HHS awards $56M for pharmaceutical prep manufacturing to GlaxoSmithKline, LLC
Contract Overview
Contract Amount: $55,966,179 ($56.0M)
Contractor: Glaxosmithkline, LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2015-12-18
End Date: 2017-02-28
Contract Duration: 438 days
Daily Burn Rate: $127.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: IGF::OT::IGF 2016 PED FLU
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709
Plain-Language Summary
Department of Health and Human Services obligated $56.0 million to GLAXOSMITHKLINE, LLC for work described as: IGF::OT::IGF 2016 PED FLU Key points: 1. Contract awarded to a single, large pharmaceutical company. 2. The contract value is substantial, indicating significant demand for the product. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is pharmaceutical preparation manufacturing, a critical area for public health.
Value Assessment
Rating: good
The contract value of $55.9M over 438 days suggests a reasonable price for pharmaceutical preparations. Benchmarking against similar large-scale pharmaceutical contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which typically leads to better price discovery and potentially lower costs for the government. The award to GlaxoSmithKline, LLC indicates they were the most competitive bidder.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it aims to secure the best value through a competitive process.
Public Impact
Ensures supply of essential pharmaceutical preparations for public health initiatives. Supports a major pharmaceutical manufacturer, potentially impacting employment and innovation. The contract duration of 438 days suggests a medium-term need for these preparations.
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 pharmaceutical needs.
Positive Signals
- Utilized full and open competition.
- Awarded to a reputable pharmaceutical manufacturer.
Sector Analysis
The pharmaceutical preparation manufacturing sector is highly regulated and characterized by significant R&D investment and complex supply chains. Spending in this sector is crucial for public health and national security.
Small Business Impact
This contract was awarded to a large corporation, GlaxoSmithKline, LLC. There is no indication of small business participation in this specific award, which is common for large-scale pharmaceutical manufacturing contracts.
Oversight & Accountability
The contract was awarded by the Centers for Disease Control and Prevention (CDC), a key agency within HHS. Oversight would involve monitoring contract performance, delivery schedules, and quality of pharmaceutical preparations.
Related Government Programs
- Pharmaceutical Preparation Manufacturing
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Contract duration is relatively short (438 days).
- No small business participation noted.
- Specific product details are missing.
- Potential for future price escalation.
Tags
pharmaceutical-preparation-manufacturing, department-of-health-and-human-services, nc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $56.0 million to GLAXOSMITHKLINE, LLC. IGF::OT::IGF 2016 PED FLU
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 $56.0 million.
What is the period of performance?
Start: 2015-12-18. End: 2017-02-28.
What is the specific pharmaceutical preparation being procured and its criticality?
The specific pharmaceutical preparation is not detailed in the provided data. However, given the awarding agency (CDC), it is likely related to public health initiatives, potentially vaccines, treatments for infectious diseases, or other essential medical supplies. Its criticality would depend on its role in disease prevention or treatment.
How does the awarded price compare to market benchmarks for similar pharmaceutical preparations?
Without knowing the specific product, a direct market benchmark is difficult. However, the contract value of approximately $56 million over 1.3 years suggests a significant volume or high-value product. A detailed cost analysis comparing unit prices to industry averages for comparable items would be necessary for a thorough assessment.
What are the potential risks associated with relying on GlaxoSmithKline, LLC for this pharmaceutical preparation?
Potential risks include supply chain disruptions, manufacturing issues, or future price increases. Dependence on a single large supplier could also limit flexibility if alternative solutions are needed. The government should monitor supplier performance closely and consider contingency plans.
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: 2016N17632
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Glaxosmithkline PLC
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: $69,857,670
Exercised Options: $69,857,670
Current Obligation: $55,966,179
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2015-12-18
Current End Date: 2017-02-28
Potential End Date: 2017-02-28 00:00:00
Last Modified: 2023-09-05
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