HHS Awards $33M Task Order to GlaxoSmithKline for Biological Product Manufacturing
Contract Overview
Contract Amount: $32,999,804 ($33.0M)
Contractor: Glaxosmithkline, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2014-09-23
End Date: 2015-09-22
Contract Duration: 364 days
Daily Burn Rate: $90.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: TASK ORDER 0002
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709
Plain-Language Summary
Department of Health and Human Services obligated $33.0 million to GLAXOSMITHKLINE, LLC for work described as: TASK ORDER 0002 Key points: 1. Significant award of $33M to a major pharmaceutical company. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, given the specialized nature of biological product manufacturing. 4. Sector is healthcare/pharmaceuticals, a critical area for public health.
Value Assessment
Rating: good
The award amount of $33M for a one-year duration appears reasonable for specialized biological product manufacturing. Benchmarking against similar contracts would provide a more precise assessment, but the firm fixed-price structure suggests defined cost expectations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of qualified vendors. This method is expected to yield a fair market price.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.
Public Impact
Ensures supply of critical biological products for public health initiatives. Supports a major pharmaceutical manufacturer, potentially impacting the broader healthcare supply chain. Award contributes to the CDC's mission of disease prevention and control.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals.
- Dependence on a single supplier for critical products.
Positive Signals
- Successful execution of a complex manufacturing task.
- Competitive award process.
- Supports a key government agency's mission.
Sector Analysis
This contract falls within the pharmaceutical manufacturing sector, which is characterized by high R&D costs, stringent regulatory requirements, and significant market competition. Spending in this area is crucial for public health preparedness and response.
Small Business Impact
The data indicates this contract was awarded to GlaxoSmithKline, LLC, a large business. There is no direct indication of small business participation in this specific task order, which is common for large-scale, specialized manufacturing contracts.
Oversight & Accountability
The award was made by the Centers for Disease Control and Prevention (CDC), a key agency within HHS. Oversight would focus on contract performance, quality of biological products, and adherence to the firm fixed-price 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
- Contract duration is one year, requiring potential future re-competition.
- Awardee is a large business, potentially limiting small business subcontracting opportunities.
- Specialized nature of biological product manufacturing.
- Firm Fixed Price contract type can limit flexibility if unforeseen issues arise.
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $33.0 million to GLAXOSMITHKLINE, LLC. TASK ORDER 0002
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 $33.0 million.
What is the period of performance?
Start: 2014-09-23. End: 2015-09-22.
What is the specific type of biological product being manufactured and its criticality to public health?
The specific biological product is not detailed in the provided data, but it falls under the 'Biological Product (except Diagnostic) Manufacturing' NAICS code. Its criticality would be determined by its role in disease prevention, treatment, or public health surveillance, as managed by the CDC. Further details would be needed to assess its precise impact.
How does the awarded price compare to industry benchmarks for similar biological product manufacturing contracts?
Without specific details on the product and its complexity, a direct benchmark is difficult. However, the $33M award for a one-year duration, under full and open competition, suggests a potentially competitive price. A thorough analysis would require comparing the per-unit cost or total contract value against similar government or commercial contracts for comparable biological products.
What are the potential risks associated with relying on GlaxoSmithKline for this biological product manufacturing?
Risks include potential supply chain disruptions, quality control issues, or future price escalations if follow-on contracts are not competitively re-bid. Dependence on a single large manufacturer could also pose a risk if alternative suppliers are not readily available or qualified for specialized production.
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: 2
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: $32,999,804
Exercised Options: $32,999,804
Current Obligation: $32,999,804
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: HHSD200201460289I
IDV Type: IDC
Timeline
Start Date: 2014-09-23
Current End Date: 2015-09-22
Potential End Date: 2015-09-22 00:00:00
Last Modified: 2018-09-28
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