HHS Awards $21.5M Novartis Contract for Pediatric Vaccine R&D Amidst Full Competition
Contract Overview
Contract Amount: $21,455,940 ($21.5M)
Contractor: Novartis Vaccines and Diagnostics, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2010-04-01
End Date: 2011-03-31
Contract Duration: 364 days
Daily Burn Rate: $58.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: TAS::75 0512::TAS 00HCVGBC-2010-82345 - NOVARTIS PEDIATRIC VACCINE CONTRACT
Place of Performance
Location: EMERYVILLE, ALAMEDA County, CALIFORNIA, 94608, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Health and Human Services obligated $21.5 million to NOVARTIS VACCINES AND DIAGNOSTICS, INC. for work described as: TAS::75 0512::TAS 00HCVGBC-2010-82345 - NOVARTIS PEDIATRIC VACCINE CONTRACT Key points: 1. Contract Value: $21.5 million for pediatric vaccine research and development. 2. Competition: Awarded under full and open competition, indicating a competitive bidding process. 3. Risk: Firm Fixed Price contract type mitigates cost overrun risk for the government. 4. Sector: Focuses on Biotechnology Research and Development (NAICS 541711).
Value Assessment
Rating: good
The contract value of $21.5 million for R&D appears reasonable for a pediatric vaccine project. Benchmarking against similar R&D contracts in biotechnology would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award is expected to ensure taxpayer funds are used efficiently for critical vaccine research.
Public Impact
Supports development of new pediatric vaccines, potentially improving public health outcomes. Invests in critical R&D within the biotechnology sector. Contract duration of one year allows for focused project execution. Awarded by the Centers for Disease Control and Prevention, a key public health agency.
Waste & Efficiency Indicators
Waste Risk Score: 58 / 10
Warning Flags
- Limited contract duration may impact long-term project continuity.
- Specific performance metrics and deliverables are not detailed in the provided data.
Positive Signals
- Firm Fixed Price contract type provides cost certainty.
- Full and open competition suggests a robust market.
- Focus on pediatric vaccines addresses a significant public health need.
Sector Analysis
This contract falls within the Biotechnology Research and Development sector (NAICS 541711). Spending in this area is crucial for public health advancements, with government contracts often driving innovation in specialized fields.
Small Business Impact
The provided data does not indicate whether small businesses participated in or benefited from this contract award. Further analysis would be needed to assess small business inclusion.
Oversight & Accountability
The contract is managed by the Centers for Disease Control and Prevention, a federal agency with established oversight mechanisms. The firm fixed price structure provides a degree of financial accountability.
Related Government Programs
- Research and Development in Biotechnology
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for scope creep if research objectives are not clearly defined.
- Dependence on a single contractor (Novartis) for this specific R&D phase.
- Uncertainty regarding the successful development and market readiness of the vaccine.
- Limited contract duration may necessitate follow-on contracts for continued development.
Tags
research-and-development-in-biotechnolog, department-of-health-and-human-services, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $21.5 million to NOVARTIS VACCINES AND DIAGNOSTICS, INC.. TAS::75 0512::TAS 00HCVGBC-2010-82345 - NOVARTIS PEDIATRIC VACCINE CONTRACT
Who is the contractor on this award?
The obligated recipient is NOVARTIS VACCINES AND DIAGNOSTICS, 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 $21.5 million.
What is the period of performance?
Start: 2010-04-01. End: 2011-03-31.
What are the specific research objectives and expected outcomes for this pediatric vaccine contract?
The provided data does not detail the specific research objectives or expected outcomes for the Novartis pediatric vaccine contract. Further documentation, such as the contract statement of work, would be necessary to understand the precise goals, milestones, and deliverables anticipated by the Centers for Disease Control and Prevention.
How does the $21.5 million contract value compare to industry benchmarks for similar pediatric vaccine R&D projects?
Without access to proprietary industry data or a comprehensive database of similar government contracts, it is challenging to definitively benchmark the $21.5 million contract value. However, the value appears within a plausible range for specialized R&D, especially considering the potential complexity and regulatory hurdles in vaccine development.
What is the potential long-term impact of this contract on the availability and affordability of pediatric vaccines?
This contract's primary goal is R&D, not immediate vaccine production or distribution. Its long-term impact on availability and affordability will depend on the success of the research, subsequent development, regulatory approval, and manufacturing scale-up. Government investment can accelerate these processes, potentially leading to future benefits.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology
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: Novartis AG (UEI: 485609796)
Address: 4560 HORTON ST, EMERYVILLE, CA, 94608
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,998,636,359
Exercised Options: $3,120,674,191
Current Obligation: $21,455,940
Timeline
Start Date: 2010-04-01
Current End Date: 2011-03-31
Potential End Date: 2011-03-31 00:00:00
Last Modified: 2015-08-07
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