HHS CDC Awards $66.4M Firm Fixed Price Task Order to GlaxoSmithKline for Biological Product Manufacturing
Contract Overview
Contract Amount: $66,366,187 ($66.4M)
Contractor: Glaxosmithkline, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2015-03-19
End Date: 2015-09-30
Contract Duration: 195 days
Daily Burn Rate: $340.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: TASK ORDER 0003
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709
Plain-Language Summary
Department of Health and Human Services obligated $66.4 million to GLAXOSMITHKLINE, LLC for work described as: TASK ORDER 0003 Key points: 1. Significant award for biological product manufacturing, indicating demand for specialized production capabilities. 2. Competition was full and open, suggesting a competitive market for these services. 3. The award value is substantial, requiring careful monitoring for efficiency and value. 4. Focus on biological products highlights a critical area within public health supply chains.
Value Assessment
Rating: good
The award value of $66.4M for a 195-day duration appears reasonable given the specialized nature of biological product manufacturing. Benchmarking against similar large-scale manufacturing contracts would provide further context.
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. The firm fixed price structure further incentivizes cost control by the contractor.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential biological product manufacturing.
Public Impact
Ensures supply of critical biological products for public health initiatives. Supports advanced manufacturing capabilities within the pharmaceutical sector. Potential impact on availability and cost of essential medical supplies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if production challenges arise.
- Dependence on a single supplier for a critical task order.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type.
Sector Analysis
This award falls within the healthcare and pharmaceutical manufacturing sector, specifically for biological products. Spending in this area is often driven by public health needs and R&D advancements.
Small Business Impact
The data does not indicate any specific set-aside for small businesses, suggesting large business participation. Further analysis would be needed to determine the extent of small business subcontracting.
Oversight & Accountability
Oversight by the Centers for Disease Control and Prevention (CDC) is crucial to ensure the quality, timely delivery, and cost-effectiveness of the biological products manufactured under this task order.
Related Government Programs
- Biological Product (except Diagnostic) Manufacturing
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for supply chain disruptions.
- Risk of product quality issues.
- Dependence on contractor's manufacturing capacity.
- Price volatility for raw materials.
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 $66.4 million to GLAXOSMITHKLINE, LLC. TASK ORDER 0003
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 $66.4 million.
What is the period of performance?
Start: 2015-03-19. End: 2015-09-30.
What is the specific type of biological product being manufactured and its criticality to CDC's mission?
The specific biological product is not detailed in the provided data. However, given the award is to GlaxoSmithKline, a major pharmaceutical company, and managed by the CDC, it is likely a vaccine, therapeutic agent, or diagnostic component critical for disease prevention, treatment, or surveillance. Understanding the product's role is key to assessing the value and risk associated with this significant investment.
How does the per-unit cost of this biological product compare to similar products manufactured under different contract types or by other agencies?
Without specific unit cost data or benchmarks for comparable biological products, a direct comparison is not possible. The firm fixed price nature of this award suggests a pre-determined cost, but its reasonableness hinges on the complexity of manufacturing and market conditions. Further investigation into industry benchmarks for similar biological product manufacturing would be necessary to assess cost-effectiveness.
What mechanisms are in place to ensure the quality and efficacy of the manufactured biological products, given the short delivery period?
The Centers for Disease Control and Prevention (CDC) likely employs rigorous quality assurance and quality control protocols, including inspections and testing, to ensure the manufactured biological products meet stringent standards for efficacy and safety. The firm fixed price contract may include performance incentives or penalties related to quality and delivery timelines, managed through contract oversight.
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: $66,366,187
Exercised Options: $66,366,187
Current Obligation: $66,366,187
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: 2015-03-19
Current End Date: 2015-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2018-09-28
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