HHS awards $555M contract for childhood vaccines to GlaxoSmithKline, LLC
Contract Overview
Contract Amount: $554,783,256 ($554.8M)
Contractor: Glaxosmithkline, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2012-04-01
End Date: 2013-03-31
Contract Duration: 364 days
Daily Burn Rate: $1.5M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: VACCCINE FOR CHILDREN 2012
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709
Plain-Language Summary
Department of Health and Human Services obligated $554.8 million to GLAXOSMITHKLINE, LLC for work described as: VACCCINE FOR CHILDREN 2012 Key points: 1. Significant investment in public health through vaccine procurement. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract value is substantial, requiring careful monitoring for efficiency. 4. Sector focus on pharmaceuticals and healthcare is critical for national well-being.
Value Assessment
Rating: good
The contract value of $555 million for vaccines appears reasonable given the scale and importance of public health initiatives. Benchmarking against similar large-scale pharmaceutical procurements would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives the best value. This method allows multiple qualified vendors to bid, fostering a robust price discovery process.
Taxpayer Impact: The procurement of vaccines through competitive bidding aims to maximize taxpayer value by securing necessary medical supplies at optimal prices, contributing to public health at a lower cost.
Public Impact
Ensures availability of critical vaccines for children, supporting public health. Supports the pharmaceutical manufacturing sector and related supply chains. Potential for long-term health benefits by preventing childhood diseases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in pharmaceutical markets.
- Supply chain vulnerabilities for critical medical supplies.
- Ensuring equitable distribution of vaccines.
Positive Signals
- Commitment to childhood immunization programs.
- Use of full and open competition for procurement.
- Contract awarded to a reputable pharmaceutical manufacturer.
Sector Analysis
This contract falls within the pharmaceutical preparation manufacturing sector, a critical area for public health. Spending in this sector is often driven by public health needs, research and development, and disease prevention initiatives.
Small Business Impact
While this specific contract was awarded to a large corporation, the broader pharmaceutical sector involves numerous small and medium-sized businesses in research, development, and supply chain roles. Government contracts can sometimes include provisions for subcontracting to smaller entities.
Oversight & Accountability
The Centers for Disease Control and Prevention (CDC) is responsible for overseeing this contract. Robust oversight is crucial to ensure timely delivery, quality control, and adherence to contract terms, safeguarding taxpayer funds and public health.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for price increases in future contract renewals.
- Dependence on a single manufacturer for a critical supply.
- Ensuring equitable distribution across all regions.
- Monitoring for adverse event reporting and vaccine safety.
Tags
pharmaceutical-preparation-manufacturing, department-of-health-and-human-services, nc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $554.8 million to GLAXOSMITHKLINE, LLC. VACCCINE FOR CHILDREN 2012
Who is the contractor on this award?
The obligated recipient is GLAXOSMITHKLINE, LLC.
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 $554.8 million.
What is the period of performance?
Start: 2012-04-01. End: 2013-03-31.
What is the projected impact of this vaccine procurement on childhood immunization rates?
This $555 million contract is expected to significantly bolster the supply of essential vaccines for children, directly supporting national immunization programs. By ensuring adequate availability, it aims to maintain or increase childhood immunization rates, thereby preventing outbreaks of preventable diseases and contributing to long-term public health outcomes.
What are the primary risks associated with a large-scale vaccine procurement contract?
Key risks include potential supply chain disruptions, manufacturing quality control issues, and the emergence of new public health threats requiring different vaccine formulations. Market volatility in pharmaceutical pricing and the potential for underutilization if demand forecasts are inaccurate also pose significant risks that require careful management and contingency planning.
How does this contract contribute to the overall effectiveness of public health initiatives?
This contract is fundamental to the effectiveness of public health initiatives by guaranteeing the availability of life-saving vaccines for children. It ensures that public health agencies can meet demand, prevent disease spread, and achieve herd immunity targets, thereby reducing healthcare burdens and improving overall population health outcomes.
Industry Classification
NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Pharmaceutical Preparation 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: Glaxosmithkline PLC (UEI: 238980408)
Address: 5 MOORE DR, RESEARCH TRIANGLE PARK, NC, 27709
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $741,813,000
Exercised Options: $741,813,000
Current Obligation: $554,783,256
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2012-04-01
Current End Date: 2013-03-31
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2021-03-12
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