HHS Spent $147M on Pediatric Flu Vaccines in 2014-2015 via Full and Open Competition
Contract Overview
Contract Amount: $147,129,998 ($147.1M)
Contractor: Sanofi Vaccines US Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2014-02-05
End Date: 2015-02-28
Contract Duration: 388 days
Daily Burn Rate: $379.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: PEDIATRIC FLU VACCINES 2014-2015
Place of Performance
Location: SWIFTWATER, MONROE County, PENNSYLVANIA, 18370
Plain-Language Summary
Department of Health and Human Services obligated $147.1 million to SANOFI VACCINES US INC. for work described as: PEDIATRIC FLU VACCINES 2014-2015 Key points: 1. Total spending reached $147.2 million for the 2014-2015 pediatric flu vaccine season. 2. Sanofi Pasteur US Inc. was the sole awardee, indicating a concentrated market for this specific vaccine. 3. The contract was awarded under full and open competition, suggesting a robust bidding process. 4. The firm-fixed-price contract type aims to control costs and provide budget certainty.
Value Assessment
Rating: good
The $147.2 million awarded for pediatric flu vaccines appears reasonable given the scale of national immunization programs. Benchmarking against other large-scale vaccine procurements would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing. However, the single awardee suggests that only one entity met the specific requirements or offered the most advantageous proposal.
Taxpayer Impact: Taxpayer funds were used to procure essential public health resources, with competition aiming to ensure value for money.
Public Impact
Ensures availability of critical pediatric flu vaccines for the 2014-2015 season. Supports public health initiatives to combat influenza, particularly in vulnerable child populations. Procurement process aimed for cost-effectiveness through competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Market concentration with a single awardee for a critical vaccine.
- Potential for future price increases if competition diminishes.
Positive Signals
- Full and open competition utilized.
- Firm-fixed-price contract provides cost certainty.
- Procurement supports a vital public health need.
Sector Analysis
This procurement falls within the Pharmaceutical Preparation Manufacturing sector. Spending on vaccines is a significant component of public health budgets, driven by seasonal demand and disease prevention strategies.
Small Business Impact
No specific information is available regarding small business participation in this contract. Large-scale vaccine procurement often involves major pharmaceutical manufacturers, potentially limiting direct involvement for smaller entities.
Oversight & Accountability
The Centers for Disease Control and Prevention (CDC) managed this procurement. Standard government contracting oversight mechanisms would apply to ensure compliance and performance.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Sole awardee despite open competition.
- Lack of detailed cost breakdown.
- Limited visibility into specific performance metrics.
- Potential for supply chain disruptions if the sole provider faces issues.
Tags
pharmaceutical-preparation-manufacturing, department-of-health-and-human-services, pa, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $147.1 million to SANOFI VACCINES US INC.. PEDIATRIC FLU VACCINES 2014-2015
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 $147.1 million.
What is the period of performance?
Start: 2014-02-05. End: 2015-02-28.
What was the per-unit cost of the pediatric flu vaccines under this contract?
The provided data does not include the quantity of vaccines procured, making it impossible to calculate a precise per-unit cost. The total award was $147.2 million. Further analysis would require the number of vaccine doses purchased to establish a benchmark against industry standards or historical pricing.
What were the specific criteria that led to only one awardee despite full and open competition?
While the contract was open to all eligible bidders, the specific technical requirements, manufacturing capabilities, regulatory approvals, and pricing proposals likely favored Sanofi Pasteur US Inc. The CDC would have evaluated proposals based on factors outlined in the solicitation, leading to a single best-value determination.
How does the $147.2 million spending compare to previous or subsequent pediatric flu vaccine procurements?
Without data on prior or subsequent years' procurements, a direct comparison is not possible. However, $147.2 million represents a substantial investment in public health. Analyzing trends over several flu seasons would reveal if this spending level is consistent, increasing, or decreasing.
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
Solicitation ID: 2013N15756
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: $326,449,283
Exercised Options: $326,449,283
Current Obligation: $147,129,998
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2014-02-05
Current End Date: 2015-02-28
Potential End Date: 2015-02-28 00:00:00
Last Modified: 2022-08-31
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