HHS Awards $90.9M Contract for Adult Flu Vaccine to GlaxoSmithKline

Contract Overview

Contract Amount: $90,859,489 ($90.9M)

Contractor: Glaxosmithkline, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2016-12-23

End Date: 2018-02-28

Contract Duration: 432 days

Daily Burn Rate: $210.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF:OT:IGF 2017 ADULT FLU

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $90.9 million to GLAXOSMITHKLINE, LLC for work described as: IGF:OT:IGF 2017 ADULT FLU Key points: 1. Significant award for adult flu vaccine supply. 2. GlaxoSmithKline is a major pharmaceutical player. 3. Potential risk related to single-source supplier reliance. 4. Healthcare sector spending on essential vaccines.

Value Assessment

Rating: good

The contract value of $90.9M over approximately 1.5 years appears reasonable for a large-scale vaccine procurement. Benchmarking against similar large-volume vaccine 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, suggesting a competitive bidding process. This method is expected to yield fair pricing and good value for the government.

Taxpayer Impact: This contract ensures the availability of essential flu vaccines, contributing to public health and potentially reducing broader healthcare costs associated with widespread influenza.

Public Impact

Ensures availability of critical adult flu vaccine. Supports public health initiatives against influenza. Potential impact on vaccine market competition. Contributes to national health security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single supplier for a critical vaccine.
Potential for price increases in future contract renewals.

Positive Signals

Awarded through full and open competition.
Secures a vital public health resource.

Sector Analysis

This contract falls within the pharmaceutical manufacturing sector, specifically for vaccines. Spending in this area is crucial for public health preparedness and response to seasonal and pandemic threats.

Small Business Impact

The data indicates this contract was not awarded to small businesses. Larger pharmaceutical companies typically dominate vaccine manufacturing due to scale and R&D requirements.

Oversight & Accountability

The contract was awarded by the Centers for Disease Control and Prevention (CDC), a key agency for public health. Standard oversight mechanisms for federal contracts would apply.

Related Government Programs

Medicinal and Botanical Manufacturing
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Potential for single-source dependency in future
Lack of small business participation
Firm Fixed Price contract may not capture volume efficiencies
Contract duration is relatively short

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $90.9 million to GLAXOSMITHKLINE, LLC. IGF:OT:IGF 2017 ADULT 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 $90.9 million.

What is the period of performance?

Start: 2016-12-23. End: 2018-02-28.

What is the historical pricing trend for this specific adult flu vaccine under previous contracts?

Analyzing historical pricing data for this adult flu vaccine is crucial to assess if the current $90.9 million award represents a fair market value. Understanding past price fluctuations, volume discounts, and any changes in manufacturing costs can reveal whether the government is achieving optimal value or if prices have escalated beyond reasonable expectations.

What are the risks associated with relying on GlaxoSmithKline for this critical vaccine supply?

Reliance on a single supplier like GlaxoSmithKline for a critical vaccine introduces supply chain risks. Disruptions due to manufacturing issues, geopolitical events, or the supplier prioritizing other markets could lead to shortages. Furthermore, it limits the government's leverage in future price negotiations, potentially increasing long-term costs.

How effectively does this contract contribute to the CDC's overall influenza prevention strategy?

This contract is fundamental to the CDC's influenza prevention strategy by ensuring a consistent and adequate supply of adult flu vaccines. By securing this supply through a competitive process, the CDC can meet public health demands, support vaccination campaigns, and mitigate the impact of seasonal flu, thereby contributing significantly to national health security.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › Medicinal and Botanical Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2016N18008

Offers Received: 3

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: $102,189,000

Exercised Options: $102,189,000

Current Obligation: $90,859,489

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline