HHS awards $640M contract to Sanofi for childhood vaccines

Contract Overview

Contract Amount: $639,954,722 ($640.0M)

Contractor: Sanofi Vaccines US Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2011-04-01

End Date: 2012-03-31

Contract Duration: 365 days

Daily Burn Rate: $1.8M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: VACCINE FOR CHILDREN 2011

Place of Performance

Location: SWIFTWATER, MONROE County, PENNSYLVANIA, 18370

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $640.0 million to SANOFI VACCINES US INC. for work described as: VACCINE FOR CHILDREN 2011 Key points: 1. Significant investment in public health infrastructure. 2. Sole awardee suggests potential lack of market competition or specialized product. 3. Risk of supply chain disruption if Sanofi faces production issues. 4. Healthcare sector spending on essential medical supplies.

Value Assessment

Rating: good

The contract value of $640M over one year is substantial for vaccine procurement. Benchmarking against similar large-scale vaccine contracts would be necessary to fully assess pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors could have bid. The fixed-price structure aims to control costs, but the final price depends on the awarded bid.

Taxpayer Impact: This spending directly supports the CDC's immunization programs, ensuring access to vital vaccines for children, thus benefiting public health and reducing long-term healthcare costs.

Public Impact

Ensures availability of critical vaccines for childhood immunization programs. Supports public health goals by preventing the spread of infectious diseases. Potential impact on vaccine pricing and availability for other purchasers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Dependence on a single supplier for a critical public health product.
Potential for price increases in future contract renewals.
Vulnerability to global supply chain disruptions affecting vaccine production.

Positive Signals

Secures a large quantity of essential vaccines.
Utilizes a firm fixed-price contract to manage costs.
Supports a key government agency's mission.

Sector Analysis

This contract falls within the healthcare sector, specifically biological product manufacturing. Spending on vaccines is a significant component of public health budgets, aimed at disease prevention and population health.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. Large-scale pharmaceutical contracts often involve major manufacturers.

Oversight & Accountability

The contract was awarded by the CDC, a well-established agency with oversight capabilities. The firm fixed-price nature provides some cost control, but ongoing monitoring of delivery and quality is crucial.

Related Government Programs

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

Risk Flags

Sole awardee risk
Supply chain vulnerability
Potential for price escalation in future
Limited visibility into competitive bidding details

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $640.0 million to SANOFI VACCINES US INC.. VACCINE FOR CHILDREN 2011

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 $640.0 million.

What is the period of performance?

Start: 2011-04-01. End: 2012-03-31.

What was the competitive landscape during the bidding process for this vaccine contract?

While awarded under 'full and open competition,' the specific number of bidders and the details of the competitive process are not provided. Further investigation into the solicitation documents would reveal the extent of competition and the rationale behind Sanofi's selection, especially if they were the sole responsive bidder or offered the best value.

What are the potential risks associated with relying on a single supplier for childhood vaccines?

Reliance on a single supplier, even if competitively selected, poses risks such as supply chain disruptions due to manufacturing issues, natural disasters, or geopolitical events. It can also limit negotiating power for future contracts and potentially stifle innovation if alternative suppliers are discouraged from entering the market.

How does this contract contribute to the overall effectiveness of the national childhood immunization program?

This contract is crucial for ensuring the consistent availability of essential vaccines, directly supporting the effectiveness of the national immunization program. By securing a large supply, it helps maintain high vaccination rates, thereby preventing outbreaks of preventable diseases and protecting child health.

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: $2,312,517,012

Exercised Options: $2,312,517,012

Current Obligation: $639,954,722

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline