals

Full and open competition promotes market efficiency.
Firm fixed price contract provides cost certainty.
Significant investment in a vital public health area.

Sector Analysis

This contract falls within the Healthcare sector, specifically biological product manufacturing. Spending benchmarks for vaccine procurement vary widely based on type and quantity, but $709 million represents a considerable investment in public health infrastructure.

Small Business Impact

The data indicates that small business participation was not a factor in this specific contract award. While this contract is large and likely requires specialized manufacturing capabilities, future procurements could explore opportunities for small business involvement in ancillary services or specific components.

Oversight & Accountability

The Centers for Disease Control and Prevention (CDC) within HHS is responsible for this procurement. Oversight would focus on ensuring timely delivery of quality vaccines and adherence to contract terms. The definitive contract structure implies ongoing monitoring.

Related Government Programs

Biological Product (except Diagnostic) Manufacturing
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Contract duration
Potential for supply chain disruption
Monitoring of vaccine efficacy
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $709.2 million to SANOFI VACCINES US INC.. VACCINCE FOR CHILDREN 2010

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 $709.2 million.

What is the period of performance?

Start: 2010-04-01. End: 2011-09-30.

What was the specific impact of the full and open competition on the final price paid for the vaccines?

While full and open competition generally drives down prices by encouraging multiple bids, the exact price impact is difficult to quantify without knowing the number of bidders and their initial proposals. The firm fixed price structure, however, locked in the cost, suggesting the competitive process was successful in establishing a predetermined price point that was deemed acceptable by the government.

Are there any identified risks associated with the long-term supply or efficacy of vaccines procured under this contract?

The primary risks would revolve around potential supply chain disruptions, manufacturing quality issues, or unforeseen changes in vaccine efficacy over the contract period. Given the nature of biological products, rigorous quality control and ongoing monitoring by the CDC are crucial to mitigate these risks and ensure the safety and effectiveness of the administered vaccines.

How does this $709 million expenditure compare to typical annual spending on childhood vaccines by the U.S. government?

This $709 million represents a significant, one-time or multi-year procurement rather than typical annual operational spending. Annual spending can fluctuate based on new vaccine introductions, public health initiatives, and existing contract renewals. This specific award likely reflects a major acquisition effort to stock reserves or fulfill a large-scale immunization campaign.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sanofi Pasteur Vaxdesign Corp (UEI: 739980787)

Address: 1 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: $1,258,924,664

Exercised Options: $1,258,924,664

Current Obligation: $709,203,249

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline