HHS awards $122M for Pediatric Flu Vaccine to Sanofi, highlighting firm fixed price contract

Contract Overview

Contract Amount: $122,333,428 ($122.3M)

Contractor: Sanofi Vaccines US Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2011-03-07

End Date: 2012-02-29

Contract Duration: 359 days

Daily Burn Rate: $340.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PEDIATRIC FLU VACCINCE CONTRACT

Place of Performance

Location: SWIFTWATER, MONROE County, PENNSYLVANIA, 18370

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $122.3 million to SANOFI VACCINES US INC. for work described as: PEDIATRIC FLU VACCINCE CONTRACT Key points: 1. Contract Value: $122.3 million awarded for pediatric flu vaccines. 2. Competition: Full and open competition was utilized. 3. Risk: Biological product manufacturing carries inherent risks. 4. Sector: Healthcare and pharmaceutical spending.

Value Assessment

Rating: good

The $122.3 million contract for pediatric flu vaccines appears reasonable given the nature of biological product manufacturing and the firm fixed price structure, which shifts risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, suggesting a robust price discovery process. This method aims to secure the best value for the government by allowing multiple qualified vendors to bid.

Taxpayer Impact: The use of full and open competition and a firm fixed price contract aims to ensure taxpayer funds are used efficiently for essential public health supplies.

Public Impact

Ensures availability of critical pediatric flu vaccines for public health. Supports vaccine manufacturing capabilities within the US. Contributes to disease prevention efforts for a vulnerable population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions in vaccine manufacturing.
Reliance on a single contractor for a specific product.

Positive Signals

Firm fixed price contract limits cost overruns.
Full and open competition promotes market efficiency.

Sector Analysis

This contract falls within the healthcare and pharmaceutical sector, specifically for biological product manufacturing. Spending benchmarks for such contracts can vary widely based on product type, volume, and research intensity.

Small Business Impact

The data does not indicate if small businesses were involved in this specific contract award. Further analysis would be needed to determine their participation or subcontracting opportunities.

Oversight & Accountability

The contract was awarded by the Centers for Disease Control and Prevention (CDC), a key agency within HHS responsible for public health. Oversight would focus on delivery, quality, and adherence to contract terms.

Related Government Programs

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

Risk Flags

Potential for supply chain disruptions.
Dependence on contractor's manufacturing capacity.
Biological product manufacturing inherent risks.
Flu vaccine demand fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $122.3 million to SANOFI VACCINES US INC.. PEDIATRIC FLU VACCINCE 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 $122.3 million.

What is the period of performance?

Start: 2011-03-07. End: 2012-02-29.

What is the historical pricing trend for pediatric flu vaccines from this contractor or similar ones?

Historical pricing data would be crucial to assess if the $122.3 million award represents a fair market value over time. Benchmarking against previous contracts for similar quantities and vaccine types, considering inflation and R&D costs, would provide a clearer picture of value for money.

What are the specific risks associated with Sanofi's manufacturing process for this vaccine?

Risks could include manufacturing delays, quality control issues, or unforeseen biological challenges. The firm fixed price contract mitigates financial risk for the government, but operational risks remain with the contractor, potentially impacting vaccine availability.

How effective has this contract been in ensuring adequate supply and distribution of pediatric flu vaccines?

Effectiveness is measured by the timely delivery of quality vaccines meeting demand. Post-award analysis of delivery performance, vaccine efficacy in the field, and public health outcomes related to flu prevention would indicate the contract's success.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Genzyme Corporation

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: $330,039,210

Exercised Options: $330,039,210

Current Obligation: $122,333,428

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline