HHS awarded Pfizer $1.04B for children's vaccines in 2011 under full and open competition
Contract Overview
Contract Amount: $1,040,375,444 ($1.0B)
Contractor: Pfizer 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: $2.9M/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: COLLEGEVILLE, MONTGOMERY County, PENNSYLVANIA, 19426
Plain-Language Summary
Department of Health and Human Services obligated $1.04 billion to PFIZER INC. for work described as: VACCINE FOR CHILDREN 2011 Key points: 1. Significant investment in pediatric health with a major pharmaceutical supplier. 2. Pfizer Inc. was the sole contractor for this specific vaccine procurement. 3. Contract awarded in 2011 for a one-year duration. 4. The contract type was Firm Fixed Price, indicating predictable costs.
Value Assessment
Rating: good
The contract value of $1.04 billion for a year's supply of children's vaccines is substantial. Benchmarking against similar large-scale pharmaceutical procurements would be necessary for a precise value assessment, but it appears to be in line with major public health initiatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method is generally expected to yield competitive pricing and ensure the government receives the best value.
Taxpayer Impact: Taxpayers funded a critical public health initiative, ensuring access to essential vaccines for children.
Public Impact
Ensured availability of vital vaccines for the pediatric population. Supported public health goals by procuring essential medical supplies. Demonstrates government's role in securing necessary healthcare resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in subsequent years if competition diminishes.
- Dependence on a single supplier for a critical vaccine.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
The pharmaceutical and biotechnology sector is characterized by high R&D costs and significant regulatory oversight. Government contracts are crucial for ensuring public access to essential medicines and vaccines, often representing a substantial portion of a company's revenue.
Small Business Impact
This contract primarily involved a large, established pharmaceutical company (Pfizer Inc.). There is no indication of significant involvement or subcontracting opportunities for small businesses in this specific procurement.
Oversight & Accountability
The contract was managed by the Centers for Disease Control and Prevention (CDC), a key agency within HHS responsible for public health. Standard government oversight mechanisms would apply to ensure contract compliance and delivery.
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 supplier for the specific vaccine.
- Long-term reliance on pharmaceutical companies.
- Potential for price escalation in future contracts.
- Public health impact tied to a single contract.
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, pa, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $1.04 billion to PFIZER INC.. VACCINE FOR CHILDREN 2011
Who is the contractor on this award?
The obligated recipient is PFIZER 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 $1.04 billion.
What is the period of performance?
Start: 2011-04-01. End: 2012-03-31.
What was the specific type of vaccine procured and its public health significance at the time?
The data does not specify the exact vaccine. However, given the substantial value and the procuring agency (CDC), it likely pertained to a widely administered vaccine crucial for child development and disease prevention. Such procurements are vital for maintaining herd immunity and protecting vulnerable populations from serious infectious diseases.
Were there any challenges or issues encountered during the contract performance period?
The provided data does not detail any performance issues or challenges during the contract's execution from April 2011 to March 2012. Standard contract management by the CDC would have addressed any deviations from the agreed-upon terms or delivery schedules.
How did the final cost compare to the initial budget or estimated value for this procurement?
The contract was awarded at a value of $1,040,375,443.50. As it was a Firm Fixed Price contract, this represents the agreed-upon cost. Without pre-award budget estimates, a direct comparison is not possible, but the award amount itself serves as the benchmark for this specific procurement.
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: Pfizer Inc (UEI: 001326495)
Address: 33 MOREHALL RD, MALVERN, PA, 19355
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,745,405,550
Exercised Options: $1,745,405,550
Current Obligation: $1,040,375,444
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2011-04-01
Current End Date: 2012-03-31
Potential End Date: 2012-03-31 00:00:00
Last Modified: 2017-10-18
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