HHS Awards $136M Pediatric Flu Vaccine Contract to Sanofi
Contract Overview
Contract Amount: $136,358,366 ($136.4M)
Contractor: Sanofi Vaccines US Inc.
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: $315.6K/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 PEDIATRIC FLU
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $136.4 million to SANOFI VACCINES US INC. for work described as: IGF::OT::IGF 2017 PEDIATRIC FLU Key points: 1. Contract awarded to a single vendor, Sanofi Vaccines US Inc. 2. Full and open competition was utilized for this procurement. 3. The contract value is substantial at over $136 million. 4. The product is a biological vaccine, indicating a healthcare sector focus.
Value Assessment
Rating: good
The contract value of $136M for pediatric flu vaccines appears reasonable given the scale and duration. Benchmarking against similar large-scale vaccine procurements would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust process for soliciting bids and ensuring fair market pricing. This method is expected to yield competitive pricing for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure the best possible price for essential pediatric flu vaccines.
Public Impact
Ensures supply of critical pediatric flu vaccines for public health. Supports the Centers for Disease Control and Prevention's immunization programs. Impacts pharmaceutical manufacturers and the broader healthcare supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals.
- Dependence on a single supplier for a critical vaccine.
Positive Signals
- Successful execution of full and open competition.
- Secures a vital public health resource.
Sector Analysis
This contract falls within the Healthcare sector, specifically biological product manufacturing for vaccines. Spending benchmarks for similar large-scale vaccine procurements would be relevant for a deeper analysis.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Centers for Disease Control and Prevention, a component of HHS, suggesting established oversight mechanisms. Monitoring contract performance and adherence to terms is crucial.
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 single-source dependency in future
- Price volatility in biological product manufacturing
- Supply chain vulnerability for critical vaccines
- Long-term cost-effectiveness requires ongoing monitoring
Tags
biological-product-except-diagnostic-man, department-of-health-and-human-services, ga, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $136.4 million to SANOFI VACCINES US INC.. IGF::OT::IGF 2017 PEDIATRIC FLU
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 $136.4 million.
What is the period of performance?
Start: 2016-12-23. End: 2018-02-28.
What is the historical pricing trend for pediatric flu vaccines procured by the government?
Analyzing historical pricing data for pediatric flu vaccines is essential to determine if the current $136M award represents a favorable price point. Trends influenced by manufacturing costs, market competition, and public health demand can significantly impact pricing over time. Understanding these trends helps assess the long-term value and potential for cost savings in future procurements.
What are the risks associated with relying on a single supplier for pediatric flu vaccines?
Reliance on a single supplier, even after full and open competition, carries risks such as supply chain disruptions due to unforeseen events (e.g., manufacturing issues, natural disasters), potential for price escalation in subsequent contracts, and reduced leverage in negotiations. Diversifying suppliers or ensuring robust contingency plans can mitigate these risks and ensure consistent availability of essential vaccines.
How effectively does this contract support the CDC's public health mission for influenza prevention?
This contract directly supports the CDC's mission by securing a substantial supply of pediatric flu vaccines, crucial for protecting a vulnerable population. The firm fixed-price structure provides cost certainty. However, effectiveness also depends on timely delivery, vaccine efficacy, and uptake rates, which require ongoing monitoring and public health initiatives.
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
Solicitation ID: 2016N18008
Offers Received: 3
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: $540,787,385
Exercised Options: $540,787,385
Current Obligation: $136,358,366
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2016-12-23
Current End Date: 2018-02-28
Potential End Date: 2018-02-28 00:00:00
Last Modified: 2022-04-13
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